AF9. Always Let "Cost-Consciousness" Be Your Guide - PDI 2012

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AF9. Always Let "Cost-Consciousness" Be Your Guide - PDI 2012

FM and

Decision Support

May 2012

“Making the most of our dollars & sense”


Why Change

‣ Resources are becoming scarce

• “…the Department of Defense cannot expect America’s

elected representatives to approve budget increases each

year unless we…make every dollar count.”

-Secretary Gates, Aug 2010

‣ Continuing budget cuts

• Budget Control Act

• Sequestration

‣ Analysts are in survival mode

$487B

taken

$500B

at risk

Making the Most of Our Dollars & Sense

2


Agenda

‣ Culture Shift

‣ FM’s Role in Decision Support

‣ Examples

‣ FM/Functional Integration

‣ Way Ahead

Making the Most of Our Dollars & Sense

3


FM as a Support Role

‣ Traditional FM role in DoD focused on execution

• Balancing requirements

• Ensuring compliance with budget/fiscal law

• Proper finance and accounting

• Often can’t shift resources from separate “pots”

‣ Daily Duties/Priorities

• Approve documents, track obligations/expenditures, load targets

‣ FM Perspective

• Internal work

• Do our own job

• Expect others to do their job

Just recently recognizing role in decision support

Making the Most of Our Dollars & Sense

4


Making the Most of Our Dollars & Sense

History of DS

1990-

1991-

199x-

2004-

2006-

2006-

2010-

2011-


Making the Most of Our Dollars & Sense

Cost Consciousness

‣ Awareness of what it is being spent and WHY

‣ Continuously try to identify and implement

efficiencies

‣ Status Quo is the enemy

‣ Historical information is useful, but only a

single piece of the puzzle

‣ Just because you have the $ for an initiative,

doesn’t mean it should be funded…look at

entire program


Making the Most of Our Dollars & Sense

What this is NOT

‣ Doesn’t replace budget process

• Justifies execution

• Avoids unintended costs/consequences

• Ensures the “right” stuff is bought

‣ Centrally controlled

• Not a cut/compliance drill

• Training some now, eventually everyone

• Can’t be mandated…must be adopted

‣ Additive Work

• Planning now prevents crisis later

• Scope/level of analysis depends on issue at hand


Agenda

‣ Culture Shift

‣ FM’s Role in Decision Support

‣ Examples

‣ FM/Functional Integration

‣ Way Ahead

Making the Most of Our Dollars & Sense

8


FM’s Role in Decision Support

‣ FM is in a unique position to be involved from the

start for all decisions

• FWG/FMB, CEMC, FUWG/FUB, Wing Staff Meetings, NAF

Council

‣ Speak up

• “Let me have my folks look at that”

• “I’d like to run some numbers on that”

• “ I can help you sell that idea better after a little analysis”

Be Proactive!

Making the Most of Our Dollars & Sense

9


FM’s Role in Decision Support

Issue

Decision

Maker

Study/analysis

Functional

Decision

Decision

Maker

Current Decision Process

Very little FM involvement

Implementation

FM/Functional

Making the Most of Our Dollars & Sense

10


Making the Most of Our Dollars & Sense 11

FM’s Role in Decision Support

Do we have the right issue

FM involvement throughout

•Where $$ come from

•Does it fit vision

•Priority

•2 nd Order effects

•Trade-offs

Costs

Benefits

•…..

•Phasing

•Follow-up


Air Force DS Definition

"A process that enables decision makers to

make INFORMED decisions that better UTILIZE

resources and improve mission effectiveness"

Making the Most of Our Dollars & Sense

12


When is DS Accomplished

Before the decision is made

‣ Done at all levels of organization

‣ For all decisions (scalable)

‣ Continuous process

Decision

Support

Decision

Making

Making the Most of Our Dollars & Sense

13


Agenda

‣ Culture Shift

‣ FM’s Role in Decision Support

‣ Examples

‣ FM/Functional Integration

‣ Way Ahead

Making the Most of Our Dollars & Sense

14


Recent Examples

‣ Help avoid a “bad” decision

• Wind farms

• Campground rental

‣ Make a better decision

• Community center

• NAF vehicles

‣ Other past examples

• AFFSC/CoE

• AFSO

• IT

• Fuels

‣ Future applications

• Facility reductions

• Energy efficiencies

• Budget cuts

Making the Most of Our Dollars & Sense

15


Agenda

‣ Culture Shift

‣ FM’s Role in Decision Support

‣ Examples

‣ FM/Functional Integration

‣ Way Ahead

Making the Most of Our Dollars & Sense

16


Players

SME

Functional

Functional

SME

Decision

Maker

Decision

Maker

FM

FM

Making the Most of Our Dollars & Sense

17


FM Perspective

‣ Roles & responsibilities not well defined

‣ FM should be focal point

• Need involvement and ownership

• Organize and lead all meetings

• Assist in gathering financial data

• Validate financial data

DM

FM

‣ Integrate

Func

tional

SME

Making the Most of Our Dollars & Sense

18


What’s Broke

‣ What is “real” requirement

• Different perspectives

• Limited reconciliation

‣ Who conducts root cause analysis (RCA)

‣ Who’s in charge of execution

• Functional

• New Team

• Those who built study

Making the Most of Our Dollars & Sense

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What Else Is Broke

‣ Pitching over the fence

‣ No ownership

‣ No incentive for reality

‣ Slow

‣ Many revisions

Making the Most of Our Dollars & Sense

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Improvement Ideas

‣ Appoint a single POC for project

‣ Understand the requirement

‣ Develop close working relationship with

functionals and SMEs

‣ Request CoE assistance when needed

‣ Validate data prior to submitting

FM owns final decision support

document—be an active participant!

Making the Most of Our Dollars & Sense

21


Tailoring the Analysis

‣ Don’t always have time/need for a big analysis

‣ Not a one size fits all tool

‣ Match the level of effort to the decision required

‣ Variety of ways

Making the Most of Our Dollars & Sense

22


Making the Most of Our Dollars & Sense

Be active participants

What Can Functional/SME

Do Better

‣ What does the decision maker want or need

• Know the requirement

• Attend meetings

‣ Articulate specific needs


What Do We Mean

‣ Scenario

• You are the FM CE analyst

• When driving on base you notice a backhoe

digging up the road, causing traffic delays

‣ What is your reaction

• Annoyed

• Interested

• Confused

• Proud

‣ What should your reaction be

Making the Most of Our Dollars & Sense

24


Why Do You Care

‣ Boss asks about the project

‣ Do you know why

‣ What year’s funding

‣ Is it on schedule

Making the Most of Our Dollars & Sense

25


Why Do You Care

‣ Are there secondary costs to consider

‣ Are there any long term maintenance costs

‣ Are extra SFs needed to reroute traffic

‣ Did PA notify base about change

‣ Is project funded properly/fully

Watch for secondary effects

Making the Most of Our Dollars & Sense

26


Why the Rest of FM Cares

‣ Are there related projects

‣ Will future efforts affect the same location

• Utility upgrades

• Communication projects

• Road improvements

‣ Does this project affect other events

• Base exercises

• Commute time

• DVs or other public activities

No one activity is an island

Making the Most of Our Dollars & Sense

27


What Happens If We

Aren’t Integrated

‣ Duplicative efforts

‣ Last minute crisis to fund support actions

‣ Changes to obligations/prior year funding

‣ Lack of planning = fire fighting

Net affect: save time

Making the Most of Our Dollars & Sense

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Applies to More

than Projects

‣ Purchase requests

‣ Overhires

‣ Unfunded requirements

‣ Budget cuts

What happens if you approve (reject)

this document

Making the Most of Our Dollars & Sense

29


Must Work Together

Functional

SME

Decision

FM

Maker

Making the Most of Our Dollars & Sense

30


Agenda

‣ Culture Shift

‣ FM’s Role in Decision Support

‣ Examples

‣ FM/Functional Integration

‣ Way Ahead

Making the Most of Our Dollars & Sense

31


Making the Most of Our Dollars & Sense 32

Sample Process Map

Functional

generates idea

FM analyst

assigned

Team

brainstorming

planning

Local analyst/

functional

complete analysis

CoE will continue to

support and participate

in this process as

needed

FM out briefs local

interested parties

Decision


Making the Most of Our Dollars & Sense

DCO Training Schedule

‣ DCOs will be presented to each MAJCOM and

their Wing Comptrollers and FMAs

• Culture Shift

• Decision Support Examples

14 May 15 May 16 May 17 May 18 May

ISRA AMC AFSPC AFRC

AFGC

AFSOC

21 May 22 May 23 May 24 May 25 May

PACAF

HAF

ACC

AFMC AETC USAFE


Making the Most of Our Dollars & Sense

Decision Support Training

Schedule

‣ 1 to 3 classes per MAJCOM based on their

stated need

• Approximately two people per wing

• Encourage people to share info on their return

ACC AETC AMC AFMC AFRC AFSO

Langley

Nellis

San

Antonio-2

TBD TBD Robins

Denver

Hurlburt

AFSPC AFGSC HAF PACAF USAFE

Peterson

LA

Barksdale DC Hickam

Yakota

Ramstein

Lakenheath


Making the Most of Our Dollars & Sense

How We Help You

‣ Q&A

‣ Advice

Do you have questions

‣ References

A project due

Call the CoE!

‣ Content reviews

Benchmarking

Best practices

‣ Standardized tools and

templates (CREATE, EIS, EA)

‣ On-site Support

• Data Collection and Validation

• Analysis

• Report Generation

‣ Development of tools for

emerging tasks

• Efficiencies

• Prioritization methods

‣ Centralized development of

products available AF wide

CoE services

are FREE!


Making the Most of Our Dollars & Sense

Summary

‣ Money’s tight

‣ Status Quo is inefficient

‣ Decision Support is continuing to evolve

The current environment will require that we

evolve…together we can meet the need


QUESTIONS

https://www.saffm.hq.af.mil/coe

fm.coe@buckley.af.mil

(720) 847-2100/2101

DSN: 847-2100/2101

“Making the most of our dollars & sense”

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