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Activity title

Linking Strategic Investments & Divestments to Defence Outcomes

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System Analysis and Studies

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Defence outcomes, Inputoutput models


Sound defence resource allocation requires analysis that overcomes the necessary fragmentation of the national defence enterprise into manageable execution streams. Framing the requirements and options for capability component investment, upgrade and divestment in terms of value (as distinct from cost) over time sets up senior decision-makers to deliver everything necessary to successful, affordable and sustainable defence. In resource-constrained environments, democratic governments face political pressure to account for the nature and scale of their operating and capital defence investments. Even when economies are strong, democracies require national governments to demonstrate responsible use of tax revenue. The question is best answered in terms of cost and benefit. This requires a credible accounting of value to accompany the more straight-forward accounting of costs. Without it, the generation of regional economic benefit can trump the generation of military operational benefit resulting in slower, more expensive, and inferior procurement arrangements for the sake of the national economic benefit.


A study is proposed to capture the current state of the art of modelling the transformation of resource inputs to defence outputs and outcomes, and assess the potential for advancing that state within NATO nations through shared experience of successes and challenges.


-Essential: National successes and challenges tracking defence value-for-money; practices that mask the creation of value; attributes of analytical frameworks suitable for capture of value; identifying and characterising the valued outcomes and outputs of defence investment; early insight generation for buy-in management; and tracking and measuring other-than-valued outcomes and outputs -Optional: types of value and the terms on which it can be measured; where generated value resides; structures for capturing value creation; tracking value between activities; modelling value perishability; defining and handling value streams; meaningful methods of value aggregation; the role of performance measurement in quantifying value; business planning requirements for value creation tracking.

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