Replication of U.S. Army-Europe Military Pay Efficiencies: Bright Spots

  • September 01, 2014
  • Mr. William H. McQuail

The Department of Defense (DoD) faces extraordinary fiscal challenges. The Army made deep budget reductions to meet sequestration caps and those measures could be re-imposed in 2016. However, given results of several Lean Six Sigma projects in the U.S. Army-Europe, it proved possible to find significant savings in military pay entitlements which could lead to substantial savings elsewhere. Initiatives projected millions of dollars in savings over five years from efficiencies of several entitlements. Additionally, improving the accuracy of military pay entitlements contributes to the Army’s audit readiness, a Congressionally imposed DoD mandate for 2017. Replication of these projects elsewhere in the Army, unfortunately, has not occurred. Savings resulted from successful financial management organizational transformation, and the Army should use those lessons as it prepares to implement significant force structure changes. This paper explores why efficiencies did not spread throughout the service, what steps the Army should take to achieve benefits in other commands, and encourages the Army to assist other services with the replication of these projects to realize savings throughout DoD.