By David C. Gompert, Paul K. Davis, Stuart E. Johnson, Duncan Long

In a fluid worldwide defense surroundings comparable to ours, assessing the prices, hazards, and certain outcomes of different nationwide safeguard ideas is as tough because it is key. The authors express how, even within the face of uncertainty, the prices and different implications of any procedure might be assessed through analyzing the features wanted via U.S. combatant instructions

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If strategic goals can be translated into desired operating results, if the capabilities needed to achieve those results can be understood, and if the costs of acquiring and using those capabilities can be understood, it should be possible to clarify the costs and other resource implications of strategy. 1. Having laid out the line of reasoning in this direction, we hasten to say that analysis of the resource implications—for that matter, all important implications—of strategy must be iterative, and analysis must flow in both directions.

They can span fixed organizations to improve market responsiveness, agility, profitability, and shareholder value. Virtual or real, as lines of business go, so goes their company. For many complex corporations, the line-of-business concept is considered indispensable for connecting results and costs both in planning and in measuring performance. Marketing costs, production costs, and pro rata overhead costs are “fully allocated” to these units. This permits profit to be derived from revenue for each and all of the different contributors to corporate income, both planned and actual.

In business and, we contend, in defense as well, formulating strategy so that key operating units can translate it into what is expected of them helps not only to align operations with strategy but also to generate capabilities and meet resource needs. Thus, a corporate strategy to expand global market share should provide some indication of where, with what, and by whom—in what markets, with what products, and by which operating units—the expansion should come. S. Pacific Command (PACOM) should concentrate on dissuasive military power, on engagement, or on both.

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