DOD Deputy Chief Management Officer Will Take On ERPs – At least standard process


Beth McGrath, the DOD’s Deputy Chief Management Officer, has figured out that ERPs failures are pointing to the need for common business processes but has not yet learned that the ERPs are not the cost effective way to get that result. Quoted from an interview with FederalNews Radio, McGrath says:

“”We want to ensure as they pursue their acquisition solutions they are aligned with the HR standards, that we have a standard process, so at the end of the day we can aggregate the information,” McGrath said. “That’s the important piece to define the process and data standard so you can aggregate the information at the end of the day.”

Along those lines, McGrath expects the Army and Air Force to issue request for proposals in the coming year for new HR systems to replace the failed Defense Integrated Military HR System (DIMHRS). DoD ended DIMHRS after spending about $1 billion and realizing the services and Defense agencies can’t use the same HR system.

But what DoD also realized after it ended DIMHRS was the services could standardize certain business processes.

McGrath is leading a broader effort, called business process reengineering, to standardize 15 common, commercial processes, such as hire-to-retire, procure-to-pay and order-to-cash.

She said DoD is focusing on hire-to-retire and procure-to-pay initially because all the services are updating or implementing new systems.

“We want to ensure as they pursue their acquisition solutions they are aligned with the HR standards, that we have a standard process, so at the end of the day we can aggregate the information,” McGrath said. “That’s the important piece to define the process and data standard so you can aggregate the information at the end of the day.”

DoD has documented all 15 of the commercial processes in their business architecture at a high level. But for hire-to-retire and procure-to-pay, McGrath said those business processes are more detailed under the architecture.

So then – why are the DOD ERP efforts ending in failure with little to show for the $1B investments in each failed endevor?

Maybe the DOD should move to implement the processes in something less archaic than ERP, where they must shift, smash, prune, and dismember their processes to fit commercial models? Come on DOD, don’t you remember the old quote that “Insanity is doing the same thing and expecting different results”???

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