The 2020 Defence Strategic Update identifies that Australia’s security environment has deteriorated. Major power competition, military modernisation, disruptive technological change and new threats are all making our region less safe. As the strategic environment changes around us, we have to change with it.

Defence, as a matter of necessity, must continue to improve its ability to deliver on its current commitments while retaining the organisational capacity to anticipate and respond effectively to strategic challenges.

We recognise that the Defence enterprise is a strategic national asset, and we are responsible for it.

Just as we raise, train and sustain our military capabilities and our uniformed people, we must also ensure our enterprise can always adapt to our changing strategic environment.

This requires a high-performing One Defence enterprise with a culture that embraces continuous improvement.

Defence must lead the way in clearly demonstrating our ability to deliver our enterprise outcomes, and to provide maximum value to the people of Australia.

This means that we must have the ability to:

• Learn about our environment, our risks, our opportunities, and our own performance
• Evolve how we operate our enterprise, support and develop our people, and deepen our partnerships
• Align our priorities, our processes, our systems, and how we engage and communicate inside and outside Defence, and
• Deliver the Defence Mission and strategic effects, through our capabilities, our services, and by clearly demonstrating Defence’s value to the nation.

To achieve this ability, we require:

• A continuous improvement culture, based on our Values and Behaviours, clear accountabilities and trusted information.
• An enduring system for transforming the Defence enterprise – this will be a continuous process to align resources to priorities, reform activities, opportunities and risks in accordance with our evolving strategy.
• Priority reform areas of focus, which includes:
  • Driving Improved Capability Delivery.
  • Strengthening Defence’s approach to Australian Industry capability, including innovation, export and harnessing opportunities from Australian science and technology.
  • Adopting a strategic approach to Defence enterprise resilience and supply chain assurance. 
  • Improving Defence’s Strategic Workforce Planning, Learning and Management. 
  • Instituting an improved enterprise performance measurement and reporting framework. 
  • Improving Defence engagement and communications. 

The initiatives in this Strategy will help us to work together as One Defence to continuously improve and adapt to face our challenges.