Transforming Business Systems Funding Processes through Budgetary Controls and Culture Change

Abstract

This article provides analysis of transformational action taken by the leadership of a Unified Combatant Command in the Department of Defense (DOD) to change their budget processes and controls, and the way they fund their Information Technology systems. Senior leadership in the United States Transportation Command (USTRANSCOM) took deliberate action to counter the traditional manner in which business systems in the DOD and USTRANSCOM have been funded. Given the ongoing and costly war on terrorism, leaders and managers can no longer afford the luxury of having component, division, or even Service-unique business systems (also meaning information technology and financial systems) that are unable to effectively integrate with operational systems. The savings, or cost avoidance, potential is dramatic and in some cases could be applied directly to requirements of our warfighting forces, or at the very least could help offset the growing national deficit. Actions taken by leaders at USTRANSCOM resulted in transformational changes in the way they fund their business systems, which may ultimately lead to more lasting cultural change in their command and perhaps even throughout the DOD. Thus far, it has every indication of being a success story that is worth analysis and that suggests fundamental processes and budgetary controls that may be applied throughout the department and to other government agencies as a way to effect transformational change in their budget processes.