This is just an Excerpt from a larger document, click here to view the entire document.Implementing CAIV
Implementing the five actions described earlier (set realistic but aggressive cost objectives early in each acquisition program; manage risks to achieve cost, schedule, and performance objectives; devise appropriate metrics for tracking progress in setting and achieving cost objectives; motivate government and industry managers to achieve program objectives; and develop incentives for reducing the operating and support costs for fielded systems) is neither simple nor easy.
Perhaps the most challenging of these actions is motivating managers to achieve life cycle cost goals when doing so requires up-front investments to minimize production and O&S costs. Program managers must have the proper incentives to take the inevitable risks associated with the innovation necessary to meet performance requirements within aggressive cost objectives. In this regard, promotion policies, awards, and other forms of recognition, as well as effective training and guidance, are important. Most important is an environment characterized by goal setting, teamwork, and continual recognition of achievement by management leaders.
