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Key Performance Indicators in Measuring Military Outputs

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System Analysis and Studies

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Awaiting Publication

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capabilities, capability based planning, capability shortfall priorities, decision-making, force development, investment appraisal, key performance indicators, long term defence planning, measurement, measures of effectiveness, metrics, performance management, prioritisation, shortfalls


The past decade has presented numerous challenges to all NATO nations, including the need to do more with less resource, increasing expectations of stakeholders in a fast changing international environment, advances in technology, and changing expectations of increasingly diverse international armed forces. As the need to address these challenges further intensifies, there is to be an increased demand for accountability, which requires military leaders to focus on results and to deliberately strengthen the performance of their organizations. As a result, many armed forces have introduced performance measurement systems to support strategic, tactical and operational decision making. Key performance areas should be made quantifiable and measurable so that they can be used to assess and evaluate progress in achieving the organisation goals. Further, they should support evaluating procedures in measuring progress of an organization towards its vision and long-term goals.


Given the significant effort invested in performance measurement by several nations, it is beneficial to examine how the strategic decision makers of military organizations are currently assessing their performance, with a view to create a common performance measurement framework (dimensions, categories and measures) that reflects the strategy of individual nations, while addressing the needs of NATO at the same time.


Topics with regard to Objective 1: a. What is the critical information that provides a strategic level view of the performance of the MOD and the Armed Forces? b. How does management use this performance information? c. What are the critical defence measures? d. How do nations align measures and analysis with action? e. How do nations assure the measurement system is aligned with change? f. How do nations collect and analyze data and information (e.g. IT-system)? Topics with regard to Objective 2: a. How do nations and NATO assess/evaluate the value of capabilities? b. How do nations and NATO identify capability shortfalls within the capability planning process? c. How do nations and NATO prioritize capability shortfalls within the capability planning process (investments, resources)? d. How do nations and NATO assess progress in addressing capability shortfalls? Topics with regard to Objective 3: a. What is the range of current methods for prioritisation of capability shortfalls in use across the nations? i. What methodologies and objectives exist for capability shortfall prioritisation? ii. What are the strengths and weaknesses in the current methodologies within the field? b. What are the areas for improvement in current capability taxonomies? i. What capability taxonomies exist? ii. What are the areas for improvement across the nations and NATO? c. What are the areas for improvement in current capability assessment methods? d. What are the current interfaces between NATO and the nations in the planning process

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