Brigadier General Lally graduated from the United States Military Academy in 1978 with a Bachelor of Science degree in Engineering and was commissioned a Second Lieutenant in the United States Army Transportation Corps. He earned a Master of Science Degree in Operations Research from the Naval Postgraduate School, Monterey, California. His military education includes the Transportation Officers Basic and Advanced Courses, Fort Eustis, Virginia, the Army Command and General Staff College at Fort Leavenworth, Kansas, and the Army War College at Carlisle Barracks, Pennsylvania.
Brigadier General Michael J. Lally's most recent assignment was as Commander of the Defense Distribution Center, New Cumberland, Pennsylvania from August 3, 2004 thru August 23, 2006.
Previous key assignments include Commander, 309th Transportation Detachment, 11th Transportation Battalion, Fort Story, Virginia; Chief, Movement Region I, 25th Transportation Center, Yongsan, Korea; Joint Staff Officer and Executive Officer, United States Transportation Command, Scott Air Force Base, Illinois; Chief, Operations Research Systems Analysis Cell, United States Army Europe and Seventh Army, Heidelberg, Germany; Commander, 27th Transportation Battalion (Movement Control), 3rd Corps Support Command, Kaposvar, Hungary and Wiesbaden, Germany; the United States Transportation Command Liaison Officer to the Commander-In-Chief United States Joint Forces Command in Norfolk, Virginia; Commander, 1st Transportation Movement Control Agency, Kaiserslautern, Germany; and Executive Officer to the Commander, Army Materiel Command, Ft Belvoir, Virginia.
His awards and decorations include the Defense Superior Service Medal with Oak Leaf Cluster, Legion of Merit with an Oak Leaf Cluster, Defense Meritorious Service Medal and Meritorious Service Medal with four Oak Leaf Clusters.