Photo by Christina Gandolfo

When Ross Stuckey (PLDA 21, 2016) joined the headquarters of the NAVSEA Warfare Centers as their capital improvement program (CIP) manager in 2016, he was charged with leading divisional managers at each of the NAVSEA WC’s 10 subsidiaries. He also was responsible for distributing $80 million annually from the U.S. Navy Working Capital Fund to each of the divisions, for capital improvement projects like buildings and equipment.

But there was a major problem with the fund’s model: “In 2001, we were at 93 percent execution of dollars as an enterprise,” says Stuckey. But execution rates settled around 60 percent, where they remained.

The inability to execute the work came from a host of problems, including the ability of contractors to perform or finish projects in any given fiscal year. The result was deferred maintenance on buildings and equipment and—worse—unhappy scientists and engineers.

Right off the bat, Stuckey identified two issues. One, there was no standard to evaluate the CIP managers at the division level. And two, the way the funds were being distributed at the headquarters level was problematic as it rewarded divisions based on the number of employees. The model didn’t make sense to Stuckey, so he set about creating one that did.

The plan he assembled had three parts. The first was addressing performance of CIP division managers by grading their execution rates. If the subsidiary could improve its execution to 90–100 percent of their dollars, the CIP manager received an A; 80–90 percent, a B; and so on. The second part of the new strategy focused on resource allocation. Instead of basing funding on the number of employees, Stuckey moved to a formula-based allocation that considered both need and CIP execution rate.

The third piece dealt with the issues, like a contractor’s inability to complete a project. The solution there lay in an innovative loan program: “If you look at your crystal ball and it looks like you’re not going to execute? Okay, fine. We’ll loan the amount of money you’re not going to execute to another division that needs it,” explains Stuckey. “They’ll execute their project and pay your division back the following year, interest free. Both divisions win, and we improve execution rates at the enterprise level.”

Within the first year of implementation, the NAVSEA Warfare Centers went from a 63 percent execution rate on capital projects to a historic high of 94 percent. But equally important is the higher quality of work and life for the teams. “They’re happy and proud of where they work now, but then there’s also an improvement in terms of mission. Now they can focus on the work of improving national defense technologies,” says Stuckey.

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