At the 2010 Land Warfare Conference dinner, BAE Systems CEO Jim McDowell focussed in on the state of the defence industry as it relates to the Strategic Reform Program (SRP) using the Rumsfeldian paradigm of ‘known known, known unknowns and unknown unknowns’.
While the stovepipes (or cylinders of excellence depending on your view) are well known in Defence, McDowell contends that the SRP is the perfect opportunity to address these issues in an end-to-end way, from the industry through to the end user.
The eight fundamental inputs to capability (command and management, organisation, major systems, personnel, supplies support, facilities and collective training) must be “tightly integrated” and industry has a massive role to play in all these FICs bar organisation and personnel in this closed loop system.
“My contention is that this closed loop system which integrates industry as well as the government and military agencies, does not exist today,” McDowell told LWC delegates.
“This system must be end to end – not just having industry touching it at various points in the life cycle but really outside of it looking in.
“The relationship between the Australian Defence Organisation and industry needs to be more defined bye the delivery and sustainment of capability rather than the rights and obligations of a contract.”
The SRP is designed to see funds moved between projects and timelines with the condition that new projects would be on the cards to keep industry going.
This has clearly not happened, McDowell contends, as industry capacity has been questioned in the last 18 months, though they have laid off people to cope with the lack of new projects that are simply not appearing.
Comment
ADM’s only criticism of the well-received speech was the complete lack of political and senior DMO presence in the room.
McDowell spoke eloquently of the challenges facing industry, both large and small companies, but in some respects he was preaching to the choir.
A great speech nonetheless.