Execution - Defence Plan 2018-2023

Execution

Chief of the Defence Staff/Deputy Minister (CDS/DM) intent

6. Everything that we do must be hinged on the direction and guidance found in Strong, Secure, Engaged (SSE). The Government of Canada has laid out clear expectations and now it is up to the Defence Team to deliver. Our activities must be focussed on and build towards the capacity and capability for the Canadian Armed Forces (CAF) to be able to execute all concurrent operations as outlined in SSE. This starts with an updated Force Structure to enable us to expand upon existing capabilities and grow others that are required, while ensuring we have the right balance of regular, reserve and civilians in the right roles and missions. While it is understood that the CAF does not currently have the capacity to execute all of these missions concurrently to the full extent desired, the activities and priorities outlined by SSE will enable the CAF to increase capacity and capability. Increasing our capacity in joint enablers such as engineers, strategic communications, medical support, signals, intelligence and logistics will be crucial in order to meet our commitments. As CDS and DM, we recognize that we must focus on strengthening our institutions, both in terms of looking after our people and the stewardship of the profession of arms. The success of the CAF and Department of National Defence (DND) is completely dependent on our people; thus Defence will be an employer of choice, renowned for delivering excellence at home and abroad by anticipating and adapting to new requirements, representing the diversity and values of Canadian society, and its unwavering commitment to the support and well-being of its people thus enabling the CAF to produce a resilient warfighting force.
7. As outlined within SSE, in order to achieve its strategic vision, the CAF will be an agile, combat-ready, multi-purpose military, operated by highly trained, well-equipped women and men, secure in the knowledge that they have the full support of their government and their fellow Canadians.
8. In order to implement this new vision, Canada will adopt a new approach to defence – one that values the ability to anticipate new challenges, adapt to changing circumstances, and act with exemplary capability and professionalism while supporting peace and security around the world.
9. One of the most significant challenges that we will face in the implementation of SSE will be the human resource capacity to tackle simultaneously the many actions required for the execution of the policy direction. There are few activities that we now perform that are not essential, but we have not necessarily optimized the processes that guide and govern our actions. We must challenge each one of these processes through the existing defence governance framework if they are not enabling us to carry out the timely execution of SSE, while remaining mindful of the risks that we assume when we do so. These actions by themselves will not be sufficient to deliver on our agenda. We must think creatively and consider fresh ideas in order to succeed. Without this approach, we will not deliver on SSE. Level 1 (L1s) must align their efforts and their priorities on the key objectives of SSE, and time-phase their efforts when capacity is insufficient to execute simultaneously all required actions. SSE must always be prioritized, and its execution will be subject to the scrutiny at the L0 and L1 boards and committees. The Programme Management Board, chaired by the Vice Chief of the Defence Staff (VCDS), Senior Associate Deputy Minister (SADM) and Chief Financial Officer (CFO) (Cerberus) will play a critical role in managing the Defence Services Programme and ensuring that activities are prioritized and sequenced to ensure resources are optimized.
10. Defence plays an important role in Government of Canada (GC) innovation efforts. This is reflected in the SSE, which includes a commitment to provide $1.6B in focused investment over the next 20 years. This presents a significant opportunity, which can only be exploited if it is fully integrated into the broader Defence innovation and force development agenda. Innovation is a strategic leadership function that has a direct effect on both current and future operations. People are the foundation of effective innovation. Therefore, there is a requirement for leadership to promote a culture of innovation by actively encouraging fresh thinking, harnessing the Defence Team’s ideas and insights to identify and articulate new requirements, and creating opportunities for organizational learning and the exchange of ideas, including outreach activities with allies, partners, academia and industry. CDS/DM intent and strategic priorities will be communicated in a Defence Innovation Strategy, which will be used to focus and coordinate the DND/CAF innovation effort to ensure that it addresses institutional requirements. This strategy will be supported by a rigorous Concept Development and Experimentation (CD&E) methodology designed to promote new and innovative thinking, as well as test and mature new ideas to ensure they can be implemented effectively. CD&E will be used to support capability based planning.
11. Business Intelligence and Analytics are emerging as a means to enable alignment, drive efficiency, integrate and automate process and readily extract decision–quality information from our systems of record. DND/CAF is evolving towards a culture that facilitates evidence based decision making and will therefore evolve an essential Business Intelligence and Analytics capability under Defence Program Analytics. This capability will also include the emerging role of the Chief Data Officer with the SADM leading the departmental efforts in support of this concept. With coordinated effort, the Defence Team will adopt an enterprise approach to drive analytics adoption throughout DND/CAF thereby enabling performance management at all levels to ensure SSE delivery.

End state fiscal year 2022/23

12. This Defence Plan will see the following DND and CAF strategic results successfully achieved in the planning period:
    1. Canadians are protected against threats to and attacks on Canada; people in need in Canada are assisted in times of natural disasters and other emergencies; Canada’s Arctic Sovereignty is preserved and safeguarded; North America is defended against threats and attacks; and the Canadian Armed Forces contribute to a more stable, peaceful world;
    2. The Canadian Armed Forces are ready to conduct concurrent operations and military equipment is ready for training and operations;
    3. The Canadian Armed Forces and DND have the right number of qualified people; the health and well-being of the Defence Team is well supported; the Defence Team reflects the values and diversity of Canadians; military families are supported and resilient; and youth in Canada are provided with experience and opportunities that enable a successful transition to adulthood;
    4. Defence capabilities are designed to meet future threats and Defence and security challenges are addressed through innovative solutions;
    5. Defence procurement is streamlined; Defence equipment and information technology acquisition are well-managed; and supplies are available and well-managed;
    6. Naval and Army Bases, and Airforce Wings are well serviced to enable military operations and defence activities; Defence infrastructure is well-managed throughout its lifecycle; and Defence activities are carried out in a safe and environmentally responsible manner;
    7. A DND/CAF Business Continuity Plan is developed and maintained;
    8. A Defence Security program that reduces security risks in an evolving threat environment is achieved to more effectively and efficiently support Defence, both operationally and institutionally;
    9. The GC directed initiatives outlined in the Ministerial mandate letter are executed.

Defence priorities

13. The five Defence priorities provide emphasis for senior management and DND/CAF leadership to direct resources to key activities required to address gaps in achieving expected results, to mitigate key risks and to respond to specific Government direction. They are critical to the overall execution of SSE.
14. Nested within these priorities are the specific initiatives and activities required to implement SSE. Through the Defence Plan, these initiatives and activities have been tasked to specific L1s and functional authorities to implement. They cannot be placed at risk by other, less critical activities and therefore shall be privileged. L1s will be required to demonstrate how they intend to accomplish their Defence Plan remits by detailing their intended efforts, using existing resources and those attributed through SSE, in their own business plans and similarly reporting on the progress towards completion for multi-year activities. L1s should be prepared to discuss the impacts on their lower-priority activities, including those that are not resourced due to the higher priority of SSE related activities.

Achieve Canada’s new vision for Defence

15. SSE articulates a new vision for Defence, anchored on being Strong at home, Secure in North America and Engaged in the world. It is grounded in a thorough assessment of the global security environment, and it directs a new approach to defence – Anticipate, Adapt, Act. SSE requires and sets the necessary conditions so that the CAF is prepared to conduct eight core missions and execute concurrent operations as previously described. Therefore, Defence must align all the elements of its foundational strategic and operational directions and plans. First and foremost, everything Defence does must support the development of its capacity and the capabilities required to conduct the concurrent operations directed in SSE. Specific tasks related to this priority are as follows:
    1. Strategic Joint Staff (SJS), supported by the VCDS and Assistant Deputy Minister (Policy) (ADM(Pol)),will develop the strategic direction that will translate the governing Defence policies into a Canadian National Military Strategy that will ensure that the CAF achieves the objectives promulgated by the Government of Canada. There is a requirement for a military strategy document to support the implementation of SSE and provide more direction on multi-mission concurrency;
    2. SJS will lead the continued development and implementation of the renewed Force Posture and Readiness Directive. This directive provides the detailed analysis and planning required to define requirements needed to support multi-mission concurrency capabilities and tasks described in SSE. Implementation of this policy along with its supporting Force Structure must focus on defining and realizing the operational outputs needed to support policy and it will be used to inform the review of both regular and reserve force structures;
    3. ADM (Pol) will develop the Global Engagement Strategy, to enable Canada’s contributions to a more stable and peaceful world. ADM(Pol) will leverage its Defence Engagement Program and academic outreach activity to foster a better understanding of the challenges of the security environment;
    4. VCDS will promulgate the Force Capability Plan (FCP) which describes a capability portfolio consistent with SSE vision. The FCP serves to direct Force Development activities over time such that capability investment can be delivered as planned under SSE. In this manner, the FCP guides and bounds the Capital Investment Program Plan Review (CIPPR) prioritization and serves to align L1 capability development activities;
    5. SJS, supported by ADM (Pol), VCDS and Judge Advocate General (JAG) and in collaboration with the US, will coordinate the Canadian NORAD Modernization/Evolution of North American Defence (EVONAD) efforts;
    6. VCDS will deliver on the new vision for the Reserve Force in order to enhance its capabilities and role within the CAF. There will be a comprehensive review of the Reserve Force organization and establishment to ensure that the Reserves can deliver defined operational effects on a full-time basis;
    7. Canadian Joint Operations Command (CJOC) will further develop the Joint Managed Readiness Plan, ensuring that the joint readiness agenda objectives can be fulfilled;
    8. SJS, supported by CJOC and Assistant Deputy Minister (Science and Technology) (ADM(S&T)), in collaboration with the US, will lead and coordinate the DND/CAF contribution to the Binational Northern Approaches Surveillance Analysis of Alternatives;
    9. Canadian Army (CA) will continue its review of the Canadian Rangers and enable growth as resources allow. The Canadian Rangers are integral to northern surveillance and regularly provide support to ground search and rescue. They are Canada’s eyes and ears in the sparsely settled northern, coastal and isolated areas of Canada. In response to the Minister’s mandate letter, Defence will continue to focus on surveillance and control of Canadian territory, which includes increasing the size of the Canadian Rangers as well as other capability enhancements.

Foster well supported, diverse and resilient people & families

16. The Defence Team is the backbone of defence capability and its greatest asset. The success of any mission is dependent on having healthy, well-trained, and motivated personnel in a workplace free from harassment and discrimination.  Throughout the timelines of this plan, Defence will deliver on key initiatives to further cultivate diversity, inclusivity and respect within its organization. The goal is to enhance military capability by creating a new military experience that delivers a flexible career model, respects the unique demands on military families, and recognizes the affiliation with an enduring commitment to support Veterans. It is the CDS’s intent to reinvigorate and reinforce the Operation HONOUR efforts across the CAF, moving from the initial strategic response to an enduring institutionalized organization with a long term plan that integrates the extensive personnel policy changes stemming from SSE, the enduring mission of elimination of harmful and inappropriate sexual behaviour, and the desired institutional culture change.  Specific tasks related to the priorities above are as follows: 
    1. Military L1s will continue to provide their full support and resources necessary to achieve the Operation HONOUR mission of eliminating harmful and inappropriate sexual behavior from within the CAF and the institutionalization of Operation HONOUR. This includes a commitment to promoting a culture of leadership, respect, and honour and the continued work to monitor and measure the effects of Operation HONOUR; making adjustments as required to ensure enduring positive institutional culture change;   
    2. VCDS, supported by Assistant Deputy Minister (Human Resources – Civilian) (ADM(HR Civ)) and Chief Military Personnel (CMP), will develop an integrated Defence Team Human Resource Strategy to align force components of military, reserve and civilian. The Defence Team Human Resources Strategy envisions a Defence Team that is agile, capable of effectively adapting to new requirements while caring for people as an employer of choice for Canadians. The four pillars of the Defence Team Human Resources Strategy are: ensuring the well-being of DND/CAF personnel and their families; optimizing the workforce to align size and composition with SSE; getting the workforce to capacity; and ensuring a representative, inclusive and respectful workplace;
    3. VCDS will develop the Force Mix and Structure Design (FMSD), to realize required SSE and FP&R driven changes to the force structure. FMSD will build on the work previously conducted as the Force Mix and Capability Analysis, incorporating FP&R, the Defence Team HR Strategy, Capability Based Planning inputs, and CDS direction. This initiative will also consider and inform the apportionment of the Primary Reserve establishment. This work will leverage and build on ongoing L1-led SSE initiatives;
    4. VCDS, supported by ADM(HR-Civ), will execute the Defence Team Establishment Plan and refine its associated methodology over time, based on lessons identified in order to support the integrated concept and the design of the workforce. It must be well aligned with the existing business planning process noting that financial resources to support the civilian workforce growth are allocated by the DM;
    5. VCDS, supported by the ECSs, will conceive and design new operational roles for the Reserves, and supported by CMP, 1;
    6. CMP will implement/establish a personnel administration staff that is empowered to apply a command-directed approach wrt personnel administration and management that uses decision-making to establish precedents and actively drive changes to personnel policies and procedures with the aim of increasing member satisfaction and retention;
    7. CMP will build capacity to meet CAF recruiting targets with candidates that are representative of Canada’s population;
    8. CMP will fundamentally reinvent Transition in recognition of a career that ascribes to the tenets of service before self and unlimited liability with enhanced flexibility. This will include a flexible career management system that would allow personnel to transition in and out of uniform as well as facilitate component transfers to the Reserve Force, and COATS to retain talent which would allow CAF personnel to continue to make valuable contributions under more flexible terms of service;
    9. CMP will also improve the Transition process from military member to Civilian Life. In close collaboration with Veterans Affairs Canada, CMP will work to ensure a seamless transition for CAF members to Veterans Affairs’ programs and services. The focus will be on reducing complexity, improving information sharing, overhauling service delivery, and streamlining and simplifying processes wherever feasible. Working together, the CAF will aim to better anticipate and meet the current and future needs of members and to ensure they receive timely access to benefits, certainty about care, and access to programs and services; CMP will also collaborate with VAC on Veteran’s Initiatives;
    10. CMP will conduct the First Principles Review of military total compensation;
    11. CMP will contribute to building the resilience of military families by improving support and services; and
    12. CMP will also conduct research on attitudes towards Lesbian, Gay, Bisexual, Transgender, Queer, 2- Spirited (LGBTQ2S) issues, diversity climate, ethnic tolerance/intolerance and cross-cultural competence to support the CAF Diversity Strategy and action plan, in order to maintain efforts to ensure that the CAF population is reflective of Canadian society and values. There is an urgent requirement for both policy and services for LGBTQ2S personnel.

Grow and enhance capability and capacity

17. Through SSE, the Government of Canada has directed that the CAF be prepared to deploy on concurrent operations. To achieve this requirement, the FP&R will provide specific instructions to ensure that Force Elements are postured in accordance with directed readiness levels. The FP&R Directive is the mechanism by which the CDS directs the CAF Force Generators to organize, train and equip their forces to ultimately respond to GC direction. The updated directive, which will be issued in early 2018, will clearly indicate which capabilities must be readied within the present policy framework. More importantly, the military strategy that will be developed will articulate the demand signal for all the capability components that position the CAF for the concurrent execution of operations. The CAF force development activities will therefore be anchored into the requirements expressed in the military strategy. Force development activities will privilege the new enablers (cyber, medical, strategic communications) as their demand has increased in modern operations. Specific tasks related to this priority are as follows:
    1. VCDS will lead the Defence Enterprise Architecture (EA) Programme capability. DND and the CAF are committed to the continual development, maintenance and management of an EA that accurately reflects the evolving capabilities. This practice is essential for effective decision-making support and the alignment of programmes, projects and initiatives to SSE;
    2. VCDS will conduct a review of the Capability Investment Database (CID) with a view to fully leverage it and exploit Defence Programme Analytics. In its current format and through the current practices, the CID has lost the greater part of its intended value. CID capabilities will be migrated from a stand-alone database into our systems of record;
    3. VCDS is to continue to refine and improve the capabilities, capacity and responsiveness of the Capital Investment Program Plan Review (CIPPR) tool and processes in order to permit regular review of our portfolio of investments and better respond to changes in scope and/or timelines of our planned capabilities as well as accommodate emerging requirements. This will assist leadership in assessing and prioritizing investments;
    4. VCDS will lead the establishment of a CAF targeting capability, that conforms to the appropriate domestic and international legal frameworks, to better leverage intelligence capabilities to support military operations, in order to address the demand for defence intelligence internally, across the Government of Canada, and amongst allies. This will allow the Defence team to increase its intelligence capacity, and examine its capabilities to understand and operate in all the domains of conflict to include the information environment, cyber, space and other emerging domains as described in SSE, in support of the conduct of information operations;
    5. CJOC, in collaboration with other L1 organizations and allies, will enhance and expand the Defence northern footprint, while increasing capabilities in surveillance, mobility and training in Canada's north, in order to enhance the Canadian Armed Forces’ ability to operate in the Arctic and adapt to a changed security environment;
    6. VCDS will lead the effort on Remotely Piloted Systems force development. RPSs offer great potential in helping Canada meet its defence needs, at home and abroad; and
    7. Royal Canadian Air Force (RCAF), in collaboration with ADM(Pol) other L1 organizations, industry and academia, will lead the development and implementation of a range of remotely piloted aircraft systems (RPAS) including the necessary policy direction that will respect Canada’s obligations under domestic and international law, and the appropriate doctrine for armed and unarmed systems.

Cyber & Space Domains

18. The Cyber and Space domains are increasingly prominent among the security and defence challenges facing Canada and its allies. The CAF depend heavily on the cyber environment and space-based capabilities are becoming an increasingly critical component of military operations. In accordance with the Minister’s mandate letter, Defence will continue to work closely with Public Safety Canada to inform and advance a new Cyber Security Strategy. Assistant Deputy Minister (Information Management) (ADM(IM)), in collaboration with other government departments, will continue to develop and refine a security framework for cyber threats. Defence will advance research in the future of cyberwarfare to improve and strengthen both defensive and offensive capabilities. Defence will focus on cyber and space operations through science and technology projects. ADM(Pol) will continue to work with partners to ensure the necessary policy frameworks are in place to support DND/CAF cyber activities as well as promote Canada’s national interests on cyber issues, including supporting GAC’s efforts to shape international norms for responsible state behaviour in cyberspace.
19. With new capabilities, comes the need for employees with special skill sets and a new Cyber Operator military occupation has been created. The introduction of this new occupation will improve recruiting, individual training and career management for cyber specialists. It remains clear that significant work is required to formalize the CAF partnership with CSEC and design a cyber force that includes both military and civilian personnel. For the joint space capability, a more deliberate and structured force generation framework will be developed by the RCAF in order to create a more robust and sustainable space cadre to include an integrated civilian component.
20. The CAF/DND space program will remain focused on space capabilities that are aligned with Canada’s future requirements and that make substantial contributions to combined space operations with Canada’s allies and closest partners. Improvements will include increased operational analysis and awareness of the space domain and the ability to defend and protect critical Canadian and Allied space capabilities. In order to enhance the CAF’s ability to communicate and conduct surveillance globally, the RCAF, in collaboration with other L1 organizations, OGDs and allies, will enhance and expand future joint space capabilities through space related projects including those focussed on global satellite communications, surveillance of space and earth, thus enhancing the CAF’s ability to defend Canadian sovereignty and support domestic and overseas operations. ADM(Pol) will continue to work with partners to ensure the necessary policy frameworks are in place to support DND/CAF space activities as well as promote Canada’s national interests on space issues, promote the peaceful use of space and provide leadership in shaping international norms for responsible behaviour in space. Integration of navigation warfare within CAF training and operations will also be enhanced to ensure access to the critical space-enabled Position, Navigation and Timing capability is sustained for strategic advantage.

Exploit Defence innovation

21. ADM(S&T) will lead the DND/CAF science, technology, and innovation (STI) effort, prioritizing activities to deliver and/or support the Defence Innovation Strategy and specific SSE initiatives. This will include continued support to research and development of Arctic joint intelligence, surveillance and reconnaissance capabilities, as well as the development of space, cyber and remotely piloted systems. The new Innovation for Defence Excellence and Security (IDEaS) programme will be a central element of this effort. The newly established S&T Investment Steering Committee co-chaired by ADM(S&T) and Chief of Force Development (CFD) will be used to manage and coordinate Defence STI activities to ensure that they meet both DND/CAF and L1 requirements. All L1s are expected to play an active role in the planning, execution and exploitation of STI activities to ensure that these activities are fully aligned with approved capability development programmes. L1s will also support CD&E activities, leveraging their exercises and warfare centres where appropriate to test new ideas and promote organizational learning and joint force development.

Modernize the business of Defence

22. The implementation of SSE initiatives and activities will only be successful if it is accompanied by a significant business transformation. Without that transformation, Defence will not be capable of tracking the intended results to achieve as the CAF of today becomes the CAF of tomorrow: organized, trained, equipped and sustained to undertake concurrent missions for the protection of Canada and Canadians and the maintenance of international peace and stability.

Governance

23. Defence governance will evolve to ensure that all aspects of the DSP are managed effectively and efficiently through robust management and oversight by governance boards and committees. In order to achieve clarity with respect to the governance process, Annex D (TBP) will promulgate the decision-making process leading to L0 decisions concerning approvals of policies, resources and overall mandates and authorities for the governance boards. Corporate Secretary (Corp(Sec)) will also review and submit to DMC an update of the Organization and Accountability document detailing the roles and responsibilities of each L1 organization. The introduction of SSE requires Defence to maintain strong governance mechanisms and practices required to enable the effective delivery of the initiatives and enduring activities detailed in SSE. Given the level of oversight required and the type of departmental coordination and analysis necessary to support that level of oversight, the Programme Management Board (PMB) will be used to meet the needs of SSE in both the near and long term.
24. To enable the management necessary to direct the implementation of SSE, PMB will be co-chaired by the VCDS, SADM, and the CFO (Cerberus):
    1. On matters pertaining to SSE implementation and the execution of the Defense Services Program, PMB will report to the Defence Strategic Executive Committee (DSX) that is fully informed and enabled to direct the efforts of the Defence Team; and
    2. PMB will continue to fulfill all regular PMB functions, reporting to Investment and Resource Management Committee (IRMC) on matters pertaining to the Investment Plan and overall Defence Services Program.

Defence Analytics

25. The successful implementation of SSE will only occur if senior leaders have visibility into the DSP and the departmental and operational risk profiles to enable evidence based decision making at a frequency that drives change. As much as leadership will be pivotal to success, Defence will need to increase the quality, breadth and timeliness of relevant information available to leaders while ensuring civilian and military FTE counts do not balloon to fulfill these information needs. Defence’s significant capabilities in Enterprise Resource Planning systems, data warehousing, business planning automation and analytics will be critical enablers, and it will take leadership and commitment to drive adoption and transform to an agile and digitally enabled institution. The visibility of SSE, the engagement of senior leaders and the frequency of governance cycles make SSE an ideal driver to transform DND with world class digital capabilities.
26. In implementing SSE, Defence will develop a set of principles that includes leveraging Enterprise Resource Planning capabilities, standardizing business processes, managing data as a strategic asset, and consolidating systems of record wherever possible to guide the Defence Team into 21st century management practices and reinforce its commitment to embrace departmental digital capabilities and analytics. Going forward, the SAP platform will be the platform in which Defence plans, executes, measures and adjusts the execution of SSE and the DSP. Efforts to date have resulted in great progress within Assistant Deputy Minister (Infrastructure and Environment) (ADM(IE)) and the Royal Canadian Navy (RCN) towards the automation of the in-year financial management and forecasting capabilities using the Business Planning and Consolidation (BPC) module. This capability will be further developed by the VCDS supported by Assistant Deputy Minister (Finance) (ADM(Fin)) for future use across the entire DND/CAF organization with the intent of developing a multi-year, phased-in implementation for integrated financial planning, forecasting and budgeting processes that will serve both internal and external reporting and support decision making. The goal over the multi-year horizon of this Defence Plan is to transform existing planning, forecasting and budgeting processes from multiple template (spreadsheet) based processes to a standardized, simplified and integrated digital process that better supports analysts and decision makers with access to real time plans, budgets, actuals, forecasts and other information across multiple enterprise dimensions.

Departmental Results Framework

27. In response to the Treasury Board Secretariat Policy on Results, Defence will have in place by FY 2018/19 a Departmental Results Framework which will be comprised of three components:
    1. A set of high level Core Responsibilities, outcomes and indicators;
    2. A Program Inventory that describes how they are organized to fulfill their responsibilities; and
    3. Performance Information Profiles.
28. Each SSE and Defence Plan deliverable will be embedded within one or more of the Core Responsibilities and supporting programs. Enabled by business intelligence and analytics and governed by a robust PMB, the overlay of Defence Plan initiatives upon the Departmental Results Framework will improve the achievement of results across DND/CAF and enhance the understanding of the results DND/CAF seeks to achieve, does achieve, and the resources used to achieve them.

Business Planning

29. All L1s must ensure that their plans to implement the Defence Plan tasks are included as part of their annual Business Planning processes. Requests for additional financial and human resources, in particular those related to SSE funded initiatives should be requested through the L1 Business Plan submissions to the VCDS as part of the Business Planning process. Requests for additional human resources (Regular Force, Reserve Force and Civilian) related to new capabilities must be included as part of the annual L1 Defence Team Establishment Plan (DTEP) submission to VCDS. For projects identified as tasks, L1s must ensure that all facets of the project approval processes are adhered to in accordance with the Project Approval Directive (PAD). Additionally, L1s will be required to report progress on their Horizon 1 Defence Plan tasks as part of their annual L1 BP submission to VCDS.
30. The process for L1 Business Planning interviews at IRMC changed significantly last fiscal year and Defence will continue to improve on the process in the coming years. L1s will be prepared to come before PMB and IRMC to discuss their entire program – those activities above and below their existing resource levels. L1s should be prepared to come before PMB and IRMC to discuss their implementation plan for SSE tasks given their existing resource envelopes as well as any lower priority activities that will not be resourced due to SSE commitments. L1s should also be prepared to discuss those planned activities that they consider to fall in the bottom 10% of their current resource allocations. L1s will not present resource pressures for high priority activities as, by definition, those activities are deemed first to be funded within an existing L1 reference level. The CFO will promulgate L1 interview dates, and L1s should be prepared to discuss their plan for the coming 3 years by January of each year. The VCDS will further clarify and promulgate business planning presentation guidelines and templates as required.

Defence Team Workforce Design

31. The former methodology used to manage military vacancies associated with the VCDS Staffing Priorities has been replaced. A review of the VCDS manning priorities has been conducted over the course of the last year and direction is contained within the Canadian Armed Forces Staffing Categories (reference H). This has resulted in the transformation of the six manning priorities into a framework of three different staffing categories. These categories will be reviewed every three years, with a yearly vector check, to ensure their relevance and ensure we are achieving our Defence Policy objectives. The framework is intended to be anchored in the following categories:
    1. Category A: Force employment, force employment support, and OUTCAN activities in support of our SSE Global Engagement Strategy
    2. Category B: Functions and elements with a critical role in the planning and implementation of SSE, including  force production (attract, recruit, train) and functions related to the procurement of capabilities
    3. Category C: Remaining functions and capabilities.
32. The staffing categories are associated with the fostering of well-supported, diverse and resilient people and families and growing and enhancing capability and capacity. The release of the forthcoming FP&R document will also identify those capability gaps where we need to prioritize personnel growth in order to meet our SSE commitments. Additionally a forecast of SSE related growth for the Defence Team is provided at Annex B, L1s are expected to privilege the staffing of these functions which support our SSE commitments and aforementioned organisational priorities.

Establishing the Civilian Workforce

33. The aforementioned Defence Team HR Strategy will direct harmonization of distinct HR systems, foster an integrated approach to personnel management and enable the organization to best achieve its missions. This includes the integration of HR planning across the entire organization and the management of common workforce issues in an integrated manner which will be accomplished through the four pillars of the DT HR Strategy. ADM(HR-Civ), as functional authority for civilian component of human resources management, will enable the future design and management of the civilian workforce, in partnership with DND resource management centres (VCDS, CFO, CMP, C Prog and CFD) and the Defence Team HR Committee (DT-HRC). ADM(HR-Civ) will also provide direction and measures for central agency HR accountabilities and reporting. The Next Gen HR-Civ new service delivery model will permit continuously improving performance in support of the priorities of SSE and the department.
34. ADM(HR-Civ) will provide guidance to L1s on how to rationalize the high number of positions within L1s. L1s are also directed to include human resource impacts and issues as part of annual Integrated Business Plans and to ensure strategies are in place to meet established civilian HR accountabilities.
35. An updated management construct of civilian workforce growth will be promulgated in early 2018 once a decision has been reached regarding growth management using the Salary Wage Envelope (SWE).

Coordination of Indigenous Affairs

36. The Defence Team has many obligations with respect to Indigenous peoples which are reflected in laws, treaties and self-government agreements and policies. It is the responsibility of the entire Defence Team to implement and respect these obligations when planning/undertaking activities.
37. ADM(IE) has stood-up an Indigenous Affairs Secretariat to support the Defence Team. The Secretariat provides strategic and policy advice on Indigenous matters (with the exception of employment and recruitment) and organizes training sessions to raise awareness on Indigenous obligations and to build departmental capacity. The Secretariat also develops policies and guidelines to inform the planning/undertaking of DND/CAF’s activities that intersect with Indigenous interests. Of note, an Indigenous Affairs Defence Administrative Orders and Directives (DAOD) and Strategic Framework are currently being developed.

Incorporate Gender Perspectives into Defence Planning

38. Defence is committed to ensuring gender perspectives are included among key considerations when the CAF deploys to operations throughout the world. Armed conflict, natural disasters and humanitarian crises affect different genders in different ways. Incorporating gender perspectives into the planning, execution and evaluation of operations will increase effectiveness and enhance the understanding of the challenges faced by populations in these areas. This will also support broader national and international initiatives related to women, peace and security.
39. In Canada, the incorporation of gender perspectives is carried out through the commitment to Gender Based Analysis Plus (GBA+) which all DND/CAF personnel must integrate into all planning and development activities. By now every member of the Defence Team will have completed GBA+ training, providing this important analytical competency used to assess the potential impacts of policies, programs, services and other initiatives on diverse groups of people, and taking into account gender and other intersecting identity factors.
40. The intent is to have fully integrated guidance provided from United Nations Security Council Resolutions (UNSCR), the Canadian National Action Plan on UNSCR 1325, NATO policy and guidance and Government of Canada direction on GBA+ into CAF planning and operations by Fall 2017 and into the wider CAF institution by 2019. Additionally, SJS and MPG (CDA) will integrate the GBA+ analytical framework into CAF strategic and operational planning processes, CAF leadership doctrine, and professional development training.

Defence Champions

41. DND/CAF will strengthen Defence Champion governance to formalize terms of reference, strengthen DND/CAF stewardship, and place greater emphasis on the delivery of specific effects and outcomes. Defence Champions are senior institutional leaders who have a formal mandate to provide executive vision and actively advocate in support of issues, initiatives or designated groups. Defence Champions support the CDS and the DM by providing the executive guidance and advice required to lead institutional change. They also provide active, engaged leadership, conduct key leader engagements, facilitate dialogue to establish common understanding, provide advice and feedback, coach and mentor leaders and staffs, and support DND/CAF strategic communications with both public and internal audiences. Defence Champions will be supported by executive leadership teams and they will have clearly defined relationships with supporting executives and staffs to ensure that they have the direction and support required to produce tangible results for the Defence Team.

Investment Plan

42. The 2017-2022 Investment Plan identifies DND’s available funding for recapitalizing the CAF and the Department, funding for acquired goods and services over $20M, and the recognized governance structures and change mechanisms required to manage these resources. Intended capital acquisitions are also identified in the plan. As SSE planning matures, regularly scheduled updates will reflect the evolving plan and subsequent iterations will be produced.

Governance of Acquired Goods & Services

43. Investment Plan 2017 integrates information upon which the assessment of Acquired Goods and Services long-term affordability will be delivered. For Vote 1 Acquired Goods and Services acquired under in-service support contracts, the amount shown in the Investment Plan 2017 is the forecasted expenditure as reviewed and approved by the Department’s robust governance structure. This structure establishes appropriate oversight to ensure the effective allocation and management of financial resources so that neither project scope nor expenditure authority is exceeded.
44. Vote 1 Expenditures are adjusted annually based on planned CAF operational requirements and the annual Business Planning process which identifies the financial demands needed to support these requirements. These demands are examined by the National Procurement Oversight Committee (NPOC) whose management and oversight framework is designed to ensure judicious expenditure within approved allocations. Once approved by NPOC, the overall multi-year plan is submitted for review and approval to the Programme Management Board. If approved at PMB, the demand is submitted to the Investment and Resource Management Committee for approval of the final annual allocation.
45. Any requirement above $20 million is also submitted to, and reviewed by the Defence Procurement Strategy Governance Committee for approval of its procurement strategy for services contracts and if applicable, of its Sustainment Business Case Analysis. This ensures adequate consideration of strategic trade-offs through the optimization of the following four sustainment principles of Equipment Performance, Value for Money, Flexibility, and Economic Benefits.

Defence Renewal – Concluding Activities

46. Over the last year, many of the original Defence Renewal initiatives have been completed. Defence Renewal has now reached a point whereby most of the Defence Renewal initiatives have transitioned from a pilot approach to being the normal course of business, and as such they will be closed out as special initiatives. Going forward, not only will these changes continue to provide a recurring financial impact, they will represent a change in thinking towards the management of resources. This represents a culture shift in how Defence does business. Accordingly the benefits from the strategic undertaking of Defence Renewal will support and aid in the implementation of SSE.
47. By the end of FY 2017/18, Defence Renewal will transition to a Business Analytics Team, residing within the Office of the Chief Data Officer, with a focus on evidence based decision making, innovation and experimentation enabling continuous improvement within the department. Linked directly to the department’s SSE obligations, the new Business Analytics Team will support program managers in the use of business analytics to identify, reinforce, and enable ongoing improvement opportunities.

Corporate Risk Profile

48. National Defence is influenced by a wide range of external and internal factors, both domestic and international, that can affect how we achieve our mandate. These factors present both risks and opportunities, which we must carefully consider as Defence delivers on its roles and responsibilities.
49. Key risks are identified by aggregating risk information from internal and external sources, and considering that information in the context of the Defence mandate. Key risks will be articulated in detail in the corporate risk profile and summarized in the Defence Plan. Current key risks are as follows:
    1. Defence readiness. There is a risk that Defence has insufficient force elements of appropriate readiness to respond to concurrent missions, or sequential missions before reconstitution is complete. This includes missions that are planned in advance, as well as responses to unexpected events which by their nature are unpredictable in time, number, location and effect.
    2. Defence Team capacity. There is a risk that Defence does not have the right number of personnel with the right competency, at the right place, and at the right time, which may affect its capability to fulfill current GC and Defence expectations, in particular as it relates to the implementation of SSE.
    3. Strategic resilience. There is a risk that unexpected events may change the strategic picture such that it requires significant changes to the strategic level of resource planning and result in disruption to National Defence’s business operations.
    4. Capability delivery. There is a risk that the complexity of development, program approval and procurement processes will prevent Defence from meeting its investment targets in critical physical assets (equipment, physical and information infrastructure and real property) in a timely, sustainable and affordable manner to enable CAF operations. This risk is about failing to close gaps, or preventing gaps in capabilities which may lead to future mission failure.
    5. Integrated Information Management (IM)/Information Technology (IT). There is a risk to Defence that there are a range of IM/IT risks that threaten DND/CAF’s ability to deliver on IM/IT-related SSE initiatives efficiently and effectively. By not addressing our organization’s information management and knowledge transfer arrangements, there is the potential to adversely affect executive decision-making and strategic communication; which in turn affects the institution’s ability to make evidence-based decisions and communicate in an open and transparent manner. Successful integration is dependent on establishing common standards as the foundation of interoperability, effective planning, and continuous interoperability testing to assess and enforce compliance. Failure to address IM shortfalls has both operational and financial risks.
    6. Financial controls and reporting of inventory and assets. There is a risk that the financial reporting of inventory and capital assets in the Public Accounts of Canada and the Departmental Financial Statements may not accurately reflect the true value of the Department’s asset holdings which may result in a loss of confidence in the Department’s ability to manage the public purse. This risk may result in DND/CAF being given tighter controls resulting in less flexibility and making us less agile but more importantly, without this visibility and control, Defence is at risk of wasting precious resources that should be directed to higher priority initiatives. Implementing Defence Programme Analytics will help mitigate this risk.
    7. Security. There is a risk that some elements of the Defence Security Program are insufficient to assure the protection of all assets and the continuity of critical services in support of the Defence readiness, capacity and operational capability.
    8. Communications. There is a risk that the credibility, capability, effectiveness and operational success of DND and CAF institutions depend on DND and CAF ability to communicate, shape or re-shape narrative, inform and influence, deter, achieve and maintain support.
50. These risks are discussed at key governance boards and IRMC will choose which risks to mitigate and at what level by apportioning financial and/or human resources to address at both in year meetings and as part of the annual business planning process. The Defence Enterprise Risk Management (DERM) Policy and Guidelines will be written in consultation with L1 principals. This policy will also reflect the current TB Framework for the management of risk. It will provide direction and guidance to L1s regarding the methodology for establishing and communicating risk tolerance levels, risk metrics and reporting, as well as identifying the roles and responsibilities for risk champions. The policy will reinforce the requirement that L1 business plans and presentations to governance committees (PMB, IRMC) contain information conducive to discussions on risk management.
51. The CAF/DND Departmental Results Framework (DRF) will facilitate measuring and reporting on DERM along programs within the department using the Risk Chapter of the Performance Information Profile (PIP). The PIP and the data collected will be reviewed at a minimum annually by program officials and Chief of Programme staffs. Part of the data in the PIP is an assessment by the programme official of the risk(s) to their program. This will form the basis of the Corporate Risk Survey which will inform the Corporate Risk Profile. This will be briefed annually to the CDS/DM, who in turn will issue direction and guidance on risk tolerance and risk mitigation to program officials. Program officials will implement this direction and guidance with a view towards reducing the risk to their program and in turn to the Department.
52. The end state for DERM within CAF/DND will have measureable targets that are monitored and reported to PMB bi-annually and DSX annually to better inform and support decision making at all levels. The CAF/DND DERM Policy and Guidelines document will be issued by March 18.