1. SECDEF Corporate Fellows Program Final Report of the Secretary of Defense Corporate Fellows Program 2001 - 2002

2. SECDEF Corporate Fellows Program 2 2001 - 2002 Fellows CAPT Natalie Young-AranitaCisco Systems, Inc. San Jose, CA Col David Ziegler3M Company St. Paul, MN LTC June SellersMerck & Company, Inc. Whitehouse Station, NJ LtCol Clyde Woltman United Technologies Hartford, CT LTC Bob StanleySears, Roebuck & Company Hoffman Estates, IL Lt Col Linda MedlerOracle Corporation Reston, VA CDR Joe BeadlesAMS, Inc. Fairfax, VA

3. SECDEF Corporate Fellows Program 3 Agenda Background Common Observations/Recommendations Individual Experiences (time permitting)

4. SECDEF Corporate Fellows Program 4 SDCFP Background SECDEF concerns for future Service leaders – Open to organizational and operational change – Recognize opportunities made possible by info tech – Appreciate resulting revolutionary changes underway Affecting society and business now Affecting culture and operations of DoD in future Businesses outside DoD successful in: – Adapting to changing global environment – Exploiting information revolution – Structural reshaping/reorganizing – Developing innovative processes

5. SECDEF Corporate Fellows Program 5 SDCFP Organization Two officers from each Service – High flag/general officer potential – O-6 or O-5 – Senior Service College credit Eleven months at Sponsoring Company Group Education Permanent Staff – SDCFP Director, Admin Asst. – Net Assessment for oversight – National Defense University for Admin support

6. SECDEF Corporate Fellows Program 6 SDCFP Sponsors 01 - Prior – ABB, Accenture, Agilent Technologies, AMS, Cisco, DirecTV, Enron, FedEx, Hewlett-Packard, Human Genome Sciences, Lockheed Martin, Loral, McKinsey & Co., McDonnell Douglas, Microsoft, Mobil, Netscape, Oracle, Northrop Grumman, PricewaterhouseCoopers, Raytheon, Sarnoff, Sears, Southern Company, Sun Microsystems 01- 02 – AMS, Cisco, Merck, Oracle, United Technologies, 3M, Sears 02 – 03 – Boeing, FedEx, Pfizer, PricewaterhouseCoopers, Raytheon Aerospace, Southern Company, Sun Microsystems

7. SECDEF Corporate Fellows Program 7 SDCFP Results Program objectives fulfilled – Education, education, education – More Sponsors than Fellows available – Intra-group experience sharing Unique corporate experiences – Strong corporate support – Executive/operational level mix – Mergers/restructuring

8. SECDEF Corporate Fellows Program 8 SDCFP Products Report and Briefings directly to SecDef, others – Business insights relevant to DoD culture/operations – Recommended process/organization changes Build a cadre of future leaders who: – Understand more than the profession of arms – Understand adaptive and innovative business culture – Recognize organizational and operational opportunities – Understand skills required to implement change – Will motivate innovative changes throughout career

9. SECDEF Corporate Fellows Program 9 Agenda Background Common Observations/Recommendations Individual Experiences (time permitting)

10. SECDEF Corporate Fellows Program 10 Two Different Cultures... Corporate America Market-centric “war” footing “Bottom Line” urgency drives change across corporation Ruthless advocates for business efficiency & the customer Spontaneous, continuously evolving technology base Peacetime DOD Service-centric OT&E footing “Ambiguous Future” restrains rapid change across Services Moral advocates for mission effectiveness & the warrior Structured technology development, change by blocks... With Best Practices to Share

11. SECDEF Corporate Fellows Program 11 Areas of Interest Organizational Agility – Transformational Culture – Collaborative Teaming – The Power of Change Management Information Technology – Exploiting the Web – IT Role in Organizational Success Business Processes – Leveraging Size for Spend – Outsourcing – Supply Chain Management – Organizing for e-Business Transformation Human Capital – Talent and Performance Management – Efficient Employee/Customer Support

12. SECDEF Corporate Fellows Program 12 Organizational Agility Transformational Culture Corporate America uses culture to align the work force – “Change” and “continuous improvement” articulated as the norm – Individual performance plans linked to efficiency initiatives – Internal and external communications foster “buy-in” DoD should: – Develop & communicate unified vision, mission, and goals Develop in coordination with Service & Agency Heads Widely disseminate through all command levels Reinforce at every leadership contact with military/civilian workers – Identify and leverage ops/business best practices across DoD Form ad hoc teams to identify and benchmark Develop and submit process changes

13. SECDEF Corporate Fellows Program 13 Organizational Agility Transformational Culture (Cont) DoD should: – Reward performance that leads to efficiency Tie pay/promotions/awards to specific accomplishments TSP matching Funds and/or U.S. Savings Bonds Permit organizations to recoup dollars saved for future use – “Brand” DoD as an attractive industry partner Allow fair (market) profit that exceeds “hurdle rate” Share Risk--especially R&D Streamline bid/contract processes Adopt industry standards more aggressively Financial Management Auditing Contracting

14. SECDEF Corporate Fellows Program 14 Organizational Agility Collaborative Teaming Corporations balance power of teams with unity of effort – Ad hoc teams spontaneously collaborate at all levels – Teams increasingly extend outside of corporation DoD should: – Encourage cross-Service/Agency relationships to tackle issues Planning, Operations, Procurement Foster greater tolerance for “out of chain” communications Reward success – Communicate clear “guide stars” to align teams with vision – Develop network infrastructure to link teams and data sources – Introduce shared change management disciplines

15. SECDEF Corporate Fellows Program 15 Organizational Agility Change Management Corporate America driving agility/adaptability through formal change disciplines – Not just old initiatives with new face (i.e. TQM) – Common language and standardized tools DoD should: – Introduce a shared, formal change management discipline Six Sigma or equivalent Dedicated, fully resourced effort required Build momentum with low level demonstration effort Prospective Project - Travel Voucher Program – Include change management in Mil/Civ Professional Education – Champion and incentivize change--measure results Set organizational level objectives for change Tie individual performance plans/evals to change objectives

16. SECDEF Corporate Fellows Program 16 Information Technology (IT) Information Technology (IT) Exploiting the Web Leading companies run their businesses over the Web – Transformational cost efficiency and mission effectiveness DoD should: – Use Web for mission transactions, not just information On-line manuals for “plug & play” weapon systems check out On-line HR for self-help administrative processing Internet auctions for purchase of common supplies and equipment – Revamp the Virtual Pentagon architecture pilot program Single Pentagon IT infrastructure architecture Begin with e-mail networks, eliminate Service-unique systems Consolidate Pentagon IT under single joint system – Focus on new “end game” processes enabled by new IT Then buy IT to support

17. SECDEF Corporate Fellows Program 17 SECDEF Corporate Fellows Program Information Technology (IT) Information Technology (IT) Exploiting the Web (Cont) DoD should: – Migrate from client-server architecture Begin with common e-mail system—easiest to do Re-host interactive software applications Demand compliance with NSTISSP No. 11 security requirements Develop more reliable, redundant system architecture Revisit “best of breed” mindset to minimize integration costs Phase out legacy systems as appropriate Incrementally adopt a web-based e-business software suite Pick the “low-hanging fruit” i-Procurement, e-Travel, web-enabled training/education – Partner with IT industry to transform into an e-business Institute biometrics, consolidate databases, web-enable apps

18. SECDEF Corporate Fellows Program 18 Information Technology (IT) IT Role in Organizational Success Corporate America considers IT a “strategic spear” – A business enabler, not just automation support – Commits a significant portion of capital spending Transforming processes and leveraging technology DoD should: – Embrace spiral development for IT – Allocate share of “transformation” funding to IT – Make “operations” and “technology” equal requirement drivers IT a full partner in operations planning - not an afterthought Ensure better processes requiring IT to compete equally for dollars Give CIO a vote on formal requirements panels at all levels – Articulate IT vision and the road map to enable it Consider impact to IT road map when evaluating new weapons

19. SECDEF Corporate Fellows Program 19 Business Processes Outsourcing Corporate America divesting “non core” competencies – Strategic Business Process Outsourcing (BPO) alliances – Redirecting Capital & Resources to Core Businesses DoD should: – Continue to identify core competencies at all levels – Team with industry to provide non-core services Personnel administration Travel management Finance and accounting Education program administration Medical services (non-combat) Information Technology

20. SECDEF Corporate Fellows Program 20 Business Processes Leveraging Size for Spend Corporate America tackling procurement inefficiencies – Only 57% of purchasing optimized (Fortune 100 survey) – Pooling purchases – Partnering with small number of high-performing suppliers Better support and best price/value DoD should: – Fully exploit size to leverage spending for goods and services Establish more DoD-wide contracts Office supplies, CONUS ground transportation, strategic carriers, etc. Expand/better utilize Defense Logistics Agency’s e-Mall portal – Transform DLA From manager of supplies to manager of suppliers

21. SECDEF Corporate Fellows Program 21 Business Processes Leveraging Size for Spend (Cont) DoD should: – Centralize purchasing authority Defense Logistics Agency or Defense Contract Management Agency Non-standard (i.e., Service unique) purchases if fiscally justifiable – Stand up DoD-wide cost-reduction and procurement teams – Move to a common, DoD-wide electronic procurement engine Greatly expand on-line auctions DLA (or DCMA) Operates and maintains Trains Services and Agencies Services and Agencies use

22. SECDEF Corporate Fellows Program 22 Business Processes Supply Chain Management Corporate America cannot “beat” the competition alone – Strategic Alliances with their best Supply Chain organizations – Supply Chain Management brings better service at lower costs DoD should: – Adjust mindset from Logistics to Supply Chain Management Single Point of Contact, e.g., Defense Logistics Agency Exercise aggressive inventory control, reduce redundant inventory Reduce cycle times Partner with key suppliers – Adopt a Vendor Compliance Program Standards, certification, and training Enforcement mechanism Cost recovery

23. SECDEF Corporate Fellows Program 23 Business Processes Organizing e-Business Transformation Corporations view IT as a strategic advantage – No longer just a service provider – CIO a full business leadership participant – IT identifies opportunities DoD should: – Designate office responsible for e-Business transformation – Give DoD CIO full authority to: Set and enforce DoD-wide standards and protocols Approve Service IT programs (including funding) Develop and implement shared services e-business model – Give Service CIO’s funding authority for all IT program aspects – Strengthen Business Initiatives Council – SDCFP link

24. SECDEF Corporate Fellows Program 24 Human Capital Talent & Performance Management Corporations raising personnel performance at all levels – Performance management, training and education DoD should: – Target “satisfactory” low performers for coaching and mentoring – Permit dual tracks for leaders/managers & technical specialists – Craft e-Learning partnerships with civilian education institutions DoD-wide programs… not service specific Include “Trades” and certification programs – Address “Life after the military…” to enhance retention/recruiting Web-based DoD-wide placement assistance program marineforlife.com as model DoD-wide program for non-job related training and certification

25. SECDEF Corporate Fellows Program 25 Human Capital Efficient Employee/Customer Support Corporations embracing Shared Service Model – Reduce redundancy, gain productivity, improve service DoD should: – Identify DoD-wide common processes fitting Shared Service Model Human resources, legal, health care, supply chain, IT, Finance Aggressively web-enable – Minimize customization of COTS solutions – Develop IT solutions that enable process changes Gain full benefit, not just smarter typewriters

26. SECDEF Corporate Fellows Program 26 Agenda Background Common Observations/Recommendations Individual Experiences (time permitting)

27. SECDEF Corporate Fellows Program 27 SECDEF Corporate Fellows Program Cisco Systems, Inc. World leader in Internet equipment and utilization – Annual revenues: FY01 $22.2B – Employees: 38,000 worldwide Pioneer using the Internet for all business processes – Customer sales and support – Production management – Financial management – Personnel management – In-house, online training Tradition of innovation – Creating new Internet products and key technologies Advanced routing and switching, voice and video-over IP, optical networking, wireless, storage networking, security, broadband, and content networking

28. SECDEF Corporate Fellows Program 28 SECDEF Corporate Fellows Program Cisco Observations Intense organizational culture – CEO/executive leadership/managers proactively build & reinforce – Core values driven into all levels; provides focus for company Customer focus and corporate citizenship Change Management – Constant, timely internal communications are key – Climate built for flexibility, acceptance of frequent changes Leveraging Technology – “Cisco Employee Connection”: Intranet an invaluable resource/tool – Internet business solutions enable huge productivity gains/efficiencies Employee Performance Management – Frequent, scheduled, individual feedback “1:1s” ingrained in calendars – Aggressive management of bottom 10% performers – Rewards tied to productivity

29. SECDEF Corporate Fellows Program 29 SECDEF Corporate Fellows Program R Recommendations Aggressively adopt Internet business solutions – Build/Invest in robust network foundation Capitalize on power of internet capabilities – e-Learning, Supply Chain Management, Customer Care, Employee Services – Workforce optimization, productivity gains Build industry partnerships – Engage consultants to benefit from leading edge best business practices Implement/Enforce strict performance management processes – Critical for ensuring most productive workforce Establish and instill DoD innovation & change core values – DoD core values set foundation and climate for continuous improvement – Service-specific core values remain

30. SECDEF Corporate Fellows Program 30 SECDEF Corporate Fellows Program 3M Company Diversified manufacturing company – Annual revenues: $17B – Employees: 75,000 (38,000 US; 37,000 International) – Major Market Centers spanning 55,000 products and 200 countries : Industrial Specialty Material Consumer & Office Transportation, Graphics & Safety Health Care Electronics & Communications Innovation is both legacy and lifeblood – 30% of annual revenues from products less than 4 years old Century Anniversary in 2002 marked enduring success – Only 3% of companies survive 100 years 3M on the move: New CEO, GE-proven initiatives, Six Sigma

31. SECDEF Corporate Fellows Program 31 SECDEF Corporate Fellows Program 3M Observations Strong “outsider” CEO successfully leading change – Crystal clear goals from former GE executive – Razor-sharp accountability “Headlong” implementation of Six Sigma driving results – Common language, established channels, measured performance Ad hoc work groups and teams powered by electronic networking – Seamless data sharing and resource scheduling – Well-developed intranet for business admin and training Relentless corporate pressure to cut costs of business – “Hold” business & ”Win” cost savings  ”Grow” business with savings – DoD: “Hold” budget & “Optimize” mission results within given dollars

32. SECDEF Corporate Fellows Program 32 SECDEF Corporate Fellows Program 3M Observations Aggressive initiatives to optimize spend for goods & services – Improved discipline, pool purchases, dual sources, competition – Saved $166M in first year; on target for $500M by 2003 Centrally managed “Corporate Identity Strategy and Standards” – Careful orchestration of vision, key messages, values and alliances – 3M highly respected for its quality, trust and innovation R&D reticent to cater to Govt consumer without commercial payback – Why TBD: 3M’s commercial culture? Fall out from past work with Government? Heartwarming response & support for military after 9/11 – But generally ill-informed on the most basic military concepts

33. SECDEF Corporate Fellows Program 33 SECDEF Corporate Fellows Program Recommendations Deploy a DoD change discipline similar to Six Sigma – Beware superficially applied, under-resourced “quality program” Use corporate electronic productivity model where smart – DoD lags in areas ripe for networking: admin, training, personnel Continue to push cost-cutting as daily priority in DoD – Profit-driven and efficient corporations still finding $100Ms Exploit DoD’s size to leverage spending – Global sourcing teams, supplier relationships, e-Purchasing Refine DOD Identity in light of corporate successes – What images are invoked when people hear “DOD?”

34. SECDEF Corporate Fellows Program 34 Global research-driven pharmaceutical company - 2d largest in U.S. – Employees: 69,300 (60% U.S.) – Revenues: > $40 B – Locations: 70 countries, 31 plants, 16 distribution centers – One of five major players in vaccine development 20% of worldwide market; ~ $1B in sales Corporate Strategy – Focus on cutting-edge science, targeted and well-executed marketing, continued operational excellence – 2002 a transition year to a new platform of opportunities – Increase research spending in 2002 to $ 2.9 B (up from $2.5B) – File or launch 11 new medicines and vaccines, 2002 to 2006 Merck & Company, Inc.

35. SECDEF Corporate Fellows Program 35 Among top 50 most respected companies worldwide (PWC, 2001 ) – Ethics is a competitive advantage. – Litmus test for all decisions  “...medicine is for the people.... The profits follow...”, George W. Merck (1950) Adapting to Changing Environment – Position at leading edge of science is critical talent management external partnering/acquisition exploiting the web – Cross-functional strategy teams break down silos – Exploiting the web for communications and training – Moving to self-service and new performance management system significant culture change throughout the company Merck Observations

36. SECDEF Corporate Fellows Program 36 Recommendations Positive “branding” for DoD – “Brand” DoD just as each Service is “branded” Partner with Industry/ Corporate America – ID core competencies and focus on them – Understand and take advantage of civilian sector capabilities Use Six Sigma across DoD – Benchmark processes internal and external to DoD – ID critical common processes Make them efficient and standardized – Dedicated, fully resourced effort required

37. SECDEF Corporate Fellows Program 37 Diverse major businesses with common customers - Pratt & Whitney- Carrier- Otis - Sikorsky- Hamilton Sundstrand- UTC Fuel Cells Fortune’s “Most Admired” aerospace company – ~ 154,000 employees (~80,000 overseas) – Revenues: $28B Assignment: P&W’s F135 Joint Strike Fighter Engine Program – Integrated Program Management Team – Engineering & Manufacturing Development (EMD) Readiness – System Development & Deployment (SDD) Implementation – Integrated Product Team (IPT) Leaders Training Program – Achieving Competitive Excellence (ACE) Initiative Team – High Impact ACE Team (Sourcing & Parts Family Strategies) SECDEF Corporate Fellows Program United Technologies

38. SECDEF Corporate Fellows Program 38 SECDEF Corporate Fellows Program Pratt & Whitney Observations Corporate Strategy – Clear & simply stated; end state and “bridge” articulated – Competitive advantages understood – Focus on core competencies & outsourcing non-core – Growth aspirations linked to extensions of core competencies – Leverages operational capability to “change the game” Culture – “Lean Thinking” & “ACE” permeate all facets of company – “Constant change is a way of life” – Willingness to stretch the limit – Merged companies drawn into parent philosophy

39. SECDEF Corporate Fellows Program 39 SECDEF Corporate Fellows Program Pratt & Whitney Observations Architecture & Processes – Empowerment/accountability at lowest levels – Supply base consolidation – Integrated Program Deployment implementation Execution – Education – Scorecards – UTC coordinated Leadership Councils – Corporate Analysis McKinsey & Co. and Dupont – Electronic Work Instructions

40. SECDEF Corporate Fellows Program 40 SECDEF Corporate Fellows Program Recommendations ACE… application of Lean Tools – Concept: Removal of waste; enhance flow (info, product, cash) – Apply principles at operational levels Performance Management Process – Concept: Individual Development Plans (IDP) products of PM – Apply at operational levels Education Programs – Concept: No contract/service obligation (tied into IDP) – Apply across DoD (one standard, DoD-wide) Life after Military Service – Concept: Civilian employee assistance – Apply across DoD (Military.com equivalent)

41. SECDEF Corporate Fellows Program 41 SECDEF Corporate Fellows Program Sears Logistics Services, Inc. Wholly-owned subsidiary of Sears, Roebuck and Co. Responsible for all logistical activities in the Sears supply chain – Employees: 13,500 – Operating Budget: >$1.5 B – 31 Distribution centers nationwide (Avg: 1M Sq Ft/facility) – Home Deliveries: >5,000,000 annually nationwide – Average Inventory Value: >$600,000,000 Moves goods from 4,500+ vendors to 2000+ stores

42. SECDEF Corporate Fellows Program 42 SECDEF Corporate Fellows Program Caterpillar Inc. Observations Sears Logistics Services Sears Logistics Services Observations Sears & SLS undergoing significant change – Moving from silos to enterprise-wide approach – Robust change management/leadership program Business strategy with quantifiable objectives – Customer centric – Improve productivity and returns – Drive profitable growth – Develop diverse high performance team Global Net Exchange System (GNX) - using the internet for auctions – Purchase retail items for manufacture and resale Sales Volume in Excess of $240M; more than $40M saved to date – Liquidate liability inventory (increased cost recovery) – Purchase supplies for home office use and remodeling – Partner with Michelin to test collaborative planning and forecasting

43. SECDEF Corporate Fellows Program 43 SECDEF Corporate Fellows Program Caterpillar Inc. Observations Sears Logistics Services Observations Vendor relations – Adopted industry standards – Electronic Data Interchange (EDI) – Compliance program with standards and charge-backs Cost recoveries in excess of $40 million Information Technologies – Wide range of legacy systems Building bridges vice developing new systems Training – Continuous process – Moving to increased web-based format – Cross training associates - improves company wide perspective Supply Chain management – Improved efficiencies (especially transportation) – Lower/controlled inventories – Improved cycle times

44. SECDEF Corporate Fellows Program 44 SECDEF Corporate Fellows Program Recommendations Exploit the Internet – Purchase of non-defense-specific products – Liquidate old/inoperative/scrap supplies and equipment – Training – Collaborative planning Adopt a Vendor Compliance Program – Standards/Vendor Certification and Training – Enforcement mechanism – Cost recovery Adjust mindset from Logistics to Supply Chain Management – Inventory control/reduce redundant inventory – Reduce cycle times – Partner with key suppliers Adopt accepted industry standards

45. SECDEF Corporate Fellows Program 45 SECDEF Corporate Fellows Program Oracle Corporation Twenty-fifth Anniversary in 2002 – 1977 outgrowth of a CIA project World’s second largest independent software company – Employees: 43,000 (21,000 US; 22,000 International) – Revenues: >$10B year World’s premier provider of database software – 42.9% of the market – ~ 75% of DoD systems use Oracle database software Second largest provider of e-business application software – Sales of $447M exceed competitors SAP, Siebel and Peoplesoft Two significant transformations in seven years – From niche data base provider to software solutions provider – From client-server products to web-enabled products Implemented own software across organization

46. SECDEF Corporate Fellows Program 46 ABB GROUP SECDEF Corporate Fellows Program Oracle Observations The $1B Savings Story confirmed by Booz-Allen – Eye-watering technology reduced tooth to tail – Efficiency up  workforce down  operating margins up Focused to become an e-business – Servers and processes consolidation (not just e-mail) – Business practices and processes standardization Using proprietary software – Reliance on self-service mentality Shared services paradigm enhances productivity – e-Travel, HR, education/training, procurement – Self-service is “liberating” Transformations successful because of leadership – Benevolent Dictator

47. SECDEF Corporate Fellows Program 47 SECDEF Corporate Fellows Program Recommendations Implement ASD(C3I) (ODITC) Virtual Pentagon Initiative – Consolidate Pentagon IT under single joint organization – Single Pentagon IT infrastructure architecture Migrate away from client-server architecture – Leverage the web; begin with e-mail—easiest to do – Re-host interactive software applications Secure, reliable, redundant architecture IAW NSTISSP No 11 Revisit “best of breed” mindset to minimize integration costs – Phase out legacy systems – Incremental adoption of web-based e-business software suite – Accelerate easy to do, “low-hanging fruit” Common financial system, i-Procurement, e-Travel, web-enabled training/education – Move DoD toward a full e-business architecture

48. SECDEF Corporate Fellows Program 48 Recommendations (Cont) Web-based education for recurring training – Cyber seminars, routine “training,” real-time senior leader video presentations – Benchmark Oracle’s robust programs Stay the course on acquisition reform – Industry can help – Make the rules work for high speed technology insertion Partner with IT industry to quickly transform DoD to an e- business – Renewed industry “patriotism” – e-business methodology works for Homeland Security Biometrics, consolidated databases, web-enable applications

49. SECDEF Corporate Fellows Program 49 AMS, Inc. International business and information technology consulting – One of 20 largest international business/IT consulting firms Headquartered in Fairfax, Virginia 7,000 employees, 49 offices worldwide – 2001 revenues: $1.2 Billion – 30 consecutive years of growth Market Presence Recognized Industry Leader – One of Fortune Top 50 “Best Companies to Work For” – Forbes Platinum 400 Company Finance Services Federal Government State & Local Government Media & Communications Health Care & Utilities

50. SECDEF Corporate Fellows Program 50 AMS Observations A company in the midst of transformation – Present business model under review Loose conglomerate of autonomous business units less successful now Greater Corporate involvement – New CEO appointed An “outsider” Focus now more on growth through acquisition Branding Problem – Corporate image tarnished by high profile law suits Maintaining a technically competent workforce – Forming strategic partnerships to augment

51. SECDEF Corporate Fellows Program 51 AMS Observations Increased core markets competition – DoD, Federal, and State business space more attractive – Leveraging experience, customer familiarity to maintain advantage “Business Joint” – Company’s strengths & weaknesses recognized Developing permanent and/or interim partnership to address Leveraging technology ensures company-wide info access – Common tools for Project Management – Robust “Best Practices” data base – no PM needs to go it alone Consolidation of Common Services – Business Unit-specific IT/HR/Admin Support removed

52. SECDEF Corporate Fellows Program 52 AMS Recommendations Aggressive pursue use of Knowledge Management systems throughout DoD – Maintains knowledge in house, impact of turnover lessened – KM more than technology – good Change Management program is critical to KM acceptance/success Accelerate acquisition reform pace – Allows government to fully leverage competition – Mitigates risk for industry participants Continue incremental fielding for technology/products – Gets capability to the warfighter quicker – the 80% solution works Benefits apply to software & weapons systems alike Continues development while providing capability in the field. Common Services Model works – Potential savings can be realized consolidating Service specific common functions