The Capability Life Cycle

Brigadier Jason Blain (DG Force Options and Plans)

Mr Pat Hetherington (Assistant Secretary Investment Portfolio Management)

Scope

Two Parts1. What is the Value Proposition of Defenceto the Nation? 2. Overview of the new Capability Life Cycle

What is the Value Proposition of Defence to

the Nation?

The views expressed are those of the presenter, and should not beattributed to Defence

Australia's Strategic Defence Framework

• Strategic DefenceInterests:

– Secure and resilientAustralia

– Secure near region– Stable Indo-Pacific

and Rules basedGlobal order

Value proposition of Defence to the Nation

Another Strategic Interest? Australian Economic Prosperity

‘The Defence Budgetdelivers on theGovernment’s commitmentto ensuring Australia’slong-term security andeconomic prosperity.’ Senator the Hon Marise PayneMinister for Defence

‘National security andeconomic prosperity areintrinsically linked.’

Hon Christopher PyneMinister for Defence Industry

Value proposition of Defence to the Nation

• Australian Industry Contribution• Dual use capabilities• Export driver– Building capacity• STEM investor

UK Defence Policy

‘The UK Defence industry has a unique value to ourcountry, both vital to national security and a majorcontributor to our economic prosperity.’

UK MoD Policy

• We will contribute to the UK’s economicsecurity, support our industry includingthrough innovation and exports, continue toinvest in science and technology andcontribute to wider skills and citizenshipdevelopment that supports British society.

• By investing in science, technology and

innovation we are supportingthe UK Industrial Strategy by contributing toa world leading UK research base that has astrong focus on commercial exploitation.

Questions I Leave You

1. Is it time that contributing toAustralia’s Economic Prosperitybecomes an explicit task for Defence?

2. What are your views on should, if andhow this could be achieved?

3. Can this be achieved withoutcompromising capability?

jason.blain@defence.gov.au

Over to Pat

Key Design Components of the New CLC – WHAT IS DIFFERENT?

The CLC is the end-to-end process for planning, developing, acquiring andmaintaining Defence capability – major capital, infrastructure, Enterprise enablersand ICT. Key design components include:

– More centralised direction – explicit alignment with strategic guidance

– An ongoing Force Design process rather than episodic reviews

– Strong arm’s-length Contestability – central to reducing the trust deficit

– Earlier and better interaction external to Defence – Govt/Industry

– Increased accountability for Capability Managers

– Tailoring of project investment approval pathways (SmartBuyer)

– Streamlined and reduced process and documentation

– Strengthening the Program layer

– Investment Committee oversight of the Integrated Investment Program

Capability Life Cycle Phases and Gates

6

The structure of the Investment Portfolio

Relationship with Government

6

Behaviours

• Building and sustaining Government confidence inDefence as a policy advisor

• Providing the best possible advice to Governmentto support good policy decision making

• Empowering the Secretary and CDF as the keyadvisors to Government

• Ensuring the best possible decision making byconsidering the full range of factors and influenceson those decisions

Behaviours

Ensuring that decisions are agile and adaptable tothe environment in which they are madeEnsuring that all stakeholders are engaged in away that reflects their accountabilityEngagement with the Ministers and centralagencies before and at Gate 0, so that they areaware of upcoming proposals

Behaviours

• Business cases are developed in a manner that ensuresthey are understandable and scrutinised, minimises theuse of jargon and provide the most accurate and timelyadvice Defence can prepare at the time;

• Timely decisions are made at the appropriate delegatedlevel when sufficient supporting information is available;and

• Enabler and Delivery Groups focused on working closelywith, and responsively to the Capability Manager toexecute Programs with the optimum balance betweencapability, risk, cost and schedule.