Establishes in the Department of Defense (DOD) a Deputy Secretary of Defense for Management (Deputy Secretary) to: (1) serve as the Chief Management Officer of DOD; and (2) act as principal adviser to the Secretary of Defense on matters relating to the management of DOD, including defense business activities.
Makes the Deputy Secretary responsible to the Secretary for development, approval, implementation, integration, and oversight for the management of DOD that relate to performance of the the following functions: (1) planning and budgeting, including performance measurement; (2) acquisition; (3) logistics; (4) facilities, installations, and environment; (5) financial management; (6) human resources and personnel; and (7) management of information resources.
Requires the Deputy Secretary, among other things, to: (1) develop and maintain a department-wide strategic plan for defense business reform; and (2) establish performance goals and measures for improving and evaluating overall DOD economy, efficiency, and effectiveness.
Directs the Deputy Secretary to enter into an annual performance agreement with the Secretary measuring individual and organizational goals.