Defence

Cover story

Signs of the times

Challenge. Change. Character. Three simple words, perhaps, but also key themes as Defence's senior leaders gathered in Canberra for the 2006 Senior Leadership Group Summit. Harry Baxter reports ...

"People are why we have a good capability—why we're doing so well. We empower them, we equip them, we lead them and they do the rest. And you all know that's the way we do business."
ACM Angus Houston, CDF
Photo by Phill Vavasour

The challenge to maintain an effective, flexible and balanced defence force was the primary topic of conversation as Defence's senior leaders met in Canberra recently.

The event, one of two held each year, was hosted by the Secretary of Defence and the Chief of the Defence Force (CDF) and included an address by the incoming Minister for Defence, the Hon. Dr Brendan Nelson, MP.

Structural changes and improvements in coordination processes were also announced, with a view to making the Defence organisation more responsive in a period of significant activity on and off the battlefield.

The CDF, Air Chief Marshal Angus Houston, highlighted the current peak in Australian operational deployments.

"We'll have about 5000 of our people committed to operations during March, and that's the highest number of people we've had committed since 1999–2000. It's a huge effort," he said.

"It's 10 per cent of the ADF, and of course if you take into account the enabling effort from the whole Defence Organisation, it means that we as an organisation are going to be extremely busy in March. I expect it'll all go wonderfully well."

The significant rate of operational effort, he said, must serve to sharpen the focus on addressing recruiting and retention pressures and continuing to care for our people.

The Secretary (foreground) and CDF used the recent SLG Summit to announce structural changes and other improvements to headquarters coordination processes.
Photo by Phill Vavasour

"We are having some difficulties in the people area and the biggest strategic challenge we continue to face is the challenge of recruiting and retaining our people so that we can have an ADF well into the future.

"Retention is currently running along with a separation rate of 11.4 per cent ... the casual reader might say: 'Well what's the problem?' The problem is in the areas where we have highly skilled people. With industry running along with a huge skill shortage and the economy booming ... we've got a situation where our people are very attractive to those CEOs [Chief Executive Officers] out there who are starving for skilled people."

The CDF and Secretary reminded senior leaders of the continuing need for them to focus on responsiveness to Ministers, their advisers and departmental liaison officers.

"On this priority our initial briefings were very good, I think," the Secretary of Defence, Ric Smith, said, "but overall the scorecard is still on orange or amber and has a way to go to green. There has been evidence that we have seen of carelessness and inattention."

"In talking about priorities, it goes without saying of course that continued effective support to our deployed forces at the policy level and in every other way is an enduring priority for me, as it is for all of us. I take that as a given."
Ric Smith, Secretary of Defence
Photo by Phill Vavasour

The Secretary also echoed Dr Nelson's comments on the portrayal of Defence's activities in the media."This again is the business of all of us. The essence is to provide facts, and facts that really are facts, the first time they are asked for and quickly."

In his first address to Defence's senior leadership group, Dr Nelson acknowledged he was looking forward to the role, but that he had a lot to learn.

"It's hopefully in the task to bring intellectual rigour to it, to have the greatest respect for all the servicemen and women and indeed the public servants who work so hard to support them," Dr Nelson said.

"For however so long as I am the Minister, we cannot achieve what we need to achieve for our country and its citizens without one another. I need you and you need me. I will do everything that I possibly can to be an advocate for the Defence community."

Dr Nelson also reflected on his own working style, his own views on leadership and his expectations of Defence's leaders. ". in the end we manage a lot of things here, and management is extremely important and management is about getting results, but real leadership is informed by vision," he said.

The remainder of the summit agenda focused on three key themes for Defence: strategy and planning; financial challenges and Defence Values.

"My job is to try and communicate the message to the average person. To fight for you in terms of resources, particularly in the budgeting processes of the Government. To explain not only to my colleagues, but to the broader community, that every dollar that they work so hard for is well invested."
Dr Brendan Nelson, Minister for Defence
Photo by Phill Vavasour

Strategy and Planning

A key theme of the summit was the evolution of Defence's planning framework in the face of complex, and changing, strategic circumstances.

Deputy Secretary Strategy, Mr Michael Pezzullo, discussed the key themes of the Defence Update 2005 (released in December) and an overall framework for strategy and planning in Defence. Recent parliamentary approval of amendments to the Defence Act 1903 was also discussed in the context of the ongoing need to balance domestic, regional and global defence and security interests.

The session also included briefings from Lieutenant General David Hurley on the development of Defence 2015, a document designed to provide guidance on future force structure demands for the ADF. Chief of Army, Lieutenant General Peter Leahy, provided a brief on the Hardened and Networked Army (HNA) initiative, and the Vice Chief, Lieutenant General Gillespie, gave an update on key command and control issues in the planning for the Headquarters Joint Operations Command Relocation Project.

Financial Challenges

The new Defence Chief Finance Officer (CFO), Mr Phillip Prior, and the head of Defence's Budgets and Finance Planning Division, Mr George Veitch, provided a summary view of the current financial outlook. Mr Prior used his address to introduce himself to the SLG, and advised of progress on financial controls and other remediation projects relating to Defence's statement of accounts.

In his speech, Mr Veitch highlighted the need for continued vigilance in budget planning, and the responsibilities of all leaders to ensure accuracy of financial information entered into Defence systems. There was still evidence, he said, of poor-quality budget estimates from line areas, and a failure to recognise the long lead times in development and acquisition processes.

Mr Veitch discussed Defence's submission for the 2006–07 Budget, and also provided an overview of cost pressures in the 10-year forward estimates provided in the 2006–16 Defence Management and Finance Plan (DMFP).

"The White Paper (2000) funding commitment ceases in 2010–11 and the most important measure that we've got before Ministers in this upcoming budget is what level of funding will the government allocate us beyond 2010–11. Knowing the answer to that question is very important for us because of the long lead times involved with the Defence Capability Plan," he said.

Senior leaders at the summit, the first of two events held each year to discuss priorities for Defence.
Photo by Phill Vavasour

Defence Values

Echoing statements by the Minister and the Chief of the Defence Force in their opening addresses, Peter Sharp (First Assistant Secretary, Personnel) challenged the SLG to reflect on whether they were modelling values-based behaviours in the workplace. In his discussion of the PLICIT values, Mr Sharp contended that "if it's not working too well, then we and only we are accountable because if we cannot make it work then for sure our people won't make it work".

Panel sessions throughout the summit event allowed Defence's senior leaders to query presenters, and to discuss other strategic issues facing Defence, including progress with reforms in the Defence Materiel Organisation.

A Global View

At the conclusion of the summit, a dinner was held, with General John Abizaid (US Army) giving the keynote address at the invitation of the Secretary and CDF. On a three-day visit to Australia and New Zealand, General Abizaid reflected on his time as the commander of the multinational Coalition force in Iraq during Operation Iraqi Freedom.

General Abizaid praised Australia for its contribution to the leadership of the Coalition force in particular, and also for the professionalism of our deployed servicemen and women in what was, he said, a "war of precision and intelligence". He described the international coalition in the Middle East as "a networked, competent, capable force of international and inter-agency power".

He warned Defence's senior leaders to be prepared for continuing challenges in the Middle East, not just in Iraq and Afghanistan.

General John Abizaid (US Army), right, presents Major General Ash Power with The Legion of Merit award.
Photo by Phill Vavasour

General Abizaid also used his visit to present, on behalf of the United States administration, the Legion of Honour medal to Major General Ash Power for his contribution to the war on terror. The citation accompanying the Legion of Merit acknowledged the then Brigadier Power's "exceptionally meritorious service as the Director, Combined Planning Group (CPG)" in the period from June 2004 to June 2005 and further noted that "his expertise in strategic analysis and deliberate planning shaped the CPG's structure and mission, assured a firm foundation for the development of quality planning and assessment efforts, and promoted continued growth of CPG capabilities. He coordinated CPG efforts with USCENTCOM [US Central Command] leadership to provide valuable international perspectives to ongoing planning and analysis, better capitalise on the intellectual capacity of select international officers by integrating them in to key theatre headquarters staff processes and products, and to develop and incorporate analytical constructs for use at the strategic-theatre level. Brigadier Power's exemplary performance, dynamic leadership and exceptional devotion to duty reflect great credit upon himself, the Australian Army, and his country."

Transcripts of speeches and more information on the outcomes of the SLG Summit are available on the Defence Intranet at http://intranet.defence.gov.au/cpa/manual/cgr/intcomm/slg.htm.

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