Achieving the SECDEF Financial Goals:

1. Achieving the SECDEF Financial Goals: A Perspective from Leadership ASMC Gulf Coast Chapter 15 Feb 2012 VADM Lou Crenshaw USN(Ret.) CDFM Principal, Grant Thornton LLP

2. Agenda • Summary of Results • Questions • Discussion

3. About the Survey

4. Well Managed • Costs important to senior officials • Regular or routine costs • Things that are easily counted • Revolving funds • Local base costs • Reimbursable costs • Poorly Managed • New Programs with ill- defined requirements • End-of-year expenses • Information systems • Over Managed • Small-dollar programs • Decision forums • Contracts and contractors in general

6. Ideal Culture Attributes • Foundation • Leadership • Established Norms • Continuity • Visibility and Transparency • Options • Flexibility • Perspective • Tools and Training • Balance • Incentives • Risk Management

7. Cost Warrior • Understand non-financial issues • Communication skills • Business savvy • Practical • Understanding of how PPBE elements relate • Resolute and thick-skinned • Analytical • Proper Training • Tools • Managerial cost accounting system • Standardized life-cycle costing models • Standardized cost-benefit analysis method • Cost model capable of excursions

9. Questions