Department of Defence Strategic Plan 2010 (MTEF 2010/11 – 2012/13) Presentation to the Portfolio Committee on Defence and Military Veterans
AIM To present the draft DOD Strategic Plan (SP) 2010 (MTEF 2010/11 – 2012/13) to the PCD&MV Doing things different to achieve more with less
SCOPE • Aim • Decisions Required • Outlook and Overview of the DOD SP 2010 • Layout of the Plan • Overview of the Chapters • Concluding Remarks
Outlook of the Strategic Plan • The DOD Strategic Plan 2010: • is a culmination of planning and budgeting seminar process initiated in October 2008; with plans submitted in April 2009, • Services and Divisions’ Plans were technically evaluated through DPBEC process in June 2009; • amended to ensure inclusion of priorities in November 2009 and finally submitted in January 2010 with further account on consideration of budget cuts. • The strategic plan has three chapters with performance information provided as appendices. These chapters cover strategic overview, alignment of DOD with Government and MOD priorities as well as the translation of DOD’s mandate into defence outputs that are elucidated in vote 21 of the Estimate of National Expenditure. • In compliance with section 52, of the PFMA, an overview of entities reporting to the Executive Authority is provided. Lastly an overview of the public private partnerships that the DOD is involved is also provided. • The contents of the SP 2010 is continually being aligned with the requirements of a Strategic Plan as required in Treasury Regulations, Chapter 5, as well as requirements emanating from the AG’s interpretation of Treasury Regulation 5. • The draft Strategic Plan was presented for approval to Defence Staff Council (DSC) on Monday 22 Feb 2010 and Council on Defence (COD) on 25 Feb 2010.
Strategic Thrusts That Inform the Execution of Defence Mandate Minister’s priorities as confirmed (Page 17 of the Draft Strategic Plan) • Establishment of a fully functional entity to support the Military veterans • Rejuvenation and upgrade of the Landward Programme • The review of the Defence Secretariat to align it with mandate for Defence Organisation and support requirements for Minister of Defence and Military Veterans. • Upgrade of DOD Infrastructure • DOD Works Regiment • The establishment of the National Defence Force Service Commission and supporting structures • Transformation of ARMSCOR to be in line with the Defence Mandate. • Incremental and progressive refocusing of Denel to support identified defence strategic capabilities • Promote a culture of Good Governance through: • Realisation of a qualification – Free Audit through a multi-pronged approach that addresses root causes of the Auditor-General’s qualifications of the DOD. • Information Technology - Optimal utilisation of the collateral value of defence capabilities to respond to country’s socioeconomic needs - Defence strategy that responds to DOD’s current and emerging needs. -Revitalisation of the Reserves -Provide a lead to the development and implementation of the Community Service Programme
Chapter 1: Strategic Overview Chapter 2: Medium Term Strategic Focus Chapter 3: Overview of Programmes Appendix A : Detailed information on the Outputs Appendix B : Links to Other Plans Appendix C : Overview of Services to be Delivered through Public Private Partnership Consultant Utilisation Public Entities Reporting to the Executive Authority LAYOUT OF THE SP
Chapter One: Strategic Overview • Presents developments that Department of Defence had to respond to from Cabinet pronouncements as well as part of promotion of corporate citizenship • Mandate of the Department • Strategic Objectives • Macro Structure as approved by the MOD on 15 August 2008 • Vision • Mission • Mission Success Factors • DOD’s Value System • Defence Strategic Approach • DOD’s Strategies • Organisational Performance Management (Balanced Scorecard)
DOD MACRO ORGANISATIONAL DESIGN(The structure indicated below is being reviewed in order to align with the defence mandate and Minister’s intent ) Ministry of Defence LEVEL 0 Department of Defence SA National Defence Force Defence Secretariat LEVEL 1 Defence Legal Service Division Defence Policy, Strategy and Planning Division Defence Enterprise Information Systems Management Division Defence Foreign Relations Division Financial Management Division Defence Material Division Defence International Affairs Internal Audit Division Human Resource Division DOD CENTRAL STAFF Defence Intelligence Division Joint Operations Division SA Military Health Service Corporate Staff Division Defence Inspectorate Division SA Army SA Air Force SA Navy Command & Mngmnt Information Systems Division Military Policy Strategy & Planning Defence Reserves Chaplain General Logistics Division Military Police Division LEVEL 2
Chapter One: Strategic Overview • Mission Success Factors (MSF). MSFs are as follows: • National Consensus on Defence • Excellent Strategic Direction • Excellent Resource Management. • Effective Combat Forces and Support Forces. • Professionalism in the Conduct of Operations. • Successful Implementation of the Transformation Process. • DOD Value Systems. DOD value systems are categorised into individual and organisational values
Chapter One: Strategic Overview • DOD Balanced Scorecard. The Balanced Scorecard is being introduced in phases in order to improve the DOD’s management of performance. Update on progress made is provided. DOD’s strategic approach. • DOD positioning strategy is informed by : • Defence strategy which takes into cognisance the need for DOD to respond to geo-strategic and macroeconomic global imperatives as well as deepen and institutionalise civil-miltary relations. • Focus on Defence Diplomacy in support of Cabinet Outcome 11 • Military strategy • Support strategies
Chapter Two: Medium Term Strategic Focus The chapter provides the detail on the following: • Overview of the DOD Strategic Planning Cycle and Process • Government’s Medium Term Strategic focus. • Alignment with Government Priorities. • Minister of Defence Priorities as confirmed by the Minister • DOD Alignment to MTSF Priorities. • Legislative Changes Likely to Influence Programme Spending Plans Over the MTEF period. • Resource Consideration. • Budget Allocation, Expenditure Trends and Analysis of FY 2010/11 Budget Allocation • Enterprise Risk Management: Key Corporate risks with mitigating actions
Chapter Two: Overview of DOD Planning Cycle • Initiated by Environmental Analysis • Planning and Budget Seminar (Sep) • MOD presents guidelines that inform the strategic planning process for next fin year. • Accounting Officer translates guidelines to more detailed Departmental guidelines. • Services Divisions submit plans in Apr for due diligence and presentation at DPBEC during May /June . • SC and MCC approved Plans submitted in Nov for inclusion in the DOD SP • Inputs from Lekgotla, SONA and Budget Vote incorporated • Accounting officer presents SP to MOD during MOD w/s in January/Feb. • SP submitted by MOD during Feb/ March for tabling. • Tabling ito Regulation 5 as amended shall take place 10 (ten days) prior to the Defence Vote • Planning process supported by MCC, SC, COD, PDSC DPB & DPBEC to align to DOD priorities and government prescripts. • Necessary adjustments to the process effected continually to align to Government strategic planning trajectory.
Chapter Two: Medium Term Strategic Focus • Strategic focus • Review of Migration from affordable, sustainable and credible Force to a mandate driven Force Design and Structure to enable fulfilment of ordered commitments as well as provide support to Govt’s diplomatic initiatives • Embracing Government initiatives aimed at combating poverty in order to promote development, peace and stability, regionally and Continentally, through participation in peace missions, confidence and security building bilateral forums , continental peace and security structures (AU and SADC) as well as ensure systematic phased withdrawal from internal deployments in support of the SAPS
Chapter Two: Medium Term Strategic Focus Alignment with Government Priorities. DOD’s participation in the Clusters is presented: • JCPS cluster wrt Outcome 3, “All People in SA Are and Feel Safe” where outputs pertain to Border Safeguarding vis a vis the Border Management Agency. • ICTS cluster wrt Outcome 11, “Creating a Better SA and contribute to a Safer Africa and a Better” where outputs pertain to Advancement of Regional & Global Peace, Security and Sustainable Development. • The above does not exclude the contribution of Defence in other outcome areas , notably MSDS, to mention but a few. • The plans provided have been aligned with the MinDef Priorities as well as intended Cluster priorities, but there needs to be a direct relationship between the ENE performance indicators and the ones identified in the aforementioned outcome areas. (It is imperative that ENE programme performance indicators indicated in slide 39 be in line with the ones identified in outcome 3 and 11)
Medium Term Strategic Focus • Minister’s priorities as confirmed (Page 17 of the Strategic Plan) • Establishment of a fully functional Department to support the Military veterans • Rejuvenation and upgrade of the Landward Programme • The review of the Defence Secretariat to align it with mandate for Defence Organisation and support requirements for Minister of Defence and Military Veterans. • Upgrade of DOD Infrastructure • DOD Works Regiment • The establishment of the National Defence Force Service Commission and supporting structures • Transformation of ARMSCOR to be in line with the Defence Mandate. • Incremental and progressive refocusing of Denel to support identified defence strategic capabilities • Promote a culture of Good Governance through: • Realisation of a qualification – Free Audit through a multi-pronged approach that addresses root causes of the Auditor-General’s qualifications of the DOD. • Information Technology • - Optimal utilisation of the collateral value of defence capabilities to respond to country’s socioeconomic needs • - Defence strategy that responds to DOD’s current and emerging needs. • -Revitalisation of the Reserves • -Provide a lead to the development and implementation of the Community Service Programme
Chapter Two: Medium Term Strategic Focus DOD Alignment needs to give substance to the following MTSF Priorities : • Economic growth • Social and economic infrastructure • Rural development and land reform • Skills and human resource base • Improve national health profile • Fight against crime and corruption • Building cohesive and sustainable communities • International cooperation • Sustainable resource management • Building Democratic developmental state (DOD’s performance information need to be packaged in line with the abovementioned framework so as to visibly display the alignment – Proposed DOD alignment to MTSF priorities. Refer to Strategic Plan)
Chapter Two: Medium Term Strategic Focus • Legislative Changes Likely to Influence Programme Spending Plans Over the MTEF Period: • Military Discipline Bill • Military Veterans Affairs Amendment Bill • Defence Amendment Bill • National Defence Force Service Commission Bill • Geneva Conventions Bill
Chapter Two: MTSFExpenditure trends • Expenditure trends are reflected in the Estimate of National Expenditure as tabled by the Minister of Finance. • The following slides provide a summary of the 2010/11 budget allocation to the Department of Defence.
2010/11 MTEF: SUBMITTED FUNDING PROPOSALS Secretariate Council Brief 10 Feb 10 24 24 24
FINAL LETTER OF ALLOCATION (2010/11 MTEF): 20 NOV 09 Secretariate Council Brief 10 Feb 10 25 25 25
CURRENT BUDGET ALLOCATION (2010/11 MTEF) PER PROGRAMME Secretariate Council Brief 10 Feb 10 26 26 26
CURRENT BUDGET ALLOCATION (2010/11 MTEF) PER ECONOMIC CLASSIFICATION Secretariate Council Brief 10 Feb 10 27 27 27
2010/11 MTEF: SIGNIFICANT CHANGES GENERAL Over the period 2008/09 to 2012/13, Defence baseline has been reduced, with efficiency savings of R23.1 million in 2008/09, R499.6 million in 2009/10, R3.2 billion in 2010/11, R2.2 billion in 2011/12 and R2.1 billion in 2012/13, amounting to a total reduction of R8 billion over the 5-year period. Included in the total reduction is a saving of R4.5 billion due to the cancellation of the Airbus A400M aircraft contract. Revenue is expected to increase from R676.7 million to R756.9 million, at an average annual rate of 3.8 per cent between 2009/10 and 2012/13. Secretariate Council Brief 10 Feb 10 28
PROGRAMME 1: ADMINISTRATION Expenditure increased from R2 billion in 2006/07 to R4 billion in 2012/13, at an average annual rate of 12.1 per cent. This is due to increase in Office Accommodation subprogramme, in which expenditure increases at an average annual rate of 14.9 per cent; Human Resource Support Services subprogramme in 2010/11 is due to additional allocations for the establishment of a management capability for military veterans’ affairs; and increase of 10.5 per cent in the Legal Services subprogramme in 2010/11 is due to the implementation of the occupational specific dispensation for legal practitioners. Secretariate Council Brief 10 Feb 10 29
PROGRAMME 2: FORCE EMPLOYMENT Expenditure increases from R1.5 billion in 2006/07 to R2.1 billion in 2012/13, at an average annual rate of 5.6 per cent. Major contributing factor is the staffing of operational structures. Secretariate Council Brief 10 Feb 10 30
PROGRAMME 3: LANDWARD DEFENCE • Expenditure increases from R6.4 billion in 2006/07 to R11.1 billion in 2012/13, mainly due to additional funding for increases in the military skills development system intake; increased maintenance requirements of the South African Army’s ageing operational vehicle fleet; initiation of landward defence equipment renewal projects; and the procurement of critical ammunition. • Reaching delivery milestones of the shoulder launched air defence artillery system and mobile ground to air missile system programmes explains the 64.8 per cent increase in expenditure in the Air Defence Artillery Capability. • Overall spending will focus on providing forces for internal and external deployments.
PROGRAMME 4: AIR DEFENCE The Air Defence programme accounts for 26.2 per cent of the department’s total expenditure The decrease over the MTEF period is due to the termination of the A400M strategic airlift procurement project and the finalisation of the delivery milestones of the hawk lead in fighter trainer aircraft. The increase in the Training Capability and the Command and Control Capability subprogrammes are due to the upgrade of the Pilatus PC7 Mk11 Astra trainer aircraft, and radar and ground navigation systems. Secretariate Council Brief 10 Feb 10 32
PROGRAMME 5: MARITIME DEFENCE This programme accounts for 7.8 per cent of the department’s total expenditure. Expenditure in this programme decreases from R2.6 billion in 2006/07 to R2.2 billion in 2010/11 at an average annual rate of 4.7 per cent, due to the commissioning of the frigates and submarines between 2006 and 2009. Increases of 23.2 per cent and 21 per cent in 2012/13 in expenditure in the Maritime Logistic Support Capability and Base Support Capability subprogrammes are due to the planned acquisition of hydrographic vessels, and the planned recruitment and staffing of personnel with scarce skills such as divers, technicians and engineers. Secretariate Council Brief 10 Feb 10 33
PROGRAMME 6: MILITARY HEALTH SUPPORT The Military Health Support programme accounts for 8.1 per cent of the department’s total expenditure, which increases from R1.7 billion in 2006/07 to R3.2 billion in 2012/13, at an average annual rate of 11.1 per cent due to implementation of scarce skills and rural allowances for health professionals, improvements to the health informatics system, antiretroviral rollout; sustaining the presidential health team; Increased military skills development system programme; replacement of operational ambulances Secretariate Council Brief 10 Feb 10 34
PROGRAMME 7: DEFENCE INTELLIGENCE The Defence Intelligence programme accounts for 1.9 per cent of the department’s total expenditure. Spending increases from R353.6 million in 2006/07 to R698.9 million in 2012/13, at an average annual rate of 12 per cent, due to the planned investment in and development of a strategic information collection capability. Secretariate Council Brief 10 Feb 10 35
PROGRAMME 8: GENERAL SUPPORT Accounts for 11 per cent of total expenditure, which increases from R1.9 billion in 2006/07 to R4.4 billion in 2012/13, focusing on upgrading the runways and hardstands of Air Force Base Waterkloof; repair and maintenance of defence infrastructure and facilities; research and development of new generation telecommunication systems; repair and maintenance of defence infrastructure and facilities; and investment in the test and evaluation capability; electronic research and development; and missile technology research and development. Secretariate Council Brief 10 Feb 10 36
Chapter ThreeOverview of the Programmes • This chapter presents the outputs that define how the Department operationalises its mandate in terms of Force readiness, Force support and Force Employment. • It further presents the translation of the outputs in terms of Programmes articulated in Vote 21 • The selected trendable indicators are presented in this chapter • Measurable Objectives are extracted from the strategic plan and are highlighted under each programme
Key Tenents that Foreground the Execution of the Defence Mandate Foregrounding the delivery of the defence mandate are the following key tenents that provide a basis for good business practice and governance: • The execution of defence commitments as ordered and funded by Government; • The provision of contingency-ready and cost-effective defence capabilities as specified by approved policy; • Sound management of the Department; • The administration of the DOD within the prescripts of the law, regulatory framework and Government policy; • The assurance of sustainability, continuous improvement of output quality and the reduction of the cost of DOD processes, as well as the accounting thereof; • The assurance of the continuous quality improvement of people in the DOD; • The assurance of quality command and management information in the DOD; and • The assurance of continuous quality improvement of DOD equipment and facilities.
DOD Outputs • The outputs provided by the DOD in terms of its mandate to Government are: • Defence commitments, which include • operations that are ongoing in nature during the year and, for which plans and financial provision can be made in advance; • operations that must be executed during the year and, if unforeseeable, for which no provision has been made; and • joint, interdepartmental and multinational exercises required during the year to prepare forces for operations • Landward defence capabilities • Air defence capabilities • Maritime defence capabilities
DOD Outputs • Military health (support) capabilities • Defence diplomacy, which includes • the deployment of Defence Attaches • the servicing of defence-related Memoranda of Understanding (MOUs); and • participation in the defence and security structures of the United Nations (UN),the African Union (AU) and SADC • The provision of defence related policy and ministerial advice • Cryptographic security services for Government departments • The National Codification Bureau • The provision of appropriate frameworks for sound policy direction, advice and systemic monitoring and evaluation • The provision of defence related capabilities that respond to the needs of South Africa within the evolving policy and national priority trajectory that characterise a developmental state.
Chapter Three: Overview of DOD Programmes • Outputs of the DOD. DOD outputs are translated into programmes as reflected in Vote 21 is as follows. • Administration • Force Employment • Landward Defence • Air Defence • Maritime Defence • Military Health Support • Defence Intelligence • General Support
CHAPTER THREE Administration • Purpose. The Defence Administration Programme conducts policy development, management and administration of the department. • Measurable Objectives • Provision of sound defence direction and advice • Providing the defence related social responsibilities • Developing consensus on defence • Providing sound Policy and administration • Provision of contingency ready defence capabilities • Providing framework for systemic M&E Output table
Chapter ThreeForce Employment • Purpose The Joint Operations Division provides and employs defence capabilities, including an operational capability, to successfully conduct all operations, and joint interdepartmental and multinational military exercises. • Outputs. Operations and Joint Interdepartmental Multinational Military Exercises • Measurable objectives • providing and employing special operations capability in accordance with national requirements;
Chapter ThreeForce Employment • conducting an average of 12 external peace missions per year in accordance with requirements to promote peace and security; • conducting 21 JIM military force preparation exercises over the next three year (excluding Special Forces exercises); and • Conducting an average of four operations per year in support of other government departments, and complying with international obligations. Output table