A Guide For MAnAGers - AcqNotes

3§A Guide forDoD ProgramManagers80 Percent of What Departmentof Defense Program Managers Needto Know to Run an Effectiveand Efficient ProgrambyWilliam T. Cooley and Brian C. RuhmDecember 2014Published by theDefense acquisition university PressFort Belvoir, Virginia

4§ PrefacePREFACEThe first responsibility of the key leaders in the acquisition workforce isto think.—Frank Kendall1Under Secretary of Defense forAcquisition, Technology, and LogisticsPlease read this first. We say this because we want readers to understand why we wrote this book, for whom we wrote it, and what we acknowledge as the limitations of what we have to offer.We believe that success as a program manager (PM) begins withthe way you think about the job. Toward that end, the goal of this bookis to help calibrate your brain for program management duty. Enteringinto the right frame of mind to execute your responsibilities is not easy,but is vitally important. Even as experienced PMs, we wanted to find a“Program Management for Dummies2” book to check so that we did notoverlook something obvious. To our surprise, the book didn’t exist.2 Webelieve even experienced PMs can benefit by “recalibrating” their thinking. We hope the book before you will help you understand your role as aPM and successfully navigate the complex and dynamic environment ofDepartment of Defense (DoD) acquisition.DoD acquisition management demands specialized skills andknowledge, which may find application in other program managementenvironments but which are unique to the DoD acquisition system.Individuals assuming program management responsibility for the firsttime will be challenged to succeed if they lack a basic understanding ofDoD program management principles, processes, and terminology. Thisbook seeks to provide that foundation—a beginners’ guide and quick reference to the foundation of good program management.This book reflects our belief that leadership matters and thateffective PMs can significantly influence the likelihood that a programwill succeed. Running almost any size program or project entails working with a diverse program management team. It also entails collaborating with other members of the DoD community—users and warfighters(customers, in traditional parlance), program advocates, members of theService or Joint Staffs, industry representatives, and even members ofCongress—whose goals and agendas may or may not align with your own.Whether in guiding your own program management team or seeking solutions with other members of the DoD community, the PM’s job requiresactive and decisive leadership to keep a program on track. You must fos1Frank Kendall, “The Optimal Program Structure,” Defense AT&L 41, no. 4 (2012), pp. 2-3.Project Management for Dummies by Stanley E. Portny is available, but it has limitedapplicability to the structured DoD program management environment.2

§ Preface 5ter consensus and support among your staff to ensure program success.Leadership is essential and is discussed in detail among the “intangible”qualities of program management later in this book.The Defense Acquisition University (DAU), the ProgramManagement Institute, and a variety of other organizations offer countless training courses that go into more depth and detail than we offerin this book. Our own experience with these other training sources hasbeen almost entirely positive, and we strongly encourage readers to pursue more in-depth training from these organizations. The purpose ofthis book is not to replace or subvert these training and education venuesbut rather to jump-start and supplement their offerings. We also knowthat people learn through a variety of ways and hope to provide an aid forthose who learn by reading books or stories and those who have time onairplanes to read after reviewing the Sky-Mall catalog sitting in front ofthem.We have written the book with an eye toward an O-5- or O-6-levelofficer (or comparable civilian grade) about to take over a large weaponsystem program, but we like to think that most of the ideas in this bookare scalable. That is, the lessons and recommendations are nearly as useful for a junior company-grade officer or civilian responsible for a smallprogram or subsystem as they are for a flag-level or general officer responsible for a multibillion-dollar major defense acquisition program(MDAP) or major acquisition information system (MAIS).Although this book represents more than 45 years of collectiveexperience in DoD acquisition and program management, it’s importantto understand that it also reflects the unique perspective, experience, andopinions of its two primary authors. Because both authors come from anAir Force background, it reflects an Air Force perspective and, in someinstances, Air Force-unique terminology. Although we have attempted tobring a Joint perspective and avoid a Service-specific lens, we acknowledge our bias. By and large we believe there are “right ways” and “wrongways” to run a program. If a reader disagrees with some of our assertions,that’s a good thing. It affirms our belief that program management is athoughtful discipline that does not lend itself to dogma, “cookie-cutter”solutions, or one-size-fits-all processes.This book was never intended to be a comprehensive “how to”guide or an exhaustive survey of program management topics. More thananything else, it represents a collection of lessons learned in the areasthat we believe are critical to program success. This book is intended toprovide a way to think about your role as PM and build a foundation ofknowledge upon which you can better navigate the endlessly complexDoD acquisition and program management process.

§ Acknowledgments 6ACKNOWLEDGMENTSThe ideas and lessons contained here are not entirely the authors’. We benefited greatly from the wisdom of numerous PMs and acquisition leaders within the Air Force, Army, Navy, and Marines, as wellas among our defense industry partners.We are particularly indebted to the faculty and staff at DAU. Dr.Roy Wood, dean of the Defense Systems Management College (DSMC)supported this effort from the time he learned of it. He contributed a greatdeal to ensure the book was published by DAU Press and to the refinementof this book by asking his staff of acquisition experts to review the work,paying special attention to the areas of their expertise. John Krieger, PatBarker, and Chuck Cochrane were particularly helpful. Mr. Krieger, acontracting expert, reviewed the book with the same attention to detailemployed by top contracting officers in reviewing their contracts! Mr.Barker, an Earned Value Management (EVM) expert, ensured the mostrecent policies and best practices were presented. Mr. Cochrane, a veteran PM, provided a thorough review and greater clarity to our presentation of this complex subject.We are also in debt to a number of people who reviewed the workfor grammatical errors and clarity. Among these reviewers were Dr. GregSpanjers, Dr. Joel Mozer, Bill Byrne, Dale Hite, and Dave Lewis. We alsohad Richard Durrett, a sportswriter for ESPN, review the work to leverage his writing expertise and lack of acquisition knowledge, as we hopethis book brings some clarity to acquisition beginners.Finally, we thank our spouses, Janet Cooley and Heather Ruhm,for their patience and support. As acquisition professionals actively engaged with programs, we have worked on this book with fits and startsat nights and on weekends over the past 5 years. Without our spouses’encouragement and great patience, we would never have completed thiswork. Thank you, Janet and Heather!

8§ TOCTable of ContentsIntroduction—11Framework—12Program Management—The isk—31Section I: Tools of the Trade—36Financial Management—37Planning—Cost Estimating—39Planning—The Color of Money—41Planning—POM Submissions and Congressional BudgetExhibits—46Congress—47Execution Phase You’re Already Late—54Driving the Financial Bus—64The Contract—65Concerning Contract Types—70Systems Engineering—79Understanding Systems Engineering—79Effective Systems-Engineering Processes—80Risk Management—85Configuration Management—“Do No Harm”—90Data Management—A Very Short Note—95Requirements Management —96Other Tools and Practices—98Battle Rhythm—98EVM—103External, Independent Reviews—116

9§ TOCSection II: Critical Artifacts—120Acquisition Strategy—121Acquisition Program Baseline—128Breaches and Nunn-McCurdy—132Integrated Master Plan and Integrated Master Schedule—135Section III: Intangibles—140Integrity—141Definition I: Honesty—142Definition II: Completeness—148Definition III: ion and Goals—155Expectations and ollaboration and Compromise—164Stakeholders—167The Program Office—The Buck Stops Here—174Good Fences Make Good Neighbors—175Final Thought—What Does a PM Do?—180Represent the Program—181Organize for Success—182Take Care of the People (Not Just the Program)—183So What Does the PM Do Again?—184Appendix—185A Note About Checklists and a Few That Might Be Useful—185Useful Quotes for Program Managers—193About the Authors—196

11§ IntroductionIntroductionProgram management is the toughest noncombat job in the military—AnonymousCongratulations on joining the team of PMs in the government.Whether you are a PM for a large program attracting high interest fromCongress or a small government laboratory program,3 you are entrustedto efficiently and fairly spend our country’s treasure. As a PM, you mustalways keep in mind that by law you are responsible for the program—period.4 Its legal execution, cost to the taxpayers, and capability deliveredto the warfighter are your responsibility.Your job as a government PM is important enough that our nationestablished laws to make sure you are qualified—of all the career fieldsin the DoD, acquisitions is one of only a few in which Congress specifies qualifications and mandates training for PMs.5 Fortunately, DAU ischarged with this responsibility and offers numerous training classesand volumes of detailed information on program management best practices, lessons learned, statutory and regulatory do’s and don’ts, as well asdetailed classes in each of the functional areas—contracting, financialmanagement, systems engineering, and more. We mention this to emphasize that the stakes are high, given that a PM is responsible for spending our nation’s treasure to procure systems for our nation’s defense. Thiswill require every ounce of professionalism a project manager can bringto the job.Having attended the full complement of DAU courses for PMs,we hope to bring to this book some of the key elements from that formalacquisition education; however, we do not view this book as a substitute.Rather, we hope this book makes some of the important principles easilyaccessible to novice PMs and provides expert PMs a quick reference topotentially aid their thinking—sort of a beginners’ guide and quick reference to foundational principles of good program management.As you have discovered (or will discover), acquisition in the government is tough and complex. It involves understanding law (statutes);following your department’s implementation of those laws (regulations);3The fundamental framework, tools, artifacts, and intangibles discussed in this book areapplicable to DoD/Department of Energy laboratory programs and projects. The Appendixincludes a brief but useful framework for laboratory programs.4Title 10-Armed Forces; Subtitle A-General Military Law; Part II-Personnel; Chapter87-Defense Acquisition Workforce; SubChapter III-Acquisition Corps.5The Defense Acquisition Workforce Improvement Act (DAWIA), initially enacted by PublicLaw 101-510 on Nov. 5, 1990, and amended in 2003, 2004, and 2006. It required the DoD toestablish education, training, and certification for acquisition professionals.