Define Characteristics of Organization Based Control © Dale R Geiger 2011 Everyone is Part of a Hierarchy © Dale R Geiger 2011 Terminal Learning Objective • Task: Define Characteristics of Organization Based Control • Condition: You are training to become an ACE with access to ICAM course handouts, readings, and spreadsheet tools and awareness of Operational Environment (OE)/Contemporary Operational Environment (COE) variables and actors • Standard: with at least 80% accuracy • Describe the difference between Cost Benefit Analysis and Cost Managed Organizations • Describe characteristics of Organization Based Control © Dale R Geiger 2011 Contrasting CBAs and CMOs Single Use Estimated Future Cost Cost Informed Decision Making Cost Benefit Analysis Cost Benefit Analysis Contrasting CBAs and CMOs Single Use Persistent Use Estimated Future Cost Expected & Actual Cost Cost Informed Decision Making Continuous Improvement Cost Benefit Analysis Cost Managed Organization Cost Benefit Analysis Cost Managed Organization Contrasting CBAs and CMOs • Cost Benefit Analysis • Uses a formal, structured process to inject cost considerations into the decision making process • Improves the cost effectiveness of acquisitions, policy alternatives, and other major decisions • Is too time consuming and costly itself to be used for all day-to-day operating decisions • Cost Managed Organizations • Use cost management and control processes to improve the cost management and control of day-today operations Contrasting CBAs and CMOs Leadership Cost Benefit Analysis Cost Managed Organization Contrasting CBAs and CMOs ACE Expertise Cost Benefit Analysis Cost Managed Organization Contrasting CBAs and CMOs Process Cost Benefit Analysis Cost Managed Organization Contrasting CBAs and CMOs Measurement Cost Benefit Analysis Cost Managed Organization Teacher’s Note 3d Armored Cavalry Regiment • The 3d Armored Cavalry Regiment is a Heavy Brigade Combat Team deployed to Iraq (as of spring 2011) • The Rear Detachment remained at Fort Hood, Texas *At composite standard rate Tactical Unit Cost Management & Control: Non Deployable Soldiers • Throughout the Army many Soldiers are unable to deploy • Operational effects can be • • • • Under strength units deploying Units deploying with filler personnel Increased deployments for some personnel Reduced dwell to BOG (boots on the ground) time • Cost effects involve military pay for limited military work • $68 Billion milpay budget in FY11 controlled at Army level • Commands, Armies, Corps, Divisions, Brigades, etc see no cost or even budget • This means that Soldiers are free goods to their units • FY11 milpay cost for non deployable soldiers is in $10 billion range 3d ACR Non Deployable Cost • Soldiers are not deployable for a number of reasons • They still draw full salaries • The following are the 3d ACR non deployable soldiers by category as of January 2011 • How much these soldiers cost the Army per year by category at the average composite standard rate for the rear detachment? 3d ACR Major Med Retirement Cadre Minor Med PCS Legal TDY Child Care Other Total Soldiers 198 64 47 53 64 21 36 499 Teacher’s Note 3d ACR Non Deployable Cost 3d ACR Major Med Retirement Cadre Minor Med PCS Legal TDY Child Care Other Total Soldiers 198 64 47 53 64 21 36 499 $M 13.2 4.3 3.1 3.5 0.5 4.3 0.5 1.4 2.4 33.3 3d ACR Non Deployables • Non deployable soldier levels are considered a major issue throughout Forces Command • Consider the III Corps level of non deployable troops: Major Med Retire ment Cadre Minor Med PCS Legal TDY Child Care Other Total III Corps 781 718 550 355 350 259 116 72 119 3320 III Corps 24% 22% 17% 11% 11% 8% 3% 2% 4% 100% • The 3d ACR Rear Detachment CO, LTC Perry reviewed non deployables weekly • Rear Detachment Squadron COs and numerous Rear Detachment staff attend Feb Review of 3d ACR Non Deployable • Meeting went 90 minutes • Much time was spent reviewing a handful of cases • LTC Perry learned that • Medical appointment issues caused delay • Getting signatures added unnecessary delay • Time allowed only two of the Squadron COs to speak • The review (report?) follows 3d ACR Feb 7, 2011 Non-deployables Review 21 pages over 400 names © Dale R Geiger 2011 31 Commander’s Feb Review Critique • LTC Perry was unsatisfied with the results of the non deployable review process • He recognized that the subordinates were not attacking the problem • Instead they were complying with a reporting requirement • The pages and pages of detail were data, not information • He likened the situation as one of trying to fight the Battle of the Bulge with the following very detailed map Battle Map of Ardennes Forest Leadership Driven Management • LTC Perry changed the format of the review process to that of an AAR • Established his Commander’s Intent as: “look for and resolve systemic issues” • Targeted medical profiles over one year and legal chapters over 60 days to be attacked • Directed that preliminary meetings occur in the Squadrons • Interacted with medical and legal staff on post to enlist their support © Dale R Geiger 2011 34 3d ACR Rear Detachment LTC Perry AAR HQ Troop Remington 1-3 Tiger Squadron AAR AAR 2-3 3-3 Sabre Squadron Thunder Squadron AAR AAR 43rd Engineer AAR Results of LTC Perry Initiative: March to May Target Areas Two months Mar May Δ Medical > 365 Legal > 60 Total Medical > 365 Legal > 60 Total Delta Tiger 20 21 16 Sabre 15 10 25 4 21 Thunder 12 18 6 12 Remington 10 10 3 Muleskinner 3 (1) Bullwhip 5 0 3d ACR 39 43 82 20 22 60 Results of LTC Perry Initiative: March to May Target Areas Two months Mar May Δ Medical > 365 Legal > 60 Total Medical > 365 Legal > 60 Total Delta Tiger 20 21 16 Sabre 15 10 25 4 21 Thunder 12 18 6 12 Remington 10 10 3 Muleskinner 3 (1) Bullwhip 5 0 3d ACR 39 43 82 20 22 60 $4M Annualized at Composite Standard Rate Opportunities for Improvement Systemic Improvements Unforeseen Benefits of Accountability Unforeseen Benefits of Creativity 3d ACR Rear Detachment LTC Perry HQ Troop Remington 1-3 Tiger Squadron 2-3 Sabre Squadron Missions? Support the Field Support the Families Prepare ARFORGEN 3-3 Thunder Squadron 43rd Engineer ... Rear Detachment 15 1 13 70 12 1 17 6 13 3 30 19 647 Deployed to Iraq 23 57 11 2 16 13 14 26 12 1 245 430 769 624 57 21 2544 Total 3d ACR 23 72 11 6 20 14 15 39 17 4 315 5 51 945 757 87 40 319 1 Teacher’s... Legal TDY Child Care Other Total III Corps 7 81 718 550 355 350 259 11 6 72 11 9 3320 III Corps 24% 22% 17 % 11 % 11 % 8% 3% 2% 4% 10 0% • The 3d ACR Rear Detachment CO, LTC Perry reviewed non deployables... Cost Benefit Analysis and Cost Managed Organizations • Describe characteristics of Organization Based Control © Dale R Geiger 2 011 Contrasting CBAs and CMOs Single Use Estimated Future Cost Cost