Making sense of “Affordability” is a lot easier if you and your audience are on the same page regarding the context of the conversation.

Teaching here in the DSMC Executive Programs gives me an excellent vantage point to listen directly to DoD and Service Senior Acquisition Leaders, and also to Program Managers struggling to understand and implement policy.

It is interesting how many times putting senior leaders directly into conversation with sitting PMs reveals surprise on BOTH sides about how the message and policy intentions are heard at the cutting edge of acquisition.

Change is hard.  We know that.  And despite the statutory limit to the numbers of layers that can be between a Major Defense Acquisition Program Manager and an Acquisition Executive, there is no shortage of people who are ready to redefine, expand and interpret guidance.  In short, many are ready to “help” – frankly including yours truly!

Now whenever folks don’t seem to be understanding what I personally am trying to explain I recall one of my favorite quotes:

“It's not what you Mean, it’s what you Say. 

Actually it’s not what you Say, it’s what they Hear. 

In fact it’s not what they Hear, it’s what they Remember.” 

People’s understanding of Context shapes how they hear and remember what you say.

Many of us can recall how powerfully the simple concept of “Big A” Acquisition vs.” Little a” acquisition helped bring the complex world of managing DoD into perspective.  Especially for those who were relatively new to acquisition. 

I believe you can help your folks understand affordability with a similar analogy: “Big A” Affordability and “Little a” affordability.

Here at the schoolhouse I see many Program Managers caught up in trying to implement a flurry of Better Buying Power Initiatives who are confused about Affordability.  Much angst has been raised about “Should cost” vs. “Will cost”. 

One simple way to focus Program Managers is to say the following:  “Program Managers should know where every dollar in their program goes, and affordability involves looking at each and every dollar and challenging to see if you can get more for that dollar.”  For many this resonates clearly.

      I call this viewpoint “Little a affordability” – looking at the details of what and how much.  This is the arena of the “Should Cost” vs. Will Cost” discussion.

On the other hand, looking down from the top is a different view with a different context.  We know there is a historical rough allocation of Department TOA across the various services, and each service will do extended financial planning within “portfolios”.  As an example, you can pretty much bet there will be a certain TOA allocation across the FYDP within the Navy for shipbuilding, within the Army for vehicles and within the Air Force for Fixed wing aircraft.

If your program is building a vehicle for the Army, then your budget funding comes from within that planned Army vehicle TOA “allocation”.  If your program plan uses more of that projected allocation then senior leadership can tolerate; then that is not an “affordable” program.

      “Big A Affordability” is about the decisions to commit to the spending required for your program in the amounts and timeframes you want it.

“Big A” Affordability and “Little a” affordability are interrelated; but the contexts, acquisition discussions and questions you must deal with as a Program Manager are different.

Clarifying what context you are talking about makes a discussion about acquisition and affordability a whole lot easier.