2017 Defence Renewal Annual Report : Realizing the Opportunity

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Executive Summary

Over the past year Defence Renewal has made significant progress towards meeting the overall objectives of the program, such that FY 2016/17 can be seen as a turning point in initiative delivery. The majority of initiatives are now well into implementation and are providing considerable benefit to the Defence Team, improving the way we procure, sustain, maintain and allocate resources. As of end FY 2016/17, a recurring impact of over $478 million dollars has been reached, doubling the results over the previous three years. These are measured as either productivity gains or efficiencies which have been reinvested back into the program to meet existing financial pressures.

Some examples include:

  • $138 million in savings in Materiel management (as of end FY 2016/17) which are reducing financial pressures in our need to procure spare parts, maintenance services, and other materiel;
  • The equivalent of $86 million in of productivity gains in second and third line maintenance service resulting in increased fleet availability for aircraft such as the CH146, and reductions in in-service support contract expenditures;
  • $37 million in savings in real property operations, allowing more infrastructure reinvestments to repair and maintain aging real property;
  • $24 million in savings through better Management of Information Technology, allowing increased support in the upgrade of systems and our capacity to implement new projects; and,
  • $10 million in savings from overhead costs in the Cadets and Junior Ranger Programs, which have been directed into increased participation at camps and other activities

The original target of Defence Renewal was to generate a recurring value for the department in the range of $750-$1,200 million dollars. It is anticipated that the program will achieve this goal, entering the lower end of the target range within the next two years.

Over the coming year many of the Defence Renewal initiatives will transition to being the normal course of business, and as such will be closed out as special initiatives. Not only will they be providing a recurring financial impact, they will represent a change in thinking towards the management of resources. This represents a culture shift in how we do business.  

Accordingly by end of FY 2017/18, Defence Renewal will transition towards a primary focus of enabling continuous improvement within the department. This will include supporting the establishment of a comprehensive regime of performance metrics and targets, development of business analytic tools, and utilising business intelligence to identify opportunities for improvement.

Linked directly to the government’s Defence Policy obligations, Defence Renewal’s re-asserted focus will be to embrace performance measurement and analytics to support, reinforce, and enable continuous improvement. It will support decision making with business intelligence, and assist in driving the delivery of results for the department and the Government of Canada.

Doug Haferkamp
Defence Renewal Team Lead