2016 DEFENCE WHITE PAPER

Budgeting in Defence 183
8.18 Implementation of the Government’s First Principles Review will deliver
a new and simplified business model for Defence, which focuses on its
core business. This includes a stronger strategic centre with enhanced
control of resources and monitoring of organisational performance.
8.19 The First Principles Review will deliver fundamental reforms to the
capability development life cycle to ensure that Defence capability is
planned, delivered, and sustained more effectively. Lessons from the
external cost assurance of this White Paper will also be embedded in the
new capability development process and in Defence budget planning to
deliver the plans set out in this White Paper.
8.20 Transforming Defence into an organisation that is strongly focused on
its core business and outcomes will lead to efficiencies. Any savings
obtained through these efficiencies will be reinvested in the capabilities
outlined in this White Paper. The First Principles Review assessed that
there are efficiencies to be obtained by:
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Improving the efficiency and effectiveness of the capability
development and acquisition processes, as set out in Chapter
Seven.
Integrating the Defence Materiel Organisation into Defence,
which will reduce the number and costs of financial and other
transactions and support the full implementation of shared
corporate services within Defence.
Reducing middle management spans and layers to improve the
structure of the enabling workforce. Savings will be generated
as managers are given more responsibilities and the number of
management roles is reduced.
8.21 The Government will periodically review our capability and funding plans
to ensure that they remain appropriate to our strategic circumstances
and objectives.
SECTION THREE REFORM, RESOURCING & IMPLEMENTATION
2016 DEFENCE WHITE PAPER