A briefing slide offers insight into the philosophy of Mike Cadenazzi, the consultant nominated to be the Pentagon’s next industrial-policy chief. Cadenazzi stated, “Embracing risk, investing into digital and securing the best talent will be key to competitive advantage in the decades to come,” in his 2022 presentation to defense investors.
Mike Cadenazzi is a managing director at EY and began his career as a junior officer in naval intelligence. He has spent most of his professional life advising clients and is the founder of VisualDOD, a data visualization tool sold to McKinsey & Co. in 2015. His experience also includes working as a forecasting consultant for Toffler Associates and for Govini, a decision and data science company. Recently, he has contributed articles and participated in podcasts through his position at EY.
On Tuesday, Cadenazzi was nominated to become the Trump administration’s first assistant defense secretary for industrial-base policy. He assumes this role at a time when the Defense Department seeks to reform its core policies regarding weapon acquisitions and supply maintenance. The shared goal among Congress, the services, and the White House is to address inefficiencies in the acquisition process, which is often criticized as being too slow, particularly in comparison to the rapidly changing landscape of modern warfare as seen in Ukraine.
According to a 2020 estimate, it takes the Pentagon seven to ten years to achieve initial operating capability after deciding to purchase something. This duration is not conducive to the fast-paced demands of modern military engagements. The Department of Defense is increasingly looking to adopt dual-use technologies—commercial products adaptable for defense scenarios—but these efforts remain less common than they should be. During a recent House Armed Services Subcommittee meeting, Representative Adam Smith, D-Washington, emphasized the need for faster decision-making processes that align with the speed of digital innovation.
Additionally, Army Vice Chief Gen. James Mingus pointed out at a Senate Armed Services Committee hearing that current congressional practices require formal requests for even small purchases to be made long before budget appropriations, which can lead to delays in acquiring necessary equipment. He stressed the necessity of compressing these timelines to keep pace with rapid technological advancements.
While there is recognition across Congress and the services of the rigid and slow procurement processes, realizing significant changes will require cooperation and compromise from both sides. The Government Accountability Office has proposed various solutions over the years, including the aggressive use of Other Transaction Authorities for digital products and services. Recently, the Defense Department took a step toward addressing these issues with a rule change.
Moreover, the Defense Department is also struggling to incorporate artificial intelligence into its operations and business processes, despite recognition of its potential benefits for efficiency. The complexity and scale of the Department’s operations have hindered successful implementation of AI across various areas where it could enhance effectiveness.
