1. Business Acumen Canadian ADM Mat Group Event 1 Deakin University CRICOS Provider Code: 00113B

2. 1.1 What is ‘Business Acumen’? ‘… the ability to make profitable and quick business decisions’ (http://en.wikipedia.org/wiki/Business_acumen) This implies: a thorough understanding of the macro and micro environment in which defence companies operate a thorough understanding of what drives profitability a market focused approach to your business an overall big picture understanding of the organisation, and its interrelationships, enabling you to make better business decisions 2

3. 1.2 Defence Strategy and Industry The Canada First Defence Strategy will have significant benefits to Canadian industry. The infusion of long-term stable funding it provides will enable industry to reach for global excellence and to be better positioned to compete for contracts at home and abroad Commitment to predictable increases over a 20-year period. National Defence’s annual budget is to increase from approximately $16 B in 2008-09 to over $30 B in 2027-28 Source: Canada First Defence Strategy (May 2008) 3

4. 1.3 Defence Strategy and the Economy Advantage Canada An economic plan to make Canada a world leader for today and for the future generations; building a strong Canadian economy and improving quality of life in the world A Defence Economic Framework The aim of a Defence Economic Framework is to take a broad, multi-faceted approach to enhance and speed the connection between innovation, defence procurement and capability delivery in order to maximize the economic benefits for Canada and Canadians, in line with the Government’s broader economic agenda while meeting Canada’s military requirements Source: Advantage Canada, Department of Finance (2006) 4

5. 1.4 Aligning our Focus-09-10 Defence Team Priorities Through the lens of the CFDS and the overall Strategic Defence Plan we will align our focus by positioning: The CF as a modern first class military serving Canadians at home and abroad The Department of National Defence as a responsible steward of public funds Canadian industry for success while showcasing the benefits to Canadians Source: Aligning our focus – A departmental statement of the priorities of the Defence Team for 09-10 (2009) 5

6. 1.5 Canadian ADM Mat Group Business Acumen Purpose: To raise the awareness and understanding of the business drivers that influence the behaviours of the defence industry in their dealings with ADM Mat Group. Industry Analysis and Context Internal Company Processes Reverse Feedback from Industry Lessons Learned 6

7. 1.6 Workshop Processes Workshop will be: Presenting some Business Basics Specific to the Defence Industry Interactive – using discussion and activities Enhanced by your individual contribution and active participation The workshop isn’t: Negotiation Skills, Contract Management, Project Management, Financial Management 101, etc. 7

8. 1.7 Workshop Structure Workshop will consist of: Day One – Macro view of the Defence Industry Day Two – Micro view of companies and how they operate Day Three – Specific practices of bidding, negotiation and risk management 8

9. 1.8 Introduction to Day One Day One will cover: Industry structures for doing business Local and international environment The Defence Industry – future opportunities, profit analysis Company structures Ethics in Defence business 9