Challenges in Matching Performance Metrics to Defence Acquisition

This paper details a case study which sought to identify the performance measures best suited to support military acquisition activities within a Capability Management (CM) framework. CM represents a profoundly different philosophic approach in how the Ministry of Defence (MoD) of the United Kingdom (UK) conducts strategic management. The challenges created by CM include deciding what performance measurement system to use as traditional measures do not easily match such an approach. The study involved interviews with key personnel from the MoD, National Audit Office (NAO) and five major UK based defence suppliers. A review of the measurement methodologies used by all of these parties (Government and suppliers) in relation to military acquisition activities was also carried out. The overall findings were that despite the very best aspirations of all parties concerned to develop new measures, the complexity involved in CM is such that no clear set of measures is yet available. The implications of the research are that an extended research programme will be required to determine if it is possible to develop the performance measures sought. Suggestions are made on steps for future research to generate the new types of measures that could work within a CM framework.