As is well known by all, the Army exists as a non-profit organization. Our motives and measures of success are not around EPS or net profit. We measure mission accomplishment and effectiveness. Our motto is always, “make it happen” or as the cable guys says, “get ’er done.”

However we do measure project success in terms of money:

Type 1- direct expenses or costs not paid or reduced

Type 2- cost avoidance

Type 3- increased capability

As a capital intensive business, I am contemplating a new measure of economic efficiency: capital intensity ratio. Because we do not show profit, the numerator-net profit is irrelevant. So I am struggling to calculate a new output measure of mission success. I am currently evaluating the Value Measurement Methodology used by the Government in the evaluation of IT investments.