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1. Use it or Lose it: Corporate Over-Planning in the Air Force

Author:
Ross Fetterly
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
The Canadian government allocates funds to departments through the annual federal budgetary process. With a Department of National Defence (DND) budget in the fiscal year 2019-20 of close to $22 billion,2 and expenditures spread out across a broad range of very different and distinct activities, expending the full allocation can be a significant challenge. While federal departments are permitted some carry-forward of eligible lapsing funds from one fiscal year to the next, in fiscal year 2018-19 the amount designated was up to five per cent of the operating budgets in their Main Estimates.3 With the federal government projecting significant budgetary deficits in the coming years, restricting or eliminating carry-forward of funding may be limited or eliminated to reduce deficits. Past practice within the department has been for the Investment Resource Management Committee (IRMC), chaired by the deputy minister, to decide on funding allocations of the carry-forward, based on departmental corporate priorities. While from an institutional perspective that aligns funding with optimal funding requirements, the consequence to organizations such as the Royal Canadian Air Force (RCAF) is that only a limited amount of lapsed funding may be allocated the following fiscal year. Thus, the air force has a significant incentive regarding its budget: to “use it or lose it”.4 RCAF corporate over-planning (COP) is a principal in-year strategy to maximize the use of allocated financial resources. Yet, at the operational and tactical level, the concept and application of in-year over-planning is not sufficiently understood. This paper will frame over-planning within the context of the RCAF and then recommend strategies to integrate over-planning into the air force culture. Corporate over-planning is essentially a means toward an end; specifically, that of maximizing output given by defined resource allocation. The paper will first consider defence planning approaches and budget allocations, and then consider the strategic environment within which the organization operates. The third section will emphasize the need for change in how the RCAF manages financial resources, followed by a section on adapting to change. The fifth section will review the concept of over-planning. That will be followed by a discussion of RCAF institutional corporate over-planning. The seventh section will consider budgeting as communication and how this supports maintenance of a common operating picture within the RCAF on over-planning. The final section will focus on RCAF corporate over-planning by discussing the structural unexpended rate, applying an absorption rate in operations and maintenance activities, and planning investment opportunities.
Topic:
Government, Armed Forces, Military Affairs, and Budget
Political Geography:
Canada and North America

2. Complex Project Delivery Capability Matters

Author:
Ian Mack
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
Canada’s experience with the Phoenix pay system is not just a pay problem. It points to wider problems in Canada’s management of complex major projects. Learning from Phoenix is important for the Government of Canada as a whole and the Department of National Defence specifically, the latter arguably responsible for the largest portfolio of complex projects – both for weapon systems platform and information technology initiatives. Fortunately, it appears that the Liberal government has taken notice. In the most recent Mandate Letters to Ministers, the Treasury Board President has been directed to ‘improve project management capabilities so that all major projects in government are led by a certified professional with at least five years of experience’. Additionally, the new position of Minister of Digital Government was tasked to ‘lead work to create a centre of expertise that brings together the necessary skills to effectively implement major transformation projects across government, including technical, procurement and legal expertise’ (and to lead in the replacement of the replacement pay system). This paper attempts to shed some light on the matter of pursuing complex projects and the enormity of the task at hand. I say “enormity” because complex projects are difficult to deliver at all (let alone on time and budget), as in evidence by the number that continue to fail in the private and public sectors, regardless of the complex project capabilities of those responsible for delivering them.
Topic:
Government, Budget, and Public Policy
Political Geography:
Canada and North America

3. The Global Exchange (Spring 2018)

Author:
Adam Frost, David J. Bercuson, Andrew Rasiulis, Ross Fetterly, Lindsay Rodman, Lindsay Coombs, Stephen M. Saideman, Eugene Lang, David Perry, Alan Stephenson, Ian Mack, Adam Lajeunesse, Charity Weeden, and David Higgins
Publication Date:
03-2018
Content Type:
Journal Article
Journal:
The Global Exchange
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
“Canada is a fireproof house, far from inflammable materials.” These were the naïve words of Canadian Senator Raoul Dandurand during his 1924 address to the League of Nations. Ironically, his speech took place between the two most devastating global conflicts in human history, and Canada was an active belligerent in both. However misguided Dandurand’s statement may have been, its sentiment has been woven into Canadian psyche by virtue of geographic reality. Canadians enjoy the privilege of a tremendously productive relationship with the United States, which remains the global hegemon. With geographical ties, Canadians and Americans also share a common history and broad cultural kinship. The strength of this relationship has afforded Canada a degree of security that would otherwise be unattainable, which affects Canadians’ perception of national security. It is an exceptional privilege of circumstance that defence is not required to be frequently in the forefront of public dialogue. However, while it is unlikely Canada will be confronted with an existential threat in the foreseeable future, it would be foolhardy for Canada to become complacent about preserving the means to defend its national interests when necessary. The 21st century international arena is rife with instability and change. These conditions create uncertainty. Canada’s armed forces are charged with the task of safeguarding and advancing Canada’s national interests when called upon, often in the most challenging of circumstances and environments. In order for the Canadian Armed Forces (CAF) to be successful, the government of the day must adopt and implement pragmatic defence policy, and provide the CAF with the appropriate resources to meet expectations. This issue contends with the questions of how best Canada can enable the CAF to succeed in its assigned tasks, and outlines what some of those tasks ought to be to defend against contemporary threats in our era of increasing uncertainty. Policy-makers must consider the evolving threat environment in order to enable the CAF to effectively defend Canada’s interests. The proliferation of long-range ballistic missiles and offensive cyber capabilities poses significant threats to Canada and its closest allies. Climate change is also exposing Canada to new challenges in our Arctic territories, creating a growing need for surveillance and governance in the high Arctic to protect Canadian sovereignty. These are only a few of the emerging threats addressed in this issue. For the CAF to be capable of adapting to the multiplex of eventualities that it must be prepared to confront, it requires sufficient personnel and materiel. The mix of skills required in today’s armed forces is very different than in bygone eras. Personnel must also be properly equipped if they are to be effective in their roles. Therefore, recruiting and retaining people with expertise in diverse trades and the efficient and timely procurement of vital equipment are paramount if the CAF is to be a capable, adaptable and effective force.
Topic:
Defense Policy, Armed Forces, Military Affairs, Budget, and Missile Defense
Political Geography:
Canada, North America, and United States of America

4. The Global Exchange (Spring 2017)

Author:
David J. Bercuson, Randolph Mank, Sarah Goldfeder, Mike Day, David Perry, Peter Jones, David Carment, Milana V. Nikolko, Brett Boudreau, Rolf Holmboe, Darren Schemmer, Andrew Griffith, and Robert Vineberg
Publication Date:
03-2017
Content Type:
Journal Article
Journal:
The Global Exchange
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
The Global Exchange is the Canadian Global Affairs Institute’s quarterly magazine featuring topical articles written by our fellows and other contributing experts. Each issue contains approximately a dozen articles exploring political and strategic challenges in international affairs and Canadian foreign and defence policy. This Spring 2017 issue includes articles on trade, defense policy, elections and more.
Topic:
Defense Policy, War, Bilateral Relations, Budget, Elections, Democracy, Negotiation, Peace, and Trade
Political Geography:
Russia, Ukraine, Canada, Syria, North America, United States of America, and Gambia