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Army Institutional Adaptation ASMC PDI 27 May 2009

Army Institutional Adaptation ASMC PDI 27 May 2009. OASA(FM&C). Purpose. Explain Institutional Adaptation by addressing a few key questions: What is Institutional Adaptation? Why is the Army doing this? Why does Institutional Adaptation matter to resource managers?.

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Army Institutional Adaptation ASMC PDI 27 May 2009

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  1. Army Institutional Adaptation ASMC PDI 27 May 2009 OASA(FM&C)

  2. Purpose • Explain Institutional Adaptation by addressing a few key questions: • What is Institutional Adaptation? • Why is the Army doing this? • Why does Institutional Adaptation matter to resource managers? It is all about building into our Army an understanding that we need to be very, very careful of how we spend our money … It is all about developing a cost culture. - General Peter Chiarelli, Vice Chief of Staff

  3. The Pace and Focusof Transformation JIM GWOT JIM Warfighting Capability (WC) GWOT LM ALB 100-5 Time Generating Force Capability (GFC) 1972 Transformation Focus Over Time 2007 Circa 1973 Steadfast RETO ARTS Time Schoomaker (03-07) Shinseki (99-03) Casey (2007) Institution (GFC) Reimer (95-99) Operations (WC+ GFC) Sullivan (91-95) Culture (WC) Vuono (87-91) Operations (WC) Wickham (83-87) Meyer (79-83) Information (WC) Diplomacy (WC) Rogers (76-79) Force Structure (WC) Weyand (74-76) Force Mod. (WC) Abrams (72–74) Sustainment (WC) Readiness (WC) Institution (GFC) “We will not cement the transformational change of the Army until the institution reflects that change.” Chief of Staff, Army - 19 June 2007 3 3

  4. Restoring the Army to Balance 2009 Current 2011 Future Restore Readiness Army Imperatives Sustain Prepare Reset Transform Restore Restore + Strategic Readiness Readiness Flexibility + Strategic + Strategic Sustain Current & Future Demands Flexibility Flexibility Current Current Volunteer Sustain Sustain Demands Demands Force Volunteer Volunteer Force Force • Actions to restore balance across the Army are being driven by the four imperatives • The transformation imperative is the foundation for Institutional Adaptation

  5. What is an Enterprise? An “enterprise” is a cohesive organization whose structure, governance systems and culture support a common purpose. The “enterprise approach” educates and empowers leaders to take a holistic view of organizational objectives and processes to act cohesively for the good of the organization to achieve required output with greater efficiency. Institutional Adaptation is the first step in adopting an “enterprise” approach to managing the Army. Army culture must change. We have to think and act like a single enterprise, focusing on what’s best for the Army, not just what’s best for any given organization.

  6. Why Do We Need an Enterprise Approach? • Internal Factors • We have allowed decisions to be pushed to too high a level. • Throughout the Army, there is a perception that people and hardware are “free goods.” • We have a consumption-oriented culture in which financial success is defined as spending every dollar. • We don’t do a good job of relating cost to outputs and outcomes. There is no penalty for excessive cost, no reward for decreased cost. Facts of Life • The Army is a large, complex organization that presents a significant management challenge, even in the best of circumstances. • To cope with declining budgets, the Army must change the way it does business.

  7. 2 1 A Real-World Example: Distributing Human Capital to Meet Total Army Requirements Human Capital Core Enterprise No single command “owns” or “sees” the entire chain Organizations DA G1 HRC USAAC & USAREC TRADOC NGB G1 ARNG R&R ARNG R&R Critical Functions 1g 1. Establish MOS requirements 2g 2. Set monthly accessions targets 3. Establish / resource training base requirements 3 XXXX 5 – 20% DEP loss in any given month 4g 4 4. Set recruiting targets by MOS ~ 8% BCT attrition ~ 6% holdover 5g 5 5. Recruit / access to targets BCT AIT OSUT 6 6. Train the Soldiers 7 7. Distribute Soldiers 8-10% of AIT training seats go unfilled 8 8. Soldiers arrive at first duty station 7

  8. Enterprise Management SA GC CSA FORSCOM USA AMC VCSA TRADOC 5 ASAs IMCOM • FM Roles include: • Integration of the PPBE process • Establishment of a cost culture • Establishing & monitoring budget performance metrics Human Capital ASA(M&RA) TRADOC HQDA G1 HRC USAREC ASA(ALT) AMC HQDA G4 USA FORSCOM HQDA G3 USAR ARNG ASA(I&E) IMCOM ACSIM CIO/G6 MEDCOM CE – Core Enterprise Reform Requirements & Resource Processes Improve ARFORGEN Adopt an Enterprise Approach

  9. Where You Fit In…. • FM support must adapt as Army changes • FM challenges will grow as funding declines • As challenges grow, so will opportunities for the FM community • Commanders will lean on your expertise to acquire funds, understand costs, and enable the mission Your role is more important now than ever before: Resource managers enable commanders to make cost-informed decisions

  10. Questions / Discussion

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