The Department of Defense (DOD) spends billions of dollars each year to maintain key business functions intended to support the warfighter. While DOD maintains military forces with unparalleled capabilities, it continues to confront decades-old management weaknesses related to its business functions that support these forces. GAO designated DOD's approach to business transformation as high-risk in 2005 because DOD had not taken steps to achieve and sustain business reform on a strategic, department-wide basis. This report identifies the extent to which (1) DOD has addressed business transformation weaknesses; and (2) the DOD's Office of the Deputy Chief Management Officer (DCMO) has effectively monitored the progress of its business transformation efforts. Tables and figure. This is a print on demand report.