April 2005

1. Environment, Safety and Occupational Health (ESOH) in the DoD Business Management Modernization Program John Coho I&E Business Transformation April 2005

2. Overview • Business Management Modernization Program (BMMP) • DUSD(I&E) Business Transformation ESOH Strategy • Example ESOH Business Process Reengineering Initiative • Hazardous materials (Hazmat) management business process reengineering (BPR)

3. Business Transformation is Critical to DoD Success “We simply have to transform this place. It is every bit as important to the success of the global war on terrorism as the other things we’re doing.” -Secretary of Defense Donald Rumsfeld “The Department of Defense will be managed in an efficient, business-like manner in which accurate, reliable, and timely financial information, affirmed by clean audit opinions, is available on a routine basis to support informed decision-making at all levels throughout the department.” -Secretary of Defense Donald Rumsfeld

4. Agencies Services Combatant Commanders Army Navy Air Force Marines DLA NIMA DISA The Need For Change is Clear • Services and Agencies have individual processes and over 5000 supporting systems that focus primarily on their own operations • Results are: • Costly, redundant and inefficient management of DoD resources • Accurate, reliable, timely, and informed management decision-making not supported DoD-wide Integrate Business Processes and Supporting Systems Across the Enterprise

5. President’s Management Agenda • Improved financial performance • Competitive sourcing • Expanded eGovernment • Budget and performance integration • Right sized overseas presence • Coordination of Defense programs and systems SECDEF’s Ten Priorities and Guidance • Strengthen joint warfighting capabilities • Transform the Joint Force • Improve force manning • Streamline DoD processes AT&L’s Top Seven Goals USD (Comptroller’s) Goals and Objectives • Resources Rationalized •Technology Dominance •Acquisition Excellence with Integrity •Systems Integration and Engineering for Mission Success • Achieve credibility and effectiveness • Improve the Transparency of Component Submission • Provide Explicit Fiscal Guidance • Manage Overhead and Direct Costs I&E Vision, Mission and Goals BMMP Vision, Mission and Goals VISION: Installation assets and services available when and where needed, with the joint capabilities and capacities necessary to effectively and efficiently support DoD missions. MISSION: Provide, operate, and sustain, in a cost-effective and environmentally sound manner, the installation assets and services necessary to support our military forces – in both peace and war. • VISION: Help DoD achieve its vision of: • managing its support operations in an efficient, business-like manner, thus optimizing the combat support infrastructure, • delivering resources to the Warfighter using the most effective business processes, • providing accurate, reliable and timely financial information, affirmed by unqualified audit opinions, to decision makers at all levels of DoD. • MISSION: Support the Warfighter with world-class business operations. GOALS •Right size and place • Right resources • Right quality • Right tools and metrics • Right safety and security GOALS •Provide timely and accurate information for business management. •Enable improved business operations. I&E Business Transformation Vision, Mission and Goals Alignment of Vision, Mission and Goals

6. BMMP Vision and Mission • Vision: Help DoD achieveits vision of -- • Managing its support operations in an efficient, business-like manner, thus optimizing the combat support infrastructure; • Delivering resources to the Warfighter by using the most effective business processes; and • Providing accurate, reliable, and timely financial information, affirmed by unqualified audit opinions, to decision makers at all levels of DoD. • Mission: Support the Warfighter with world-class business operations BMMP: Arming the Warfighter Through Business Improvement

7. Planning, Budgeting Storage & Transportation IT Infrastructure Design & Development Personnel Disposition Legal Maintenance Procurement Human Resource Management 1 Business Mission Area W A R F I G H T E R S 2 Weapon System Lifecycle Management Business Mission Area 3 Real Property & Installation Lifecycle Management Business Mission Area 4 Materiel Supply & Service Management Business Mission Area 5 Financial Management Business Mission Area Business Transformation Framework

8. DUSD(I&E) Business Transformation Vision and Mission Vision • An I&E Community supporting the Department of Defense: • Through effective and efficient management of real property, natural assets, and services; • Enabled by optimized business processes and integrated information solutions Mission • Support installation, environment, safety and occupational health community business transformation through collaborative: • Business process reengineering • Change management • Data management • IT integration

9. DUSD(I&E) Business Transformation ESOH Strategy

10. ESOH Strategic Planning • Goal: Conduct strategic discovery with key OSD and Component ESOH functionals to understand, support, and expedite achievement of their transformational needs • Method: • Interview selected functional leadership • Balanced scorecard approach • Expected outcomes (initial): • Information to facilitate transformational planning • Identify key needs not currently met, in which BT may add value • Prioritized results and recommended business process reengineering projects • Win – Win – Win

11. Evolution of ESOH Management Sustainable Operations E[SOH]MS**/ Functional Integration P2*/Pursuit of Excellence Acceptance & Compliance Tolerance Denial *P2 = Pollution Prevention, ** EMS = Environmental Management System

12. Transforming Defense ESOH Management To Enhance Efficiency and Improve Warfighter Readiness Manage Assets to Support the Mission Sustainable Operations Manage Operations toSustain Assets* Internal and External Stakeholder Support* Business Transformation ESOH Strategy * BT Opportunities

13. Hazardous Materials (Hazmat) Operations Business Process Reengineering Example

14. BPR: Hazmat Operations • Hazardous materials are: • ESOH risk and impact-intensive • A cost driver across the Department • Hazmat BPR: a logical first step for ESOH transformation • Target of Component-level transformation initiatives • Cross-functional: I&E (ESOH), Logistics, Acquisition, Human Resources • “Foot in the door” toward integration of sound ESOH management into mission activities

15. Hazmat BPR Scope and Approach • Scope • Hazmat Operations: end-to-end Hazmat management process • Hazmat BPR Team will sequentially reengineer selected problem areas in the life cycle of Hazmat operations • Approach • BPR Team: Army, Marine Corps, Navy, Air Force, DLA, and OSD-level Business Mission Areas • Identifies and prioritizes Hazmat problem areas • Identifies best practices relevant to Hazmat problem areas • BT works with Domains to: • Identify relevant existing models • Identify proposed changes based on best practices • Conduct review with BPR Team

16. Context Diagram

17. March April May June Beyond Timeline Phase 1 & 2 Team #1 Activity Model Team #2 Unit of work definitions and classification Team #3 Process Model and Hazard Data Phase 2 BPR Efforts Today Phase 1 Phase 2

18. BT ESOH Long Term Impacts • Auditable data • Elimination of environmental material weakness • Improved access to the right environment, safety, and occupational health (ESOH) data, when and where it’s needed • End-to-end, systematic management processes to reduce ESOH risks, impacts, and costs and improve support to the warfighter Timely, authoritative data  reliable information  decision making knowledge

19. Questions?