Minister for Defence Stephen Smith and Minister for Defence Materiel Mike Kelly today announced the key findings of a review into the Defence Materiel Organisation’s (DMO) Land System Division (LSD).
The review into Land System Division is the first of a series of reviews into the structure and functions of the Divisions within DMO which manage capability projects to establish the optimal structure for these Divisions to drive improved performance, accountability and reporting in relation to projects.
This program of reviews was announced by Minister Smith and then Minister for Defence Materiel Jason Clare in October 2012 and is part of the Government’s ongoing program of reform in Defence procurement.
The reviews were commissioned following the identification by the Government of a number of projects that have not been managed as effectively as they should have been.
The reviews commenced with a structural review into Land Systems Division, which has responsibility for a number of problem projects, including:
- LAND 106, the upgrade of the M113 armoured vehicle fleet;
- LAND 112, upgrade of the ASLAV armoured vehicle fleet;
- Land 144 Phase 1 – Countermine Capability;
- Land 134 Phase 1– Combat Training Centre - Live Instrumented System; and
- Land 40 Phase 2 – (Direct Fire Support Weapon – Lightweight Automatic Grenade Launcher).
Ernst & Young undertook the review which assessed Land Systems Division across the areas of structure, resource, capability, roles, process, governance, infrastructure, culture, performance and talent management.
The Ernst & Young review made 41 recommendations with key findings being the need to enhance accountability within Land Systems Division by improving performance reporting, empowering decision making at the delegated levels and strengthening performance reviews.
The review also found a need to increase staff capability to provide accurate, complete, timely and well supported advice to Government by improving training programs.
Other findings include a requirement for all senior leadership group positions to be contestable to ensure the most suitable candidate is appointed to leadership roles whether that candidate is an ADF member or a civilian.
The review acknowledged that Land Systems Division has been proactive in instigating a range of improvement initiatives, particularly since the appointment of a new Division Head in January 2013.
The review also noted the positive and often unrecognised role Land Systems Division has played over the past decade in providing support to Australia’s operations overseas and the preparation of forces to deploy.
Defence agrees with the recommendations of the report. An implementation plan to address and action the 41 recommendations is currently being developed.
Ernst & Young will soon be engaged to undertake a review of the Explosive Ordnance Division with a report to be prepared over the next few months.
The executive summary and recommendations of the Ernst & Young review into Land Systems Division will be available at http://www.defence.gov.au/dmo/Newsitems/14June13_LSD_Review.cfm
Minister Smith's office: Sacha Fenton (02) 6277 7800 or 0467 784 528
Dr Kelly's office: Robbie Rynehart (02) 6277 7730 or 0459 810 654
Defence Media Operations (02) 6127 1999