EXPORT EXPERTS - INSIDE: Issue 1/2018
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Defence ISSUE 1 2018 MAGAZINE INSIDE: WHAT’S HAPPENING AT LAND SYSTEMS DIVISION DIRECTORATE OF INDIGENOUS AFFAIRS IN PROFILE EXPORT EXPERTS The small team behind a big strategy
Defence MAGAZINE Contents The official magazine of the 3 CODE OF CONDUCT 36 WOMEN AT WORK Department of Defence Code of Conduct cases The roles for women in Defence are many and varied 4 ON THE ROAD TO ONE 44 FIGHT AND FLIGHT Issue 1 2018 The Secretary talks about Defence’s reform journey One year on, the Next Generation Technologies Fund is punching well 6 CLOSING THE GAP above its weight The Directorate of Indigenous Affairs 46 LEAP IN RIGHT DIRECTION is on a mission to increase cultural awareness A new program is bringing certainty to the world of quantum technologies 10 THE MAIN PLAN Long-term vision sets agenda for future 47 NEWS SHORTS to meet strategic and capability goals No surprises in Budget; Honour board a swimming idea; Reward for good work; 12 BOOST FOR INDUSTRY Walk the walk Suite of planning and expertise goes into ground-breaking Defence Export 48 STRENGTH TO STRENGTH Strategy Two new services will enable the Innovation Hub to further streamline its 18 THINKING OUTSIDE THE BOX processes Innovative thinking is being welcomed 51 CHEQUES AND BALANCE ON THE COVER: Members of the export and recognised at the innovation centre Two financial advisers learnt some strategy team from left, Joshua Leslie, at Fleet Base East valuable lessons while keeping the Asha Williams, Todd Settle, Thomas Beamish, Jenni Zierk and Joel Einstein, at books in order at Australia’s main 20 THE LAND OF OPPORTUNITY Brindabella Park, Canberra. logistics base in the Middle East Photo: Lauren Larking Land Systems Division is dedicated to providing the best equipment for the 52 PROBLEM SOLVER EDITORIAL ADF A senior engineer took on a potentially David Edlington dangerous hazard and developed a 26 SINGLE LANE AHEAD Sharon Palmer cost-effective solution Jenna Sorby-Adams A new one-stop management system is making life easier on the high seas 54 JOINT FORCE BY DESIGN PHOTOGRAPHY 28 HAVING A BALL The Force Design Division has been Lauren Larking busy designing a capable future force One public servant is going from Jay Cronan strength to strength in her chosen sport 56 WAR ON BARNACLES 30 CHANGING FACE OF THE APS DST scientists are working on ways to CONTACT US counter the costly issue of fouling on The APS is a vastly different organisation defencemag@defencenews.gov.au Navy ships these days and is gearing up for more (02) 6265 4650 change 59 KNOWLEDGE SHARING FIND US ONLINE 32 LET’S GET FLEXIBLE Army periodical Smart Soldier publishes its 50th edition www.defence.gov.au/ A lot more employees are taking defencemagazine advantage of more user-friendly working arrangements 34 RAISING THE BAR Defence Magazine is produced Defence Legal wins Government Team by the Ministerial and Executive of the Year and Government Lawyer of Coordination and Communication the Year Division, Department of Defence 2 Defence Issue 1 2018
Code of Conduct cases – 1 December 2017 to 30 April 2018 LEVEL CASES BEHAVIOUR SANCTION Inappropriate conduct – failure to follow directions; attendance issues Termination of employment Breach of code found; Inappropriate conduct – verbal and physical employee resigned Breach of code found; Inappropriate conduct – failure to follow directions; inappropriate use of social media APS 3 6 employee resigned Inappropriate use of Defence credit card; fraud Termination of employment Inappropriate conduct – physical; failure to follow directions Resignation Inappropriate conduct – verbal and physical Termination of employment Obtain financial benefit Reprimand False information/claim; inaccurately recording attendance Discontinued (medical) Inappropriate use of Defence travel card Reprimand; fine Inappropriate conduct – failure to follow directions; inaccurately recording attendance Termination of employment APS 4 9 Inappropriate conduct – verbal and physical Management action Failure to manage staff Resignation Attendance issues Management action Attendance issues Resignation Inappropriate conduct – failure to follow directions; damage to Defence property; verbal and physical abuse Termination of employment Inappropriate use of IT resources Termination of employment APS 5 2 Bullied and harassed employee Management action Inappropriate conduct – physical Retirement Attendance issues Resignation Inappropriate use of IT resources Reduction in classification Attendance issues Reprimand APS 6 9 Theft Termination of employment Inappropriate conduct – written Reduction in salary Breach of code found; Attendance issues employee resigned Inappropriate conduct – failure to follow directions; attendance issues Reprimand and fine Inappropriate use of social media Caution Inappropriate conduct – written No breach found Conflict of interest Discontinued Failure to manage staff Take no action Inaccurately recording attendance Reduction in salary EL 1 8 Inappropriate conduct – written Management action Inappropriate conduct – verbal Management action Inappropriate conduct – verbal Reduction in classification Failure to manage staff No breach found Attendance issues Caution Inappropriate conduct – failure to follow directions; inappropriate conduct – verbal; inaccurately recording EL 2 3 Termination of employment attendance Bullied and harassed employee Management action Issue 1 2018 Defence 3
WITH THE SECRETARY ON THE ROAD TO ONE We have ticked a number of boxes in implementing reform, but there is still a way to go T HERE were no big surprises for assigned clear authority and accountability; Defence in the Government’s 2018- E nablers that are integrated and customer- 19 Budget, but it did reiterate the centric; and Government’s commitment to reform. A planned, professional workforce with a We have come a long way in implementing strong performance management culture at reform over the past three years since the First its core. Principles Review (FPR) was released. We have completed 71 of the 75 FPR recommendations To this end I was pleased to launch the and implemented significant changes to ensure One Defence intranet site recently. The site is we operate as One Defence and are a strategic, designed to keep everyone up to date with the efficient and effective organisation. great work being done across the department to We have a stronger and more strategic centre achieve our One Defence goal. which sets direction, monitors our performance I provided the first blog for the site and focuses on providing government with the showcasing the work of the people behind the best advice. Posting in/Posting Out pilot project and look We have strengthened the accountability of forward to following the progress of it and many the Senior Leadership Group and streamlined other reform projects across the department. our commercial policy and practices making it The One Defence ethos is pivotal to our easier for industry to work with us. success. It is only by working together we can But we still have a way to go to ensure we deliver on our mission to defend Australia and are truly One Defence. its national interests in line with Government This ongoing endeavour requires a requirements. commitment from every single APS and ADF The projects that will feature on the One member to work towards becoming a single, Defence website are a good indication of integrated entity rather than a federation of Defence’s reform implementation and drive for separate parts. continuous improvement. Progress has been made but, to become truly I am also pleased to see the profiles of One Defence, we need to continue to focus on other teams doing great work – such as the building: export strategy team, Land Systems Division, Innovation Hub and Directorate of Indigenous An even stronger, more strategic centre able Affairs – in this issue of Defence Magazine. to provide clear direction, contestability Highlighting some of the work being done by of decision-making, along with enhanced women is particularly important to me as we organisational control of resources and seek to increase the involvement of women monitoring of organisational performance; across the organisation. An end-to-end approach for capability Defence is working hard to get the gender development, with capability managers balance right across the APS. Women make 4 Defence Issue 1 2018
The Secretary of Defence, Greg Moriarty, is focused on the Department’s reform. Photo: Jay Cronan “THE ONE DEFENCE ETHOS IS PIVOTAL TO OUR SUCCESS AS IT IS ONLY BY WORKING TOGETHER WE CAN DELIVER ON OUR GOAL AND MISSION.” up 42.3 per cent of Defence APS employees overall, holding 59.7 per cent of executive level positions and 32.9 per cent of senior executive positions. This year 47 per cent of our graduate intake is female, up from 35 per cent just five years ago, and I take this opportunity to welcome all our graduates to Defence. This year’s intake is the largest Defence has had, with some 300 bright new minds at work across the entire department. I am getting some great feedback on the work they are doing. There will be significant change at the top of the chain in the coming weeks with the Chief of the Defence Force, Air Chief Marshal Mark Binskin, to retire in July and be succeeded by the current Chief of Army, Lieutenant General Angus Campbell. I wish Angus well as he steps up to take command of the ADF and would like to acknowledge the tireless work of Mark Binskin. While I have worked alongside him for less than a year, Mark has been a great colleague and an exceptional advocate for both the department and the ADF in stroving to creat One Defence. I also congratulate Vice Admiral David Johnston on his appointment as Vice Chief of the Defence Force, Air Marshal Mel Hupfeld on being appointed Chief of Joint Operations, Rear Admiral Mike Noonan on his impending promotion to Chief of Navy and Major General Rick Burr’s appointment as Chief of Army. I also acknowledge the work and outstanding contributions of the current Vice Chief of the Defence Force, Vice Admiral Ray Griggs and the outgoing Chief of Navy, Vice Admiral Tim Barrett. There have been some new appointments at the top of the APS as well, with Stephen Pearson appointed Chief Information Officer at the beginning of the year and Stephen Groves joining us recently as Chief Financial Officer. u The One Defence intranet site can be found at drnet/AssociateSecretary/One_Defence Issue 1 2018 Defence 5
CLOSING THE GAP The Directorate of Indigenous Affairs is on a mission to increase cultural awareness Members of the By Katharine Martin Directorate of Indigenous Affairs. Front row from left, Christina Heath, Katharine Martin, Stephanie McNeill, Rebekah Hendriks, Ashley Johnson. Back row from left: Norman Laing, Alexa T Chamberlain, Trish HE Defence People Group sits at the heart At the core of the D-RAP and the department’s Enchong, Belinda of Defence’s commitment to Indigenous programs and initiatives for Aboriginal and Torres Satchell, Bekah Francisco, reconciliation and representation. Strait Islander peoples is a desire to foster strong rela- Corporal Tara Enchong, The Directorate of Indigenous Affairs tionships, provide opportunities and demonstrate a Emma Bowyer and (DIA) has a strong focus this year on profound respect for Indigenous Australian culture. Michael Howell. increasing cultural awareness across Defence and Photo: Lauren Larking enhancing career pathways and opportunities in the APS and ADF for Indigenous personnel. Cultural Awareness Training Part of the People Strategy and Culture Branch, the DIA has a blend of Indigenous and non-Indige- nous employees, bringing with them a diverse range O NE of these important initiatives is delivering Aboriginal and Torres Strait Islander cultural awareness training to Defence employees. This train- of culture and knowledge. The team works closely with the Services to ing helps break down barriers by educating employ- ees about Indigenous beliefs, traditions and cultural Defence Indigenous Champion develop Indigenous programs and works with the Capability Acquisition and Sustainment Group to fur- ther Indigenous procurement efforts. practices. The training is delivered online via CAMPUS course code 00007208 or face to face through the C ULTIVATING respectful relationships with Defence Indigenous people and Indigenous communities and businesses is a large component The Acting Director of DIA, Christina Heath, says the team is pleased with the “significant progress DIA, including as part of Leading for Reform and of the role of the Defence Indigenous Champion, Defence has made in our commitment to closing the Capstone sessions. Steve Grzeskowiak, Deputy Secretary of Estate and gap to Indigenous disadvantage and promoting cul- Infrastructure Group. tural respect and inclusion”. Through his participation in the Jawun program Defence Indigenous Career Development and and other Indigenous initiatives, Steve has fostered Retention Framework strong relationships with Indigenous employees and Department executives as a way of driving positive Defence Reconciliation Action Plan D EFENCE People Group has been working change in the organisation. O NE of the most significant and tangible Defence to deliver the Defence Indigenous Career “Part of my role as the Defence Indigenous commitments towards reconciliation for Development and Retention Framework to provide Champion is to advocate for Indigenous participation Indigenous people is the Defence Reconciliation career development for Defence employees. and drive cultural awareness within the Department,” Action Plan (D-RAP), Defence’s contribution to the The framework was piloted in 2017, with a formal Steve says. whole-of-government Closing the Gap Strategy. rollout scheduled for 2018 this year. “A fundamental part of closing the gap to Personnel within DIA oversee the plan’s imple- This framework is unique in that it is experiential- Indigenous disadvantage is ensuring we provide mentation and manage Defence’s participation in ly focused with 70 per cent of employees’ skills and opportunities for Indigenous people to gain employ- Indigenous APS programs and activities. experience being derived from practical, on-the-job ment and participate positively in their communities. “Over the course of 2018 the department will training. “We in Defence have a chance to make a real review the D-RAP to advance the discussion about Twenty per cent of skills are derived from super- difference in people’s lives by making direct and Indigenous inclusion and identify the next steps in vision, mentoring and coaching with 10 per cent indirect employment opportunities available to reconciliation for the department,” Christina says. focusing on formal education and training. Aboriginal and Torres Strait Islander peoples.” 6 Defence Issue 1 2018
About the author I AM a proud Aboriginal woman with Ngarabal and Kamilaroi descent, and Kamilaroi tribe deep family ties to the Wirrayaraay people. Since joining Defence, I have become more connected to my culture and history; a culture I unknowingly missed. The Aboriginal community from Kamilaroi is one of I come from a family with a strong Defence background in both the military the four largest Indigenous nations in Australia. and the public service. The Kamilaroi nation lies within the northern New In 2016 I successfully won a position via Affirmative Measures and I have South Wales and Southern Queensland region. been inspired by the Department’s commitment to ‘Closing the Gap’, and foster- Kamilaroi and Gamilaraay language ing a diverse and inclusive workplace. Affirmative Measures Indigenous positions provide opportunities for Ngarabal tribe Indigenous people to apply for positions in Defence while helping the depart- The Aboriginal Community from the Ngarabal tribe ment strengthen and support the recruitment and retention of suitably capable come from the area around Glenn Innes Australia. Indigenous personnel. The combination of Defence’s unyielding commitment to inclusion and my Ngarabal language strong family ties to the department made the decision to pursue a career in Defence incontestable. Wirrayaraay tribe That’s not to say that we have closed the gaps, or I have been without The Aboriginal community from the Wirrayaraay struggle, but it is refreshing to know that Defence is committed to the journey tribe come from central New South Wales towards reconciliation. Gamilaraay language Issue 1 2018 Defence 7
Indigenous Procurement Community Engagement National Reconciliation Week and NAIDOC Week, B T Y COMMITTING to Indigenous procurement, HE Directorate of Indigenous Affairs has been contributes to driving cultural awareness across the Defence is well positioned to take a leading role developing a range of Indigenous community department and more broadly, the Australian com- in supporting Indigenous procurement opportunities. engagement tools to assist Defence personnel engage munity. The Assistant Secretary Non Material with local Indigenous communities around Defence Defence personnel are encouraged to participate Procurement Branch, Jane Wood, is proud of bases. in these celebrations and use the community engage- Defence’s support for the government-wide Captain Chloe Dray, of Indigenous Affairs, says ment tools on the Indigenous Affairs intranet page to Indigenous Procurement Policy. effective community engagement improves our rela- help with Aboriginal and Torres Strait Islander com- “Through strong leadership, raised awareness and tionships with Aboriginal and Torres Strait Islander munity engagement. clear communication, Defence is well positioned to peoples, and increases cultural awareness. During 2017, the directorate oversaw the attend- deliver on supplier diversity and specific Indigenous “The DIA has been mapping out Defence base ance of 23 representatives from across Defence to the engagement outcomes across our procurement envi- locations against the Indigenous communities in Garma cultural festival in Gulkula, Arnhem Land, in ronment,” Jane says. these areas,” Chloe says. the Northern Territory. Garma aims to preserve and In the first two years of the policy, Defence has “By increasing our understanding of their culture maintain Indigenous culture. exceeded the government’s target, awarding around Alix Bateup, of Defence People Group, attended and any sacred sites, Defence can work cohesively 750 contracts to Indigenous businesses. with the local communities and be respectful of the the festival and was impressed by what she saw. “It was fantastic to see Defence recognised for our efforts in 2017, and to be awarded the Government traditional custodians of the lands we’re working “Defence has a large presence with NORFORCE Member of the Year at the National Supplier and on.” and so a lot of the young people have aspirations to Diversity Awards in Australia,” Jane says. Celebrating Indigenous cultural activities, com- join NORFORCE just like their aunties, uncles, dad Defence has again been nominated as a finalist munity events and national celebrations such as or grandad did. It was lovely to see,” she says. for the 2018 Diversity Awards to be announced on 23 May. Able Seaman Alan Patterson, is a member of the Navy Indigenous Performance Group ‘Bungaree’. Photo: Petty Officer Phil Cullinan Programs and initiatives Defence Aboriginal and Torres Strait Islander Network (DATSIN) Indigenous Cultural Advisory Group (ICAG) Indigenous Champions’ Network Campus online cultural awareness training Jawun cultural immersion program Affirmative Measures (Indigenous) APS positions Indigenous entry level programs into the APS The Defence Indigenous Mentoring Program Defence Indigenous Learning Strategy Certificate IV in Indigenous Leadership Indigenous Pre Recruit Program Navy and Army Indigenous Development Programs located in Cairns, Batchelor and Kapooka Army Regional Force Surveillance Units patrol across Northern Australia Air Force Indigenous Liaison Officer posi- tions 8 Defence Issue 1 2018
A Welcome to Country Smoking Ceremony is led by Ngunnuwal Elder Matilda House, at the front of Russell Offices to mark the start of NAIDOC week in Canberra. Photo: Lauren Larking Entry Programs I N 2017 Defence welcomed 76 new Indigenous trainees into the department. Christina says the intake of trainees was double the number the previous year and was the largest intake Defence has received. Danyal Davids, a 2017/2018 Indigenous Australian Government Development Program train- Mentoring ee and Base Support Operations Officer based at A NOTHER support program which has yield- ed positive results for Indigenous personnel in Defence is the Defence Indigenous Mentoring Holsworthy Barracks, notes the biggest benefit of the traineeship for him has been the opportunity to work full-time and at the same time study for a Diploma in Program, with more than 100 APS mentees partici- Government, opening up many doors which he never pating last year. imagined possible. DATSIN The program provides support to Indigenous Ashley Johnson, of Indigenous Affairs, says the N ETWORKS and support systems play a signifi- cant role in Aboriginal and Torres Strait Islander culture and can serve as great opportunities for pro- trainees in Defence who have appreciated the oppor- tunity to be paired with more experienced Indigenous and non-Indigenous personnel. traineeship program provides the opportunity to edu- cate other cultures and Defence cultures about the importance of Aboriginal and Torres Strait Islander fessional development. Mentors play an important role in Indigenous people. The Defence Aboriginal and Torres Strait trainees’ transition into Defence. Alisa Smith nom- “Not just as First Nations people, but also in terms Islander Network (DATSIN) provides the means inated to become an Indigenous mentor and found of what they can contribute to Defence’s capability for Indigenous Defence ADF and APS members to the experience benefited not only her mentee but also and mission,” Ashley says. communicate with each other and network across the herself through the process. Although there is still work to do, it’s important department. “Mentoring is a mutually beneficial relationship to acknowledge how far we have come and vital we Norman Laing, Defence’s Indigenous Cultural and while I will enjoy providing coaching and guid- learn from the past. Adviser, says the network has been invaluable for ance to the new trainees, I am very keen to learn To close the gap to Indigenous disadvantage we peer support as well as a means to contribute to the about the unique skills and knowledge they bring to need to work together to achieve a brighter and more overall morale and wellbeing of Defence members. the workplace,” Alisa says. inclusive future; one where Indigenous and non-In- “It is also a positive and commendable example of She feels privileged to be a part of the process and digenous Australians come together, to acknowledge Defence supporting its members to access, and dis- is looking forward to witnessing the development of our shared history and contribute toward a shared and cuss cultural matters and seek advice and assistance trainees as they gain confidence, allowing them to united future. A future where we support, respect and from the group in the first instance,” Norman says. flourish in their careers. value one another. Issue 1 2018 Defence 9
THE MAIN PLAN Long-term vision sets agenda for future to meet strategic and capability goals By Jenna Sorby-Adams T HE Defence Industrial Capability According to the Industry Policy and to a Sovereign Industrial Capability Priority. Plan outlines the government’s Program Officer, Defence Industry Policy “One of the things the plan does is it explains vision to achieve a more mature, Division, Veronica Jerez, the Plan’s five to industry all of the mechanisms they can use resilient and internationally strategic objectives not only build on the 2016 to help them become part of defence industry, competitive defence industry in the Defence White Paper and the 2016 Defence or if they’re already in defence industry, to next 10 years, underpinning the Government’s Industry Policy Statement, but bring together a improve their capabilities or expand their access $200 billion investment in Defence capability host of existing defence industry policies. to Defence capability procurement processes,” over that period. “The plan in a way is another piece of the Kerry says. The plan was launched on 23 April by the puzzle in the government’s vision for defence At the most advanced stage, this will extend Minister for Defence Industry, Christopher industry”, Veronica says. to exporting. Pyne, at the Australian Strategic Policy Institute “We’ve got the Defence White Paper, “If you’re an SME and you want to work in in Canberra. the Defence Industry Policy Statement, the defence industry, there’s a way in, and if you’re “Until now, Australia has never had a Integrated Investment Program, the Naval already in, there’s a way up,” she says. long-term plan for what we want our defence Shipbuilding Plan, the Export Strategy, and now Another key aspect of the Plan is integrating industry to be, nor did we have a blueprint to this is the Plan. So it’s building on that whole.” the Sovereign Industrial Capability Priorities guide the development of that industry,” the A central part of the Plan is the Sovereign into existing Defence decision-making Minister said. Industrial Capability Priorities, which are processes, including Force Design and “In releasing this first ever Defence Industrial determined through the Sovereign Industrial Capability Life Cycles. Capability Plan today, the Government is Capability Assessment Framework. “It is a way to ensure that Defence considers putting forward its vision, its direction and plan, “The Sovereign Industrial Capability the health and resilience of these priorities when for a defence industry that is positioned to meet Priorities are the ones that government says are they’re making decisions,” Kerry says. Australia’s strategic and capability goals.” so important to our Defence capabilities that we The Defence Industry Policy Division is now The Director Defence Industry Capability need to have access to, and control over, those moving ahead with implementing the Plan in Strategy, Defence Industry Policy Division, industrial capabilities in Australia,” Kerry says. close partnership with the Centre for Defence Kerry Doyle, speaks of industry as a She says the Sovereign Industrial Capability Industry Capability (CDIC). fundamental input to capability. Assessment Framework is designed to be “Defence Industry Policy Division will be “We need an Australian defence industry that responsive to changes in technology or our focused on integrating the Sovereign Industrial is capable, ready, and robust to support Defence strategic circumstances, so Sovereign Industrial Capability Priorities into Defence capability capability,” she says. Capability Priorities can be reviewed. decision-making, whereas the CDIC will be “The Defence Industrial Capability Plan is The Plan is primarily directed at small to focused on delivering the new grant that goes about how we will actually implement support medium enterprises (SME) within defence along with the plan,” Kerry says. to industry, and make sure that our industry is industry and includes a dedicated $17 million According to Veronica, implementing effective in providing those capabilities.” annual grant program to help SMEs contributing the plan will also require coordination with 10 Defence Issue 1 2018
Strategic objectives 1 2 A broader A strategic and deeper approach defence to defence industrial industry base investment 3 An innovative and competitive defence industry 4 5 A Defence A robust and industry defence partnership that industry enables Australia export to pre-position for capability the future Sovereign Industrial Capability Priorities Collins-class submarine maintenance and technology upgrade. Continuous shipbuilding program (including rolling submarine acquisition). Land combat vehicle and technology upgrade. Enhanced active and passive phased array radar capability. Combat clothing survivability and a number of other initiatives including the Plan, once implemented, as “the first step of signature reduction technologies. Australian Industry Capability Program, the something that could be quite transformative for Advanced signal processing capability Defence Innovation Hub, the Next Generation Defence capability”. in electronic warfare, cyber and Technologies Fund, the Defence Export For Kerry, the launch of the Plan marks the information security, and signature Strategy and the Australian Defence Export end of a prolific chapter, and the beginning of management technologies and Office. another. operations. Graduates Natalie Katholos and Paul Azar “You need to recognise when you’ve made a Surveillance and intelligence data look forward to being involved in implementing milestone and then get ready for the next one,” collection, analysis, dissemination and the policy, which is for them a unique she says. complex systems integration. experience. Meanwhile, the Minister calls on defence “It is an extremely valuable learning industry to step up to the challenge. Test, evaluation, certification and experience to witness the launch of a public “We aim to give industry the policy tools. systems assurance. policy document and to be involved in its Now it’s for industry to finish the job,” he says. Munitions and small-arms research, implementation,” Natalie says. “Importantly, the plan makes clear that to design, development and manufacture. “As graduates, we are really lucky to be be considered an Australian Defence company Aerospace platform deep maintenance. immersed in a project that will affect defence having an ABN and a shopfront is no longer industry over the next 10 years. Equally exciting enough – we want to see Australian leadership, was getting a selfie with Minister Pyne.” an Australian board and an Australian workforce Veronica is similarly enthused, seeing the value-adding right here at home.” Issue 1 2018 Defence 11
COVER STORY – DEFENCE EXPORT STRATEGY Suite of planning and expertise goes into ground-breaking Defence Export Strategy By Jenna Sorby-Adams BOOST T HE ground-breaking Defence Export Strategy brings together government, Defence and industry in delivering a high-level strategic framework for defence exports. It aims to boost investment and innovation in defence exports, create more high-end manufacturing FOR jobs for Australian businesses and bolster the capabil- ity of the ADF. The Prime Minister, Malcolm Turnbull, the Minister for Defence, Senator Marise Payne, and the Minister for Defence Industry, Christopher Pyne, released the Defence Export Strategy on 29 January. “What this is doing is, for the first time, establish- ing a solid, continuing Australian defence industry in INDUSTRY Australia,” the Prime Minister says. The Assistant Secretary Defence Industry, Defence Industry Policy Division, Matt Ramage, says the strategy will build on the competitiveness, resilience and sustainability of the defence industry, harnessing the best that Australian defence industry has to offer. “The Defence Export Strategy is a 10-year plan that outlines how Defence will bring together all of the elements of the Defence export system to support Defence capability needs and to support our defence industry to grow its exports,” Matt says. The Director Industry Policy and International 12 Defence Issue 1 2018
“WHILE GOVERNMENT HAS SUPPORTED INDUSTRY TO EXPORT BEFORE, IT’S NEVER BEEN DONE IN SUCH A SYSTEMATIC AND METHODICAL WAY.” NATHAN RUFUS, DIRECTOR INDUSTRY POLICY AND INTERNATIONAL ENGAGEMENT Strategic goal The strategic goal of the Defence Export Strategy is to achieve by 2028 greater export success to build a stronger, more sustainable and more globally compet- itive Australian defence industry to support Australia’s defence capability needs. This will be achieved through the following five objectives: Strengthen the partnership between the Australian government and industry to pursue defence export opportunities. Sustain Australia’s defence industrial capabilities across peaks and troughs in domestic demand. Enable greater innovation and productivity in Australia’s defence industry to deliver world-leading defence capabilities. Maintain the capability edge of the Australian Defence Force and leverage defence capability development for export opportunities. Grow Australia’s defence industry to become a top 10 global defence exporter. Key aspects A new Australian Defence Export Office which will work hand-in-hand with Austrade and the Centre The Assistant Secretary for Defence Industry Capability to coordinate Engagement, Defence Industry Policy Division, Defence Industry Matt whole-of-government efforts. Nathan Rufus, says the strategy builds on the 2016 Ramage, left, and the A new Australian Defence Export Advocate who will Defence Industry Policy Statement. Director Industry Policy and provide high-level advocacy for defence exports and “It is one of a number of new policy levers, International Engagement, coordinate efforts across industry and government. alongside the Defence Industrial Capability Plan, Nathan Rufus, talk about the A $3.8 billion Defence Export Facility administered the Australian Industry Capability program and the export strategy. by Australia’s export credit agency, the Export upcoming Defence Industry Skilling and STEM Photo: Corporal Bill Solomou Finance and Insurance Corporation, which will pro- Strategy and Defence Industry Participation Policy, vide support when there is a market gap for defence which aim to ensure a resilient and sustainable finance. Defence industry,” he says. According to Matt, successful implementation $20 million a year from 2018-19 to implement the of the strategy requires a whole-of-government Defence Export Strategy and support defence indus- approach. try exports, which includes: “While Defence has developed the strategy and » $6.3 million to develop and implement strategic we have led the strategy, we are bringing together all multi-year export campaigns. arms of government, and also including the states and » $3.2 million to enhance and expand the Global territories,” he says. Supply Chain program. In working together with bodies such as AusTrade, the Centre for Defence Industry » $4.1 million for grants to help small and medium Capability within the Department of Industry, enterprises compete internationally. Innovation and Science, and the Export Finance » Local industry experts in key markets to provide Insurance Corporation, Matt says the strategy trans- advice and support for Australian defence exports. forms what was previously a piecemeal approach into a forward-thinking policy for defence exports. » A Defence Export Forum to coordinate efforts “While government has supported industry to across the Australian government, state and terri- export before, it’s never been done in such a system- tory governments and industry. atic and methodical way,” Nathan adds. Continued page 14 Issue 1 2018 Defence 13
COVER STORY – DEFENCE EXPORT STRATEGY From page 13 The Defence Export Strategy aims to bring Australia within the top 10 defence exporters worldwide within a decade. In describing the strategy as an “ideas space” with little pre-existing policy, Matt says that “the top 10 defence exporter was an ambitious element of the strat- egy, but that was the opportunity we had in this area, to be ambitious for the nation and for defence industry, because that’s what policy is about”. Nathan says achieving this objective must be driven by defence industry, and the strategy aims to set the right framework, policies and support to give industry the best chance to do so. “Industry has to take up that opportunity and seek out those markets. But they can’t necessarily do that without the right support from government and this is really about providing those circumstances, providing that framework,” he says. Matt adds that “the way to get to the top 10 is to understand your strengths and weaknesses and to build upon those and leverage those in order to know how to understand the markets you are trying to operate in and then best use resources to achieve that”. One of the features of defence industry is peaks and troughs, according to Minister Pyne. “By investing in defence exports, we are giving defence industry the opportunity to see through those peaks and troughs and establish long-term investments in their equipment, in their skills, in their workforce, in their management, in their research and development,” he says. Matt says this is particularly important for small and medium enterprises within Australian defence industry, which will play a key role in supply chains through providing capability that is both cost-effective and fit for purpose, underpinning Australia’s defence capability and enhancing interoperability with partner defence forces. “All future defence exports will remain subject to the well-established export controls system which ensures Australia upholds its international obligations and main- tains Australia’s warfighting advantage and strategic interests,” Nathan says. Matt says it’s about “how we can leverage our capa- bility through Defence industry policy and use defence exports as a way to support security in the region and our broader regional and global objectives, but doing that responsibly and in a way that is very much aligned with our export control regime”. The strategy is now in the process of being imple- mented with the establishment of the Australian Defence Export Office on 23 April which acts as the focal point for defence exports. Damien Chifley was appointed as Executive Director of the Office, which now also incor- porates the Australian Military Sales Office, previously within Capability Acquisition and Sustainment Group. Defence Trade Controls Act It will also soon include the Team Defence Australia ini- tiative from the Department of Industry, Innovation and Science. Further, David Johnston was appointed as the first Australian Defence Export Advocate on 9 April. Matt expects much growth over time towards a deep- er, stronger defence industry. “The way in which we can give effect to the strategy in year 10 will be much different than it is in year one, THE Minister for Defence, Marise Payne, has Act, is intended to provide evidence-based, simply because Australian industry will be different, appointed Dr Vivienne Thom to conduct a practical recommendations for improvements it will be better, it will be more capable, it will have a review of the Defence Trade Controls Act to the Act and associated policy. In particular, greater suite of capabilities that are internationally com- 2012 (Cth). it aims to ensure that the Act is an effective petitive and can be exported,” Matt says. According to the Minister, the Act is an component of Australia’s export control regime Through a coordinated effort over the coming dec- important element in the government’s con- that appropriately addresses current and ade, the Defence Export Strategy will result in a defence tinuing effort to protect current and future future national security requirements. industry that is resilient, sustainable, innovative and national security and ADF capability. The review will include an assessment of competitive, able to provide better capability to the ADF The Act regulates the supply of military and whether the Act is fit for purpose, whether and known on the international stage for its world-lead- dual-use technology overseas and brokering in there are any gaps in the Act’s controls, and ing capability. In Minister Payne’s words, “it sets out a very, very defence goods and technology. It was enact- whether there are any unintended conse- valuable pathway for our engagement into the future in ed in 2012 to strengthen Australia’s existing quences resulting from the Act’s controls, such defence export terms”. exports controls and to align them with inter- as unnecessary regulatory burden. national best practice and was amended in “The review of the Act will consider the u Contact the Australian Defence Export Office at: Aust. 2015 after extensive stakeholder consultation. adequacy of both safeguards of national DEO@defence.gov.au The review, required by section 74B of the defence capability and its operation to prevent 14 Defence Issue 1 2018
The Australian Defence Export Export Office opens in Advocate David Johnston, the Minister for Defence Industry, Christopher Pyne, and the Acting Canberra Associate Secretary, Rebecca Skinner, open the Australian Defence Export Office at Brindabella Park. Photo: Jay Cronan T HE government’s vision to grow a strong, resil- ient and internationally competitive Australian defence industry to support our national security received a major boost when the Minister for Defence Industry, Christopher Pyne, opened the Australian Defence Export Office in Canberra on 23 April. Minister Pyne says the establishment of the Australian Defence Export Office is one of the key initi- atives of the Defence Export Strategy. “The Australian Defence Export Office will provide a focal point for whole-of-government delivery of the systematic approach and initiatives set out in the Strategy.” Minister Pyne says while Defence has tasted export success, establishing the Australian Defence Export Office is a critical step in achieving what we need to support and develop the Australian defence industry of tomorrow. “We now have a clear strategic vision for a sover- eign Australian defence industry that underpins our Defence capability. A defence industry that is sustain- able and internationally competitive is crucial to this vision,” he says. “I look forward to seeing Australian defence indus- try achieving greater export success, supported by the Australian Defence Export Office.” The Office will deliver a range of initiatives to assist and support industry, including producing market intelligence and partnering with industry in multi-year campaigns. Damien Chifley is the inaugural Executive Director of the Office, which now also incorporates the Australian Military Sales team, previously within Capability Acquisition and Sustainment Group. It will also soon bring in the Team Defence Australia initia- tive from the Department of Industry, Innovation and Science. Further, David Johnston, as Australian Defence Export Advocate Minister Pyne says, is to continue to open doors. “As much as I can travel and help try and open mar- kets and open doors and meet decision-makers, one of David’s key roles in going to be following on and creating his own openings of doors in other markets so under review we’ll be working in tandem to create opportunities for Australian companies and products.” Damien says his role is to turn all of the individual export players in the field into a team. “The Australian Defence Export Office will focus on bringing together efforts to grow defence exports, trade and collaboration that could advance the establishing a systematic approach to support,” military capabilities of potential adversaries or see Damien says. the transfer of technology that would not be in “It will ensure all elements of government support Australia’s national interests,” the Minister says. are working with companies throughout a product’s “This review is also important to ensure the Act lifecyle, culminating in an export opportunity. appropriately balances the protection of national “It will use the levers of trade shows, strategic cam- defence capability, while not unnecessarily restrict- paigns, investment through grants to companies to ing trade, innovation or research collaboration.” provide access to export opportunities. Dr Thom is a former Inspector-General of “The office will look across the capability spectrum, Intelligence and Security and previous to that was making sure that we are taking account of the capabil- a Deputy Commonwealth Ombudsman oversee- ity needs of the ADF and the advantages that we are ing law enforcement, immigration, taxation and trying to protect. defence agencies. “It’s about understanding what Australian industry The review will take about six months and will has to offer and tailoring the approach to exports to be publicly released in due course. where those market opportunities are as we haven’t u The Terms of Reference are available at defence. done that before.” gov.au/publications/reviews/tradecontrols Issue 1 2018 Defence 15
COVER STORY – THE TEAM THERE’S NO Inception D ESCRIBED by the Director Industry Policy and Governance, Nathan Rufus, as the “best team I’ve ever worked with,” the game-chang- ing Defence Export Strategy was piloted over the course of 15 months by just a few key players. The team comprised two Assistant Directors – team lead Tom Beamish and Asha Williams, who is now in charge of implementing the policy. It also included three policy officers – Dan Liu, Josh Leslie and Todd Settle – along with former graduate Jenni Zierk and current graduate Joel Einstein. “They were a really professional, intellectually driven team,” Nathan says. “Every member was engaged, passionate and interested in the work.” While each person brought their own strengths to the project, each team member worked on a breadth of different tasks. “One of the advantages of a small team was we had different work assigned to us, but we didn’t have really delineated or siloed roles. We really helped each other,” Josh says. Working on the strategy was a new experience for all team members. “None of us had worked on a policy quite like this,” Tom says. “Most of the team were new to defence industry Drafting the policy W as well, so we learnt a lot about the policy issues and the stakeholders, which was incredibly interesting. HILE each stage had its own challenges, it “Everyone came with a huge amount of enthusi- was in drafting and developing the strategy asm and really good humour, which were key to get- that the team was best able to show what it ting through what was a challenging year. was made of. “There was also a great vibe within the team, “We originally had grand ideas that we would which is a difficult one to quantify, but the personal- have a clear policy development phase followed by ities, while different, worked well together and made drafting, where we would have thrashed out all the it a pleasure to come into work each day.” policy issues and initiatives first and then turned it The strategy process consisted of three main stag- into a beautifully crafted public-facing document. But es. Firstly, it involved scoping out the issues, under- in reality the two things happened concurrently,” Tom taking initial research and gathering data. Secondly, it says. involved wading through the intricacies of developing A complicating factor was the moving goal posts and drafting the policy and finally, it involved organ- which, according to Tom, meant the team had to learn ising and overseeing the launch. to roll with the punches. “We had to be prepared to take the work plan, the intricate timeline developed in the first weeks of the strategy development, and not exactly tear it up and throw it away, but constantly refine, review, and adjust our tack. “Decisions were taken along the way that signif- icantly altered the direction and some of the founda- tional assumptions that we had made at various points along the process.” Assistant Directors Tom Josh says along with being agile, the team needed Beamish (above left) and to maintain a high-level knowledge of international Asha Williams (left). Policy and strategic policy. Officer Todd Settle (above “You had to be a generalist but also a specialist in right). Photos: Lauren Larking Defence industry policy, and know how all those gen- eral things distil down into Defence industry policy, and specifically export policy,” Josh says. In Todd’s words, it was “all hands on deck at times”. 16 Defence Issue 1 2018
‘I’ IN THIS TEAM what you say and why you think that, and as long as the team is doing that you can have contested ideas, contested thoughts, and that makes the best policy,” Josh says. Jenni says it was a valuable experience for her. “From a grad perspective, it was really interesting for me to see a piece of policy being developed that was so close to the government. And professionally, it was really great to have that experience and see the pointy end of business.” For Tom, who took on his first supervisor role as team lead and had a baby halfway through the year, the personal and professional development was palpable. “I’m still developing the suite of leadership styles. There is no single approach to leadership, and I think it has to be situational,” Tom says. “I have a set of skills that has got me this far, but now I need to broaden that to deal with a range of different situations.” Into the future S EEING their hard work realised at the launch of the strategy was a rewarding experience for the team. “Watching the Prime Minister, the Defence Industry Minister and the Defence Minister launch our document was really rewarding,” Josh says. “Seeing all the months, or for some people over a Policy Officer and former graduate Jenni Zierk year, of hard work, come to fruition and be launched (above) and current graduate Joel Einstein in such a high-profile way was really gratifying.” (below). Asha, who has worked within the Defence Industry Policy Division for almost 18 months, echoed Nathan in saying that “this is one of the best teams I’ve ever worked with”. “The most rewarding aspect for me so far has been getting that high level recognition for Defence industry exports, and getting the Australian Defence Policy Officer Joshua Leslie. Force, the Secretary, and the Ministers behind driving exports through a policy document,” she says. Now the strategy is finalised, a couple of the orig- inal team have dispersed. Todd has moved over to the new Australian Defence Export Office to ensure seamless implementation of the policy. Dan is in the Another challenge was consulting multiple United Kingdom completing a Master’s degree, and stakeholders, including ministers, other government a new graduate, Joel Einstein, has come on board to help implement the strategy. departments, the states and territories, and defence “It’s a team which, when you enter it, you quickly industry, and arrive at a position that everyone could work out there is a lot going on and a lot of different adopt. moving pieces ... you’re never left bored,” Joel says. “Everyone came to the table with slightly dif- Meanwhile, Tom is stepping sideways to work on ferent perspectives on what their priorities were. So one of the upcoming iterations of Defence Industry the challenge was finding a way through that which, Policy. as far as possible, met those different expectations, “The Defence Export Strategy for our team has while presenting a coherent narrative which, at the obviously been a huge body of work and effort over end of the day, would deliver the Defence industry the year or so that it took to develop,” Tom says. outcomes Defence needs to achieve its capability “But, in the context of the broader Defence indus- goals,” Tom says. try policy agenda and the work of this Division, it is In addition, the team members engaged in robust but a small piece ... it is fantastic that this policy is debate on decisions to be made. out there and is done, but it’s just one piece of a very “When it is something important like public pol- broad agenda which is continuing and moving at a icy or Defence strategic policy, you need to back up rapid pace.” Issue 1 2018 Defence 17
The Manager of the Fleet Base East Centre for Innovation, Don Moloney, with some 3D printed prototype models in the workshop. Photos: Corporal Sebastian Beurich By Corporal Sebastian Beurich THINKING N ESTLED in an unassuming building on HMAS Kuttabul is the Fleet Base East Centre for Innovation, a hub of activity OUTSIDE on a busy naval base. The centre is a joint venture between Navy, Capability, Acquisition & Sustainment Group (CASG) and contractors BAE and Thales, who make up the FFG Enterprise which was set up in June 2017 to take advantage of the rapid-prototyping offered by 3D printing. According to the centre’s manager, CASG’s Don THE BOX Moloney, what started as an “interest in innovation” quickly evolved into the wide-ranging centre for innovation. “A while ago, both myself and a few motivated people from the FFG Enterprise expressed an interest in innovation, particularly in 3D printing,” Don says. “The idea quickly expanded beyond 3D printing into the question of how we could bring the Chief of Navy’s innovation statement to the workforce. “There was definitely a lot of innovation going on around Defence, particularly in the FFG Enterprise, but a lot of it was either industry-facing or strategic Innovative thinking is being welcomed and recognised at level. “We really didn’t see any workforce targeted inno- the innovation centre at Fleet Base East vation practices, which identified a niche we could target.” The team did a lot of research in the lead-up to the opening of the centre, consulted with other inno- vation groups and visited innovation labs to find out what good innovation looks like. 18 Defence Issue 1 2018
The end result is nothing like any other Australian they can fix immediately on a ship, or it involves naval facility – a bright, vibrant open-plan space, more than one ship. containing a workshop, computer lab and meeting “We help to take the ideas through to fruition, to “THE PEOPLE WHO WALK area. see if they have value to Navy, Defence or the coun- Don and the Directorate of Navy Continuous try, and help innovation to occur.” THROUGH OUR DOOR ARE Innovation Project Manager, Commander Steve Although Steve is used to thinking about strate- USUALLY INDIVIDUALS WHO Thompson, are the only full-time staff, although they gic-level problems, Don says the main aim is to help HAVE SPOTTED SOMETHING are joined by BAE and Thales contractors as well as individuals fix problems in their workplace – whether sailors, when they are working on problems. that be an office or a ship. ON A SHIP, OR IDENTIFIED Importantly, the centre is a “rank-free zone”, “The people who walk through our door are usual- SOMETHING IN THEIR allowing even the most junior sailors the opportunity ly individuals who have spotted something on a ship, to plan and design new ideas. or identified something in their workplace and say ‘I WORKPLACE AND SAY ‘I THINK Ultimately, the centre comes under the Directorate think we can do that better’,” Don says. WE CAN DO THAT BETTER’.” of Navy Continuous Innovation which helped bring “One person, after learning computer-aided design the projects out of the design phase and into produc- and holding the physical representation of an idea in DON MALONEY, tion. their hand, told me it felt like they had a new super- MANAGER, FLEET BASE EAST “All of a sudden, young sailors have somewhere power. CENTRE FOR INNOVATION they can bring their problems and find a solution in “It really stuck in my head – the person was so an environment where there are no boundaries to excited, but they’d also cleared the fuzz between an innovation,” Steve says. idea in their head and having a physical, functional “Our job is to grab those ideas and take them as prototype. far as they will go, whether that means something “That sort of attitude bleeds across into Navy’s culture and encourages innovation, so people can look at their business processes and look for efficien- cies in how they do business.” The centre is only one part of the puzzle – they’re a part of a wider Navy community that specialises in innovation. The Directorate of Navy Continuous Innovation is responsible for maintaining an overview of every innovation project occurring across the Service, as well as providing advice for people looking to improve their own workplace. “Defence is so big that it’s near impossible for someone with an idea to communicate with, or even be aware of, someone else in the organisation who has the same problem,” Don says. “One of the functions of Navy innovation is to try and bridge those gaps. They have the visibility across the organisation to let them know a similar thing has been solved in another area, then link the two to see if the same solution applies. “Stove-pipes are one barrier to innovation, man- agement is another classic example. Businesses have objectives and KPIs, so it’s human nature for man- agement to tell someone to focus on the issue of the day, rather than improvements. “Culture is another, although by existing, the centre influences the culture to reduce fear of failing, bring about an appetite for new ideas and take an approach to risk management which includes the risk of lost opportunities.” Although the idea came from the rapid design and prototyping opportunities offered by 3D printing, the centre also has facilities to produce textile, electronic and virtual prototypes. Don has seen projects ranging from discreet pock- ets to fitting knee-pads into a uniform, to a compact Petty Officer Matt underwater propulsion device. Perry experiences “When we do a tour of the centre, we usually do a virtual reality demonstration using an Oculus Rift, a virtual reality but we also take visitors through out textile worksta- program (above) tion,” Don says. as an electronic “Innovation doesn’t have to be sexy – it can be circuit prototype very conventional fabrication tools, or even just help- is tested (right) ing someone with an idea.” at the innovation centre. u More information about the Fleet Base East Centre for Innovation, can be found on the intranet at drnet/navy/NavyInnovation/Pages/Fleet-Base-East- Centre-for-Innovation.aspx Issue 1 2018 Defence 19
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