The effects of financial controls of activity operations

Abstract

The Quadrennial Defense Review underscored the importance of reevaluating the operation of the Department of Defense. The Department of the Navy Organization Management and Infrastructure Team is charged with generating analysis to arrive at recommendations for change that will improve decision makers information and incentives. Through the use of survey research, and sorting techniques, this thesis identifies the need for budget flexibility during the execution phase for commanders to address emergent issues at the local level, especially at Recruiting, Supply and Support commands. Financial controls such as fences, floors, ceilings and thresholds erode the commander's ability to manage the organization effectively. The financial controls and reduced funding combine to cause difficulties in command operations. The result is a hierarchy of funding. The mission first, quality of life second and facilities last. A model program, exercising budget flexibility during the budget execution phase, is recommended to provide further concrete evidence