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Changing Management Behavior: Every Dollar Counts

Monday, April 18, 2016

Provided by Office of Business Transformation

What is it?

Army Directive 2016-16, Changing Management Behavior: Every Dollar Counts is the foundational start of a bold campaign to shape a culture that consistently practices good management behavior to ensure that every dollar the U.S. Army spends counts towards fielding a trained and ready force. The purpose of this campaign is two-fold: adapt best financial management practices and improve outcomes to support the Army’s #1 priority of readiness.

What has the Army done?

The Army has adapted many elements including the size of the force to account for a future with reduced projected funding levels. Many elements of the Army have already modified their management behaviors; this campaign seeks to complete that transformation.

This change of policy coincides with Tax Day, signifying the Army’s commitment to an effective and judicial use of the nation’s resources.

What continued efforts have been planned for the future?

To be innovative and good stewards of taxpayer dollars and to ensure the highest level of readiness, the new Army directive ensures that Army commanders and leaders at every level will:

  • Establish and track annual performance measures
  • Avoid using budget execution data and obligation rates as the primary measure of fiscal success
  • Identify and manage total costs of critical processes, especially when funding is divided among multiple commands and sources
  • Eliminate use it or lose it funding practices
  • Reward leaders and organizations who demonstrate exemplary stewardship and innovative ideas

Why is this important to the Army?

The Army is not a business and exists for one purpose: to fight and win the nation’s wars. This is the first and foremost priority of every Soldier. It is what every Soldier, from the rank of private to general, is taught and trains for. This initiative is a recognition that in addition to being the best warfighters in the world, the Army also needs to have leaders that understand and practice good management behaviors; skillfully applying the resources provided to maximize our warfighting capability and capacity, and to making sure every dollar counts.

Resources:

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