Book excerpt: The Dept. of Defense (DoD) spends billions of dollars to sustain key business operations intended to support the warfighter. DoD is at high risk because of vulnerabilities to fraud, waste, abuse, and mismanagement and also should have a broad-based transformation needed to achieve greater efficiency, effectiveness, and sustainability. The author provide his views on: (1) actions needed to achieve measurable outcomes in DoD's high-risk areas; and (2) DoD's progress in strengthening its mgmt. approach for business transformation, including establishing the Chief Mgmt. Officer position. Includes info. regarding the high-risk area related to contract mgmt. at the Dept. of Energy's National Nuclear Security Admin. Illustrations.