Real Clear Defense: Conway’s Law and the Pentagon’s Audit Crisis

Programmatic steps to fix the Pentagon's audit problem

“Organizations design systems that mirror their own communication structure.” – Melvin Conway, also known as Conway’s law.


In its 2023 audit, the Department of Defense was able to account for only $1.9T in assets, leaving half — $1.9T, including equipment and facilities — unaccounted for. Audits are often a topic du jour, and we involved in the defense ecosystem need to grapple with a few truths:

We’re not talking about the efficacy of investments or understanding who uses what equipment. The most basic purpose of an audit is to count where dollars are going. We should be able to do that.

$1.9T is a huge sum. It’s more than the GDP of South Korea.

This isn’t an aberration, it’s the norm. Since the Pentagon was first required to undergo yearly audits in 2018, the Department has never been successful.

There are three primary problems which, until solved, will be blockers for a successful audit of the Pentagon.

To read the full byline on RealClearDefense, click here.

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