Home' Defence Magazine : Issue 8 2009 Contents he sRP is moving into the final
part of its implementation
planning phase. To many people,
there may not appear to be much
reform activity happening yet.
However, the detailed planning
and diagnostic work currently being
carried out involves hundreds of
people across Defence, examining
and testing a range of reform options.
Detailed work is also being carried out
to identify and manage key risks and
measure performance of the program
over time. All of this work will be
captured in a detailed implementation
plan for the sRP, due to be considered
by government early next year.
To help you understand the changes
that you may see in your workplace
under the sRP, once reform
activities start to roll out across
Defence, Defence Magazine is
featuring a different reform stream
every month. This month, Louise
saave-Fairley highlights the work
being done by the Workforce and
shared services stream.
The Workforce and Shared Services Reform
(WSSR) stream – sponsored by Deputy Secretary
People Strategies and Policy Group Phil Minns
will create a leaner, more effective business
model across the entire organisation. It is one of
the major streams for Defence, with significant
reforms expected to yield $3.3bn of cash benefits
during the next decade. This will be achieved
through three key initiatives:
■ civilianisation of positions – exploring
opportunities to civilianise non-deployable
military support positions where there is no
adverse impact on capability; and
■ contractor conversions – identifying
contractors engaged to perform ‘business-as-
usual’ jobs on an ongoing basis and converting
those positions to APS positions.
■ shared services, is about how Defence
delivers key business services in a more
effective way. The Shared Services initiative
will review existing services in Defence
with the aim of eliminating unnecessary
work, reducing the number of low value
transactions and optimising, streamlining
and automating processes where possible.
The first two initiatives will allow Defence to
manage its workforce in a more flexible, adaptive,
and cost-effective way. Contractors can cost
Defence between 15 and 30 per cent more than
APS employees, while ADF employee costs are
approximately 30 per cent more than those of the
APS. But it is not just about cost. Civilianising
more ADF positions will ensure that our permanent
military personnel are employed where they are
most needed, in delivering and sustaining critical
What has happened to date?
The WSSR team has engaged Third Horizon,
a firm with extensive experience in the workforce
and shared services areas, to assist the team.
The main tasks of the integrated team (WSSR
and Third Horizon) to date have been to:
■ conduct a detailed, fact-based diagnostic of
the Defence workforce to validate shared
service opportunities identified in the Defence
Budget Audit, and
■ develop future end-state service delivery
models based on the diagnostic exercise.
Intensive consultation and engagement of
stakeholders across all Groups and Services has
taken place to ensure that end-to-end processes
for activities and accountabilities across the
processes were understood and considered.
Key considerations when determining whether
activities across Defence are suitable for a shared
service solution include:
■ Is it unique to one Group or Service?
■ Does it significantly impact on core military
■ What is the expected benefit of change?
workforce and shared services
shared services is
shared services is not
■ The practice of moving common activities
into dedicated business teams so that the
service may be accessed
by and provided to multiple groups in
a consistent manner.
■ Processes suited to Shared Services
• Activities common to multiple groups
• Where synergy can be gained through
• Activities which can be delivered
without negatively impacting on core
■ Centralising all activity to one location
without considering business needs
■ Prioritising cost savings ahead of greater
efficiency, effectiveness and continuous
■ A centrally imposed model where service
providers dictate service delivery levels
sPotLIGHt on reForM
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