Optimizing Transformation in Defense

Defense organizations have long since grasped the challenge of transformation to remain effective in a changing world. But their attempts at modernization have not always delivered on their promise of a major shift in agility and improved performance against new criteria. A new type of adversary in well armed and networked terrorist groups working across borders, a challenging fiscal environment driving budget cuts and the rise of the multi-polar defense world and nuclear armed powers have driven fundamental changes in the way that forces must operate. Increasingly geographically dispersed, often structured into smaller units and required to master cutting edge defense technology, defense organizations have had to rethink their approach to collaboration, information sharing and key defense processes like procurement, maintenance and logistics.

Accenture recognizes that a defense organization is often caught between the need to operate as a business and at the same time continuously enhance its war-fighting capabilities. In parallel, it needs to maneuver in a highly political environment in which rational decisions often give way to political compromises. In order to face up to these conflicting pressures, it is important that defense organisations have a clear view of their route to transformation and a focus on:

• Meeting customer/stakeholder needs

• Reducing costs

• Enhancing capabilities.

Accenture’s has developed a Defense transformation blueprint that addresses the two dimensions that its experience suggests are vital to effective renewal—process transformation and journey management. Whereas transformation efforts in defense have tended to focus on the process transformation element, the Accenture blueprint provides a framework for rigorously analyzing and managing process transformation and journey management equally.

Defense organizations have embraced the need to change and achieved some efficiencies in key process areas such as procurement, maintenance, logistics and business services. Often however, they fail to draw the maximum potential from their transformation efforts. The overarching objective of transformation programs in defense is to gain the ability to renew, innovate and adjust in line with new imperatives. Many programs fall short of this goal, and targeted outcomes such as a renewed focus on customer needs, strategic cost reduction and capability enhancement remain elusive.