Ways to Promote Efficiencies
The specifics of new initiatives should be left to DoD’s current managers. But they will be more successful in promoting efficiency if they adhere to several broad principles.
- Focus on Incentives: The department should focus on creating incentives so that commanders and managers seek efficiencies. For example, in addition to its existing incentive programs, DoD could institute a matching program that provides funds to commanders and managers who bring about efficiencies, including competitive sourcing initiatives that are hard to implement. These matching funds should be available to meet all legitimate needs at their bases or in their programs.
- Pursue a Top-Down Approach: If efforts to improve the efficiency of DoD’s programs and activities are to be successful, DoD’s senior management will have to be actively involved. DoD’s top managers should focus on initiatives that require their personal attention but can yield large efficiency savings—such as base closures and competitive outsourcing. The current administration appears to be pursuing this top-down approach aggressively.
- Listen to the Field: Senior DoD and Service officials need to listen to field personnel, who often know of many smaller changes that can save money. If they institutionalize efforts to gather up ideas from the field, and find ways to nurture the promising ones with funding and support, these ideas could lead to substantial efficiencies.
- Establish Metrics: Metrics are required by law for major initiatives. They might also prompt the Defense Department to make regular estimates of savings, which will help in future years when defense managers are called upon to assess their efficiency efforts.
Following these approaches will not eliminate the barriers to improving efficiency that exist in DoD and throughout government. However, following them should improve the prospects for succeeding at this important but daunting task.