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"Effective governance, performance and management regimes are critical to achieving the desired outcomes of strategic partnering relationships, creating greater value for money for both the UK MOD and its key suppliers."

 

PAUL FINLEY, DEFENCE EXPERT, PA CONSULTING GROUP

UK MOD and Babcock - Securing value by supporting the implementation of a new strategic partnering agreement

In 2010, the UK Ministry of Defence (UK MOD) and Babcock signed a 15-year partnering agreement designed to improve performance and increase value for money from the naval support enterprise. Delivering this outcome depended on establishing a transformation programme that could effect change across organisational boundaries and remain coherent with other change programmes in the sector.

Having helped the MOD to develop key aspects of the partnering agreement, PA was recruited as an independent advisor to both parties to support the development of the programme, the governance regime and to independently verify the delivery of financial benefits. In addition, PA facilitated the two organisations through key challenges in establishing the programme, such as developing clear links between the objectives of the agreement and the performance measurement system.

Our work helped the parties to develop effective management structures, deliver the information required to drive benefit delivery and provided independent assurance that over £100 million of cost savings had been delivered in the first two years of the programme.

To find out more about how we can help the defence community with partnering, commercial and procurement arrangements, please contact us now.