Defence capabilities – delivering what was promised

Head Office should ensure it has the capacity and capability to hold the Commands to account more effectively for capability delivery through a fully developed central portfolio office function. Management information systems should be aligned with need, provide an overall view of performance which is timely and consistent, and promote transparency at all levels.

The portfolio office should carry out a root cause analysis to establish the causes of time slippages across the capability acquisition portfolio, and the extent to which particular initiatives will address endemic issues in capability acquisition. The lessons from this work should be considered by the Department’s Board.

The Department should be clear about what good capability delivery will look like following implementation of its current transformation programmes, and set out when benefits will be expected to appear. Guidance, particularly around milestones, should be updated to reflect any transition to a faster, more flexible procurement approach in a way that ensures that the current status of capabilities is clearly understood at all levels of the Department.

The Department should instil a culture where exceptions are seen as just that – exceptional. The Department should require the communication of any exceptions on the most significant capabilities to the central approving authority prior to declaration of the milestone being achieved, together with an explanation of the implications for the future delivery timetable and budget for the capability. The approving authority would then be able to evaluate whether what has been achieved to date is consistent with what was approved.

In its guidance and training to SROs and their teams, the Department should emphasise the importance of recognising and avoiding optimism bias in reporting of progress. It should also ensure SROs have enough time to carry out their roles when appointing them and look at how they can balance competing demands.