Hunn Review: Annexes (30 September 2002)
Annex J
Model of a Joint, Integrated Defence Organisation
- A model of a more integrative structural arrangement has been developed by the Review as an example of arrangement possibilities. The model introduces a framework organisation -the New Zealand Defence Organisation (NZDO). This Organisation would receive political direction from the Minister of Defence, and be headed by the Secretary of Defence and Chief of the Defence Force with shared, prime and single-line accountabilities for strategic command and management as set out in Annex H.
- The NZDO would comprise the New Zealand Defence Force with its three constituent arms -the Royal New Zealand Navy, the New Zealand Army, and the Royal New Zealand Air Force -together with the Joint Forces Headquarters, and a new Defence Corporate Headquarters/Office -the top- level arrangements of which are set out below in Figure 1.
Figure 1: Joint Integrated Defence Organisation Model Top-Level Arrangements
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A Defence Corporate Headquarters/Office
- A Defence Corporate Headquarters/Office (DC HQ) would be the New Zealand Defence Organisation's corporate-level policy and management structure. This experimental title is used to signal that this model does not see the Ministry of Defence being subsumed into the Headquarters, New Zealand Defence Force, or vice versa. What is proposed is a new integrated strategic-level unit that would encompass the Secretary, the CDF, and principal staff officers/officials and their staffs. It would include a Deputy Secretary of Defence and Vice Chief as co-directors of an integrated civilian- military joint staff; Service Chiefs and their personal office staffs; the Head of defence evaluation and his or her staff; the Head of equipment acquisition services; and the Joint Forces Commander New Zealand. The DC HQ would be the organisational structure for policy and strategic management of the New Zealand Defence Organisation
Governance Structure
- The DC HQ would be led and managed through the defence governance structure recommended in Annex I and set out below in Figure 2.
Figure 2: Governance Structure for Defence Organisation and DCHQ
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Secretary of Defence
- The Secretary of Defence would be the Government's principal civilian adviser on defence matters. This responsibility would be exercised directly with the Minister of Defence, through membership of the National Security Officials Committee. The Secretary would have shared, prime and single-line responsibilities and accountabilities in accordance with the defence strategic management processes set out in Annex H and Table 1 below.
Table 1: Responsibilities of the Secretary of the Defence Organisation
Type of Responsibility |
Responsibility |
|---|---|
| Sole |
|
| Prime |
|
| Shared |
|
| Assist |
|
- The Secretary would have prime responsibility for providing integrated civil-military defence policy and strategy advice to Government, and to the National Security Officials Committee. This responsibility would be managed primarily through the Defence Policy Committee, chaired by the Secretary. The Secretary would also be responsible for providing appropriate specialist advisers to the Minister and National Security Officials Committee
- The Secretary would also be responsible for advising CDF and the Minister on the sufficiency of proposed NZDF current and future outputs and capabilities to meet defence policy objectives, and prime responsibility for evaluating the strategic capacity and contributions of the Defence Organisation to the achievement of national security outcomes. The Secretary would co- chair the Strategy Committee (in the absence of the Minister), and would be a full member of the Chiefs of Staff Committee. In exercising prime responsibility for the provision of acquisition services, the Secretary would chair the Acquisitions Management Board.
Chief of Defence Force
- The CDF would be the principal military adviser to the Minister and the Cabinet National Security Committee. He would also be a member of the National Security Officials Committee (if a such body were established). The CDF would be responsible for providing appropriate NZDF specialist advisers to the Minister, and National Security Officials Committee. He would be the co-ordinating point for all NZDF staff providing advice to the Minister and the national security committees.
- The CDF's accountabilities and responsibilities are set out in Table 2 below. The CDF would co-chair the Strategy Committee in the absence of the Minister. The CDF would continue to have prime management responsibility for the overall operational effectiveness and efficiency of the NZDF and the assets, personnel and facilities that make up the NZDF. He would exercise this responsibility in conjunction with the Service Chiefs, and the Joint Forces Commander NZ.
Table 2: Responsibilities of the CDF of the Defence Organisation
Type of Responsibility |
Responsibility |
|---|---|
| Sole |
|
| Prime |
|
| Shared |
|
| Assist |
|
- The CDF would exercise command over the components of the NZDF, as the first-ranked military officer of the NZDF. This command function would be exercised through the Service Chiefs. Other responsibilities would be authorised through directives to the Service Chiefs, the Vice Chief and the Joint Forces Commander New Zealand and other senior officers designated as Outputs Managers. CDF would chair the Chiefs of Staff Committee.
- The CDF would be responsible for bringing to the Minister his professional advice, drawn from his own assessments and the collective advice of the Chiefs of Staff Committee. Where there was not a consensus within the Chiefs of Staff Committee, the CDF would be required to represent to the Minister the diversity of views. The CDF would also be responsible for independent evaluations of the achievement and retention of professional military standards of the forces under his command. The CDF would be a member of the Acquisition Management Board, and the Defence Policy Committee to contribute military professional advice on defence policy and strategy issues and the military capability requirements of the NZDF.
Service Chiefs
- The roles and responsibilities of the current Chiefs of Staff for the Royal New Zealand Navy, the New Zealand Army, and the Royal New Zealand Air Force would be modified. As part of a significantly more joint NZDF, the Service Chiefs would be responsible for:
- contributing professional advice from a professional land, maritime or air perspective into strategic management processes;
- managing the activities to recruit, select and train personnel, and maintain equipment and infrastructure that supports or is contributed to front-line force elements so that such units can achieve and hold a level of capability for assignment to the Joint Forces Commander NZ when required for operational missions;
- assessing and advising on the overall effectiveness of forces and formations for which they are accountable; and
- maintaining the highest professional standards and ethos of forces and formations for which they are accountable; and
- The Service Chiefs would retain small personal advisory and support offices as part of the DC HQ, although most of their current HQ staffs would be incorporated into the joint Defence Strategic Staff. These staffs, working in joint, integrated structures, would contribute single Service, and maritime, air and land perspectives into the common work environment of that Staff. Service Chief would tender their professional advice directly as members of the Strategy and Chiefs of Staff Committees.
- The Service Chiefs would retain the right to request access to the Minister. The right would involve formal notification of CDF. It is expected this would only be exercised in exceptional circumstances, since the Minister's participation in the Strategy Committee, which would include the Chiefs as members, would give them frequent opportunity to express their professional views at the highest level.
Joint Forces Commander NZ
- The Joint Forces Commander NZ (JFCOMNZ) would retain his current roles and responsibilities assigned under the C2 Project and in the subsequent directives issued to him by CDF. It is expected that these responsibilities would evolve further following any review of alignment of output responsibilities between the CDF, the Chiefs of Staff, JFCOMNZ and the Land, Maritime and Air Component Commanders recommended in Chapter 7.
- Regardless of the outcome of any realignment of output responsibilities, as the Operational-level commander, JFCOMNZ has relevant inputs to make in respect of the strategic management of the Defence Organisation, (for example in respect of the effectiveness and capability of current forces assigned to him). To provide these inputs, the JFCOMNZ would be a member of the Strategy Committee. He would also be an adviser to the National Security Officials Committee if this body were established.
Vice Chief
- The NZDF would have a Vice Chief who would be the second-ranking military officer, after CDF. He would be deputise for CDF in his absence. The role would reflect his or her strategic level responsibilities within the Defence Corporate Headquarters.
- The Vice Chief would be responsible, with the Deputy Secretary of Defence, to the CDF and the Secretary for providing integrative and joint leadership of the Defence Strategic Staff and its activities and results. The Vice Chief would also be responsible for maintaining consultative arrangements with the Service Chiefs in respect of the activities of the Defence Strategic Staff, and to include their input where relevant into the Staffs work priorities. To carry out these roles, the Vice Chief would be a co-chair the Defence Capability Committee with the Deputy Secretary. He would be a member of the Strategy Committee, the Chiefs of Staff Committee, and Defence Policy Committee, and the Acquisitions Management Board.
Deputy Secretary of Defence
- The NZDO would have a Deputy Secretary of Defence who would be the NZDO's second-ranked public servant. He or she would deputise for the Secretary in his absence. With the Vice Chief, the Deputy Secretary would be responsible to the Secretary and the CDF for integrative leadership, and the results, of the Defence Strategic Staff. The Deputy Secretary would also be responsible for maintaining consultative arrangements with the Heads of Acquisition Services and Defence Evaluation to ensure their input into the Defence Strategic Staffs work activities. To carry out these roles, the Deputy Secretary would co-chair the Defence Capability Committee. He would be a member of the Strategy Committee, the Defence Management Board, the Defence Policy Committee and the Acquisitions Management Board.
Defence Strategic Staff (DSS)
- A joint, integrated staff would be created of civilian and military staff members in staff units aligned to the major strategic management processes outlined in Annex H. This staff would be drawn from the current' staffs of the MoD divisions and the single Service and CDF staffs of the HQ NZDF. The DSS would be the critical hub through which most of NZDO strategic management processes and products would be staffed and managed. It would support the work of the Strategy Committee, the Defence Policy and Defence Capabilities Committees and the Acquisition Management Board. The top-level structure of the DSS is outlined in Figure 3 below, and indicative activities for each component of the structure are presented at Appendix A to this Annex.
Figure 3: Top-Level Structure of the Defence Strategic Staff
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Defence Human Resources
- A Defence Human Resources Directorate would be responsible for human resources policies for both NZDF military and civil staff and MoD staff members, future human resources requirements planning, and professional education policy and planning.
Strategic Commitments
- A Strategic Commitments Directorate would be responsible for operations monitoring to support to CDF's and the Secretary's advice responsibilities, and advice to the National Security Committees, strategic-level intelligence; strategic-level contingency and immediate planning; inter- departmental relationship management for crisis responses; NZDF Joint/Combined exercising/training policy and planning, and military preparedness reporting and analysis.
Policy, Strategy and Plans
- A Policy, Strategy and Plans Directorate would be responsible for formulating defence/military policy and strategies, and defence planning guidance documents and papers to support the CDF's and Secretary's advice responsibilities and advice to the National Security Committees; international defence relations policy, strategies and management; conducting futures assessments and generating security scenarios, constructing and integrating/updating the Long-Term Development and Outputs Resource and Action Plans.
C4 Systems
- A C4 Systems Directorate would be responsible for policy, planning and assurance of the Defence Communications and Information Environment, the Joint Information Support Agency, and managed acquisition for all C4I systems for the Defence Organisation, including the Defence Corporate HQ. The NZDO's Chief Information Officer would head the Directorate.
Force Capability, Capital and Logistics
- A Force Capability, Capital and Logistics Directorate would be responsible for setting military capability requirements, analysing military capability gaps, testing options and refining solutions, through-life costing estimation and analyses, capital and resourcing plans for capability solutions, war-gaming, simulation and operational analyses to support requirements specification and development; oversight and management of the Defence Organisation's science and technology research policy and activity; and strategic-level logistics policy and planning to support the Joint Logistics Organisation.
Resource Management
- A Resource Management Directorate would be for resources allocation programming for the Defence Organisation's Development and Outputs Plans, preparing budget estimates, forecasting and reporting, internal audit and risk management, financial accounting, treasury function, and financial management systems development. The Chief Financial Officer of the NZDO would head the directorate.
Defence Strategic Staff Management
- A Staff Management Directorate would integrate most overhead support functions from the existing MoD and HQ NZDF. This staff would be responsible for the overhead support to the Defence Strategic Staff (and also Acquisition policy and Defence Evaluation staffs). It would provide financial management and services for Defence Strategic Staff budgets and management plans; a Secretariat for the NZDO Committees structure; an administrative support centre; military and civilian personnel management services for Defence Strategic Staff personnel; a Security Office, and management of buildings and facilities for the Staff.
Strategic Management Improvement
- A Strategic Management Improvement Directorate would be responsible for continuous organisational and management practices improvement, knowledge management for the NZDO, and public communications, and political/ community liaison. The head of this Directorate could be denoted as the Chief Knowledge Officer.
Working Practices
- Both within and between each staff area of the Defence Strategic Staff, the selected groupings support and encourage cross-functional teamwork collaborative approaches. Key specialists from related functions would be drawn together -for example, costing analysis on the one hand, and war- gaming, and operational analysis on the other, are both brought into the directorate with responsibility for setting military requirements and developing solutions to meet those requirements. More logical internal alignments, and bringing civilian and military perspectives and inputs into one integrated structure would improve information flows, by removing vertical boundaries.
Defence Evaluation
- The Defence Corporate Headquarters would include a Defence Evaluation Staff. This would be a joint and integrated staff, working through a Head, Defence Evaluations, directly to both CDF and the Secretary. This staff would assist the CDF and the Secretary in meeting their respective responsibilities for evaluation of outputs performance and management efficiency, the Secretary's prime responsibility for evaluating the effectiveness of defence contributions to national security outcomes, and the CDF's responsibility for evaluating the achievement and retention of professional military standards.
- The Defence Evaluation Staff would be responsible for evaluating:
- the impacts upon defence policy over time of the annual delivery of NZDO outputs and capital investments and other capability enhancements;
- the cumulative impacts of defence policy achievements and NZDO outputs upon progress towards achieving strategic outcomes for national security;
- NZDO (strategic-level) efficiency and effectiveness; and
- Professional standards and outputs performance of NZDF current military capabilities.
- A military sub-unit headed by the NZDF's Senior Military Evaluator would operate within an integrated civilian-military Defence Evaluation Staff. It would be responsible for an annual programme of professional military evaluations under simulated operational conditions of selected NZDF capabilities. This sub-unit would also be responsible for contributing relevant military expertise to the wider policy, outputs and efficiency/effectiveness evaluations carried out by the Defence Evaluation Staff.
- While primarily focused on assessments of defence outputs and defence policy results, the Defence Evaluation Services area should remain separate from the Defence Strategic Staffs defence policy advice and guidance, and outputs and investment proposals tasks. This is an important distance in terms of independence of evaluation. It is also important because it is recognised that the demands of defence policy, outputs and investment planning activities in the Defence Strategic Staff are likely to be intense and if Policy/Outputs Evaluation staff were one component of the Defence Strategic Staff, there is a risk of them simply becoming part of that staff.
- At the same time, to ensure the maintenance of strategic capacity for such focused evaluations, the Defence Evaluation Staff would be made up of qualified civilian and military staff, with experience and qualifications in the Policy, Strategy and Plans Directorate of the Defence Strategic Staff as perquisite. Rotations between the two staffs would cross-fertilise both areas with personnel with knowledge of what is required in both sets of staff processes.
Equipment Acquisition Services and Advice
- The management of acquisition of military equipment with a value of more than $NZ7m would be carried out by an integrated civilian-military staff organisation, accountable to the Secretary of Defence. The role of an Acquisition Services Division would be to provide project management services for major military purchases. This service should be focused on supplying in the most affordable manner, equipments that most closely meet the military performance needs specified by the Defence Strategic Staff and agreed by Government.
- An Equipment Acquisition Services Division would also be responsible for providing "acquisition advice to support defence investment cases for major equipment", with clearly defined procedures to ensure that this advice is provided at an appropriate point in the decision-making process on equipment choices, once performance goals for military equipments to meet capability requirements are firmed up. This advice should be restricted to issues of acquisition feasibility, strategies and plans and playing a leading role in evaluating proposals and tenders.
Joint Logistics Organisation
- A Joint Logistics Organisation would provide a unified framework for defence logistics management functions. While achieving efficiencies in common and joint logistic support to the three Services, it would also include centres of excellence appropriate for the specialised support needs of each Service, for example, air worthiness certification for RNZAF air assets.
- A Joint Logistics Organisation would be responsive to the needs of single Services as they generate and sustain force elements at directed levels of capability, and to the needs of the Joint Forces Commander New Zealand, in generating and sustaining operational levels of capability. In acquiring through-life logistics support for equipment once in-service, a Joint Logistics Organisation would be expected to develop and maintain where appropriate effective partnering relationships with the Equipment Acquisition Services Division
Joint Forces Headquarters
- The current set of responsibilities as defined through the 2000-2001 C2 Project, and as has been modified over the settling in period since the JF HQ was established in July 2001 for the Joint Forces Headquarters would be retained with until full consideration was given to redefinition of NZDF outputs responsibilities as proposed in Chapter 7.
- As with the need to achieve a improved alignment between NZDF internal and external outputs and those managers assigned responsibility for them, it would also be necessary to achieve an improved alignment between the responsibilities and tasks of the JF HQ functional branches, and a Defence Corporate Headquarters.
Appendix A: Defence Strategic Staff Activities
