DEPARTMENT OF THE NAVY

1. Achieving the “E” For Business Management DEPARTMENT OF THE NAVY = Roll your mouse over the arrow to get more information  and use slideshow  mode

2. Battle Effectiveness Award (“Battle E”) – What is it? • Awarded annually to ships, submarines, aviation, and other units in recognition of their battle effectiveness • Recognizes sustained superior performance and excellence in an operational environment • To succeed you must demonstrate the highest state of readiness Crew members aboard the guided missile cruiser U.S.S. Chancellorsville (CG-62) assemble on the ship's bridge wing. And now…Battle “E” to Business “E”

3. As a part of the Department of the Navy, you steer the business management processes that support audit readiness. You are the driver. The Business “E” - Why You Are Here By the end of this briefing, you will understand how your actions will drive the efficiencies, increase the accountability, and achieve audit readiness by attaining the Business “E”.

4. SECRETARY OF DEFENSE…Tone From the Top This is a priority for me and will be an "all hands" effort across the Department. As a key step, we must improve financial information and move toward auditable financial statements. Achieve audit readiness for Statements of Budgetary Resources by the end of 2014. I will engage in this effort personally- auditability is a goal that every commander, every manager, and every functional specialist must understand and embrace to improve efficiency and accountability at the DoD.

5. 2014…The Auditors are Coming…Let’s Get Ready!

6. Your Checkbook: If Not Right, What Happens? • 11/6 Groceries 56.44 00.00 3600.00 • 11/8 Apartment Rent 1,250 00 00 2350.00 • 11/15 Deposit paycheck 1865 00 4215.00 • 215 11/18 Car Payment 900 3315.00 • 11/6 Groceries 56.44 00.00 3400.00 • 11/8 Apartment Rent (late!) 1,250 00 00 2350.00 • 11/9 Money owed to SG 600 • 11/15 Deposit paycheck (late) 1865 00 4215.00 • 215 11/18 Car Payment 900 3315.00 #* Slipped under door Did she get it? Likewise, the DON must make sure each activity and the related financial transaction is documented, correct, and balanced to achieve the Business “E”.

7. Business “E”: The Secretary’s “Call for Action” Make it a “Clean Sweep!” Implement Changes Analyze Results and Document Run Source Document Drills Review Process Walkthroughs Draw on FM guidance Prepare Work-ups Gather Information Assess Your Business Assess Yourself Know Your Organization And Processes Click to OrganizationCharts Our success in this effort is inexorably linked to how well we communicate and collaborate as we move along the path to audit readiness.

8. Where Are We on the Path to Business “E”? INTEGRATED EFFICIENT INEFFECTIVE EFFECTIVE Optimized Operations Disconnected Operations Integrated Operations Aligned Operations Organizations • Stove-piped organization and entities • Stove-pipes organizations and entities continue, but are starting to align and collaborate • Organizations and entities are integrated horizontally and vertically • Operations are cost efficient and executed in fewest steps, maximally enabled by effective systems, people and processes Process • Inefficient, time-consuming, and non-transparent processes, manually intensive • Process improvements are easily identified and implemented • Processes are integrated and transparent across all organizational elements • Value, opportunity cost of process/systems changes is clear; culture of continuous improvement Systems • Rework is common and the success achieved is based on the extraordinary efforts of the top 20% • Stovepipes still exist, although reduced cross-organization rework still exist • Rework significantly decreased, systems and quality of data improvements are present • Little to no rework is necessary People • Often requires management and senior leader intervention • Requires all levels of Management to be engaged and some senior leader intervention necessary • Management intervention is reduced, staff level is empowered • Leadership focus is mission, investment, and future state-orientated, enabled by relevant and accurate data

9. Business Management: What’s the Link? Transactions Events Financial Statements Paying Military Employees Shipyard operations Paying Civilian Employees Buying Goods and Services Travel and Transportation Collections and Disbursements Reimbursable Work Orders MILSTRIP

10. The Road to Business “E” Begins with You • Most business events that take place in the field results in a financial transaction • Those business events that create a financial transaction can be traced and must be supported by you • Once these events occur, and lead to a financial transaction, the reporting process begins • How you execute business events and document financial transactions will dictate our eventual success in achieving the Business “E” • One of the many benefits of Business “E” is audit readiness • In short, you initiate the business event • No business event, no financial transaction From Recording Time (business event) to Paycheck (financial transaction)

11. Business “E”: Pieces, Priorities, and Dependencies Reconciliations and Testing Data Paying Military Employees Paying Civilian Employees Buying Good and Services Travel and Transportation Collections and Disbursements Systems Reimbursable Work Orders Business Processes MILSTRIP

12. How Will I Know I’ve Achieved the Business “E” ? Data Management, Documentation and Retrieval Can I find my source document in 48 hrs? “Burden of Proof” Account Reconciliation and Transaction Testing Do I have the checks and balances in place? “Transmitting Timely and Accurate Information” Automated Systems Controls, Documentation and Testing Is your data and information reliable? Business Process Standardization, Documentation and Controls Evaluation Are my processes documented? “People and Systems Make the Difference” “Simple in Concept… Monumental in Execution”

13. Know Your Business – Answer with Confidence Roll over the checkmark for more information

14. Now…What?

15. Here’s What! • Obtain confidence in your processes! Be able to assure that business processes are standardized, well documented, sustainable and support accountability: • From the time you walk through the portal • To the first button pushed • Through the business event to the financial transaction • In every area of the organization • Ensure that your actions are clear to others within and outside of your area! • Verify your transactions and work steps are fully documented, correct and available on demand! And Remember…Your Actions Drive the Business “E”

16. Here’s What! • Communicate! • Inform co-workers and other entities about what problems have come up and how you can help each other be successful • Stay in constant contact: in person and by phone or email throughout the day • Collaborate! • Work together to solve problems across the DON • Share ideas and experiences to build upon each others’ skills and talents • Coordinate! • Realize that everyone’s job is necessary and understand how they work together • Understand the allocation of time and resources • Learn to maximize resources through scheduling and sharing information Comply with the Secretary of Defense’s 13-Oct 2011 Directive

17. Audit Readiness…Control Your Destiny Reactive It’s Your Choice! Proactive

18. The Bottom Line: Thrive as One…Wither As Many It’s a team sport. Everyone has a role to play in achieving the Business “E”.

19. Questions? Click here to go to the FMO Web site

20. Backup Slide: Secretary of the Navy Organization Secretary of the Navy DoN ChiefInformation Officer Chief ofInformation Under Secretary of the Navy Judge AdvocateGeneralof the Navy Chief ofLegislativeAffairs NavalInspector General AuditorGeneral DirectorProgram Appraisal Asst. Secretaryof the Navy(Research,Development and Acquisition) Asst. Secretaryof the Navy(Manpower & Reserve Affairs) Asst. Secretaryof the Navy(Financial)Management & Comptroller) Asst. Secretaryof the Navy(Installations &Environment) General Counselof theDepartment of the Navy Chief ofNaval Research) Chief ofNaval Operations Commandantof the Marine Corps Click to next chart

21. Backup Slide: Operating Forces FleetForcesCommand Chief of NavalOperations Atlantic FleetincludesFleet Marines Naval NetworkWarfareCommand NavalReserveForces NavalInstallations Pacific FleetincludesFleet Marines U.S. Naval ForcesEurope OperationalTest & EvaluationForces TypeCommanders MilitarySealiftCommand Naval SpecialWarfareCommand TypeCommanders U.S. NavalForces Southern Command U.S. NavalForces Central Command Click to next chart

22. Backup Slide: Shore Establishment Chief of NavalOperations Office of the Chief of NavalOperations Bureau of NavalPersonnel Bureau ofMedicine and Surgery Naval LegalServiceCommand Naval Meteorologyand OceanographyCommand Space & NavalWarfare Systems Command Naval SeaSystemsCommand United StatesNavalObservatory Office of NavalIntelligence Strategic Systems Program Naval Air Systems Command Naval SafetyCenter Untied StatesNavalAcademy Naval Strike &Air WarfareCenter Naval FacilitiesEngineeringCommand NavalSecurity GroupCommand Naval Educationand TrainingCommand Naval SupplySystemsCommand Click to next chart

23. Backup Slide: Typical Ship Organizational Chart CommandingOfficer Commanding Officer ExecutiveOfficer Executive Officer’sAssistants Executive Officer Department Head NavigationDepartment OperationsDepartment SupplyDepartment Weapons, Deck, or Combat SystemsDepartment Division Officer Division Chief EngineeringDepartment OtherDepartments* Leading PettyOfficer ImmediateSupervisor NonratedPersonnel * As Necessary and approved by the CNO Back to presentation