The Nimrod Review - Official Documents

Phase 2 of DLO re-structuring programme: 2005
13.39
The MOD Annual Report and Accounts 2004-05 stated:
Chapter 13 – Cuts, Change, Dilution and Distraction (1998-2006)
“The DLO completed Phase 1 of its Restructuring programme in 2004-05. This established
the DLO’s new corporate structure, realising around 700 post savings and reducing the
cost of corporate support substantially. It has transformed the delivery of corporate support
by dismantling the previous structure of 5 individual High Level Budget areas, including
the headquarters, and establishing a single corporate approach. At the same time the
Integrated Project Teams and other units delivering output to the DLO’s customers were
organised into clusters to provide effective and coherent management of a technology
supplier or customer base. A radically different organisational structure has now been
created based upon three Layers – a Delivery Layer, supported by an Enabling Layer of
corporate support services and directed by a very small Strategic Layer. A new performance
management regime has been created to drive performance across the organisation. For
the first time the performance of the Enabling Services will be measured against standards
set out in internal business agreements. These changes provide the basis for Phase 2 of
the Restructuring programme, aimed at delivering significant effectiveness and efficiency
benefits over the next two years.”
Further MOD manpower reductions required: 2006
13.40 In June 2006, Enabling Acquisition Change16 contained a DLO plan to reduce MOD manpower numbers from
27,000 in October 2004 to 21,600 by March 2008. The Report observed:
“The Department has a record of being sound on analysis but less strong on implementation.
The changes we have recommended should be incorporated into a single coherent DIS
acquisition reform programme led at Departmental Level and managed in accordance
with Office of Government Commerce best practice including a risk mitigation strategy.
This programme should form part of the Defence Change Programme, but the governance
arrangements will need to engage both the Acquisition Policy Board and the Defence
Management Board. At the same time a major effort will be needed, involving Ministers
and all members of the Defence Management Board to present the changes in a way that
will bring them to life, and encourage the changes in behaviour and culture needed.” 17
Formation of DE&S in 2007
13.41 As explained in Chapter 12, there was no further bedding down time because plans were developed in 2006
which led to the eventual merger on 1 April 2007 of the DPA and DLO to form the Defence Equipment &
Support (DE&S).
Conclusion on Change
13.42
The scale, pace and variety of ‘change’ which the MOD in general, and the DLO in particular, underwent
during the period 1998 to 2006 has been without precedent in recent times. Indeed, there existed a state
of almost continual revolution, such that the MOD has almost became addicted to ‘change’ and a ‘change
culture’. ‘Change’ has been seen as a good thing per se. In some quarters, this attitude is still prevalent
today.
13.43 It is reassuring to see an article by an RAF officer in Desider (the DE&S’ own magazine) in February 2008
on the RAF diaspora in Main Building referring to the subject of the Air Force Board’s (AFB) approach to
leadership and, specifically, what is required from squadron and station commanders: “ [The AFB] want people
in command who are confident enough not to succumb to changing things for the sake of change”.
16 MOD Report, Enabling Aquisition Change, June 2006.
17 Ibid, page 43.
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