professionalise | re-prioritise | standardise | benchmark | improve industry relationships and industry performance | lead reform

DEVELOPMENT OF A BUSINESS CONTINUITY PLANNING

FRAMEWORK ACROSS THE DMO – CHALLENGES & HURDLES

Paul MulhollandAsst Director HR, Security and BC

ABOUT DMO• The DMO is a prescribed agency under the Financial Management

and Accountabilities Act 1997 (FMA Act) from 1 July 2005;

• The Defence Material Organisation (DMO) buys and maintains equipment for the Australian Defence Force (ADF);

• On Defence’s behalf, the DMO manages over $46Bn of physical assets and inventory representing 64% of Defence’s total assets and approximately 37% of the Government’s non-financial assets; and

• DMO currently employs over 7,000 staff across Defence precincts, bases and establishments located in Australia and overseas.

DMO STAFF - AUSTRALIA

• Over 7000 staff in Australia and Overseas:

ACT VIC QLD SACanberra Melbourne Brisbane Adelaide

Bandiana Amberley EdinburghNSW Benalla Cairns Sydney East Sale Carbalah Bungendore Laverton Maryborough WANowra Monegeetta Oakey PerthOrchard Hills Puckapunyal Townsville ExmouthPenrith Rockingham Richmond Williamtown Tasmania NT

Launceston Darwin Alice Springs

DMO STAFF - OVERSEAS• Overseas locations where DMO has Australian Public Service or ADF

staff employed:

FRANCE CANADA Philadelphia

Bordeaux Ottawa Clarkesville

Marignane Mirabel Fort Worth

GREAT BRITAIN UNITED STATES Greenville

London Huntsville Dahlgren

Shrivenham China Lake Crystal City

Didcot San Diego Washington D.C.

Boscombe Marietta Seattle

SPAIN Patuxent River Edwards A.F. Base

La Coruna Detroit Maryland

Madrid Wright Patterson Rhode Island

New Cumberland Robins

DMO – GLOBAL OPERATIONS

WHO ARE WE? - DMO

• The DMO’s first priority is to provide equipment and support for ADF units deployed on operations;

• To meet the demands of the ADF, the DMO must deliver equipment and services on time, on budget, and to the required levels of capability, quality and safety;

• The DMO’s relationships with industry suppliers are critical to

performance; and

• With a cash budget of more than $9 billion this year, the DMO is managing over 180 major capital equipment projects and over 90 minor projects, it also sustains and upgrades over a hundred existing fleets and signs approximately 3,000 contracts of $100,000 or more a year .

ACQUISITION & SUSTAINMENT

HMAS Perth conducting Anti-Ship Missile Defence Sea trials off the coast of WA.

HMAS Collins enters Sydney Harbour(The Govt has announced $214m to go to

further studies/analysis for the future submarines project.)

BCM IN THE DMO

BCM IN THE DMO

• The DMO Business Continuity Planning Framework is governed by, and operates under, the Continuity of Defence Operations (CoDO) BCM Framework;

• The CoDO BCM Framework subscribes to the standards set out in the Business Continuity Institute's (BCI) Good Practice Guidelines (2010) and draws on the six BCI principles for approaching business continuity management;

• A broad standard BCP template has been developed by CoDO for use at a Group/Service and Base/Precinct level; and

• DMO has tailored this CoDO Template to reflect the DMO hierarchal structure from a Head Office (HQ) level, to DMO Divisional level and even down to DMO Regional Elements/Resident Unit levels.

BCM IN THE DMO - CHALLENGES

• Geographically scattered project elements, personnel and suppliers including across Australia and also international;

• To some extent there are many differing chains of command (i.e. DMO elements located on Defence establishments/bases are ultimately responsible to the Senior ADF Officer or Base Support Manager, but also operate under their parent Divisions);

• Strict security classifications and protocols applied to DMO operations and personnel - particularly with relation to ADF global operations; and

• Given the size and varying scope of DMO activities - Business Impact Analyses (BIAs) required at differing levels including Strategic and Operational.

BUSINESS IMPACT ANALYSES - DMO

• Strategic BIA conducted in 2009 and identified DMO’s critical outputs to be:

– Sustainment activity in support of deployed ADF assets; and

– Rapid acquisition for Joint Forces capability.

• A DMO Operational BIA was conducted in two stages in 2011 and a total of 30 essential functions that support DMO’s critical outputs across 11 Divisions/Groups were identified and prioritised including:

– 7 x Priority 1 functions (MAO of 0 – 4 hours)

– 7 x Priority 2 functions (MAO of 4 hours – 2 days)

– 9 x Priority 3 functions (MAO of 2 – 7 days)

– 7 x Priority 4 functions (MAO of 7 – 21 days) and

• Functions with MAOs of greater than 21 days were not considered.

DMO BUSINESS CONTINUITY PLAN

• The two DMO Critical Outputs (Sustainment & Acquisition) identified in the Strategic BIA are managed at the DMO Canberra Defence Precinct level (or the ‘HQ’ level) by the DMO CDP BC Command Team which includes senior DMO executives authorised by the CEO DMO;

• The 30 essential functions identified in the Operational BIA that support the critical outputs are managed at the Divisional and Group level(s). Currently there are 11 Divisions and Groups identified that have responsibility for these 30 essential functions; and

• It should be noted that critical activities that support the 30 essential Divisional/Group functions may be undertaken by outposted Divisional/Group elements at the Regional or Resident Unit level (i.e. they may be undertaken on regional Defence Establishments, Bases or Office Precincts).

DMO - HQ, DIV & REGIONAL BCP MODELDMO Canberra Defence

Precinct – HQ BCP

CDP elements of Divisional BCPs included as enclosures to the DMO CDP BCP.

Full Divisional BCPs (including Regional Elements/Resident Unit BCP enclosures) will be held/maintained by each Division with copies provided to DHRSC so all DMO BCPs are held in a central HQ location.

Divisional BCP Divisional BCP Divisional BCP

Regional Element/Resident Unit BCPs Regional Element/Resident Unit BCPs Regional Element/Resident Unit BCPs

Included as enclosures to parent Included as enclosures to parent Included as enclosures to parent

Division’s BCP. Division’s BCP. Division’s BCP.

Divisional Regional Divisional Regional Divisional Regional Divisional Regional

Elements/Resident Unit Elements/Resident Unit Elements/Resident Unit Elements/Resident Unit

BCPs BCPs BCPs BCPs

DMO - HQ, DIV & REGIONAL BCP MODEL

• HQ, Divisional & Regional Elements/Resident Units model provides a hierarchal structure where, if an incident occurs, all essential functions are maintained and/or recovered by the function owners;

• It also provides a monitoring and reporting mechanism back to DMO Head Office so senior executive and ADF personnel can escalate response strategies if, and as, necessary;

• When completed, the model can be interrogated and data extracted to determine baseline data on:– Identifying all essential personnel, contact details, locations and

activities;– Mapping critical functions by locations; and – Analysing and identifying potential critical points of failure.

DMO BC ESCALATION CHART

DMO BCT- COMMAND TEAM (CDP)

SIGNIFICANT CDP INCIDENT

CDP BASED INCIDENT MONITORING/REPORTING DEFENCE

INCIDENT MGT TEAM

(DIMT)

DIVISIONAL INCIDENT

DMO DIVISIONAL BUSINESSCONTINUITY TEAM LEADER

BCM IN THE DMO

MONITORING/REPORTING

DMO REGIONAL ELEMENT/RESIDENT UNIT BC TEAM LEADER

DMO REGIONAL ELEMENT/ RESIDENT UNIT INCIDENT

HQJOC JCC

LOCAL/REGIONAL INCIDENT

ESTABLISHMENT/BASE INCIDENT BSM/SADFO

BCM IN THE DMODMO BC Command Team

Leader & Command Team

Monitoring/ReportingDMO OPSO

DMO DIV BC TeamLeader

Monitoring/Reporting

DMO Regional/ResidentUnit BC Team Leader

BSM/SADFO

CDP INCIDENT

LOCAL/REGIONAL INCIDENT

SIGNIFICANT CDP INCIDENT

DIVISIONAL INCIDENT

REGIONAL INCIDENT

ESTABLISHMENT/BASE INCIDENT

HQJOC

DEFENCE INCIDENT MGT TEAM

CHALLENGES TO BCP MODEL

• Need to embed and maintain awareness of BCM into the culture of the organisation;

• Need to encourage executive buy-in and if possible have senior executive(s) champion the necessity for effective BCM;

• Need to develop system to manage the constant turnover of DMO and ADF staff (e.g. postings, promotions, changing environments);

• Cooperate and operate in what can be a highly secure environment; and

• Employ constant review and testing mechanisms to ensure BCM remains current, relevant and captures any changes.

BCM IN THE DMO – QUESTIONS?