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Review of the defence accountability framework
Defence has a complex accountability system that has evolved over many years. It has its strengths and weaknesses, however Defence has reached a point in its evolution where there is a strong case to redesign its accountability system.
Current arrangements are under stress and their failure damages Defence. This stress is manifested in poor outcomes for Defence. Recent examples include: delivery failures for capability projects; non-compliance with AusTender reporting; poor or inappropriate procurement decision-making; poor outcomes in pay for Special Forces and a lack of cost consciousness in the management of day-to-day activity.
Current accountability arrangements also constrain leadership capability and management capacity by reducing the ability of decision makers to exercise strategic control over the construction and implementation of decisions. In addition, the context of a capped budget and reducing contingency provision increases the level of risk that accrues from ineffective management and consequently raises the bar substantially for effective Defence strategic management and decision-making. Defence will need to be more agile, more efficient, and more effective. In practice this means that leaders need to make and implement better decisions faster and with more assurance.
This report is designed to assist Defence ensure it has a high quality accountability system that can evolve to meet the needs of the organisation now and into the future, particularly as it seeks to implement its Strategic Reform Program (SRP) and deliver Force 2030.
To support Defence build a high quality accountability system, this report:
• Examines what is meant by accountability, what kind of organisational and individual characteristics this implies and the components of accountability in the specific Defence context
• Summarises the lessons of the past and analyses the current issues Defence is facing across each component of accountability
• Identifies the opportunities to build higher quality accountability systems
• Describes the approach required from Defence’s senior leaders to capture the opportunities on offer.
