secretary of defense fellows program final report of the secretary of defense fellows program...
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Secretary of Defense Fellows Program
FINAL REPORT of the
Secretary of DefenseFellows Program
1996-97
Secretary of Defense Fellows Program
AgendaAgenda
Program Overview- Background
- Origin
- Objectives
- Organization
- Tasking
- Results
Corporate Experiences
- Sponsors
- Observations
- Recommendations
Secretary of Defense Fellows Program
SDFP BackgroundSDFP Background
Current military- technical revolution- Political, economic, social
- Shaped by information technology change
Businesses outside DoD successful in:- Adapting to changing global environment
- Exploiting information revolution
- Structural reshaping/reorganizing
Secretary of Defense Fellows Program
SDFP OriginSDFP Origin
RMA Senior Steering Group recommended:- SECDEF Fellows Program
- SECDEF Strategic Studies Group
- Other (Concept Development Center, etc..)
Established by SECDEF memo- October 6, 1994
DoDD 1322.23- September 2, 1995
Secretary of Defense Fellows Program
SDFP ObjectivesSDFP Objectives
Build a cadre of future leaders who: - Appreciate revolutionary changes in
information and related technologies
- Understand skills required to address changes
- Recognize operational/organization opportunities - Will motivate Services toward innovative change
Secretary of Defense Fellows Program
SDFP OrganizationSDFP Organization
Two officers from each Service (USMC one)- High flag/general officer potential
- O-6 or O-5
- Senior Service College credit
Permanent Staff- USD(P)NA oversight
- SDSSG Director, Deputy, Admin
Secretary of Defense Fellows Program
SDFP TaskingSDFP Tasking
Ten months at Sponsoring Company Group Education
- Seminars- Wargames
Final Report and Briefing- To SECDEF and Services- Work performed- Insights gained applicable to DOD culture/operations- Recommendations for changes to DOD operations and organizations
Secretary of Defense Fellows Program
SDFP ResultsSDFP Results
Program objectives fulfilled- Education, education, education
- More sponsors than fellows
- Inter/intra-group experience sharing
Unique corporate experiences
- Strong corporate support
- Executive/operational level mix
- Mergers/restructuring
Secretary of Defense Fellows Program
SDFP SponsorsSDFP Sponsors
95- 96- Hewlett-Packard, Lockheed Martin, Loral, Oracle, Northrop Grumman
96-97- American Management, CNN, CITICORP
McDonnell Douglas, Microsoft, Sarnoff
97-98- Andersen Consulting, DirecTV, Mobil,
Northrop Grumman, Sears, Southern Company
Secretary of Defense Fellows Program
SDFP Corporate SDFP Corporate ExperiencesExperiences
Citicorp/Citibank
- LtCol Gary Barthold
CNN- COL Colin Dunn
Microsoft- CAPT Jim Engler
Secretary of Defense Fellows Program
Citicorp/CitibankCiticorp/Citibank
Large, Complex, Global Enterprise- 90K Employees and 50M Customers
- 3,200 Sites in 98 Countries
Innovators in Management and Technology
Corporate Technology Office - Strategic Planning - Risk Management - Organization - Operations - Information Security - Human Resources - Technology Development
Secretary of Defense Fellows Program
Citicorp/Citibank Citicorp/Citibank ObservationsObservations
Increasing, Non-Linear Change- Uncertainty
- Continual Strategic Adaptation
Institutionalized Change
- No One Predictable Scenario
- Tradeoff Optimization for Adaptability
- Adaptability provides Stability
Secretary of Defense Fellows Program
Citicorp/Citibank Citicorp/Citibank ObservationsObservations
Top-Down Flexible Planning
- Corporate Vision
-- Long-Term Broad Common Direction / End State
- Balanced Scorecard
-- Near-Term Objectives and Metrics (Max. 6 Qtrs)
- Windows on Risk
-- Tripwires allow Timely Decision Making
Secretary of Defense Fellows Program
Citicorp/Citibank Citicorp/Citibank Observations/RecommendationsObservations/Recommendations
Secretary of Defense Fellows Program
Citicorp/Citibank Citicorp/Citibank ObservationsObservations
Information is the Core of the Financial Industry
Adaptive, Enabling Information TechnologyInfrastructure- Information Technology as Flexible as Operations
- Technology Fused with Business
- Integrated Technology Processes
Secretary of Defense Fellows Program
Citicorp/Citibank Citicorp/Citibank Observations/RecommendationsObservations/Recommendations
Common Network Centric Architecture
- Building Plan for a Responsive Infrastructure
People
- Military can not Compete with Compensation, Outsourcing
Vendors
- Strategic Partnership, Cooperative Solutions, Outsourcing
Information Security
- Operational Diligence, Continually Raising the Bar
Innovation
- Technical Solutions are Already Out There
- Focus on Applying, Integrating, and Providing Guidance
Secretary of Defense Fellows Program
Citicorp/Citibank Citicorp/Citibank Observations/RecommendationsObservations/Recommendations
Secretary of Defense Fellows Program
Citicorp/CitibankCiticorp/CitibankRecommendationsRecommendations
Agile, Adaptive, Flexible
- Planning, Organization, Architecture
- Shorter Planning and Programming Cycles
- Accept and Manage Risk
Secretary of Defense Fellows Program
Citicorp/CitibankCiticorp/CitibankRecommendationsRecommendations
Common Architecture- Network Centric - System of Systems
- Interoperable, Consolidated, Outsource
- Adaptable, Scaleable
- Limit Deviations, Cost vs Value Added
- Directed from the Top, Tighter Fiscal Control
Technology Fused with Operations- Information Technology can not be an
Afterthought Planned Separately
Secretary of Defense Fellows Program
Citicorp/CitibankCiticorp/CitibankRecommendationsRecommendations
Secretary of Defense Fellows Program
Citicorp/CitibankCiticorp/CitibankBalanced ScorecardBalanced Scorecard
Financial Performance
Customer / Franchise Performance
Strategic Cost Management
Risk Management
People Management
Secretary of Defense Fellows Program
Citicorp/CitibankCiticorp/CitibankWindows on RiskWindows on Risk
- Country Risk - Risk Rating - Counter-Party - Distribution /
Underwriting - Equity / Sub-Debt - Product Concentration - Limits - Industry Concentrations - Price Risk - Liquidity Risk - Global Real Estate - External Dependency - Control (Audit) Risk - Technology - Business Risk Review - Legal
Secretary of Defense Fellows Program
Citicorp/CitibankCiticorp/CitibankWindows on RiskWindows on Risk
CEO
GLOBAL REL
BANKING
PRIVATE
BANK
GLOBAL
CITIBANKING
EMERGING
MARKETS
CARDS
OPERATIONS &
TECHNOLOGY
FINANCIAL
CONTROL
HUMAN
RESOURCES
EXTERNAL
AFFAIRS
AUDIT *
DIRECTION
COORDINATION
MATRIXED ORGANIZATION
* ADDITIONAL STAFF SECTIONS ARE NOT SHOWN
RISK
MANAGEMENT
Secretary of Defense Fellows Program
SDFP Corporate SDFP Corporate ExperiencesExperiences
Citicorp/Citibank
- LtCol Gary Barthold
CNN- COL Colin Dunn
Microsoft- CAPT Jim Engler
Secretary of Defense Fellows Program
Cable News NetworkCable News Network
News Standards: Accuracy, Balance, Timeliness
“AT CNN, SPEED IS LIFE.”--Tom Peters
Eight News Groups
31 Bureaus
1130 Affiliates
Organization:
Secretary of Defense Fellows Program
Cable News NetworkCable News Network
Secretary of Defense Fellows Program
CNN ObservationsCNN Observations
Work Culture
- Intelligent
- Sense of Urgency
- Dedicated
- “No Frills”
An “Innovation” Culture
- Encouragement to grow, not maintain
- Room for experimentation, mistakes
Secretary of Defense Fellows Program
CNN ObservationsCNN Observations
Secretary of Defense Fellows Program
CNN ObservationsCNN Observations
Paperless, Deskless
- Internet potential
- Increased leader contact
Adapting Technology
- “Buy what’s helpful, not what’s new.”
- Work culture is the key
Secretary of Defense Fellows Program
Secretary of Defense Fellows Program
CNN RecommendationsCNN Recommendations
Change the Culture of the Force- Encourage growing, not maintaining
- Make room for local experimentation, mistakes
- Knock down traditional “idea firewalls”
Expand DoD Internet/Intranet(s) Use- Internal functions (boundless)
- External functions
Secretary of Defense Fellows Program
Secretary of Defense Fellows Program
Secretary of Defense Fellows Program
SDFP Corporate SDFP Corporate ExperiencesExperiences
Citicorp/Citibank
- LtCol Gary Barthold
CNN- COL Colin Dunn
Microsoft- CAPT Jim Engler
Secretary of Defense Fellows Program
MicrosoftMicrosoft
20,000 + employees / 50 countries and growing $8.67 Billion Revenue in FY 96 $12 + Billion in FY 97 R&D = 25% Revenue Enterprise Customer?? Equity Compensation Model “The Future ain’t what it used to be”
Secretary of Defense Fellows Program
Secretary of Defense Fellows Program
Microsoft ObservationsMicrosoft Observations
Bill Gates- Vision / Technology / Business
Executive Committee They Love a Good Fight
- Sun Tzu strategy
- No quarter given
- Market domination, not share
Customer focus
Secretary of Defense Fellows Program
Secretary of Defense Fellows Program
MicrosoftMicrosoft ObservationsObservations
Feedback- Customers/ Employees
Partners- Strategic Alliances
Creativity
- No perks
- Open communications demanded
Secretary of Defense Fellows Program
Microsoft ObservationsMicrosoft Observations
“We eat our own dogfood”
Organized Chaos
Robust Intranet / Aggressive use of Internet
Headcount, costs, infrastructure
Hire the best, or just don’t hire
Secretary of Defense Fellows Program
Secretary of Defense Fellows Program
MicrosoftMicrosoft RecommendationsRecommendations
Make the Network of Networks interoperable
Leverage C3S technology- Communications, coordination, collaboration
Cut non-warfighting infrastructure
“Partner” long-term with leading-edge companies
Secretary of Defense Fellows Program
Secretary of Defense Fellows Program
MicrosoftMicrosoft RecommendationsRecommendations
“Recruit Smart” for the 21st Century force
Exploit advances in Distance Learning
Purchase Info Tech training and support
Secretary of Defense Fellows Program
Secretary of Defense Fellows Program
SDFP Corporate SDFP Corporate ExperiencesExperiences
American Management Systems- CAPT Nan Honey
McDonnell Douglas Aerospace- Lt Col Jim Kowalski
Sarnoff Corporation- Lt Col Kim McKenzie
Secretary of Defense Fellows Program
American Management American Management Systems (AMS)Systems (AMS)
Global business and information
technology consulting firm– Business Process Re-engineering– Change Management– System Integration– System Development– System Implementation
AMSAMS
“Innovative solutions to its clients by partnering with them to achieve breakthrough performance through the intelligent use of information technology”
Secretary of Defense Fellows Program
AMS ObservationsAMS Observations
Business Process Re-engineering (BPR)– Military Sealift Command
Change Management/Organizational Development
– Achieving Breakthrough Performance (ABP)
New Business Unit formation – Utilities Industry
Secretary of Defense Fellows Program
Secretary of Defense Fellows Program
AMS ObservationsAMS Observations
Strategy and business/financial plan roll out– Rolling 3 YR plan
Infrastructure Management– “Hotelling”
People Management – Inclusive Leadership Committee (ILC)– ReVisioning Administrative Processes (RAP)
Secretary of Defense Fellows Program
Secretary of Defense Fellows Program
AMS RecommendationsAMS Recommendations
Acquisition
- Limit time
Culture
- Focus on work environment
- Incentivize efficiency/savings
Organization- Info Tech can support any structure
- Mobile computing and collaborative Info Tech at
individual level
Secretary of Defense Fellows Program
Secretary of Defense Fellows Program
Secretary of Defense Fellows Program
Secretary of Defense Fellows Program
SDFP Corporate SDFP Corporate ExperiencesExperiences
American Management Systems- CAPT Nan Honey
McDonnell Douglas Aerospace- Lt Col Jim Kowalski
Sarnoff Corporation- Lt Col Kim McKenzie
Secretary of Defense Fellows Program
McDonnell Douglas McDonnell Douglas AerospaceAerospace
Footprint– $8B Revenue, 36,000 Employees, 14 Major US
Facilities– US Government 68% of Business– International Sales 32% and Growing– 300,000 US Workers Tied to MDA Products
Culture– Technological Innovation – Product Performance– “Fighterland USA”
Secretary of Defense Fellows Program
McDonnell Douglas McDonnell Douglas AerospaceAerospace
Business Development Division- Sales Organization
- Owns Market Planning and Analysis Team
- Produces Strategic Plan and Operating Plan
Phantomworks- Advanced Systems and Technology
- Matrixes with Programs and Supporting Units
Work Experience
Secretary of Defense Fellows Program
McDonnell Douglas McDonnell Douglas AerospaceAerospace
Secretary of Defense Fellows Program
McDonnell Douglas McDonnell Douglas ObservationsObservations
Strategic Planning– Formal Strategic Planning--PROGRAMMING– Scenario Based Planning--STRATEGIZING
System of Systems (SoS) – Organize Around Mission Areas– Cross Traditional Boundaries– Design Products for SoS (Joint Warfare Center)
Secretary of Defense Fellows Program
McDonnell Douglas McDonnell Douglas ObservationsObservations
Secretary of Defense Fellows Program
McDonnell Douglas McDonnell Douglas ObservationsObservations
Virtual Company– Time as Competitive Advantage– Link Partners, Suppliers, Customers– Invest in Technology That Gives MDA Advantage
One Vector Off– Concentrate Resources on Core Business– Avoid “Intriguing” but Unrelated Business
Opportunities– Spin-Off Companies/Negotiate Royalties
Secretary of Defense Fellows Program
McDonnell Douglas McDonnell Douglas ObservationsObservations
Secretary of Defense Fellows Program
McDonnell Douglas McDonnell Douglas RecommendationsRecommendations
Reconsider “Planning” in PPBS– PPBS Good at Budgeting--Not Strategy– Institutionalize Scenario Based Planning at
Several Levels in DoD— Examples: AF 2025, Army After Next
Restructure for Mission Areas– OSD Organized for PPBS--Reductionistic – Organize Around Holistic Mission Areas
— Example--JROC
Secretary of Defense Fellows Program
McDonnell Douglas McDonnell Douglas RecommendationsRecommendations
Secretary of Defense Fellows Program
McDonnell Douglas McDonnell Douglas RecommendationsRecommendations
Experiment with a Virtual JTF – Mission Area Focus--i.e., Precision Strike– Tie Core Competencies Together in Virtual Unit– Train as a Unit (Real and Simulated)
“One Vector Off” Criteria– Core Competency is Warfighting– Example:
— Organic Maintenance within One Vector— Depot Maintenance is Not within One Vector
Secretary of Defense Fellows Program
McDonnell Douglas McDonnell Douglas RecommendationsRecommendations
Experiment with a Virtual JTF – Mission Area Focus--i.e., Precision Strike– Tie Core Competencies Together in Virtual Unit– Train as a Unit (Real and Simulated)
“One Vector Off” Criteria– Core Competency is Warfighting– Example:
— Organic Maintenance within One Vector— Depot Maintenance is Not within One Vector
Secretary of Defense Fellows Program
SDFP Corporate SDFP Corporate ExperiencesExperiences
American Management Systems- CAPT Nan Honey
McDonnell Douglas Aerospace- Lt Col Jim Kowalski
Sarnoff Corporation- Lt Col Kim McKenzie
Secretary of Defense Fellows Program
Sarnoff CorporationSarnoff Corporation
Small, single-site enterprise Mission...create technologies that change
the world Core competencies in three major areas:
information, biotechnical, and solid state Growth experienced in three phases
– Phase 1: RCA Corporate Research Laboratory– Phase 2: Spin-off and survival– Phase 3: Vision of “10-in-10”
Secretary of Defense Fellows Program
Sarnoff CorporationSarnoff CorporationObservationsObservations
Guiding principle of operations--strategic adaptation
Vision centric, top down planning Reorganizing principles
– Optimize growth and reward performance– Preserve organization flatness – Spin-off non-core competency activities
Secretary of Defense Fellows Program
Sarnoff CorporationSarnoff CorporationObservationsObservations
Secretary of Defense Fellows Program
Sarnoff CorporationSarnoff CorporationObservationsObservations
Creative Culture--hitech is a state of mind Highly efficient matrixed workforce Examples of Sarnoff Technologies
– Micromachines/microfluidics– Data compression and distribution – Generalized Emulation of Microcircuits– 3D Emersive Visualization Environment
Secretary of Defense Fellows Program
Sarnoff CorporationSarnoff CorporationRecommendationsRecommendations
Organizing Ideas– Spinning-off with business principles– Partnership Brokers--both internal and external
Creative Culture– Matrixing benefits through exchange programs
Acquisition and the “Hollywood Business Model”– Commercial is more than catalog sales– Government Agency Teaming approach
Secretary of Defense Fellows Program
Sarnoff CorporationSarnoff CorporationRecommendationsRecommendations
Secretary of Defense Fellows Program
Sarnoff CorporationSarnoff CorporationRecommendationsRecommendations
Secretary of Defense Fellows Program
SDFP Common SDFP Common Observations/RecommendationsObservations/Recommendations
Internets/Intranets- Enterprise-wide architectures/protocols
- Paperless/deskless/virtual
Strategic Planning/Vision- Topdown, not bottom up
Fiscal Planning- 18-36 months max
Outsourcing– Personnel– Infrastructure
Secretary of Defense Fellows Program
SDFP Common SDFP Common Observations/RecommendationsObservations/Recommendations
Partnerships/Teaming Organizations
- Flexible/dynamic structure
- Change incentivized
Culture- High employee value
- Junior level participation
Innovation- Risks taken/mistakes tolerated