1. H.J. Helsø General

2. AGENDA The process The New Structure Functional Services Transformation as a concept Challenges Lessons learned, keys to success

3. Capabillity Memo Defence Agreement Transformation 2003200420052006200720082009 Change of Strategy Individual Project plans Implement Directive New Defence with new capacities and focus on international operations Centralizing and rationalizing of the support structure Acquisition of equipment Overview of the Process

4. Military and political involvement Military level Parliament Government Step 1 Step 2 Approval Step 2 Step 3 Approval Step 3 Step 4 Approval Step 4 Step 5 Step 1 Step 2 Step 3 Step 4 Step 5 “Definition of framework” “Development of End-state structure” “Development of detailed End-state structure” “Development of Transformation plan” “Implementation”

5. DA NATO Previously Now Definition of framework NATO versus DA Force Planning

6. Developing End-state structure “Capability approach” "Reduction in number of staffs” Operational capacities Staffs Support- structure ”Maximize” “Rationalization and introduction of shared services" Objective: To maximize the number of operational capacities

7. ”Irrelevant” Army mobilisation forces Long conscription Vulnerable in relation to ”extraordinary situations” 40/60 International operations capability 1000 man strong/900 mio. Dkr. Unsufficient funds for running costs Relevant Standing forces Short conscription 60/40 ratio shifted in favour of ops International operations capability 2000 man strong/900 mio. Dkr. New equipment Sufficient funds for running costs From ”irrelevant” to relevant

8. Continuously Deployed Capabilities From: 1000 soldiers, sailors or airmen To: 2000 soldiers, sailors and airmen

9. “The old days” CHOD Deputy CHOD Defence Construction Ministry of Defence Minister of Defence Army Operational Command Denmark Admiral Danish Fleet Tactical Air Command Denmark Air Material Command Army Material Command Navy Material Command Units Materiel Personnel Infrastructure ITC Health service Materiel Personnel Infrastructure ITC Materiel Personnel Infrastructure ITC Materiel Personnel Infrastructure ITC Units Materiel Personnel Infrastructure ITC Health service Units Materiel Personnel Infrastructure ITC Health service

10. Defence Construction Ministry of Defence Minister of Defence Army Operational Command Denmark Admiral Danish Fleet Tactical Air Command Denmark Units Materiel Personnel Infrastructure ITC Health service Units Materiel Personnel Infrastructure ITC Health service Units Materiel Personnel Infrastructure ITC Health service Danish Defence Acquisition and Logistics Organization Air Material Command Army Material Command Navy Material Command ITC Materiel Personnel Infrastructure Materiel Personnel Infrastructure ITC Materiel Personnel Infrastructure ITC Merging of Materiel Commands CHOD Deputy CHOD

11. Ministry of Defence Minister of Defence Army Operational Command Denmark Admiral Danish Fleet Tactical Air Command Denmark Units Danish Defence Acquisition and Logistics Organization Materiel Personnel Establishment IT Health service Danish Defence Personnel Organization Materiel Personnel Establishment ITC Health service Materiel Personnel Infrastructure ITC Health service Danish Defence Estates & Infrastructure Organization Danish Armed Forces Health Services Danish Defence IT Agency Units = Operational capabilities Defence Construction Functional Services CHOD Deputy CHOD Danish Defence Accounting Agency Danish Defence Media Centre

12. The planning guide: Step 4 “Developing transformation plan ” Old and new structures Step 4 04 05 06 07 08 09 Year Total budget + 4% - 4% $ Up-front investments Old structure New structure

13. “Constant Change” THEN: NOW: Agreement

14. Transformation as a concept Transformation does not lead to an end state It is a continued series of leaps forward!

15. Lessons learned Military leaders should take the lead and inspire the political level Expect resistance from the existing “old” structures Think capabilities – not structures Be open to new solutions Use the lower levels to validate the end state Give the planning phase the necessary time and resources Carry out the changes (especially cuts) as quickly as possible Transformation is expensive – but is possible within current defence budget WILLPOWER REQUIRED