Summary: Private sector organizations recognize that in order to survive, they have to undertake major changes to make themselves more productive and to reduce costs. Today, many federal agencies face that same reality. The Defense Department (DOD) is a prime example of an agency facing the challenge of streamlining for efficiency and lower costs while maintaining quality. DOD has accomplished that goal in several areas. For example, the Defense Logistics Agency (DLA) has since 1992 had private sector vendors supply personnel items directly to military facilities in lieu of the traditional military supply system. As a result, DLA expects a 53-percent reduction in its 1992 inventory level of these items by 1997. What is behind these improvements? In large measure, these organizations have benefitted from GAO studies highlighting "best practices"--processes, practices, and systems--that organizations have adopted in a particular area, such as inventory management. These best practices provide a model for other organizations with similar missions. Frequently, benchmarking is used to gather information on these practices from several organizations, which is then applied to improving operations. The best practices approach need not be confined to defense issues, however. This report explains how others could go about using the same principles and techniques to promote and implement improved processes.
