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NATO Unclassified 1

5 Nov 2010

Resourcing & Implementing AOM Capabilities

Mr Stephen Pearce NATO IS – NATO HQ - NOR Colonel Martin FENN GBR Army - SHAPE

NATO Office of Resources

Bureau OTAN des Ressources

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NATO Unclassified 2

Resourcing & Implementing AOM(1) Capabilities

•  AOM resource demands – now and in the future

•  Delivering (and sustaining) Operational Capability to AOM

•  Can NATO do better?

1. Alliance Operations & Missions (AOM)

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NATO Support to the African Union

ISAF

Support to EU Operation ALTHEA

KFOR

Balkans Defense Reform

Operation ACTIVE

ENDEAVOR

Air Policing

NATO Training

Mission - Iraq

Counter - Piracy

AOM Resource Demands - NATO Operations

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NATO Unclassified 4

AOM Resource Demands

AOM - Annual NSIP Authorisations

NATO Office of Resources

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NATO Unclassified 5

AOM Resource Demands – Current levels of funding

AOM - Annual Military Budget Funding

NATO Office of Resources

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NATO Unclassified 6

AOM Resource Demands – forecasting the future

•  Planning & forecasting future capability shortfalls and resource implications –  AOM Requirements & Resources Plans (ARRPs)

ARRP Forecast

2011 2012 2013 2014 2015

NSIP €297M* €310M €134M €39M €29M

MB €154M €177M €189M €114M €117M * Actual NSIP expenditure in 2011 anticipated at EUR 150M due to implementation capacity constraints

Uncertainty increases with time

ISAF ARRP Joint Enterprise ARRP

OAE ARRP NTM-I ARRP

Ocean Shield ARRP NATO Support to African Union ARRP

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NATO Unclassified 7

Delivering Operational Capability to AOM

•  Underpinned by NATO common funding principles •  Eligibility criteria and exceptions •  Minimum military requirement •  Outsourcing vice force generation •  Role of the NATO Agencies •  Successes!

NATO Office of Resources

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NATO Unclassified 8

Delivering Operational Capability to AOM

•  Some shortcomings of current processes: –  Lack of overarching governance & accountability –  Seen by the user as too slow and unresponsive to needs –  Investment decisions too focused on capital cost –  Accuracy of forecasting and estimating of costs –  Management (throughout lifecycle) of Requirements is weak –  Too much duplication of effort –  Absence of effective control on project Implementation –  Need to improve Sustainment planning (O&M)

Still fit for purpose in 2010?

NATO Office of Resources

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NATO Unclassified 9

Can NATO do better?

•  Implement governance framework and accountability •  Continue to improve planning & forecasting for AOM •  Introduce greater control to capability implementation •  Improve management of capabilities throughout lifecycle •  Avoid duplication of effort •  Exploit synergies; including links to CPs (via ACT) •  Learn from experience and implement change

–  Common Logistic Support

•  Greater focus on meeting the needs of the Operational Commander

Requires leadership, trust & teamwork

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Questions? NATO Office of Resources

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