Press Release - Ministry of Defence: Implementation of
Integrated Project Teams
14 March 2002
Sir John Bourn, head of the National Audit Office, reporting
today on the implementation of Integrated Project Teams1
(IPTs) by the Ministry of Defence (MoD) told Parliament that the
teams had been introduced rapidly and successfully but needed to
evolve further. He also reported that firm direction was now needed
from the MoD to maintain the momentum behind the implementation of
the teams and ensure that they are successful in improving
acquisition performance.
The introduction of IPTs has involved a major change in culture,
processes and relationships for the MoD and those doing business
with it. Sir John found that the MoD adopted a pragmatic strategy
to achieve early implementation of IPTs, re-allocating around
10,000 personnel into some 130 IPTs in 18 months. The report
recommends that the MoD should undertake a stock-take of its
existing IPT structure to ensure that it reflects the experience
gained to date and provides the most effective structure to deliver
the benefits anticipated from Smart Acquisition.
It is important that IPTs bring continuous improvement in
acquisition performance. Sir John found that the MoD’s learning and
performance management systems need to evolve further to support
this and he makes a number of recommendations to advance
developments. In particular, Sir John urges the MoD to drive
improved performance across all IPTs by identifying and
promulgating success factors and better dissemination of lessons
learned, particularly from external sources such as industry and
overseas. The report notes that the MoD is evolving its performance
measures and Sir John recommends that in doing so it is important
that targets set by IPTs are explicitly linked into corporate
performance measurement systems, and that corporate measures are
coherent and encompass through-life performance.
Strong, empowered leadership is key to the success of Smart
Acquisition and IPTs. Sir John found that the MoD’s initial
leadership of the Smart Acquisition change management process was
positive and after some uncertainty is now being given fresh
impetus, through the recent appointment of a Director General Smart
Acquisition.
The MoD has taken steps to ensure that there is strong
leadership at IPT level but the report shows that some obstacles to
strong, high calibre, empowered IPT leadership remain. To date only
three of the some 130 IPT Leader posts have been awarded to
external, private sector candidates and the MoD has encountered
obstacles to such candidates coming forward for competitions for
posts. Sir John recommends that the Department needs to work with
the private sector in order to overcome these obstacles and provide
more joint career opportunities at all levels, including IPT
Leader.
Appropriate staffing of IPTs is another key determining factor
to their success. The report found that IPTs were created quickly
and the MoD’s strategy for staffing them was pragmatic with staff
allocated on the basis of existing complements rather than analysis
of need. IPTs reported to the National Audit Office that they were
under-staffed in areas such as Requirements Management, Integrated
Logistics Support Management and Finance. MoD has work underway to
review the resourcing of IPTs and Sir John recommends that in
taking forward this work the MoD should examine opportunities to
share scare staff more between IPTs and take into account the
experiences of other organisations in staffing IPTs.
Sir John said today:
"The Department has made a quick and encouraging start
to introducing IPTs and now needs to press ahead quickly with
action to embed and drive forward the changes under the direction
of the new Director General Smart Acquisition. My report makes a
number of positive recommendations to help with this and I will be
undertaking further work in the future to examine how successful
IPTs are being in enabling a through-life approach to acquisition
and improving performance2".
Notes for Editors
1IPTs are a central enabler of Smart Acquisition
intended to improve acquisition by moving from a functional to a
project-based organisational structure. They are intended to be
responsible for managing an equipment throughout its lifecycle, be
headed by an effective and empowered leader and contain all the
skills necessary to manage the project.
2 This report by the Comptroller and Auditor General
is the first in a planned series of three examining whether IPTs
are helping to improve defence equipment acquisition. The remaining
two studies in the series plan to address the following
questions:
- Study II - are IPTs and other Smart Acquisition stakeholders
engaging effectively to enable a through-life approach to
acquisition; and
- Study III - have IPTs improved acquisition performance.
Press notices and reports are available from the date of
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be obtained from The Stationery Office on 0845 702 3474.
The Comptroller and Auditor General, Sir John Bourn, is the head
of the National Audit Office employing some 750 staff. He and the
NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 24/02
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