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

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commerce vs defence irreconcilable differences

Commerce vs. DefenceIrreconcilable Differences?

Matt Minshall

CSL Defence Interest Group

27 April 2005

introduction
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.

slide3
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.

the first element
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

the political dilemma
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
the two central elements
The Two Central Elements
  • 2. Defence
  • 3. Industry
requirement of defence capability
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
overview of industry requirements
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
divergence of interest
Divergence of Interest
  • Product
  • Defence = Peace and security
  • Industry = Profit
  • Common ground = Nil
the aim
The Aim
  • The Aim is the Key
defence procurement
Defence Procurement
  • C Concept
  • A Assessment
  • D Demonstration
  • M Manufacture
  • I In-Service
  • D Disposal
military concept analysis
Military Concept Analysis
  • Let A = Task
  • Let B = Threat
  • Let C = Requirement
  • So A + B = C
slide15

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
the government malaise
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

why is there divergence

Why is there Divergence?

Measures to protect the system from itself creates the Malaise

defence misspending and mismanagement symptoms of the malaise
Defence Misspending and Mismanagement Symptoms of the Malaise
  • Strategic
    • Technology vs. Credible Land, Air and Sea Forces
  • Tactical
    • Future Command and Liaison Vehicle
slide19

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
defence spending comparison
Defence Spending Comparison

Sources: New York Times; Le Monde; World Bank; Stockholm International Peace Research Institute

slide21

Defence Misspending and Mismanagement The MalaiseTactical

Land

Rover

AFV 430

Future Command and Liaison Vehicle - FCLV

SAXON

CVRT

slide22

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

when c is confused the aim is lost

When C is confused the aim is lost

Results are a loss of synergy

loss of synergy
Loss of Synergy
  • Aims
  • Management
  • Demands on Time and Money
  • Consultants
the fourth element
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

irritants to the malaise
Irritants to The Malaise
  • Budgets
  • Technology
  • Outdated mindsets
  • Non SMEs
  • The Committee Syndrome
  • Innocent Quangos
  • The need to be “fair” – Open competition
the return to synergy and the way forward
The Return to Synergy and the Way Forward
  • Courage
  • Reaffirmation of the aims
  • Lateral thinking
  • Positive support
  • Constructive criticism
  • Integrity
  • Accountability
future roles for defence consultants helping the mod to help itself
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
summary
Summary
  • Identifying the malaise
  • Working with the system
  • Shaping the future