The Critical Juncture for the ADF
In the wake of the recent Defence Strategic Review, it has become unequivocally clear that the Australian Defence Force (ADF) needs to adopt a proactive and forward-thinking approach to maintain and augment its competitive edge.
Informed by insights from Colonel John Molnar's Cove article “’Defence Incorporated’ – Managing outcomes through KPI’s", this essay seeks to explore further the concept of the "business of Defence" – a concept distinctly different from the "conduct of defence".
While the latter pertains to the operational utilisation of current capabilities in the fight, the former addresses developing and nurturing these capabilities. Essentially, it highlights the necessity to focus on what we bring to a confrontation rather than the actions executed within it.
The ADF can develop a competitive advantage by honing this preliminary stage. A renewed focus on the “business of Defence” may heighten readiness and facilitate the creation of a more capable, adept, and well-equipped fighting force, ready to undertake the conduct of defence competitively.
Towards a Digitally Integrated "Business of Defence"
Currently, the ADF’s approach to deploying and integrating information systems, an area critical to achieving excellence in the “business of Defence”, is lagging. In the contemporary digital landscape, a one-to-one ratio of employees to Information Communication Technology (ICT) equipment is the norm, a standard even applicable to field-based, hands-on roles such as those within the ADF.
Moreover, many contemporary workplaces have successfully transitioned from paper-based processes to digital alternatives, leveraging the potential of individualised access to ICT equipment. This might involve the provision of official work iPads equipped with tailor-made or off-the-shelf applications, work phones, or, at the very least, facilitating the use of personal smartphones for professional communication.
Such advancements streamline workflows and augment business efficiency and efficacy, positioning organisations at the forefront of digital integration. By fostering a digitally adept infrastructure, where communication and process management can be conducted seamlessly through a variety of digital platforms, the ADF can substantially enhance its capability generation.
In this essay, I argue in favour of transitioning from paper-based systems to digital solutions within the “business of Defence”. By scrutinising the 343-3 training records and non-technical inspections as case studies, I argue that the ADF stands to enhance its readiness and capabilities through a committed digital transformation.
Such a shift can be orchestrated strategically through the Lean Six Sigma methodology, a strategy that encourages efficiency and continuous improvement. This initiative would foster a "trust but verify" culture, promoting reliability and accountability in the business processes of the ADF.
Unpacking Core Concepts: Lean Six Sigma and 'Trust but Verify' Culture
Before we go deeper, let's first understand what I mean by Lean Six Sigma and a "trust but verify" culture.
"Trust but verify" is a way of working where trust is fundamental, but everything is checked to ensure standards are met. This approach came from a Russian saying and was promoted by Ronald Reagan in the 1980s. It helps in building a transparent, skilled, and responsible work culture. Lean Six Sigma is a business method that combines the best parts of two approaches, Lean and Six Sigma, to remove unnecessary steps in a process and reduce errors, fitting well with the "trust but verify" approach.
By applying the Lean Six Sigma methodology, we can identify and prioritise the paper-based processes that would benefit most from digitisation. This approach allows us to pinpoint the most inefficient and faulty business processes currently in use, setting the stage for substantial improvements through digital transformation.
Case Study 1: Digitising 343-3 Training Records
To progress from Employment Category Number (ECN) 343-2 to 343-3, infantry soldiers must complete a series of training modules outlined in a physical paper form. Once a module is successfully completed, the trainer signs off on the soldier's competency. However, given that this process can sometimes span years, particularly in the Army Reserve, the paper form is susceptible to loss or damage, creating a significant setback as it requires revalidation from the original instructor, who might not be readily available.
This conventional system not only hinges on the physical preservation of the document but also does not align with the "trust but verify" culture that we aim to foster. It entertains workaround solutions such as accepting verbal recounts from soldiers and having available corporals sign off all competencies at once, acknowledging the loss of the original form – a practice that potentially undermines the integrity of the training program.
A more efficient and reliable solution would be adopting a digital system accessible through either smartphones or an official work tablet. This system would safeguard against the risk of paper destruction and streamline bureaucratic procedures, reducing the burden on clerks tasked with processing these forms.
Additionally, implementing this system will enable real-time data tracking and analysis, thereby facilitating the consistent measurement of Key Performance Indicators (KPIs). This, in turn, would allow us to quickly identify and address potential gaps and bottlenecks in training competencies. Moreover, through careful analysis, previously unnoticed patterns can emerge and help pinpoint areas ripe for improvement. As a result, we can accelerate the progression towards soldiers achieving 343-3, ensuring our operations remain streamlined and efficient.
Implementing a digital system to record infantry training competencies would enhance the efficiency and effectiveness of the “business of Defence”. This approach mitigates the risk of document loss or damage, enabling real-time performance analytics that promptly identify and address systemic weaknesses. This initiative would help elevate the readiness and availability of the 343-3 infantry soldier, offering a more capable ADF.
Case Study 2: Innovating Non-Technical Inspections
Non-technical inspections, typically carried out on paper, are foundational in ensuring that equipment is fully functional through regular, predetermined intervals. In particular, the non-technical inspection for the Protected Mobility Vehicle-Medium (PMV-M), can be quite time-consuming. It can take around three hours for an individual not well-versed in the procedure.
Even with a team, it requires significant time to finish the inspection thoroughly.
Unfortunately, whether due to intention or lack of expertise, inspections can sometimes be incomplete, with important details overlooked or deliberately skipped (particularly if it’s a Friday afternoon). This could have serious repercussions; I recall a training exercise that was delayed by a full day because the borrowed PMVs from another battalion had numerous issues, including expired fire extinguishers, nearly depleted transmission fluids, and damaged or absent windshield wipers.
In addition, two vehicles also ended up breaking down on the way to the training area. While some of these issues should ideally be identified and addressed during the vehicle's first parade, the point remains relevant for non-technical inspections.
Implementing a digital system, where non-tech inspections are logged through smartphones or an official work tablet, could provide a solution. This method would streamline data entry and generate a traceable record of all personnel involved in the inspection, ensuring accountability at every step.
Take, for instance, an occasion where I reviewed a PMV non-tech report filled out by one of the soldiers. The report mistakenly noted the central tire inflation system as fully functional despite there being an outstanding Repair and Recovery Request (EMEFIX) for that exact defect.
Errors like this could mislead the motorised cell handling non-tech data entry into erroneously cancelling the entire EMEFIX, assuming the system was functioning correctly based on the flawed report. Fortunately, a digital logging system would enable traceability, allowing for identification and understanding of why such discrepancies were not caught during the inspection.
The current paper-based approach to non-technical inspections presents clear vulnerabilities, evidenced by instances of overlooked faults and unaccounted errors that threaten the readiness and safety of the ADF’s PMV’s. Transitioning to a digital system, as advocated in this essay, would streamline inspections and foster greater accountability through an unbroken chain of traceable actions, enhancing accuracy and reliability.
Conclusion – Stepping into the Future: A Digitally Adept ADF
In the rapidly evolving contemporary operating environment, the ADF finds itself at a critical juncture where adopting a forward-thinking approach is imperative to retain its competitive edge. The Lean Six Sigma methodology and a 'trust but verify' culture emerge as robust tools to drive the transition from paper-based to digital systems within the “business of Defence”.
Through a close examination of the 343-3 training records and non-technical inspections, it is evident that digitisation not only promises efficiency but fosters transparency, accountability, and a culture steeped in verifiable trust. In this regard, a digital transformation ensures the preservation of critical data, expediting processes, and setting a benchmark for performance analytics that can guide continual improvements in the ADF's readiness and capabilities in accordance with the expression “If you can't measure it, you can't improve it”.
As we move forward, it's important for the ADF to fully use the opportunities presented by integrating information and communication technology, with the roll out of the Defence Enterprise Resource Planning (ERP) Program providing a positive step forward. This will help create an ADF that is strong and skilled, able to quickly and effectively respond to the challenges of the future.
As COL Molnar pointed out, KPIs are critical to measuring success. As Army does not measure/track pers time and largely view pers as a sunk cost, the ability to understand the value of digital transformation is limited. There is almost no accountability in Defence on how well the budget is spent. In my company, if teams miss critical SLAs, leaders/staff are terminated, pay is cut, restructures occur and business units are sold off – in Defence, poor performance seems to result in promotions. Take the reliability of the DPN – if CIOG was Amazon, it would have collapsed. I would argue annual wasted time across Army in using the DPN (outages, poor performance, slow logs ins, poor help desk, challenging to find information etc) over would equate to an infantry battalion. How much time do soldier really spend doing their core role rather than excessive manual admin? We don’t know – in many cases it is likely <50%, whereby a civilian trade may have a KPI of 90% billable on the tools. Lean Sigma is great, but you need good metrics or KPIs to measure improvements. Until Army has good KPIs and understands the opportunity cost of poorly designed policies, processes and technology, meaningful digital transformation will be aspirational sales words in a glossy preso.
Your example of one process, such as non-techs could be expanded. Large fleet managers use integrated management systems, smart capture image technology (similar to smash repairers), bar-coding, real time reporting, and automaton integrated with vehicle management systems etc. Why do we manually check fire extinguishers and other assets? You could have RFID/bar code tracking, mobile devices, IOT sensors, automated alerting on status, a consolidated database of all assets (purchased, expiry, last inspection) and a single dashboard view of the fleet. Take that three hours for your process and reduce it to 30 minutes; the saving over 2000 platforms equates to about an additional platoon of soldiers per year. Rather than cut units, as the DSR suggests, maybe we could better use what we have through digital transformation; at present, we seem to be all tail and few teeth!