Home' Navy News : June 10th 2010 Contents 16
SRP -- what does
In early April, the Government approved
the proposed strategic reforms that
Defence and Navy will need to imple-
ment to achieve $20 billon savings over
the next 10 years.
These savings are to be reinvested in
current and future capabilities, the suc-
cess of which requires a concerted effort
by the whole Defence organisation.
There are 15 reform 'streams' which
contain initiatives intended to improve
our processes and make better use of our
resources. All streams are focused on
identifying waste and improving practic-
es, but many require up front investment
in order to make things better.
Seven of these streams are focused
on identifying dollar savings for rein-
vestment. Information sheets on reform
stream initiatives are located on the DRN
intranet homepage at http://intranet.
How are we going to
achieve these savings?
We will implement the SRP through
building on our NGN program. We
will focus on building cost conscious
behaviour through strengthening our
signature behaviours and embedding
continuous improvement modules in our
leadership courses at all levels; including
providing business improvement
The Directorate of Navy Continuous
Improvement (DNCI) will identify deep
reform to sustain our force commanders
and facilitate the development of a cul-
ture of cost consciousness across Navy.
We will equip commanders and
managers at all levels with the tools to
deliver capability more effectively and
efficiently by rolling out a program
of business improvement training and
awareness across Navy, reinforcing
expected reform behaviours and Navy's
What reforms will affect
SRP will make significant changes
to the whole of Defence, however it
is important to remember the savings
required to achieve Force 2030 are being
reinvested directly in Defence -- in our
capability, so it is about reinvestment not
simply cost cutting.
Of the 15 reform streams there are
probably four that will impact most of
us in our day to day lives at some time.
Below are examples of some of the
reforms that affect individuals person-
ally through changed policies or through
improving work practices. For details on
all reforms go to the Navy intranet 'SRP
Toolbox' located in the Navy Toolbox on
the front page of the Navy intranet.
Defence spends around $2.8 billion per
year on the acquisition of non-military
goods and services from external
suppliers, such as travel. These suppliers
THE Strategic Reform
Program (SRP) needs
each and every one of
us to think differently to
improve the way Defence
is managed and to create
a more efficient and
We need to build a new
Defence organisation that
can deliver Force 2030.
include airlines, accommodation
providers, cleaning contractors,
stationary providers and healthcare
providers to name a few.
There are significant opportunities to
make the purchase of these non-military
goods and services more efficient.
We must look at the benefit to the
organisation for all activities and make
sure our decisions are cost conscious.
Our signature behaviours and programs
of business improvement will help deliv-
er these initiatives. Some of the reforms
that will come from NEP are explained
The single biggest area of reform in
the NEP stream is in the area of travel.
Defence spends around $500 mil-
lion per year on travel and travel related
expenses. A review of processes has
identified a number of reforms including
a move away from a specified daily rate
of allowances for travel to a 'reason-
able costs' model; increased the use of
cheaper 'less flexible' airfares for routine
travel; centralised control over the book-
ing of accommodation and an expansion
of the LIDO accommodation booking
contract; and increased use of video and
audio conferencing to remove the need
So we all need to think seriously
about whether we can do things differ-
ently and eliminate wasteful practices
from our workplace.
These reforms, in conjunction with
demonstrating Navy's signature behav-
iours such as cost consciousness and ask-
ing questions like, 'is there a better way
of doing this', will make a difference.
Hospitality and Catering
We can expect to see changes in
hospitality and catering services to help
us eliminate unproductive facilities and
processes and reduce overhead costs.
This means looking at making sensi-
ble changes to the way we deliver food
to messes to ensure we achieve a nutri-
tious, good quality meal that also repre-
sents value for money.
As an example, initiatives will
include a review of messing arrange-
ments such as consolidating low volume
messes (serving less than 2100 meals a
month or where multiple messes exist in
close proximity); rationalising bar oper-
ating hours; and sensible rationalisation
of the range of meal options available.
For example, some messes have 6-10
meals. We would look to reduce them
Rationalisation of messes and mess
facilities is not planned for all establish-
ments and will be taken on a case by
case basis. In Navy's case, any such
change would require some investment
We are working towards reducing the
frequency of postings requiring removals
consistent with operational and neces-
sary career development requirements.
Additionally, a range of allowances
and entitlements associated with remov-
als have been reviewed to ensure they
remain relevant and are consistent with
contemporary community standards.
Once again, all of these initiatives
are still being worked through but, as
a result of these reviews, there will be
some reasonable limits imposed both on
the number of vehicles and pets that can
be removed at Commonwealth expense
and the number of levels of disturbance
allowance will be streamlined.
ICT at a glance
As a result of the reforms we should
also see significant improvements to our
ICT system, including ensuring that our
ICT dollars are better focused on deliv-
ering the user better ICT services, such
as creation of a single desktop environ-
ment where the Unclassified, Restricted
and Secret domains can be accessed
from a single 'box'.
Further initiatives will include the
Navy well for SRP
THE New Generation Navy
program has positioned
Navy well for success in
achieving the SRP objec-
tives. Navy's signature behaviours
are the enablers for SRP. By dem-
onstrating the signature behav-
iours in the performance of our
duties, each member of the Navy
can contribute to achieving the
reforms we need.
We need to be cost conscious;
we need to challenge and inno-
vate; we need to fix problems and
take action and develop a culture
of continuous improvement in all
of our workplaces, both at sea and
As Chief of Navy, I need all of
Navy to get involved and look for
opportunities to improve the way
we do things. We all know there
can be waste in the way we do
I need your commitment to
make this work. I need everyone to
find the time to ask "is this the best
way of doing this?"
If you have an idea about how
to improve the way you work then
please pass your suggestions on
to the Navy Suggestion Scheme.
I want to see examples of cost
consciousness, taking action and
driving decision making down.
It's your future Navy, let's make
this happen together.
-- Chief of Navy, VADM Russ Crane
TAKE ACTION TO
Chief of Navy VADM
Russ Crane on HMAS
Pirie's bridge during
an Operation Resolute
patrol. CN wants all
sailors and officers
to be cost conscious,
challenge and inno-
vate, fix problems and
take action to ensure
Navy contributes to
reform across the
whole of Defence.
Photo: ABIS Bradley Darvill
We need your
THE New Generation Navy
Program and the SRP are
two very important initia-
tives that are positioning
Defence for the future.
NGN is focused on ensuring
Navy's workforce remains com-
petitive and relevant for today and
tomorrow, while SRP is focused on
delivering capability and reforming
the way we do our business.
Both programs are interlinked
and will transform Navy into a bet-
ter equipped, trained and motivat-
ed force that will be able to meet
Government's objectives and the
Australian taxpayers' expectations.
Government will deliver the
funding for some very impressive
and extremely capable platforms
as laid out in the 2009 Defence
White Paper, however, Defence's
commitment to receive this new
and exciting capability is to deliver
major efficiencies totaling $20.5
billion over the next 10 years.
Navy's contribution over this
period is $2.8 billion, which
equates to about $776,000 every
day, 365 days a year for the next
10 years -- this is significant and
without making fundamental
reform to the way we operate the
Navy we will not achieve this tar-
get. This means everyone working
in Defence has a responsibility and
we all need to make a contribution.
If Navy is going to fight and
What is SRP?
win in the maritime environment
we need this new capability and
the Navy needs your cooperation
and understanding. Therefore, I
urge you all to take an interest in
our future and those in leadership
roles to ensure your people are
well informed and understand why
these reforms are so important.
-- WO-N Mark Tandy
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