Defence

The job of today’s armed forces extends far beyond traditional concepts of military intervention. It ranges from fighting wars, peacekeeping and helping establish security and restore political control to reconstruction and aid delivery. The forces’ changing role has brought new challenges for the Ministry of Defence (MoD) in the areas of procurement, technology, management, finance and organisation; in addition, it must ensure that it operates with efficiency and effectiveness.

The MoD has been a major client of PricewaterhouseCoopers for over 20 years. As a result, we employ a large number of advisers with an excellent understanding of the MoD and the wider defence industry, and a track record in working effectively within the unique and diverse culture of the sector.

Potential issues

Managing financial and physical resources

• Becoming more efficient and effective
• Ensuring strategic alignment between management processes and IT
• Saving on support processes
• Responding to the organisational changes needed to modernise force structures and optimise the management of defence

Performance improvement

• Outsourcing non-core activities and the establishment of shared service centres
• Modernising management and administration processes
• Exploiting wider markets and commercialising agencies

Finance

• Enhanced performance in planning, objective setting, management reporting, record keeping and reviews of performance following the introduction of Resource accounting and budgeting (RAB)

Defence procurement

• Getting military platforms and equipment procurement right, at the right price and at the right time
• Addressing complexities not found in the private sector, including: focusing on capabilities rather than platforms; increased technological risk and complexity; different and innovative financing arrangements, such as PPP and PFI; and economic and political considerations

People

• Improving people management to ensure that today’s professional forces are properly motivated
• Improving recruitment and retention though better pay and conditions, training, accommodation and diversity management
• Advising on diversity, sexual harassment, sexual orientation, bullying, gender and other related issues

PwC services

• Acting as key accounting adviser and training provider during the MoD’s recent transition to resource accounting and budgeting
• Providing procurement and financial advice on PPP and partnering transactions
• Supplying commercial advice at the interface between the MoD and industry
• Maximising the use of assets at the front line
• Advice on programme and change management
• Supporting whole life costing
• Conducting agency customer satisfaction surveys
• Advice on delivering organisational change
• Providing independent supplier/contract assessments

Photograph by: WO Giles Penfound; Crown Copyright/MOD, image from www.photos.mod.uk. Reproduced with the permission of the Controller of Her Majesty’s Stationery Office