Measuring DE&S's performance
2.22 Under the new delegated model, the commands and head office will require performance measures to gain confidence in DE&S's ability to deliver the Equipment Plan. The focus of measuring DE&S's performance has previously been through equipment project performance.
2.23 The Department recognised that existing DE&S metrics were insufficient to assess DE&S's overall performance. Under the bespoke trading entity, a new performance measurement regime for DE&S has been established.
Figure 5 New departmental governance arrangements
Source: The Department |
2.24 DE&S has published its Corporate Plan 2014-2017, setting out its priorities and high-level objectives over the next three years (Figure 6).37
2.25 Underpinning these objectives is a revised set of key performance targets. The Department will hold DE&S to account for its performance against these targets through new governance structures (paragraph 2.21). The 2014-15 targets are largely a continuation of previous internal indicators to allow comparison with prior years, with some extra metrics:38
• equipment support performance;
• operating cost-efficiency;forecast accuracy;
• customer satisfaction;39 and
• delivery of a transformation plan and contracting for managed service providers.
2.26 To assess whether the bespoke trading entity structure is improving DE&S's performance, the Department must set more detailed measures. They must track benefits to show whether the bespoke trading entity can reform acquisition at DE&S, and for the Department to take extra measures to improve performance if necessary.
Figure 6 DE&S's strategic direction DE&S's priorities Successful delivery - delivering the Equipment Plan to performance, cost and time. Successful leadership - inspiring performance and managing outcomes efficiently and effectively. Successful change - delivering increased capability and value. DE&S's high-level objectives Delivery (ongoing activity through to 2017): deliver the agreed programme of work and associated support and services to the commands. Transition (from 1 April 2014 to 1 April 2015): • build capacity to improve the inherent capability of DE&S to explain what is being delivered, by when, for whom, to what standard and at what price; and the costs and risks of this activity; • work together with head office, the commands and wider Department in the restructuring of the acquisition system in order to define and start to implement the role of an accountable, customer-focused delivery agent; and • develop a transformation plan that explains how DE&S will transform into a 'match fit' organisation by 2017. Transformation to a 'match fit' organisation (from 2015 to 2017): Implement an agreed transformation plan to create a 'match fit' organisation (now referred to as a 'best in class' organisation). Source: Defence Equipment & Support, Corporate Plan 2014-2017 |
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37 Defence Equipment and Support, Corporate Plan 2014-2017, May 2014.
38 Procurement projects (performance), procurement projects (cost), procurement project (time), and inventory management.
39 This indicator is a work in progress.