Benefit Realisation for Defence Capability Investment Projects - Delivering Force Design Projects that Make a Difference

Abstract

This presentation describes a collaborative research effort between the Australian National University and Defence Science & Technology (DST) Group to develop a benefit realisation model for Defence investments in major acquisition projects, force structure and infrastructure, drawing on project management science. While most projects typically operate with a focus on delivering within scope, on time and within budget, they always have a larger organisational aim to achieve. New research in project benefit management suggests that adopting a wider view of projects which recognises their role in the creation of strategic value helps to ensure that the benefits desired from the investment can be realised. Applying a benefits management framework to define project benefits as the flows of value that arise from a project is a way for Defence to clearly understand what the proposed values of a new capability investment project are in the whole-of-government and Defence strategic context, and to then monitor benefit delivery throughout the Capability Life Cycle.

This research is being conducted jointly with Force Design Research team at the DST and aims to build Defence capacity in force structure analysis. The project will establish a clear linkage between Force Design decisions and strategic objectives through the development of benefit and value metrics and measures for the Integrated Investment Program. These will be combined in a project portfolio selection model for Force Design to comprehensively consider the effects of threats and opportunities around projects and performance dependencies in a risk-return optimisation model. Formulation of target benefits and values for new and existing capability investments will provide an evidence base for the Force Design balance of investment decisions and enable the contestability function across the Capability Life Cycle. In this presentation we review several relevant project management case studies and illustrate how the concepts from portfolio theory and benefit management can be applied in support of Force Design. Show more