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Business Management Process Improvement

This area deals with the financial manager's knowledge of concepts of business process reengineering, special authority to use receipts, Government Performance and Results Act of 1994 and directives and regulations related to performance of commercial activities.
  
Business Management Process Improvement is a major factor of the Federal Government's effort to restructure and reorganize many Federal agencies, including the Department of Defense. Key components are: Business Process Reengineering, outsourcing and privatization, performance goals and measurement, as well as identifying and implementing business-like opportunities.
  
Business Process Reengineering is a tool for change. The emphasis is a fundamental re-thinking and radical redesign of business processes within organizations to realize dramatic improvements in performance.
  
Outsourcing and privatization is an important way to help organizations accomplish their missions. It recognizes that certain functions such as those involving the exercise of government authority or monetary transactions and entitlements, are inherently governmental and must be performed in-house. However, other functions are ministerial and can be performed better and at a lower cost by outside contractors.
  
Performance goals and measurement help government agencies move from a focus on inputs – how much they spend on programs – to a focus on outputs – what results they get from the money they spend. Performance measurement helps agencies move from process – how decisions get made – to results. The Government Performance and Results Act of 1993 requires agencies to set strategic goals, measure performance, and report to the President and Congress on the degree to which goals were met.
  
Identifying and implementing business-like opportunities can help organizations become more efficient and avoid costs. Examples of business-like opportunities that are being implemented by Department of Defense organizations include the Sale and Out-Lease Program and the Recycling Program.
  
 Test Study Preparation References
  
 Title  Author  Chap/Sec  Study Notes
Business Process Reengineering On-Line Learning Center    Chap 2 Reengineering Success Factors: BPR Principles www.prosci.com/factors.htm
The Best Kept Secrets in Gov't  National Performance Review    For sale by GPO – ISBN 0-16-048770-6 www.npr.gov/library/review.html
Executive Guide – Effectively Implementing the GPRA  GAO   www.gao.gov/special.pubs/gg96118.txt
10 USC 2667 – Real Property and Leases      http://uscode.house.gov
DoDI 4100.33 – Commercial Activity Procedures      http://www.dtic.mil/whs/directives
Government Performance and Results of 1993      http://www.whitehouse.gov/omb/mgmt-gpra_gplaw2m
Fed Procurement Policy Letter 92-1      www.arnet.gov/references/policy_letters/PL92-1.html
DoD Reform      www.defenselink.mil/pubs/dodreform/chapter3.html

 

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