Strategy
The NZDF Strategic Plan conveys what the NZDF needs to do and how it will do it to meet its aspiration (Vision).
The Strategic Plan is part of the wider architecture of the Defence Planning Framework, and sets the NZDF in the direction that the ELT believes is appropriate to achieve our prime mission. It also assists the NZDF grow towards its vision of “Three Services as One Force, being the best in everything we do”. The introduction of the NZDF Balanced Scorecard, as part of the NZDF strategic planning process, and the enhanced performance management processes enable the NZDF to track the implementation of its strategy.
The NZDF strategy will be accomplished through the three strategic themes of The Agile Force – Operationally Effective, Valued Partner – Organisational Capacity and Resource Efficiency. All NZDF activities and projects will be aligned with these three broad strategic themes and are aimed at mission success.
The Agile Force and being Operationally Effective links objectives that will enable organisational resilience and an operationally-ready defence force. The Valued Partner theme reflects the need for the NZDF to retain the trust and confidence of its stakeholders and partners. Resource Efficiency is about being thorough in what we do and proficient in how we use our resources so that we can be the best at what we do.
The Government’s ownership interests in the NZDF are addressed within the NZDF Strategic Objectives. For the next five years (2007/08 to 2012/13), these objectives, within the four NZDF Balanced Scorecard Strategic Perspectives, will relate to the following:
Strategic Perspective – NZDF Stakeholders:
- Current Operations. The NZDF needs to sustain current operational commitments while introducing new capabilities.
- Future Operations. The NZDF must be ready to meet the government’s next request.
- Finance and Resources. The NZDF must make best use of allocated finance and resources.
- Reputation. The NZDF needs to enhance its reputation as an effective Defence Force, and valued interagency and coalition partner.
Strategic Perspective – Enabling Processes:
The NZDF:
- will develop and sustain an effective military policy capability;
- must deliver flexible and relevant future capabilities;
- will develop key relationships with national and international partners;
- must deliver effective and efficient business processes;
- must deliver agile and effective logistic support through a Network Enabled and Knowledge Edge force; and
- will increase its contribution to wider whole of government initiatives and activities – both in the security sector and elsewhere.
Strategic Perspective – Learning and Growth: The NZDF:
- will be an Organisation of Choice;
- must ensure it has the right people it needs;
- must be good at personnel management and prepare and support the joint team;
- will grow information management capabilities to support the Knowledge Edge Force; and
- will improve the ability of technology to support management in the NZDF.
Strategic Perspective – Resources: The NZDF:
- must equip its forces to meet current operational commitments and be ready for the next request; and
- must optimise Defence infrastructure to meet future needs.
The above NZDF Strategic Objectives, together with the strategic initiatives that emerge annually in support of them, are specified in more detail in the NZDF Statement of Intent (SOI) for the period 2007–2010, and the NZDF 2007/08 Output Plan.
Personnel
The NZDF’s military capability is delivered through its people. The NZDF needs to continue to recruit and retain the right people. We need people who practice our values of comradeship, commitment, courage and integrity; and who can be trained and educated to a high level of expertise in their chosen field.
As shown by the graphs in the personnel summary section, recruitment and retention levels have improved across all three Services. Deficiencies in specialist areas continue to be addressed. Since July 2005, the total NZDF Regular Force (RF) strength has increased from 8,614 to 9,051 – an increase of over 5%. Concurrently, attrition for RF personnel has fallen from just under 16% in July 2005 to just over 13%. These results are particularly pleasing given the prevailing economic and employment conditions in New Zealand.
The continued development and sustainment of the NZDF relies on continuing to enhance the capacity of our people throughout their careers, so they can be ready to deliver and lead the Defence Force in the future. The main focus of effort for personnel policy during the year has continued to be on delivering for today while building for tomorrow.
Information gathering tools have been revised to enhance understanding of antecedents to turnover and to improve monitoring and reporting. Efforts are being targeted in key areas including leadership and career management to gain and maintain personnel engagement. Workforce planners have been working collaboratively to develop an agreed model for identifying the highest risk to the delivery of capability. A survey of the potential recruit pool to develop an understanding of what potential recruits are looking for when making job and career choices and what the NZDF needs to do to match those expectations has been completed. This information is being used to develop an employment positioning strategy to ensure that the NZDF is appropriately positioned to attract the right number of the right recruits.
Efforts have also been made to widen the ethnic composition of the NZDF, in particular the percentage of Pacific Islanders and Asian recruits. Asians make up approximately 1% of the NZDF, while Pacific Islanders make up less than 5%. Strategies are in place to engage these communities, with recruiters actively working in the Cook Islands and a recruitment office in South Auckland.
Progression of initiatives to support the development of a HR Performance Management System continues. The on-line reporting tool has been rolled out as part of the new Defence Kiosk application. A revised civil staff performance management system has been developed, and a new policy for civilian performance management has been implemented. Efforts to enhance workforce well-being, and force readiness and preservation continue. As part of this, an individual operational preparedness policy has been developed. A NZDF health capability review and a future NZDF health capability initial report have been completed. The purpose of these projects is to develop the policy guidance required to establish a sustainable, New Zealand-based and operationally deployable health capability that meets both NZDF and whole-of-government requirements. A NZDF-wide accident and reporting system is also currently being rolled out.
A scoping strategy for a review of NZDF Remuneration has been developed. Civil staff employment agreements have been revised and implemented, and work has begun on the development of a revised pay structure. An overarching Equity Strategy has also been developed.
The development of HR reporting capabilities continues in conjunction with Planning Branch and single Services. Progression of Project Aptus, a key initiative to support a culture of professional development, learning and growth is continuing as resources allow.
A new TF Employer Support Council (TFESC) has been formed under the Volunteers Employment Protection Act 2004. The Council’s membership includes representatives from some of the country’s largest employers, including NZ Post and NZ Police. The Council represents reservists’ concerns to employers, to relate key issues affecting them and help find solutions. It is also raising the profile of the TF to employers and the wider community.
Equipment
Equipment is another important part of military capability. To be effective, our people must be properly equipped for combat and peacekeeping, now and in the future.
The NZDF has defined and developed four future-force joint concepts as a basis for capability development. They are: a knowledge edge force, a tailored joint force, a multi-mission force and a networked force.
In pursuit of these concepts, a scan of the trends likely to influence the NZDF’s future operating environment and Capability Requirements are being completed. Also, the NZDF’s Joint Vision has been written, and Strategic and Joint Operating Concepts are being produced. A joint doctrine cell is coordinating the adoption and adaptation of ADF joint doctrine for use by the NZDF, where appropriate.
A ten year NZDF science and technology plan has also been completed. The plan identifies the range of science and technology capabilities the NZDF requires, the level to which those capabilities need to be developed, and the actions and resources this will require.
The LTDP is a key planning tool to enable decisions on defence acquisitions to be taken within the context of the government’s defence policy, the priority of projects and affordability. The LTDP was updated and published in October 2006.
In collaboration with the MoD, the LTDP was updated with six projects, three of which are focused on Defence infrastructure. These involve rationalisation and modernisation of the Navy’s fuel installation and replacement of the 60 Hz power generation and reticulation system at the Devonport Naval Base. The third infrastructure project involves an upgrade of the taxiways at Ohakea Air Base. The other new projects involve advanced pilot training for the RNZAF, a refit of the ANZAC frigates’ propulsion systems and upgrade of the close weapons protection system, and providing modern, effective communications for the NZDF.
During the year, a plan to reflect a Network-Enabled approach was developed. The aim of the approach is for the NZDF to achieve decisive advantage through innovation and the effective integration of networks, systems, effectors and people. Underpinning the plan is a Network-Enabled Communications and Information Systems (NECIS) project. The objective of the NECIS project is to provide a NZDF-wide overview and governance of the development and practical application of information technology and information management.
Progress has been made on joint communications modernisation. This project will modernise the NZDF’s long-range and medium-range communications capability to ensure the NZDF maintains a reliable, integrated, world-wide communications infrastructure.
The purchase and introduction into service of the 321 Pinzgauer Light Operational Vehicles (LOVs) has been completed. The LOV has been deployed to the Solomon Islands and Timor Leste, and the special operations variant has been used in Afghanistan.
There has been significant progress in providing additional firepower to the Army. Special Operations equipment, the Javelin Medium-Range Anti-Armour Weapon (MRAAW) and the cueing and identification (friend or foe) system for the Mistral Very Low Level Air Defence System (VLLAD) have been delivered and are currently being introduced into service. Enhanced surveillance and reconnaissance capabilities are currently being scoped for the Army, and new combat engineering equipment is also being sourced.
The two Boeing 757 aircraft purchased in 2002 are being converted from a straight passenger configuration to a combination passenger/freight configuration. The first of the C-130 Hercules aircraft has commenced a major structural and life-extension upgrade that will be completed on all five aircraft over the next five years. A $21.2 million project to upgrade the self protection system fitted to the C-130 Hercules aircraft will be completed as part of the life extension project.
The major mission and communication system upgrades for the P-3K Orion fleet are also underway. The RNZAF has also received the first of three P-3K Orion aircraft to be fitted with the Wescam MX-20 electro-optics system as an interim improvement. The Wescam MX-20 is being integrated in our aircraft as part of the main upgrade. The system provides a significant improvement in the Orion’s visual and infra-red detection capabilities.
In July 2006, a contract was signed for the purchase of nine NH-90 helicopters to replace the UH-1H Iroquois. One aircraft will be disassembled to provide spare major components. It is expected that the NH-90 will be in service for at least 30 years. The MoD is also evaluating tenders for training/light utility helicopters. These aircraft will replace the Sioux helicopter, as well as providing for a range of light utility tasks.
The first of the Project Protector ships, the multi-role vessel (MRV), HMNZS Canterbury, was commissioned in June this year. In addition, HMNZS Otago, the first of the offshore patrol vessels (OPV), was launched in Melbourne late last year, and is expected to be delivered to the NZDF towards the end of 2007. The second OPV – HMNZS Wellington and the four Inshore Patrol Vessels (IPV) are due for delivery over the next year.
The new Defence Force Headquarters building in Wellington was formally opened by the Prime Minister Rt Hon Helen Clark on 28 March 2007. The building, which has been designed around energy efficiency, accommodates around 900 people.
In relation to the consolidation of the RNZAF operational capability to Ohakea (Project Takitini), an interim report was provided to the Minister in April 2007, and a full report is scheduled to be provided to Cabinet later this year. Subject to Cabinet approval, construction of support facilities for the NH-90 helicopter will commence almost immediately, with the balance of Ohakea works being conducted over the 2009–2015 period.
An intensive programme is also underway to address the backlog in minor capital projects in infrastructure and equipment, and a real estate strategy is being developed.
Reporting on other aspects of our capability, including doctrine and technology, is contained in the Key Priorities section.
Managing Risks
Given our strategic environment and the nature of our activities, risk management has a significant impact across the NZDF because effective risk management is an essential component of delivering outcomes and generating force elements for operations. For this purpose, the NZDF uses an integrated risk management framework that incorporates other NZDF-wide management systems, including the Operational Preparedness Reporting System (OPRES). The NZDF also conducts ongoing gap analysis to determine how far the organisation has progressed in its risk management policies, principles and culture.
Although New Zealand presently faces no direct conventional military threat, we can identify operational risks against an uncertain security setting. We also report risks in achieving planned preparedness levels; and our ability to respond to additional and concurrent operations, while continuing a high activity tempo. We also identify risks associated with the total force element preparedness cycle, including the need to recuperate and regenerate after deployments, prepare for future operations, introduce new capabilities into service and rebuild military and organisational capability with constrained resources.
In balancing these requirements, the NZDF has prioritised the use of its resources, and concurrently recognised concomitant risks and the measures to mitigate them.
Although risk management in the NZDF is effective, there is scope for improvement. During the past year, the NZDF has enhanced its risk management culture and understanding. This has been achieved through the development of the NZDF Strategic Plan, a performance management reporting system, articulation of ELT risk appetite, and implementation of an in-house risk management training course for middle level commanders and managers. The introduction of Balanced Scorecard objectives also bolsters the identification, evaluation, control and reporting of risks.
How Does the NZDF Measure Up?
As seen from the foregoing, the strategic plan; balanced scorecard and strategy map approach to measure more effectively how we achieve our strategic objectives; and identifying priorities and aligning resource use mean we are making steady progress towards meeting the goal of a modernised, well-equipped and sustainable Defence Force.
The NZDF is using the seven principles from the Government’s Defence Policy Framework 2000 to guide it as it realigns, rebuilds and invests. The ELT understand that the government expects the NZDF to be:
- equipped and trained for combat and peacekeeping;
- deployable;
- able to operate alongside other forces;
- held at appropriate levels of readiness;
- sustainable;
- up to date with technology and doctrine; and
- fiscally sustainable.
As observed in an independent assessment by the Australian Strategic Policy Institute in April 20074, these principles are largely being delivered on. The NZDF is well into its re-equipping and rebuilding programme, it has shown it can deploy quickly into areas of national interest in close co-operation with Australia, it can sustain deployments elsewhere to secure international stability alongside our partners, it has adopted the concept of a net-worked and knowledge-edge force and it has put in place processes to prioritise commitments and make use of resources.
Our force elements are at high states of preparedness to respond to the most likely threats to national security – natural disaster, acts of terrorism, civil instability, and transnational illegal activities. We are also able to respond quickly to requests for disaster relief, peace support, and humanitarian relief tasks within our immediate region and the wider international arena, should the government require us to do so.
Nonetheless, there are some areas within the NZDF where preparedness states are at a lesser standard, especially given the unpredictable security setting. This relates primarily to our ability to conduct operations at the higher end of the conflict spectrum, where there are personnel and equipment shortcomings – areas being addressed under the DSI. Due to our commitment to operations and multi-agency tasks and the modernisation of the NZDF, some units lack combined training experience required to operate effectively as part of a larger force in combat and to mitigate the risk of skill fade in techniques not practised during contemporary operations. These reduced preparedness states are consistent with government’s expectations and priorities during the recovery phases of the DSI.
We have a preparedness recovery plan for the NZDF to ensure that we can provide military force options to the government for operations across the spectrum of conflict including combat operations now and in the future. Furthermore, the tri-Service joint approach to operations and training is proving a successful mitigation strategy. However, until desired preparedness states are achieved across all NZDF force elements (units), the risk to responding to more demanding events, and especially combat operations should the government require it, will be managed by optimising training, prioritising funding, and rebalancing resources.
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