Capability Development Manual

2006 Defence Capability Development Manual Preface

In 2004 the Australian Government announced major changes to the way the Australian Defence Organisation (ADO) is organised and operates with regard to the development of major proposals for new Defence capabilities. These changes followed the publication of the Defence Procurement Review 2003, also known as the 'Kinnaird Review', and resulted in the Capability Development Group (CDG) releasing the inaugural Defence Capability Development Manual (DCDM) in February 2005.

Replacing the Capability Systems Life Cycle Management Manual (2002), the DCDM provides authoritative guidance to CDG staff in carrying out the Group's core tasks of developing investment proposals (including options) for new Defence capabilities for consideration by Government and managing the Major Capital Equipment program.

A further benefit of the DCDM is its value to the very wide range of organisational stakeholders in the capability development process in the ADO and with whom CDG needs to engage fully if it is to carry out its role effectively. It has also been welcomed by Defence industry seeking to understand how new Defence capabilities are developed since the Kinnaird Review.

The processes of identifying defence capability needs, establishing priorities, examining options for meeting those needs, managing an ongoing investment program, and doing so within financial guidance and with high levels of accountability are of necessity complex, rigorous, time-consuming and resource-intensive.

The DCDM aims to articulate and, if need be, demystify these processes by providing a concise yet comprehensive coverage of the main steps and features of these processes, and of the considerations involved in assisting the development of the Government's investment program for new Defence capability.

This second edition of the DCDM reflects the continued evolution of capability development activities within the ADO and incorporates feedback from those who use the processes in the conduct of their daily business.

The complete DCDM can be viewed in .pdf:

or as individual chapters: