8 October 2007

1. AIPM National Conference 2007 Professionalising Project ManagementA Defence Industry Perspective 8 October 2007 Thales Australia

2. Overview • The Defence Project Management Environment • Current Challenges and Opportunities • Professionalising Project Management in Defence Industry • Conclusion Thales Australia

3. Overview • The Defence Project Management Environment • Current Challenges and Opportunities • Professionalising Project Management in Defence Industry • Conclusion Thales Australia

4. The Defence Industry Environment • Next 10-15 years 80% of the ADF’s major assets will either be replaced or upgraded From Boots to Warships and; from Bullets to IT services Acquisition & Sustainment Budgets (DMO) • $9.4 B AUD in 06/07 • 43% of the total defence budget • 0.9% of GDP • $4.8B AUD for new Acquisition • $4.6B AUD for Sustainment Projects Thales Australia

5. Project Management in Defence Industry • Project diversity (type, scope & technologies) • Politically sensitive • Extreme media attention • Notable past Project Management problems • Poor Project performance can place lives at stake • Ultimately project performance is critical to the survival of local industry • Internationalised market environment Thales Australia

6. Overview • The Defence Project Management Environment • Current Challenges and Opportunities • Professionalising Project Management in Defence Industry • Conclusion Thales Australia

7. Defence Industry: Project Management SWOT STRENGTHS • Active efforts to professionalise RegPM • Capability Maturity initiatives (CMMI) • Active and strong professional body AIPM • Growing Project Management community OPPORTUNITIES • Securing the supply of future PMs • Multi-tiered relationships with Education • Opening the Job family to entrants from non-traditional disciplines • Robust selection processes for PMs • Building on the Competency Framework • Investing in additional soft skills THREATS • Immediate & growing skills shortage in Australia, limiting supply of candidates with required competencies & attributes • Reduction in University enrolments in feeder disciplines • Globalised marketplace demands best practice performance at local level WEAKNESSES • Still experiencing some notable significant Project Overruns • Often converting good Engineers into poor Project Managers • Selection process for entry to the Job Family has not been robust Thales Australia

8. Overview • The Defence Project Management Environment • Current Challenges and Opportunities • Professionalising Project Management in Defence Industry • Conclusion Thales Australia

9. The Project Management Job Family • Bids and Programmes (Management) • Bid Management • Programme Management • Contract Management • Bid and programme management support BID & PROJECT MANAGEMENT Thales Australia

10. The Career Ladders SPECIALISTS, EXPERTS, MANAGERS A ladder with levels, Based on the responsibility level of each job PROJECT MANAGEMENT LEVELS • A Capabilities Assessment for all new hires • & promotions • General Intelligence • Comprehension • Business Reasoning • Memory • Concentration • Verbal Reasoning • Visual Concentration • Creative Thinking • Analytical Capability • Social Comprehension • Leadership • Values • Personality UNIVERSITY GRADUATE ENTRY LEVEL A Project Management Mentoring Community, established within The Company Project Management Office. Several organisational entry levels TECHNICIAN ENTRY LEVEL Thales Australia FIRST ENTRY LEVEL

11. The Project Management Skill Set Existing Competency Standards Integration Management BID & PROJECT MANAGEMENT Scope Management Time Management Cost Management Quality Management Human Resource Management Business Development Communications Management Media Management Risk Management People Management Procurement Management Leadership THE PROJECT MANAGER: A GROWTH ENGINE FOR THE COMPANY Thales Australia

12. Project Management Training Professionalisation People Management Core Competencies Prime Contract Management Bid & Project Management Passport to People Management Professionalisation Project Conduct Passport to Project Management Introduction to Bid & Projects Thales Australia

13. Entry Points into Project Management FINANCE PURCHASING MARKETING SALES & STRATEGY QUALITY & BUSINESS IMPROVEMENT MANUFACTURING MANAGEMENT LOGISTICS, OPERATIONAL SUPPORT BID & PROJECT MANAGEMENT R&D PRODUCT & SYSTEM ENGINEERING Thales Australia

14. Job Family Progression MANUFACTURING MANAGEMENT EXECUTIVE MANAGEMENT BID & PROJECT MANAGEMENT MARKETING SALES & STRATEGY R&D PRODUCT & SYSTEM ENGINEERING Thales Australia

15. Overview • The Defence Project Management Environment • Current Challenges and Opportunities • Professionalising Project Management in Defence Industry • Conclusion Thales Australia

16. Conclusion • Project Managers provide a key growth engine for Defence Industry • Pre-emptive action is required to secure the supply of future Project Managers & to address the growing skills shortage in Australia • Project Management performance will ultimately determine the future viability of Defence Industry players in Australia Thales Australia