Home' Defence Magazine : Issue 6 2011 Contents DEFENCE MAGAZINE
Widely used in the private sector,
shared services within Defence
received a heightened focus when
the Defence Committee agreed to an
implementation plan in September,
following a report commissioned by the
former Secretary, Dr Ian Watt.
The McKinsey Review of Shared
Services became the blueprint, pointing
to opportunities for Defence across
a number of functions, including:
finance, human resources, non-
materiel procurement, information and
communication technology, Defence
security, communication and public
affairs, legal, infrastructure and logistics.
The McKinsey Review
recommendations were accepted by
Defence as a guide, as shared services
already exists in some areas, which
redefines the models for delivery of
shared service functions through a
range of centralised, embedded and
assigned structures to allow the creation
of a leaner and more effective business
model for the organisation.
It is anticipated the shared ser vices
stream of the Strategic Reform Program
will save Defence $3.3 billion during the
next ten years.
Many areas of Defence have been
meticulously planning for shared ser vices,
with implementation plans expected to be
endorsed by the Defence Committee in
January 2012. Implementation will begin
shor tly thereafter.
The First Assistant Secretary Human
Resources (HR) Reform, Craig Pandy
from People Strategies and Policy
Group, the First Assistant Secretary
Financial Management and Reporting,
David Spouse from the Chief Finance
Officer Group, and the Chief Operating
Officer in Defence Support Group,
Steve Grzeskowiak, each spoke to Defence
Magazine on how shared ser vices will be
“Shared ser vices is essentially looking at
your organisation and identifying where
similar activities are going on in similar
parts of the organisation, and then asking
yourself, would it be more effective and
efficient if these services were provided
by one part of the organisation following
a common business process,”
Mr Grzeskowiak says.
Mr Pandy says shared ser vices
enables Defence to concentrate on
delivering its strategy.
“The creation of a shared services
environment will ensure that each Group
and Ser vice will not need to develop
separate processes for critical enabling
functions. Having consistent processes
across the organisation eliminates
unnecessary duplication and allows
functions to be performed in a consistent
and integrated manner,” Mr Pandy says.
The financial domain of Mr Spouse
is looking at standardising and
professionalising its services, and bringing
together the finance domain which is
scattered throughout the organisation.
“In some areas, there are one or two
people who are effectively isolated
in the organisation doing finance.
“If you bring those isolated teams
together, you get a group of people
who are interested in the same sor t of
work and functions, and you can then
develop exper tise through specialisation
An associate secretary will be
appointed as the chief operating
officer to take accountability for the
implementation of shared services.
Currently, the Deputy Secretary
Strategic Reform and Governance,
Mr Brendan Sargeant, has over-arching
responsibility as the driver of the
Strategic Reform Program (SRP).
The current SRP includes a major cost
reduction stream centred upon shared
service reform in HR, finance, and non-
equipment procurement, also led by
Defence embraces shared
By Michael Weaver
Defence will commence implementation of a shared services model in 2012,
with three of the major stakeholders all set to start taking care of business.
“The creation of a shared services environment will ensure
that each Group and Service will not need to develop separate
processes for critical enabling functions. Having consistent
processes across the organisation eliminates unnecessary
duplication and allows functions to be performed in a consistent
and integrated manner”
First Assistant Secretary Human Resources Reform,
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