13.2 In the past, there has been a tendency in the Department to underplay the importance of human capability to the delivery of Defence outputs and the development of an agile, flexible and adaptable Armed Forces and MOD - particularly in relation to the attention given to equipment capability - or to focus primarily on manpower numbers rather than human capability issues in the round. Under the new model, human capability should instead be integrated fully into Defence planning, in coordination with the work on a 'New Employment Model' for Service personnel, which, on the military side, is aiming to deliver the future human capability Defence needs and can afford. A good understanding of the full costs of employing different types of manpower and the benefits and capabilities they offer is a prerequisite to this.
13.3 If the Department adopts such an approach, it should be better able to determine the most effective and efficient balance in front line and non-front line areas between regular Service personnel, Reserves, MOD civilians and contractors, and to make balance of investment decisions between 'people' and other Defence lines of development, including equipment. The Reserves Study being led by the VCDS on behalf of the Prime Minister and associated work to develop the 'Whole Force Concept' will play a significant role in identifying the right workforce balance in front line areas. Beyond that, we envisage these objectives being achieved in two main ways. First, we recommend the Department undertakes a full review of non front line manpower, starting at OF5 / Band B and above, to establish the requirement and criteria for all posts, including whether they need to be military or civilian, and to identify the optimum management structures. This should reduce the size of the senior cadre, which will help the Department both to make savings and to create a more agile and less hierarchical and top-heavy structure, though it will need to ensure it retains essential leadership capacity. Secondly, the proposals in Part 8 to make Command TLBs responsible for detailed equipment and support planning - as the Services largely already are for manpower planning - should incentivise trade-offs between people and equipment by giving them greater flexibility over how to deliver their outputs and ensure affordability and value for money.