ESTABLISHING FINANCIAL EFFICIENCY IN THE MARINE CORPS
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Authors
Sullivan, Brandan P.
Subjects
financial management
efficiency
readiness
spending
obligation rates
goal-setting theory
organizational behavior
process improvement
efficiency
readiness
spending
obligation rates
goal-setting theory
organizational behavior
process improvement
Advisors
Seagren, Chad W.
Date of Issue
2023-03
Date
Publisher
Monterey, CA; Naval Postgraduate School
Language
Abstract
Financial performance in the Department of Defense (DoD) is measured based on achieving planned consumption, referred to as obligation rates. This technique limits the DOD’s ability to accurately measure financial efficiency, leading to wasted financial resources and a less effective fighting force. Measuring performance through the use of consumption rate targets reinforces spending, focusing a commander on exhausting all financial resources instead of attaining anything more meaningful. This thesis contends that financial resources should be measured by the output they generate, shifting leaders’ focus from consumption to efficiency. Output variables will likely vary by program, and this study selected readiness as the output variable for the analysis. Using Marine Corps operating forces’ spending levels, a Monte Carlo simulation applied research-based improvement metrics to showcase potential impacts to spending quality if an alternative measure of performance were to be adopted. The impacts were applied in two ways: maximizing value and minimizing cost. By changing the way performance is measured, decision-makers can have access to the information required to truly make the best use of financial resources—and do so without substantive administrative and legislative adjustment.
Type
Thesis
Description
Series/Report No
Department
Department of Defense Management (DDM)
Organization
Identifiers
NPS Report Number
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Citation
Distribution Statement
Approved for public release. Distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.