VBA has, however, been proceeding without an overall business strategy clearly setting forth how it will improve its performance and tackle entrenched service-delivery problems. VBA is in the process of restructuring its regional offices in an effort to cope with declining resources. A comprehensive business strategy is needed—one that includes developing strategic and information resources management plans, setting performance goals and measures, and incorporating the results of major agency initiatives, such as business process reengineering. VBA is moving in this direction; currently, however, it has no clearly articulated business strategy. Assistance in this area could come from the National Academy of Public Administration, which has recently been commissioned by the Senate Appropriations Committee. Customer-focused goals, aimed at improving the quality of service, are needed. In response to concerns raised by us and others over the past 3 years, VBA is preparing to reengineer its compensation and pension claims-processing operations, and has taken several positive steps. For example, the Information Technology Management and Reform Act and the Paperwork Reduction Act require agency heads to analyze the agency’s mission and, on the basis of this analysis, revise business processes as appropriate; design and implement a process for maximizing the value and assessing and managing the risks of information technology acquisitions; integrate budgetary, financial, and program management decisions in this process; and use this process to select, control, and evaluate the results of information technology initiatives. VBA needs to make major improvements in the way it manages its information technology investments to meet these legislative requirements. Another risk is that this project was not following sound systems-development practices. The need for more rigorous management and technical methods is critical if VBA is to successfully develop modern, efficient, and cost-effective business processes and computer systems that will allow them to deliver truly improved services to veterans.
Why GAO Did This Study

GAO discussed the Veterans Benefits Administration's (VBA) efforts to modernize and streamline its business processes.

What GAO Found

GAO noted that: (1) VBA is experiencing information technology acquisition problems and serious management and technical weaknesses; (2) VBA needs to adopt a clearly articulated business strategy to solve its service-delivery problems, coordinate its reengineering efforts, and cope with constrained resources; (3) VBA is developing strategic and information resources management plans that it will use in preparing its fiscal year 1998 budget request; (4) the National Academy of Public Administration will assess ways to make VBA claims processing more efficient; (5) VBA needs to develop performance goals and measures aimed at improving the quality of service; (6) VBA is reengineering its compensation and pension business processes, but it must improve its management of its information technology investments by developing critical cost, benefit, and risk information; (7) VBA has acquired some computer equipment before completing its reengineering analysis and may have to discard the equipment; and (8) VBA is not following sound software and systems development practices.