Environment, Safety and Occupational Health (ESOH) in the

DoD Business Management Modernization Program

April 2005

John Coho

I&E Business Transformation

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)

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.”

“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

-Secretary of Defense Donald Rumsfeld

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

Combatant Commanders Services

Army Navy Air Force

Marines

Agencies

NIMA DISADLA

Integrate Business Processes and Supporting Systems Across the EnterpriseIntegrate Business Processes and Supporting Systems Across the Enterprise

I&E Vision, Mission and Goals BMMP Vision, Mission and Goals

I&E Business Transformation Vision, Mission and Goals

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• Resources Rationalized• Technology Dominance• Acquisition Excellence with Integrity• Systems Integration and Engineering for Mission Success

USD (Comptroller’s) Goals and Objectives• Achieve credibility and effectiveness• Improve the Transparency of Component Submission• Provide Explicit Fiscal Guidance• Manage Overhead and Direct Costs

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.

GOALS• Right size and place • Right resources• Right quality • Right tools and metrics• Right safety and security

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

• Provide timely and accurate information for business management.• Enable improved business operations.

Alignment of Vision, Mission and Goals

• 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 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 Vision and Mission

BMMP: Arming the Warfighter Through Business ImprovementBMMP: Arming the Warfighter Through Business Improvement

Business Transformation Framework

Plan

ning

, Bud

geting

Dispo

sition

Proc

urem

ent

Stor

age

&

Tran

spor

tation

Mai

nten

ance

Pers

onne

l

Des

ign

&

Dev

elop

men

t

Human Resource Management

IT In

fras

truc

ture

Lega

l

Real Property & Installation Lifecycle Management

Business Mission Area

Business Mission Area

Business Mission Area

Business Mission Area

Business Mission AreaWARFIGHTERS

Financial Management

Weapon System Lifecycle Management

Materiel Supply & Service Management

1

2

3

4

5

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

DUSD(I&E) Business Transformation ESOH Strategy

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

Evolution of ESOH Management

E[SOH]MS**/ Functional Integration

Sustainable Operations

P2*/Pursuit of Excellence

Acceptance & Compliance

Tolerance

Denial

*P2 = Pollution Prevention, ** EMS = Environmental Management System

Manage Assets to Support the Mission

Manage Operations toSustain Assets*

Internal and External Stakeholder

Support*

SustainableOperations

Transforming Defense ESOH ManagementTo Enhance Efficiency and Improve

Warfighter Readiness

* BT Opportunities

Business Transformation ESOH Strategy

Hazardous Materials (Hazmat) Operations

Business Process Reengineering Example

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

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

Context Diagram

Disposal Activity

InventoryManagement

Activity

Medical/HealthcareCommunity

TransportationActivity

Risk AssessmentActivity

User(Operational

Process)

Planning ActivityTrainingActivity

HazardousMaterial

Source/Provider

RegulatoryCommunity

HazmatMaterial

Advisories andProcess

Authorizations

Regulations

ProcessAuthorization

OperationalProcess

Material/Process Use

Advisory

Material/Process

Alternative

MaterialProductData

Material/Process

Alternative

Material/Process Use

Advisory

MaterialProductData

RiskAssessment

Restrictions

Material Product Data Feed Back

Material/Process UseInformation

ActivityIntersection:HMAPA withAcquisition

ActivityIntersection:HMAPA with

InventoryManagement

Material/Process UseInformation

Material/Process UseInformation

Material/Process useInformation

ComplianceMonitoring Activity

ProcessAuthorization

Material/Process UseInformation

Procurement(Source/Acquire)

Activity

*

--- Red dashed line is representational only

MaterialHandling

Requirement

Weapon SystemAcquisition

Activity

Timeline Phase 1 & 2

March April May June Beyond

Phase 1

Tod

ayTeam #1

Activity Model

Team #2

Unit of work definitions and classification

Team #3

Process Model and Hazard Data

Phase 2 BPR Efforts

Phase 2

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 Timely, authoritative data reliable information decision making knowledge

Questions?