Defence Renewal Annual Report 2014-2015 - Framework for Continuous Improvement

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2. Overview

Building on the foundation and progress of the Defence Renewal’s first year ending March 2014, the period of April 2014 to March 2015 was both successful and challenging: successful in that traction and progress have continued across both the Canadian Armed Forces and the Department of National Defence, and challenging as we work to build the critical foundations necessary to have positive control on improved business and organizational practices, while understanding the value of the changes.

Defence Renewal is moving forward:

  • a thorough assessment and update of the Defence Renewal reinvestment profile was completed for the IRMC in November 2014;
  • based on the latest estimates:
    • in FY 2014/15, $84 million in reinvestment opportunities were realised through a combination of cost avoidance and efficiencies;
    • a total of $158 million in pressure relief for National Procurement, Infrastructure and Cadets has been realized so far;
    • Inventory Management has realized $96.2 million measured in cost avoidance through reduced overbuy expenditures effective end-fiscal year 2014/15 and is tracking towards the upper end of the established renewal opportunity band of $87- $162 million;
    • the implementation of a common enterprise-level IT Service Management toolset was completed to support the Defence Wide Area Network. This new capability provides IT business intelligence that assist with the consolidation of IT Service Delivery organizations across DND/CAF – to this end, the first Regional Service Management Centre was established in Halifax with the intention of consolidating 24 local help desks in Atlantic Canada; and,
    • as a part of infrastructure rationalisation, 166 additional buildings and structures were demolished on bases and wings across Canada.
  • two new initiatives were added to the Defence Renewal Portfolio based on ideas for improvement from Defence Team members: improving ammunition management; and, enhancing emergency dispatch systems. Two additional ideas -- embracing Electronic Approvals and the creation of a video library -- are being assessed for inclusion in the Defence Renewal portfolio;
  • KPMG was awarded a contract to provide solutions to improve maintenance execution, examine and offer solutions for a leaner headquarters, and to provide a framework for measurement and metrics for renewal;
  • interdependencies between Defence Renewal initiatives, broader Government of Canada change activities and other changes within the Defence Team have been assessed in order to develop an improved management model of strategic change activities;
  • members of the Defence Team – whether in uniform or as civilians – continue to offer suggestions for ways to improve the conduct of the business of defence; and,
  • Defence Renewal was the topic of discussions at leadership townhalls at various organizational levels, senior CAF professional development programmes and regularly featured in internal Defence Team media.

DSX recognised a need to improve the level of engagement, review, and issue management of Defence Renewal and formed the new Defence Renewal Oversight Committee (DROC) in April 2015. This committee will not only ensure consistent analysis and reporting of Defence Renewal progress, reinvestments and challenges, but it will also facilitate horizontal linkages between initiatives to ensure an integrated view of investment and reinvestment opportunities.

We begin FY 2015/16 optimistic that the ambitious objectives set by Defence will be met. Defence Renewal is moving forward: past the critical analysis stemming from scoping and development phases that have defined the second year of effort and into the next phase which will see increased delivery and implementation/integration of initiatives.