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DEFENSE BUSINESS BOARD
FOCUSING A TRANSITION
JANUARY 2009
www.defenselink.mil/dbb
DEFENSE BUSINESS BOARD
Business Excellence in Defense of the Nation
Phyllis L. Ferguson, Executive Director
Kelly S. Van Niman, Deputy Director
COL Kevin A. Doxey, USA, Military Assistant
Col Dale R. Marks, USAF, Military Assistant
Debbie K. Du y, Sta  Assistant
Defense Business Board Members
Michael J. Bayer, Chairman
Frederic W. Cook, Vice Chairman
Denis A. Bovin
Howard E. Cox
Henry N. Dreifus
Carly S. Fiorina
James K. Haveman
Dennis F. Hightower
Mel M. Immergut
Madelyn P. Jennings
James V. Kimsey
Bruce E. Mosler
Philip A. Odeen
William R. Phillips
Arnold L. Punaro
Mark H. Ronald
Atul Vashistha
Joseph R. Wright
Dov S. Zakheim
KEY PRIORITIES
FOR THE
DEPUTY SECRETARY
OF DEFENSE
Key Priority:
Manage the resources of the 
Department e ectively and e  ciently.
Actions:
 Target cuts and invest savings to support 
the Department’s strategy and priorities
– Do not apply across-the-board     
reductions 
– Reduce overhead/infrastructure - 
installations, management functions, 
personnel support, central training
– Streamline Operations and 
Maintenance costs
 Hold senior leadership accountable to 
reduce cost growth in major acquisition 
programs
 Build the case to divest of non-core     
organizations and activities
 Consolidate key management metrics to 
inform and align organizations
DEFENSE BUSINESS BOARD
DEPUTY SECRETARY OF DEFENSE
Key Priority:
Focus the Department to execute the 
Secretary’s vision and strategy.
Actions: 
 Develop cascading goals and objectives 
consistent with the President’s Management 
Agenda and the Secretary’s strategic plan
– Translate Quadrennial Defense Review 
(QDR) into clear measurable enterprise 
goals to align cross-organizational 
initiatives
 Communicate strategic goals and progress 
throughout the Department
 Institutionalize a process to track 
outcomes and measure achievement 
(such as a scorecard), evaluate feedback 
and analyze the results of decisions
 Align the business operating environment 
to the overall Defense strategy and 
mission
 Work with other agencies to advance the 
Secretary’s strategy and national interests
Key Priority: 
Align the organizational structures 
and management processes to support 
strategy execution.
Actions: 
 Utilize senior-level governance forums 
that align management and ensure       
support for strategic priorities  
– 
Focus forums on the key management  
issues and national security challenges 
– Design forums to support the 
Secretary’s management model and 
style, and enable strategic trade-off 
decisions
 De ne and modernize core management 
systems/processes to prioritize resources, 
identify trade space, and to leverage 
mutual cooperation with key internal and 
external stakeholders
 Ensure organizational elements are 
aligned horizontally and vertically to 
enable enterprise-level decision-making
 Centralize enterprise business operations 
in support of decentralized military 
operations
Key Priority: 
Develop a high-performing  
organization that attracts, motivates, 
rewards, and retains highly quali ed 
people to achieve strategic goals.
Actions: 
 Measure performance, hold leaders 
accountable, and reward success  
– Require leadership to convey 
performance expectations and 
conduct periodic management 
reviews to ensure accountability 
– Communicate progress or lack 
thereof to promote accountability
– Reward behavior that drives cultural 
change, seeks continuous improve-
ment and encourages risk-taking and 
innovation
 Increase e orts to recruit externally
– Defense Business Fellows Program
for top MBA graduates
 Develop a requirements-driven strategy 
for cultural diversity
 Restore the Senior Executive Service to 
recognize them as the Department’s     
permanent general management and 
require joint service for top positions