Sovereign defence industry – a deterrent effect. Part 4: The requirement for ideological change

In Part 4 of our series, we propose that in order to meet the strategic and capability requirements identified in the #dsr, #Defence must accept that ideological change in its approaches to sustainment, procurement, and acceptance of risk is required.

As Australia comes to terms with an evolving geostrategic, and constrained fiscal environment, the #ADF is postured to alleviate some of these external pressures through genuine engagement with the Australian industrial base. This is not a case of doing more with less, rather engaging a sovereign defence industry capability and the challenge of “how to be more productive, efficient, and effective with the resources that we have”. To occur in any meaningful way, an ideological change must drive the implementation of the #dsr.

The Minister for Defence Industry, Hon Pat Conroy recently addressed the Australian Industry & Defence Network (AIDN National) Gala, discussing “Defence Industry in a post-DSR world” and how the Government is focused on addressing the process and procurement reforms articulated in its response to the #dsr.

Whilst the Minister’s comments are encouraging, history is not his side. Consecutive reviews over the past 20 years have all failed to achieve meaningful and enduring change. The 2014 First Principles Review’s purpose was “to ensure Defence was fit for purpose, able to respond to future challenges and was able to deliver the government’s strategy with the minimum resources necessary”. Nine years later, the #dsr has identified the same challenges and recommendations to meet a degrading strategic environment in the #indopacific.

In order to meet these challenges, #ADF must go beyond the status quo of “review, refine and recommend”. This is a chance to learn from the past and engage with industry to build genuine #strategicpartnerships and drive real change.

Critical to establishing a strategic partnership will be the #ADF seeking a shared role in risk management, and outcome focus responsive delivery processes. By doing so, #ADF can address the reform agenda within the #dsr and revive a responsive and rapid industrial base, and by virtue, a deterrent capability that Australia’s national security requires.

To achieve a #strategicpartnership, #Defence must accept that they are part of program success and failures; risk cannot be contracted out, and Defence must accept responsibilities in partnership with industry.

Equally, it is up to industry to demonstrate that it is not driven solely by process, but well equipped to exploit innovation and rapidly transform concepts into deliverable products that meet the capability, time and cost requirements of the #ADF. 

Failing to recognise these responsibilities will result in a transactional and one-sided agreement of who is to blame for failures that reinforces the status quo addressed in part one of this series.