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Commerce vs. Defence Irreconcilable Differences?

Commerce vs. Defence Irreconcilable Differences?. Matt Minshall. CSL Defence Interest Group 27 April 2005. Introduction.

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Commerce vs. Defence Irreconcilable Differences?

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  1. Commerce vs. DefenceIrreconcilable Differences? Matt Minshall CSL Defence Interest Group 27 April 2005

  2. Introduction The aims of defence and industry are fundamentally different. With acceptance of this premise democratic governments try to manage a defence capability in which the armed forces, the administration and industry work in synergy to the mutual benefit and satisfaction of all parties.

  3. Aim The aim of this short presentation is to highlight the fundamental differences between defence and industry – based on the current situation in the UK - and to suggest ways of bringing the elements together in a way that satisfies all requirements.

  4. Four Elements

  5. The First Element 1. The Government is the first element - being the ultimate owner of all defence matters. It provides a defence ministry as the agency which attempts to bring the elements of Industry and Defence together for mutual benefit and satisfaction

  6. The Political Dilemma • The Government tries to be all things • Provide a defence capability • Support UK Industry • Maintain the manning levels of the civil service • Allow open competition • Satisfy the need to spend less • Key player in global peace brokerage

  7. The Two Central Elements • 2. Defence • 3. Industry

  8. Requirement of Defence Capability • Aims • Protection of the Mainland • Protection of interests overseas • Support of foreign policy • Support to NATO • Support to the UN • Support to Allies • Means • Deterrence • Operations Other Than War • War • Needs • Proper funding and support • Relevant equipment

  9. Overview of Industry Requirements • Aims • Profit • Reputation • Increase or maintenance of business • Expansion • Means • Saleable credible and reliable products • Good marketing • Needs • Money • Contacts • Client base

  10. Divergence of Interest • Product • Defence = Peace and security • Industry = Profit • Common ground = Nil

  11. The Aim • The Aim is the Key

  12. Defence Procurement • C Concept • A Assessment • D Demonstration • M Manufacture • I In-Service • D Disposal

  13. From the Concept comes the aim

  14. Military Concept Analysis • Let A = Task • Let B = Threat • Let C = Requirement • So A + B = C

  15. Government Concept Development • Let C = Committee • Let H = Hiatus • Let N = Nugatory • Let O = Omnidirectional • After at least seven committees • Creating five hiatuses • Three nugatory studies • And six changes in direction • The Government has changed the simple military requirement - C - to make: • C7 H5 N3 O6

  16. The Government Malaise MOD/DPA/DERA/ QINETIQ/CIVIL SERVICE/ TREASURY/ PROTECTION OF SELF INTEREST/ FAIR COMPETITION/ JOBSWORTH FIREWALL Defence solution Complex Incomplete Compromise Defence Requirement Industry Solution Go to

  17. Why is there Divergence? Measures to protect the system from itself creates the Malaise

  18. Defence Misspending and Mismanagement Symptoms of the Malaise • Strategic • Technology vs. Credible Land, Air and Sea Forces • Tactical • Future Command and Liaison Vehicle

  19. Defence Misspending and Mismanagement The Malaise - Strategic • Following the US lead billions of pounds have been allocated and spent on technology • Aim by 2020 is for the forces to have1000% the effects • 50% of the size • 10% of the logistics • 50% of the cost • How? • Distancing the battlefield • Robotic weaponry and logistics • Long Range Smart Munitions • Computer Management

  20. Defence Spending Comparison Sources: New York Times; Le Monde; World Bank; Stockholm International Peace Research Institute

  21. Defence Misspending and Mismanagement The MalaiseTactical Land Rover AFV 430 Future Command and Liaison Vehicle - FCLV SAXON CVRT

  22. Defence Misspending and Mismanagement The MalaiseTactical FCLV – Mobile, Armoured, 5 seater, BOWMAN compatible and within a limited budget Worst Trial Vehicle Within Budget <50% Compliant New vehicle Best Trial Vehicle Within Budget >85% Compliant Reliable proven pedigree 9% cheaper – Purchase cost Requires trailer for many roles Under armoured 3 Seater (with BOWMAN) So far cost is around 20% over Best Trial Vehicle cost

  23. When C is confused the aim is lost Results are a loss of synergy

  24. Loss of Synergy • Aims • Management • Demands on Time and Money • Consultants

  25. The Fourth Element • 4.Sound consultancy can be the solution Armed Forces Defence Capability Needs Government Sound Consultancy Defence requirements Defence Solution Commercial Needs Industry

  26. Irritants to The Malaise • Budgets • Technology • Outdated mindsets • Non SMEs • The Committee Syndrome • Innocent Quangos • The need to be “fair” – Open competition

  27. The Return to Synergy and the Way Forward • Courage • Reaffirmation of the aims • Lateral thinking • Positive support • Constructive criticism • Integrity • Accountability

  28. Future Roles for Defence ConsultantsHelping the MOD to help itself • Pre-emptive assistance at the right level • Acting as the honest broker • Filling the gaps

  29. Summary • Identifying the malaise • Working with the system • Shaping the future

  30. Questions?

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