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Defence White Paper 2009 - Defending Australia in the Asia Pacific Century: Force 2030

Defence White Paper 2009 - Defending Australia in the Asia Pacific Century: Force 2030


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Published by: Matt on May 29, 2009
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13.26 To enable the Government to oversee the implementation of the Strategic Reform Program, a robust

governance and assurance framework will be developed. This framework will ensure that Government

retains visibility of the progress Defence is making in implementing the White Paper and pursuing

reform, and ensure that there is strong personal commitment and ownership across Defence for

driving reform.

13.27 Accountability for implementation will be devolved to the line leadership responsible for each area of

reform, but will be coordinated centrally through the Strategic Reform Program and underpinned by

clear performance measures and milestones.

Defending Australia in the Asia Pacifc Century: Force 2030 111

Defence White Paper 2009

13.28 Reforms of the magnitude envisaged will take several years to implement. Defence is fully committed to

reaping the savings that will fow from reform, all of which will be reinvested in capability. Government

recognises the need for Defence to maintain fexibility in the areas that are targeted for savings, how

savings are generated and the timing and ramp up of individual savings.

13.29 Defence will develop detailed implementation plans for all reform measures, for which senior leaders

will be held accountable. In addition to these specifc savings, Defence has also factored into its

projected employee costs an allowance for productivity targets that have been judged to be feasible.

Managers will be funded for their budget, less this productivity dividend which commences around the

middle of the decade when the specifc savings measures have been achieved.

13.30 In the case of the DMO, the planned reforms are entirely consistent with the intent of the Defence

Procurement and Sustainment Review, conducted in 2008 by Mr David Mortimer AO, that the DMO

become more businesslike. The DMO is fully committed to implementing the reforms and reaping the

associated savings. As a prescribed agency under the Financial Management and Accountability Act,

1997, it will be important for the DMO to maintain fexibility in how it implements reform.

13.31 A Defence Strategic Reform Advisory Board will be established, chaired by a person from the private

sector with the appropriate skills and experience to advise on a signifcant reform program in a large

and complex organisation. The key functions of the Board will be to provide advice on how the reforms

should be implemented, and assist in ensuring the reforms are being implemented in the way intended

by Government. The Board will comprise an appropriate balance of internal and external members.

Public sector members of the Board will include the Secretaries of the Departments of the Department

of the Prime Minister and Cabinet, the Treasury, the Department of Finance and Deregulation; and the

Secretary of Defence, the Chief of the Defence Force and the Chief Executive Offcer of the DMO. To

ensure that strategic reform is pursued on a whole of portfolio basis, the Board will encompass the

functions of the former Defence Procurement Advisory Board. The Board will report to the Minister for

Defence, who will in turn advise the National Security Committee of Cabinet of progress in Defence


13.32 Defence will establish, and resource appropriately, internal arrangements to support and facilitate the

reform effort. It will also build the expert capabilities, including by tapping commercial expertise where

appropriate, to ensure that deep reform can be implemented successfully and to the standard required

by Government. The Secretary and Chief of the Defence Force will lead the reform effort, ensuring there

is ownership across the entire organisation and that senior leaders demonstrate personal commitment

and take responsibility for particular initiatives.

112 Defending Australia in the Asia Pacifc Century: Force 2030

Defence White Paper 2009


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