Hunn Review: Annexes (30 September 2002)
Annex H
Recommended Defence Strategic Management and Planning Processes
- The strategic management and planning processes through which the Defence Organisation should work ought to be the critical driver for operational capacity and structure. These processes define what the Defence Organisation needs to do to meet Government's expectations. From an understanding of these processes, and the results they must deliver, it is possible to derive particular roles and responsibilities for key defence advisers and decision-making authorities including the Minister of Defence, higher-level Cabinet Committees, the Secretary and the CDF.
- I have examined the Government's performance expectations, most particularly those relating to providing strategic direction, preparing and developing joint forces for responding to contingencies, providing high quality advice that supports government decision-making on defence policy and strategies, procurement, and defence outputs, and the effective and efficient direction, planning, management and accounting for Defence's resources, being a good employer and maintaining high standards of professionalism, including ethical standards. I have also examined the nature of management and planning challenges both particular to Defence, and those that are faced by other public and private sector organisations (See Annex E).
- From these perspectives I have identified, at a macro-level, the core strategic management and planning processes that need to be undertaken by the Defence Organisation, and the key points where political direction or decision-making is required. I am aware that many of these processes are cyclical and iterative, and that within each there may be many sub-processes. Nonetheless, I have attempted to provide a simplified outline of Defence's strategic and planning processes in order to see more clearly how structures might be erected to manage their undertaking.
- These process steps are listed and broadly defined in Table 1 Figure 1. Recommendations on the type of responsibility (sole, prime or shared) are also presented.
Table 1: Defence Strategic Management and Planning Processes
| Short Title | Process Definition | Responsibility | Decision |
|---|---|---|---|
| Formulate/Update National Security Policy and Strategy | Using information about the security environment, and in accordance with political direction, identify New Zealand's national security interests, outcomes and policy objectives, identify strategic-level contributions from relevant departments and agencies and craft co-ordinated strategies to achieve national security objectives | National Security Officials Committee | Prime Minister and Cabinet (National Security Committee) |
| Formulate/Update Defence Policies and Strategy | Develop advice on New Zealand's security interests, outcomes and policy objectives, strategies for securing those objectives within the broader context of national security policies and Strategies | Secretary Sole | Prime Minister and Cabinet |
| Conduct Strategic Environment Information Gathering and Analysis | Gather, analyse and disseminate assessments of information about strategic issues affecting New Zealand's security, and the future performance of military operations | Secretary/ CDF Shared | |
| Develop Policy/Strategy Security Scenarios and Guidelines | Develop near term and longer-term scenarios of security events which could challenge national security and defence objectives, and guidelines for future defence policy, international defence relations, and military capability priorities and planning | Secretary Prime | |
| Formulate International Defence Relations Policy/Strategies at Government level | Develop advice on policy objectives for New Zealand's International Defence Relations and strategies for achieving those objectives, and integrate these with the broader national security policy and strategy | Secretary Sole | |
| Formulate International Defence Relations Policy/Strategies at the Military level | Develop advice on and plans for military resources, activities and initiatives to achieve International Defence Relations policy and strategies | CDF Prime | |
| Analyse and set Military Capability Requirements and Joint Future Capability vision | Using, National Security/Defence/IDR policy and strategy, scenarios, and military doctrine, conduct operational, policy and resource analyses to determine the military capabilities required to achieve defence policy objectives over the longer term, and a statement that presents a vision of the performance features of future NZDF capabilities and how these will be used and work in scenarios of future operations. | Secretary/ CDF Shared |
|
| Analyse Military Capability Gaps, Test Options and Refine Solutions | Identify and size gaps in military capability between current forces and required military capabilities; Identify and test operational/policy effectiveness and resource implications of equipment and non-equipment based options for resolving, and refine and define solution specifications |
CDF Prime | |
| Advise on Policy Effectiveness of Proposed Military Outputs and Capability Solutions | Analyse and provide advice on the appropriateness of Military Outputs proposals and Capability solution specifications for achieving future defence policy objectives | Secretary Sole | |
| Endorse Proposed Military Output Levels and Capability Solutions | On the advice of principal advisers, endorse annually proposed levels of military and defence outputs and military capability solution summaries | Minister | Minister |
| Prepare Defence Long-Term Development and Output Resource and Action Plans | Prepare, balance and integrate costed and performance milestone arranged Long-Term Development Plans, medium-term outputs resourcing and action plans | Secretary/ CDF Shared |
|
| Make Government Decisions on Defence Plans | Present Defence Plans for Government endorsement | Minister | Minister/ Cabinet |
| Gather Acquisition Information and Prepare Acquisition Proposals | Gather information and prepare Acquisition Functional Specifications and business cases, and initiate development of acquisition strategies and project management plans, for equipment acquisitions | Secretary Prime | |
| Make Decisions on Proposed Capability Acquisitions | Present Proposed Capability Acquisitions (Equipment) for Government endorsement | Minister | Minister/ Cabinet |
| Prepare Defence Organisation Annual/Multi-Year Budget Estimates | Prepare Annual/Multi-Year operating budget allocation plans and financial estimates for Ministry of Defence (MoD) and New Zealand Defence Force (NZDF) outputs | Secretary Sole (for MoD) CDF Sole (for NZDF) |
|
| Make Decisions on Annual Multi/Year Budgets | Present annual/multi-year defence budget estimates proposals for Government endorsement | Minister | Minister/ Cabinet |
| Purchase Equipment | Develop equipment acquisition strategies, project management plans, negotiate acquisition contracts, and manage equipment acquisitions to acceptance into Service with NZDF customer. | Secretary Sole | |
| Commission into Service Purchased Equipment | Prepare and action integrated logistics support plans for commissioning into service newly acquired equipment | CDF Sole | |
| Generate Defence Organisation Outputs | Manage resources and activities to deliver Defence Organisation outputs to agreed quality, quantity and cost standards | Secretary Sole (for MoD) CDF Sole (for NZDF) |
|
| Support, Supply and Maintain Military Capabilities | Manage resources and activities to recruit, select, train, maintain, and sustain replacement forces to be available when required for new, or on-going operational deployments | CDF Sole | |
| Recommend Options for Military Responses to Security Crises | Identify and evaluate military options for responding to security crises; identify resource, direct and broader operational effectiveness, and defence policy and national security co-ordination implications, and provide advice to Government | CDF Prime | |
| Make Decisions on Responses to Security Crises | Present national (including military) responses to security crises for Government decision, and provide political direction on actions, resources and priorities. | Minister | Minister/ Cabinet |
| Conduct Joint Military Operations in accordance with Government direction | Provide strategic command direction for, and conduct joint independent, combined or multinational military operations in accordance with government direction | CDF Sole | |
| Evaluate Defence Organisation Outputs Performance and Management Efficiency | (1) Evaluate and measure delivery of Defence Organisation Outputs (2) Evaluate outputs results from military effectiveness and defence policy delivery perspectives (3) Evaluate management efficiency and effectiveness |
(1) Secretary Sole (for MoD Outputs); CDF Sole (for NZDF Outputs); (2) Secretary/ CDF Shared (3) Secretary/ CDF Shared |
|
| Evaluate Defence Organisation Contributions to National Security Outcomes | Evaluate and measure defence policy and output contributions to the achievement of national security outcomes; evaluate strategic capacity issues of the Defence Organisation | Secretary Prime | |
| Account for Financial Expenditure and Non-Financial Performance Results | Account for financial expenditures, and prepare and submit financial expenditure and compliance reports. Prepare and submit non-financial performance on military and defence outputs delivery | Secretary Sole (for MoD) CDF Sole (for NZDF) |
|
| Provide direction in response to Evaluation and Performance Results | Provide direction on resourcing, defence policy priorities etc to the Defence Organisation in response to Evaluation and Performance Results reporting | Minister |
Figure 1: Recommended Defence Strategic Management and Planning Processes and Responsibilities
