Activity Based Resource Management (ABRM) Implementation

1.  BACKGROUND.  SINCE LATE 1999, MARINE CORPS INSTALLATIONS HAVE AGGRESSIVELY BUILT A LOCAL CAPABILITY TO SHOW THE COST AND PERFORMANCE OF ALL BASE FUNCTIONS THROUGH ACTIVITY BASED COSTING (ABC).  IT IS NOW TIME TO LEVERAGE THIS LOCAL COMMANDERS' COST-MANAGEMENT TOOL TO SUPPORT ENTERPRISE-WIDE (MARINE CORPS-WIDE) DECISION-MAKING.  DURING THE POM06 BUILD, WE WILL CREATE INSTITUTIONAL COST AND PERFORMANCE METRICS FOR INSTALLATION SUPPORT. ADDITIONALLY, WE WILL DEVELOP AN ENTERPRISE-WIDE ABRM IMPLEMENTATION PLAN.
A.  THE MARINE CORPS, IN EXECUTING ITS TITLE 10 RESPONSIBILITIES TO MAN, TRAIN, EQUIP, AND SUSTAIN FORCES TO PROVIDE WARFIGHTING CAPABILITIES TO THE COMBATANT COMMANDERS REQUIRES THAT RESOURCES BE OPTIMALLY APPLIED TO FUNCTIONS THAT SUPPORT OUR STRATEGIC PLANS.
B.  THE MARINE CORPS IS INCREASINGLY UNDER PRESSURE FROM OSD, DON, OMB AND CONGRESS TO LINK PERFORMANCE WITH RESOURCES, ALSO KNOWN AS PERFORMANCE BASED BUDGETING (PBB).  EXTERNAL INFLUENCES, SUCH AS THE PRESIDENT'S MANAGEMENT AGENDA, SEA ENTERPRISE, AND MANAGEMENT INITIATIVE DECISIONS (MID) 901 AND 910 REQUIRE THAT WE DEVELOP THE PROCESS AND STRUCTURES TO QUANTITATIVELY AND QUALITATIVELY DESCRIBE OUR REQUIREMENTS.
2.  ABRM WORKING GROUP (ABRM WG). 
A.  REF A ESTABLISHED THE ABRM WG WITH A MISSION TO "ASSESS OPPORTUNITIES TO INTEGRATE ABC DATA AND PERFORMANCE MEASUREMENT INFORMATION INTO THE CURRENT USMC POM AND BUDGET PROCESS ('AS-IS'); AND, IDENTIFY AND RECOMMEND POSSIBLE IMPROVEMENTS TO THE CURRENT POM/BUDGET PROCESSES ('TO-BE'), IN ORDER TO LEVERAGE ABC/M INFORMATION TO BEST SUPPORT RESOURCE ALLOCATION DECISION MAKING." THE ABRM WG, COMPRISED OF MEMBERS FROM I&L, P&R, M&RA, MFP, MFL AND MATCOM (MARCORLOGCOM) CONDUCTED THREE CONFERENCES BETWEEN OCT 2002 AND JAN 2003 TO IDENTIFY WAYS TO ACCOMPLISH THIS MISSION.
B.  THE ABRM WG IDENTIFIED THREE KEY INSERTION POINTS THROUGH WHICH ABRM COULD IMPACT THE MARINE CORPS' POM PROCESS:  (1) CORE SETTING, (2) INITIATIVE DEVELOPMENT, AND (3) INITIATIVE REVIEW.  THESE INSERTION POINTS WERE IDENTIFIED AS LOGICAL PLACES TO LEVERAGE COST AND PERFORMANCE INFORMATION TO ENHANCE RESOURCE ALLOCATION DECISION-MAKING.
C.  THE WG'S ACTIONS WERE BRIEFED TO DC, P&R, DC, I&L AND THE MROC. THE MROC APPROVED COA AND WAY AHEAD IS FOUND IN REF B.  THIS MARADMIN SPECIFIES ACTIONS REQUIRED TO IMPLEMENT THE MROC DECISION. SPECIFICALLY, THE MROC APPROVED TWO CRITICAL ENABLERS, THREE SUPPORTING FUNCTIONS, A NEAR-TERM WAY AHEAD AND THE DEVELOPMENT OF A PLAN TO APPLY COST AND PERFORMANCE MANAGEMENT TO THE BUSINESS PRACTICES OF THE REST OF THE MAGTF.
3. CRITICAL ENABLERS.  SUCCESSFUL IMPLEMENTATION OF ABRM REQUIRES THAT THE MARINE CORPS IMPLEMENT THE FOLLOWING CRITICAL ENABLERS IOT LEVERAGE COST AND PERFORMANCE DATA TO ENHANCE POM DECISION-MAKING AND MEET THE EXTERNAL PBB REQUIREMENT.
A.  PERFORMANCE MEASURES.  PERFORMANCE MEASURES ARE A KEY ENABLER FOR TRANSFORMING ABC DATA INTO INFORMATION ABOUT THE OUTPUTS (THE LEVEL OF ACTIVITY OR EFFORT THAT WILL BE PROVIDED OR PRODUCED) AND OUTCOMES (A DESCRIPTION OF THE INTENDED RESULTS, EFFECT OR CONSEQUENCE) AND WILL SUPPORT ENHANCED POM DECISION MAKING.  OUR INITIAL EFFORTS IN POM06 WILL FORM THE FOUNDATION FOR A STANDARD SET OF INSTITUTIONAL PERFORMANCE MEASURES WITHIN AN OVERARCHING STRATEGIC FRAMEWORK.
B.  ENHANCED HQMC PROGRAM SPONSOR ROLE.  HQMC PROGRAM SPONSORS ARE EXPECTED TO ACTIVELY ENGAGE STAKEHOLDERS AND OPBUD HOLDERS THROUGH THE DEVELOPMENT OF PERFORMANCE MEASURES AND SUBSEQUENT ANALYSIS OF COST AND PERFORMANCE DATA IN ORDER TO MAKE VALUE-ADDED RECOMMENDATIONS DURING THE RESOURCE ALLOCATION PROCESS.
4.  SUPPORTING FUNCTIONS.  AT THE TACTICAL LEVEL, THE ABRM WG IDENTIFIED THREE SUPPORTING FUNCTIONS THAT ARE REQUIRED TO SUPPORT THE CRITICAL ENABLERS.  THE SUPPORTING FUNCTIONS ARE:
A.  STANDARDIZATION AND RATIONALIZATION OF DATA ELEMENTS.  THIS SUPPORTING FUNCTION IS COMPOSED OF TWO SEPARATE ACTIONS AFFECTING MARINE CORPS PROGRAMMING CODES (MCPC) AND SABRS FISCAL CODES. 
(1) ANNUAL MCPC REVIEW.  THE DECISION ELEMENTS USED TO BUILD OUR PROGRAMS (MCPC'S) WILL UNDERGO A DELIBERATE REVIEW PRIOR TO EACH POM CYCLE TO ENSURE THAT THE MOST RELEVANT ELEMENTS ARE AVAILABLE FOR DECISION MAKERS.  MCPC'S ARE DATA ELEMENTS THAT CAPTURE ALL FUNDING FOR A PROGRAM REGARDLESS OF APPROPRIATION OR OTHER DATA ELEMENTS. DC, P&R IS RESPONSIBLE FOR THE MCPC STRUCTURE.
(2) ANNUAL SABRS FISCAL CODE REVIEW.  THE COST CATEGORIES CAPTURED IN OUR ACCOUNTING SYSTEM AND USED TO POPULATE THE ABC MODELS MUST SUPPORT AND REINFORCE OUR DECISION-MAKING ELEMENTS (MCPC'S).  IN ORDER TO COMPARE EXECUTION TO POM AND BUDGET DATA, AN ANNUAL REVIEW OF FISCAL CODES WILL BE CONDUCTED TO REDUCE THE NUMBER OF CODES TO THE MOST CRITICAL FEW WHILE BALANCING OUR INSTITUTIONAL NEEDS FOR GRANULARITY OF DATA.
B.  ABC MODEL STANDARDIZATION.  THE ABC MODELS PROVIDE A MEANS TO VIEW EXECUTION OF FUNDING ACROSS APPROPRIATION AND RESOURCE STOVEPIPES.  A CONFIGURATION CONTROL BOARD (CCB) WILL BE ESTABLISHED TO CONTINUALLY DEFINE AND REFINE THE REQUIREMENT FOR CONSISTENT AND STANDARD HIGH-LEVEL MODEL STANDARDS ACROSS THE INSTALLATIONS.
C.  PROGRAM BUDGET DOCUMENTATION DATABASE (PBDD).  PBDD, A WEB-BASED SYSTEM ACCESSIBLE TO ALL MARINE CORPS USERS, IS THE CORPS' PRIMARY MEANS OF GATHERING DATA FOR PROGRAM DEVELOPMENT.  IT FACILITATES CONTROLLED, ORDERLY, TIMELY STAFFING AND EDITING OF INITIATIVES BY PROGRAM SPONSORS, ADVOCATES AND HQMC DEPARTMENTS.  PBDD COLLECTS AND PRESENTS DATA FOR POM DELIBERATIONS AND WILL FACILITATE THE COLLECTION AND DISPLAY OF THE STANDARDIZED PERFORMANCE MEASURES AND COST DATA.
5.  IMPLEMENTATION.  ABRM WILL BE IMPLEMENTED IN THREE PHASES, GUIDED BY THE ABRM WG.  WHILE THE IMPLEMENTATION IS CONDUCTED IN PHASES, THE PROCESS IS CONTINUOUS AND INVOLVES ANNUAL VALIDATION OF PERFORMANCE MEASURES TO ENSURE WE ARE MEASURING AND PERFORMING THOSE FUNCTIONS THAT CONTRIBUTE TO THE READINESS OF OUR CORPS. THE PHASES CONSIST OF THE FOLLOWING ACTIONS AND DELIVERABLES:
A. PHASE I:  IMPLEMENTATION OF ABRM AT INSTALLATIONS AND DEVELOPMENT OF A PLAN TO IMPLEMENT ABRM ENTERPRISE-WIDE.  THIS PHASE WILL BE COMPLETED BY FEB 2004.  ACTIONS REQUIRED DURING THIS PHASE INCLUDE:
(1) HQMC PROGRAM SPONSOR IDENTIFY PERFORMANCE MEASURES CURRENTLY BEING USED (REF C APPLIES).  PERFORMANCE MEASURES IDENTIFIED WILL BE USED DURING POM 06 TO SUPPORT CORE SETTING AND INITIATIVE SUBMISSION AND REVIEW.  ADDITIONAL GUIDANCE WILL BE PROVIDED VIA SEPCOR.
(2) THE ABRM WG WILL PRESENT A PLAN TO DC, I&L AND DC, P&R TO IMPLEMENT PHASES II AND III NLT FEB 2004
B.  PHASE II:  IMPLEMENTATION OF COST AND PERFORMANCE MANAGEMENT WITHIN THE CSSE AND ACROSS SE ACTIVITIES NOT INVOLVED IN THE INITIAL INSTALLATION ABC MODELING INITIATIVE (E.G., MARINE CORPS LOGISTICS COMMAND, FSSG'S, MARINE CORPS RECRUITING COMMAND).
C.  PHASE III:  IMPLEMENTATION OF COST AND PERFORMANCE MANAGEMENT ACROSS THE BUSINESS PROCESSES OF ALL REMAINING ELEMENTS OF THE MAGTF (I.E., MARFORS/CE, GCE, ACE).
6.  ACTIONS.
A. ABRM WG MEMBERS.  THE WG WILL CONTINUE TO MEET AS REQUIRED TO GUIDE ABRM IMPLEMENTATION AND WILL ASSIST IN EVALUATING AND COORDINATING ALL REQUIRED ACTIONS.
(1) ACT AS THE OVERARCHING INTEGRATED PRODUCT TEAM (IPT). COORDINATE, DECONFLICT AND INTEGRATE THE ACTIONS OF THE PERFORMANCE MEASURES, CCB, AND SYSTEMS IPT'S.
(2) REVIEW THE ABRM WG CHARTER (REF (A)) AND RECOMMEND NECESSARY REVISIONS TO THE CHARTER TO DC, I&L AND DC, P&R TO IMPLEMENT ABRM BEYOND POM 06.
    (3) USE LESSONS LEARNED FROM POM06 TO CODIFY ABRM THROUGH AN ABRM MCO/DIRECTIVE AND/OR MODIFICATIONS TO EXISTING DIRECTIVES.
B.  DC, I&L.  HQMC LEAD FOR IMPLEMENTATION OF ABRM.  
(1) CONTINUE TO CO-CHAIR ABRM WG.
(2) ESTABLISH, CHAIR, AND CHARTER A PERFORMANCE MEASURES (PM) IPT. THE PM IPT WILL:
(A) DEVELOP A PLAN OF ACTIONS AND MILESTONES FOR ACCOMPLISHING THE OBJECTIVES AS SET FORTH IN THIS DOCUMENT BY 15 JULY 2003.
(B) LEVERAGE EXISTING INSTALLATION STRATEGIC AND CAMPAIGN PLANS, OSD'S BALANCED SCORECARD, OMB'S PERFORMANCE ASSESSMENT RATING TOOL, AND MEASURES FROM THE PRIVATE SECTOR. FINALIZE MATRIX OF POTENTIAL MEASURES FOR EACH INSTALLATION PROCESS. REF C APPLIES.
(C) ASSIST AND SUPPORT HQMC PROGRAM SPONSORS DURING SUBORDINATE MEETINGS WITHIN THEIR FUNCTIONAL AREA.
(D) COORDINATE, CONSOLIDATE, AND PUBLISH A LIST OF CURRENT PERFORMANCE MEASURES BY 15 AUG 2003 TO ENSURE THAT ALL OPERATING BUDGET HOLDERS AND HQMC PROGRAM MANAGERS ARE COGNIZANT OF STANDARD MEASURES.
(E) DEVELOP A CONCEPT OF OPERATIONS FOR THE COLLECTION AND DISPLAY OF MEASURES DATA.
(3) ESTABLISH, CHAIR, AND CHARTER A CCB FOR THE CONTINUED STANDARDIZATION AND CONTENT CONTROL OF THE ABC MODELS BY 1 AUG 2003. THE CCB WILL RECEIVE INPUT FROM FUNCTIONAL MANAGERS AND ABC MODELERS TO DETERMINE NECESSARY POLICY. REVIEW AND AUTHORIZE PROPOSED CHANGES TO THE ABC MODEL STANDARDS AND THE DATA REQUIREMENTS FOR THE ABC DATA-WAREHOUSE.
C. DC, P&R.  
     (1) CONTINUE TO CO-CHAIR ABRM WG.
     (2) SUPPORT DC, I&L DURING IMPLEMENTATION OF ABRM.  ESTABLISH, CHAIR, AND CHARTER A SYSTEMS IPT.  THE SYSTEMS IPT WILL:
     (A) ANNUALLY REVIEW AND STAFF THE MCPC'S TO HQMC PROGRAM SPONSORS AND OPBUD HOLDERS FOR REVIEW AND RECOMMENDATIONS.
     (B) ANNUALLY REVIEW THE FISCAL CODES WITHIN SABRS TO DETERMINE IF RELATIONSHIPS BETWEEN MCPC'S AND SABRS CAC'S REQUIRE MODIFICATION.  BY 1 OCT ANNUALLY, INITIATE TABLE CHANGES IN SABRS AND COMMUNICATE THE RESULTS TO THE OPBUD HOLDERS AND HQMC PROGRAM SPONSORS. 
     (C) MAKE APPROPRIATE MODIFICATIONS IN PBDD TO COLLECT AND DISPLAY PERFORMANCE MEASURES AND COST DATA BY NOVEMBER 2003.
(D) DC, P&R IS RESPONSIBLE TO THE DON AND OSD FOR VALIDATION, VERIFICATION, AND AUTHENTICATION (VV&A) OF ALL PERFORMANCE AND PRICING MODELS (PPM'S).  THIS RESPONSIBILITY REQUIRES AN ANNUAL REVIEW OF ALL PPM'S AND PERFORMANCE MEASURES TO ENSURE THAT RESOURCE REQUIREMENTS ARE CLEARLY ARTICULATED.
D. HQMC DEPARTMENTS AND TECOM.  CARRY OUT YOUR ASSIGNED ROLES AS PROGRAM SPONSORS FOR FUNCTIONS IDENTIFIED IN 6.D.(6). AS REQUIRED, PROVIDE SUBJECT MATTER EXPERTS TO LEAD AND COORDINATE WORKING GROUPS TO DEFINE PERFORMANCE MEASURES WITH PM IPT OVERSIGHT.
(1) COORDINATE WITH INSTALLATION AND INTERMEDIATE COMMAND FUNCTIONAL COUNTERPARTS TO ESTABLISH, STANDARDIZE AND COLLECT PERFORMANCE MEASUREMENT DATA.
(2) PROVIDE THE APPLICABLE DATA EXHIBITS TO THE ABRM WG FOR INCORPORATION WITH RELEVANT COST DATA AND ARCHIVAL NLT 15 OCT, ANNUALLY BEGINNING IN 2003. 
(3) BE PREPARED TO DISCUSS OVERALL HEALTH OF PROGRAMS AND PERFORMANCE RESULTS WITHIN YOUR AREA OF RESPONSIBILITY DURING ANNUAL POM/PR CORE SETTING. 
(4) REVIEW ALL POM INITIATIVES WITHIN YOUR AREA OF RESPONSIBILITY, CONDUCT A RISK ASSESSMENT, AND PROVIDE COMMENTS IN PBDD AND DURING PEG AND PWG DELIBERATIONS REGARDING THE VERACITY AND CRITICALITY OF THE REQUIREMENT AS COMPARED TO OTHER INITIATIVES REVIEWED AND THE EXPECTED PERFORMANCE OF THE FUNCTION GIVEN PROPOSED FUNDING LEVELS.  
(5) PROVIDE COMMENTS AND RECOMMENDATIONS ON PROPOSED CHANGES AND STANDARDIZATION OF THE ABC MODELS AND FISCAL CODES WITHIN SABRS IN ORDER FOR THESE SYSTEMS TO PROVIDE DESIRED COST-ACCOUNTING INFORMATION FOR EXTERNAL AND INTERNAL REPORTING PURPOSES.
(6)  RESPONSIBILITY FOR ACTIONS IDENTIFIED ABOVE FOR INSTALLATION FUNCTIONS ARE AS FOLLOWS (READ IN TWO COLUMNS): 
DEPT        STANDARD PROCESS
AVN         PROVIDE AVIATION OPERATION SUPPORT
C4          PROVIDE VOICE
C4          PROVIDE DATA SERVICES
C4          PROVIDE GROUND ELECTRONIC MAINTENANCE
I&L         PROVIDE REAL PROPERTY AND LAND MGMT SVCS
I&L         PROVIDE FACILITIES SERVICES
I&L         SUSTAIN, RESTORE AND MODERNIZE FACILITIES
I&L         PROVIDE UTILITIES
I&L         PROVIDE ENVIRONMENTAL SERVICES
I&L         PROVIDE FIRE PROTECTION AND EMERGENCY SVCS
I&L         PROVIDE COMMAND SUPPORT
I&L         MANAGE BUSINESS PRACTICES 
I&L         PROVIDE HOUSING
I&L         PROVIDE TRANSPORTATION
I&L         PROVIDE SUPPLY SERVICES
I&L         PROVIDE PROCUREMENT SERVICES
I&L         PROVIDE FOOD SERVICES
JA          PROVIDE LEGAL COUNSEL AND SERVICES
M&RA        PROVIDE PERSONNEL SUPPORT
M&RA        DEVELOP FAMILY READINESS
M&RA        PROVIDE RECREATIONAL OPPORTUNITIES
M&RA        DEVELOP PHYSICAL WELLNESS
M&RA        PROVIDE PERSONNEL SUPPORT SERVICES
M&RA        PROVIDE RETAIL/RESALE GOODS AND SERVICES
M&RA        PROVIDE LODGING SERVICES
M&RA        PROVIDE INFORMATION AND REFERRAL SERVICES
M&RA        PROVIDE PERSONAL AND PROFESSIONAL DEVELOPMENT
M&RA        PROVIDE CIVILIAN TRAINING 
PA          MANAGE COMMUNITY RELATIONS
PP&O        PROVIDE SECURITY 
P&R         MANAGE FINANCIAL RESOURCES 
REL         PROVIDE RELIGIOUS SUPPORT
SD          MANAGE SAFETY PROGRAMS
TECOM PROVIDE MILITARY TRAINING
TECOM PROVIDE RANGE MANAGEMENT
TECOM PROVIDE SIMULATION SUPPORT
TECOM PROVIDE AUDIO/VIDEO/VISUAL
A MAPPING OF PROCESS TO MCPC'S WILL BE PROVIDED VIA SEPCOR.
E. OPERATING BUDGET HOLDERS.
(1) ENSURE THAT PERFORMANCE MEASURES ARE ADDRESSED DURING CORE BRIEFS.
(2) ENSURE THAT PERFORMANCE MEASURES ARE INCLUDED IN ALL INITIATIVES.
(3) PARTICIPATE IN APPROPRIATE WG'S. COORDINATE AND SUPPORT LIAISON BETWEEN HQMC PROGRAM SPONSORS AND SUBORDINATE COMMANDS.
(4) ASSIST IN THE PROPAGATION AND IMPLEMENTATION OF ABC MODEL STANDARDS AND FISCAL CODES.  
(5) ESTABLISH A PROCESS AND MEANS TO COORDINATE THE REVIEW AND VALIDATION OF THE ABC MODELS BY THE FUNCTIONAL MANAGERS, COMPTROLLERS, AND BUSINESS MANAGERS TO ENSURE THE MODEL ACCURATELY REFLECTS THE COSTS OF PERFORMING FUNCTIONS WITHIN THE INSTALLATION PROCESS MODEL.
7.  THE ABRM WG CO-CHAIRS (POC'S LISTED ABOVE) WILL PROVIDE NOTIFICATION OF UPCOMING MEETINGS AND IPT'S REQUIRED TO IMPLEMENT ABRM FOR POM 06 AND BEYOND.