2017 Defence Renewal Annual Report : Realizing the Opportunity

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2. Overview

Defence Renewal -- the Defence Team’s long-term effort to find better ways to conduct the business of defence and free-up resources for reinvestment in operational capabilities and readiness -- has significantly progressed over FY 2016/17.

During the past year Defence Renewal has concentrated its efforts on the six-performance themed portfolios. Originally this represented 24 individual initiatives. Most of these initiatives are now delivering significant impact for the department and are very close to reaching their objectives. Over the coming year, many of these initiatives will be closed down as the majority will have maximized their results and will transition from a “new approach” into an institutionalized normal course of business. The remainder will require more time to deliver, due to the scale and complexity of the initiative, but nonetheless will be closed as a DR Initiative as they no longer require DRT support to move forward. In addition, a smaller number of initiatives (3) have been removed as their objectives have not proven feasible.

Based upon April 2017 reporting, Defence Renewal has generated $478 million in reinvestment opportunities through efficiencies (achieving the same output or effect with fewer resources) or productivity gains (or effectiveness - realising greater output or effect with the same resources).[1

Beginning in FY 2017/18, Defence Renewal will transition away from supporting each initiative directly, and into supporting the establishment of a continuous improvement process with the department, a principal original strategic objective of the program. Primarily this will include 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. This will guide resource allocation decisions, and ensure accountability.

Defence Renewal introduced two measures in FY 2016/17 to improve the credibility of reports. First was the implementation of a rule set working group forum in which Initiatives presented their methodology and calculations used to generate the numeric value of their reinvestment opportunity to a board comprised of C Prog and CFO for third party validation. Secondly, a risk profile was created to categorize reinvestment opportunities as credible or not based on the maturity of their rule sets. These processes were used to improve identified results confidence and hence accuracy of reporting.

Linked directly to supporting the government’s Defence Policy Review and Deliverology commitments, continuous improvement within the department will embrace technology and innovation to support, reinforce, and enable process improvements directly linked to the provision of enhanced operational capability. It will support decision making with business intelligence, and assist in driving the delivery of results for the department and the Government of Canada.

Footnotes

[1] Annex A to this report details Reinvestment Opportunity identified thus far.