Mar 18, 2015 defense-aerospace.com
(Source: Norway Ministry of Defence; issued Mar 17, 2015)
(Issued in Norwegian only; unofficial translation by Defense-Aerospace.com)
Modernization and Rationalization of the Defense Sector
Defence Minister Ine Eriksen Søreide today received a report from McKinsey & Company Inc on the modernization and streamlining of selected staffs, support and administrative functions in the defense sector. The report was prepared on behalf of the Ministry of Defence.
The Armed Forces must increase their operational capabilities to meet new security situations. The purpose of further modernization and rationalization in the defense sector is to create the most efficient organization so that the resources released allow increased operational capability. Every penny allocated to the defense budget must create the greatest possible effect. One of the ways is to look carefully at an existing organization to find out whether it can work more efficiently and in a smarter way.
This involves ensuring that skills are properly developed and applied throughout the organization, adapting to new technology at all levels to take the necessary steps to get the most out of every defense dime awarded to the defense budget. This is also entirely in accordance with the recommendations of the productivity Commission.
The report contains measures that will be considered for implementation in the short and longer terms.
“We must ensure that defense gets the most operational capability for the money it receives. The Defense Ministry therefore commissioned McKinsey to look at the potential for modernization and streamlining of selected staffing, support, and management functions in the defense sector - in other words, the non-operational part of the sector,” says Defence Ine Eriksen Søreide.
We have well that others considering what options we have. This can help to ensure that we look at things with fresh eyes, she says.
In recent years, a number of modernization measures relating to staff, support and management in the sector have been taken, and it has systematically worked to improve efficiency for many years. If the remaining part of the plan is successful, the Armed Forces will have been able to reprioritize accumulated about 60 billion from lower to higher priority areas from 2002 to 2016.
“The restructuring that personnel the sector has gone through during the past 15 years is formidable. McKinsey has interviewed almost 100 people in this process, and tell me that they have been met with openness and a willingness to further improvement. This is admirable.
“McKinsey have pointed out a significant potential for further streamlining. We will now make a thorough assessment of the measures proposed, including further potential and concrete assumptions. The selected solutions must be our own, and ownership must be in the organization to have an effect. Employee organizations and agencies in the sector will obviously be invited to give their input in this process. This report will also be an important input to a new long-term plan,” says Eriksen Søreide.