Transforming to a Cost-Management Culture
Abstract
One of the major issues the Army faces is the continuous erosion of resources to invest in and sustain its warfighting capabilities. Defense leaders clearly understand the significance of fiscal resources; however, for the last four years, the Department of the Army has relied on billions of dollars in supplemental spending to meet the needs of the warfighter. But eventually Congress will refuse to approve such non-scheduled allocations. The Army's failure to take proactive actions may lead to insufficient funding to sustain our Soldiers and their families, to maintain our facilities and equipment, to train our units for war, and to fund critical investment programs that will sustain our military as a decisive national power. Accordingly, Army leaders must become more cost-conscious when expending our nation's treasure. This paper examines the Army's efforts to transform from an entitlements mindset -- "Accomplish the mission at any cost" -- to a cost-management culture: "Accomplish the mission cost-effectively." It describes change-management methods and considers ways in which the Army should proceed with its cost-management transformation. The paper provides recommendations along with warnings about institutional resistance to complex transformation.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 02, 2009
- Accession Number
- ADA494018
Entities
People
- Michael J. Schroeder
Organizations
- United States Army War College