Train and Prepare for

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Our raison dêtre
Train and Prepare for War
Create the conditions that ensures the CF has the
best trained and equipped sailors, soldiers and
air force personnel to conduct its mission
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OUTLINE

• Introduction
• Why is Strategy Execution Important
• Strategy Management in DND
• Way Ahead

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Perception of Strong Leadership Management
Confidence in Defence
Quality of Defence Outputs
Perception of Value Added
Perception that the service meets their needs
ICCS 2003 - Modified
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Hypothesis
Consistent Strategy Execution will lead to
accountability and credibility for DND
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AIM
To demonstrate how the Department of National
Defence is ensuring Strategy Execution through
the implementation of a Strategy Management
methodology.
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Why?
To demonstrate Value for Citizens and the
Government.
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Value for Canadians
PAA
MAF
OAG
Son of MAF
Federal Accountability Act
CF Transformation reporting
Daughter of PAA More measures to report
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Transparency
In a world of instant communications,
whistle-blowers, inquisitive media, and googling,
citizens and communities routinely put firms
under the microscope. Corporations have no choice
but to rethink their values and behaviors for
the better. If you are going to be naked, youd
better be buff! Page xi, The Naked Corporation
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Measure To Comply or to Execute?
NORTEL
ENRON

• Watch Strategy Execution
• Report Results
• Collect Lessons
• Measure and Predict
• Establish Accountability

WORLDCOM
ADSCAM
TYCO
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Strategic Guidance Chain
A variety of external forces provide general
direction as to nature and purpose of the
Department and Canadian Forces Canadas National
Security Policy and International Policy Statement
DEFENCE POLICY
This direction is articulated as Government
Policy according to general military terms and
concepts. Defence Policy Statement, Canada First
WHITE PAPER
Policy is refined into more specific terms,
equated to results
PAA
DND
RPP and DEFENCE PLAN
Specific priorities, tasks and accountabilities
are assigned to achieve desired
results
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Challenges To Strategic Design

• OP TEMPO The Evolving FSE
• Pers Challenges To Grow Sustain
• Org Challenges To Deliver Transform
• Competing Major Capital Projects Rustout

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Balancing Act

• In defence there are ongoing competitions between
  the main components of defence spending
• Personnel
• Operations
• Maintenance
• Capital
• There is also a constant contest between
• Force Readiness
• Force Development

IDM p.7
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Mindset
From C to shining C Compliance to
Continuous Improvement
C C Credibility
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If we never look at the consequences of our
behaviour, we can always maintain the illusion of
our competence Dietrich Dorner, (The Logic of
Failure, p.179)
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Building Public Trust
Source DiPiazza Eccles 2002
Organization- specific information
Government/Industry standards
Global Generally Accepted Accounting
Principles GAAP
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Company-specific Information
DND Internal Performance Management
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The Balanced Scorecard
At the highest level, the Balanced Scorecard is a
framework that helps organizations translate
strategy into operational objectives that drive
both behaviour and performance.

• Translates the mission and vision into a
  comprehensive set of Strategic objectives with
  causal linkages (The Strategy Map)
• Provides a measurement system (The Scorecard)
  with performance metrics that assess the
  organizations progress towards the achievement
  of the strategy.

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Balanced Scorecard Framework
OUTCOMES
Source Robert S. Kaplan and David P. Norton,
Using the Balanced Scorecard as a Strategic
Management System
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Balanced Scorecard Framework
OUTCOMES
ENDS
WAYS
MEANS
Source Robert S. Kaplan and David P. Norton,
Using the Balanced Scorecard as a Strategic
Management System
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Mission
To Defend Canada and Canadian Interests and
Values while Contributing to International Peace
and Security
Strategic Outcomes
Canadians Confidence that DND/CF has relevant
credible capacity to meet Defence Security
commitments
Success in assigned missions in contributing to
domestic and international peace, security and
stability
Good governance, Canadian identity and influence
in a global community
Maintain Relevant, Responsive Effective,
Combat Capable, Integrated Forces
Conduct Operations
Contribute to Canadian Government, society and
the international community
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Aligning the Institution
Core Processes or Strategic Themes
Mission Critical Outcomes
We own the process and support the functions and
activities
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Strategy
Strategy is the framework of choices that
determine the nature and direction of an
organization.It sets the boundaries and scope
of activities for an organization
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Vision A Canadian Forces that is a relevant,
responsive and effective military force,
providing an independent capacity to uphold
Canadas sovereignty while contributing to
continental defence security and global
stability.
DND/CF Strategy Map
Plan the Force
Build the Force
Defence Strategy
Future Relevant, Responsive Effective, Combat
Capable, Integrated Forces
Conceive Shape the Force
Mission To Defend Canada and Canadian Interests
and Values while Contributing to International
Peace and Security
Force Development
Capability Production
Connect with Canadians
Canadians Confidence that DND/CF has relevant
credible capacity to meet Defence Security
commitments
Recruit Retain
Relevant, Responsive Effective, Combat Capable,
Integrated Forces
Perform appropriate level of Lead Nation Status
Generate Operational Forces
Optimize Resource Utilization
Conduct Operations
Success in assigned missions in contributing to
domestic and international peace, security and
stability
Promote Continuous Learning
Be Relevant, Responsive Credible in
International Coalitions
Good governance, Canadian identity and influence,
in a global community
Force Generation
Force Employment
Future Force Employment
As at 9 June 2006, OPI DDSM 4
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Performance Measurement
Mission
Defend Canada
Capability Program
Conduct Operations
Provide Search and Rescue services
Key Result Expectation
Defence Task (Measurable)
Search and Rescue at sea within 8 hours
Task is assigned to Chief of Maritime Staff in
Defence Plan
Senior Managers
Results for Canadians (measurable)
Search and Rescue incidents at sea resolved
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Strategic Theme diagram of the cause and effect
relationships between strategic objectives
Force Generation
Balanced Scorecard Components
Generate Operational Forces
Optimize Resource Utilization
Promote Continuous Learning
Recruit Retain
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DND/CF Strategy Map
Vision A Canadian Forces that is a relevant,
responsive and effective military force,
providing an independent capacity to uphold
Canadas sovereignty while contributing to
continental defence security and global
stability.
Build the Force
Plan the Force
Defence Strategy
Future Relevant, Responsive Effective, Combat
Capable, Integrated Forces
Conceive Shape the Force
Mission - To Defend Canada and Canadian Interests
and Values while Contributing to International
Peace and Security
Force Development
Capability Production
Foster Multi-Agency Cooperation 3D C
Foster Leadership Inclusiveness
Connect with Canadians
Canadians Confidence that DND/CF has relevant
credible capacity to meet Defence Security
commitments
Recruit Retain
Contribute to Canadian Government, Society the
International Community
Relevant, Responsive Effective, Combat Capable,
Integrated Forces
Generate Operational Forces
Optimize Resource Utilization
Enhance Modern Management
Conduct Operations
Perform appropriate level of Lead Nation Status
Success in assigned missions in contributing to
domestic and international peace, security and
stability
Example for Discussion
Promote Continuous Learning
Be Relevant, Responsive Credible in
International Coalitions
Good governance, Canadian identity and influence,
in a global community
Foster Multi-Agency Coordination Allies
Promote Wellness Health
Force Generation
Force Employment
Future Force Employment
Legend
Future Aspiration
Trend
Strategic Objective
Strategic Outcome
Core Process
Mission
Protect (Screen/Guard)
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Vision A Canadian Forces that is a relevant,
responsive and effective military force,
providing an independent capacity to uphold
Canadas sovereignty while contributing to
continental defence security and global
stability.
DND/CF Strategy Map
Plan the Force
Build the Force
Defence Strategy
Future Relevant, Responsive Effective, Combat
Capable, Integrated Forces
Conceive Shape the Force
Mission To Defend Canada and Canadian Interests
and Values while Contributing to International
Peace and Security
Force Development
Capability Production
Connect with Canadians
Canadians Confidence that DND/CF has relevant
credible capacity to meet Defence Security
commitments
Recruit Retain
Relevant, Responsive Effective, Combat Capable,
Integrated Forces
Perform appropriate level of Lead Nation Status
Generate Operational Forces
Optimize Resource Utilization
Conduct Operations
Success in assigned missions in contributing to
domestic and international peace, security and
stability
Promote Continuous Learning
Be Relevant, Responsive Credible in
International Coalitions
Good governance, Canadian identity and influence,
in a global community
Force Generation
Force Employment
Future Force Employment
As at 9 June 2006, OPI DDSM 4
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Which BSc Elements Become Mandatory?
Relevant, Responsive Effective, Combat Capable,
Integrated Forces
IMRS
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The Scorecard dynamically links core strategic
and operational management processes together.
This enables rapid learning and improved
performance.
Strategic Planning
LINK STRATEGY AND BUDGETING
Test the Hypothesis
Update the Strategy
Strategic Learning Loop
Planning
Balanced Scorecard

• Stretch Targets
• Strategic Initiatives
• Rolling Forecasts

Governance
CLOSING THE STRATEGIC LOOP
Budgeting Process
Management Control loop
Budgeting
Reporting
Funding

• Strategic Feedback
• Management Meeting
• Accountability

PERFORMANCE Initiatives and Programmes
Output (Results)
OutcomesImmed-Intermed-Long Term
Input (Resources)
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L1 Action Team Structure
Tell me and Ill forget show me and I may
remember involve me and Ill understand. Chinese
Proverb
Contact Bryon Milliere
Contact Maj McKnight
Contact LCol Chamberlain
Contact TBC
Contact Sandra Savill
Contact LCol Chamberlain, DDSM 4
Note Designated Leader, 1 x DDSM 4 Member in
Each
As at 14 Aug 2006
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Strategy vs Performance Meetings
Progression towards a strategy-focused meeting
FUTURE
PRESENT

• Provide input to strategic issues
• currently being worked
• Discuss Performance
• - explain anomalies
• - suggest solutions
• - identify issues
• Identify strategic issues for next
• discussion at next group meeting
• Review performance data

Review Strategic Issues (10)
Review Strategic Issues (60)
Discuss Implications (20)
Review Performance (70)
Discuss Implications (30)
Review Performance (10)
BETWEEN THE MEETING Continuous Learning Process
facilitated by groupware network where executives
can review and discuss performance
THE PERFORMANCE MEETING
THE STRATEGIC REVIEW MEETING
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Industry Standards
DND Government Standards TBS Mandated Reports
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Corporate Risk Profile
an expected event or set of conditions that
significantly reduces the ability of managers to
implement their intended strategy.
Simons
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Risk Areas
1. Mission Success 2. Deliver on Transformation
Future Relevant, effective, integrated forces
3. Sustainable Defence Team 4. Leadership /
Governance 5. Environment 6. Reputation 7.
National Agenda 8. Technology
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Incorporating Risk Management Prioritization
Matrix Generate Operational Forces
Risk Areas 1. Mission Success 2. Deliver on
Transformation Future Relevant, effective,
integrated forces 3. Sustainable Defence Team
4. Leadership/ Governance 5. Environment 6.
Reputation 7. National Agenda 8. Technology
H
LIKELIHOOD
M
L
Example for Discussion
H
M
L
IMPACT
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Management, Resources and Results Structure
(MRRS)
Framework for RPP and DPR
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Management Accountability Framework (MAF)
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Management Accountability Framework (MAF)
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Link Between MAF and PMF
Link Between MAF and PMF
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GAAP
DND/CF Financial Management
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FAA ADM Fin CS
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Building Public Trust
DND Specific Information
Knowledge Mobilization
Decision Support
Government Standards
Governance
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DDSM Role
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DDSM Key Role
Causing the right discussions to occur leading
to common understanding and action-orientation
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Way ahead Canada
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Key Business Processes
Mission Critical Outcomes
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Measure Progress of Implementation
1994
2005
2006
Defence White Paper 1994
The Canada First defence policy
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Conclusion

• Why Strategy Execution is important
• Strategy Management in DND and the GoC
• What you can do
• Way Ahead for Defence

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Questions?