The approvals structure described above is a recent innovation, having been implemented following the publication of a defence white paper in the summer of 2008. The white paper led to budgets set for 6 and 12 years, and the identification three specific areas where the acquisition organisation needed to improve:
• budget planning;
• technical management; and
• co-ordination of procurement and support activities.
In response to the challenges, a variety of changes were suggested. The first set of changes involved changed financial processes. These included:
• new rules for setting out and explaining the budget to Parliament;
• revised budgetary architecture empowering programme managers;
• an improved performance management regime with a greater emphasis on financial and risk management;
• new reporting cycle to increase visibility and senior management oversight:
- monthly management accounts
- quarterly reports on performance, cost and time to the minister of defence
- annual reports on all projects to parliament; and
• reinforced governance for investment decisions (the MIB and supporting subcommittees).
Multidisciplinary teams, 'Integrated Programme Teams', were also introduced using matrix management to populate with appropriate skills, with the aspiration that they would extend to become through life entities wherever possible (e.g., on new equipment programmes).
Another set of changes related to the introduction of consistent project and programme management practices across the DGA; and further rationalisation of DGA operational overheads has also been undertaken (including the reduction of headcount and geographical footprint) Other observations on French defence acquisition:
• there are fewer senior decision makers for acquisition than in the UK; and
• the DGA has a strong clarity of purpose. Its vision and value add are clear, and there is explicit recognition of the DGA's role in promoting French industrial and diplomatic interests abroad. This makes some aspects of what the UK acquisition system agonises over (in terms of procurement routes) more straightforward.