Naval Station Anchorage

9 Pages Posted: 30 May 2017

See all articles by J. McCarthy

J. McCarthy

University of Virginia - Darden School of Business

Jeff Pottinger

University of Virginia - Darden School of Business

Robert Sack

University of Virginia - Darden School of Business

Abstract

CAPT Jake Branson is beginning his first week at work after assuming command of NAVSTA Anchorage. He has received a message from his Regional Commander indicating that Commander Naval Installations Command (CNIC) headquarters has just issued a requirement for all Regional Commanders to propose adjustments that would reduce its annual operating expenses by 3% (i.e., reduce its total annual authorized funding level by 3%) without sacrificing required performance levels. Branson is worried about his ability to comply.

Excerpt

UVA-C-2320

Rev. Aug. 30, 2011

NAVAL STATION ANCHORAGE

CAPT Jake Branson sat in his new office, looking out at the piers in the distance. It was Monday morning, and Branson was beginning his first full week at work after assuming command of NAVSTA Anchorage the previous Friday. Late Friday afternoon he'd received a message from his Regional Commander indicating that Commander Naval Installations Command (CNIC) headquarters had just issued a requirement for all Regional Commanders to propose adjustments that would reduce its annual operating expenses by 3% (i.e., reduce its total annual authorized funding level by 3%) without sacrificing required performance levels. Branson was worried about his ability to comply.

Branson had spent the weekend looking over his notes from his turnover discussions. One of the first areas requiring his attention was the command's financial situation, so the idea of losing resources in a year of execution when he was already uncomfortable with his financial status was a serious concern. He was dissatisfied with some of the answers he'd received from his comptroller and was concerned about the apparent lack of financial knowledge he had noticed during his discussions with his department heads. They did not seem to understand the seriousness of the station's overall financial status.

Each department head appeared to have a relatively good handle on the component of the budget for which they were responsible but little understanding beyond that. Branson wondered if the right mechanisms were in place to foster that kind of a dialogue.

. . .

Keywords: Cost analysis, Pareto analysis, enterprise thinking

Suggested Citation

McCarthy, J. and Pottinger, Jeff and Sack, Robert, Naval Station Anchorage. Darden Case No. UVA-C-2320, Available at SSRN: https://ssrn.com/abstract=2974026 or http://dx.doi.org/10.2139/ssrn.2974026

J. McCarthy

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Jeff Pottinger (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Robert Sack

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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