USASMDC emphasizes importance of cost management

Photo By Lira Frye | Lt. Gen. Daniel L. Karbler, commanding general, U.S. Army Space and Missile Defense Command, signs an official memorandum regarding the command's new Cost Management Guide. The guide was created by the command's G-8 team as a resource providing tools and methodologies for units and directorates to maximize their capabilities during a time of fiscal uncertainty. (U.S. Army photo by Lira Frye)  

REDSTONE ARSENAL, AL, UNITED STATES

07.24.2020

Story by Mikayla Mast 

U.S. Army Space and Missile Defense Command

REDSTONE ARSENAL, Alabama – The COVID-19 pandemic has caused uncertainty in many aspects of daily operations and future planning, including financial uncertainty, but the U.S. Army Space and Missile Defense Command’s G-8 team has reduced that uncertainty by creating a resource that provides tools and methodologies for units and directorates to maximize their capabilities.

Col. Samuel B. Glover, Resource Management Office (G-8) deputy chief of staff, said the Cost Management Guide will be a valuable resource to USASMDC staff as they choose how to allocate funds.

“The Cost Management Guide is intended to provide a foundation for understanding the role and use of cost management techniques in decision-making,” Glover said. “As leaders we must be responsible stewards of the funds entrusted to our care by the American people. This is especially true now as we determine how to meet our ever-increasing requirements when our resources are not growing at the same rate during this period of fiscal uncertainty.”

Lt. Gen. Daniel L. Karbler, commanding general, USASMDC, said budget limitations across the entire Army are compelling everyone to reevaluate the way projects are prioritized and funds are distributed.

“Our fiscal environment is becoming increasingly more constrained, impacted by COVID-19 and other operational requirements,” Karbler said. “Decision-makers across the U.S. Army and USASMDC are having to make difficult decisions on where to allocate their limited resources to ensure USASMDC priorities remain funded. As such, it is imperative that an emphasis be placed on good financial stewardship and cost management practices.”

Karbler said good financial stewardship must begin with making informed decisions.

“In order to continue supporting our programs, we must utilize our resources efficiently and effectively,” Karbler said. “Decisions that will support my vision of one team of professionals providing space, missile defense and high altitude forces and capabilities to support joint warfighting readiness in all domains.”

Glover said the new Cost Management Guide will help leaders make these tough, informed decisions by providing useful resources.

“This Cost Management Guide explains cost concepts and methodology, as well as why it is important to decision-making at all levels,” Glover said. “It introduces concepts required to successfully perform cost management analysis and provides examples on how to apply concepts in the daily decision-making process.”

Glover said cost management is not a one-time event, but an important culture change within the command. He said it must be a continuous process to control costs while improving operational performance so that resources last longer.

“Although this guide is oriented toward action officers and supporting staff personnel, it requires imbedding a leader-driven cost culture into our daily operations,” Glover said. “Leaders must challenge assumptions and ask the hard questions. Think about the true value of your investment and question if a better return on investment can be achieved elsewhere.”

Glover said the bottom line to cost management is guaranteeing the command has necessary resources to accomplish mission priorities.

“The end-state is to ensure our highest priority requirements are appropriately resourced through an enterprise-wide effort,” Glover said. “Effectively managing costs allows the command to leverage resources within and outside the command, seek partnerships that bring resources and economies of scale and posture for the responsible execution of redistributed and reallocated funding throughout the year.”

• Date Taken: 07.24.2020
• Date Posted: 07.27.2020 11:04
• Story ID: 374589
• Location: REDSTONE ARSENAL, AL, US