501. General
1. Each defence planning cycle begins with strategic decisions addressing the need for new defence capabilities, the resulting force structure and supporting capital, national procurement and human resource requirements. Further coordination with Level One Managers is needed to refine and scope the broad direction provided by senior management. A list of Senior Executive Committees can be found at Annex A.
[See Figure 5-1 - Defence Planning Cycle]
502. National Procurement
1. Level One Managers shall, in conjunction with ADM(Mat), prioritize their requirements against their apportionment of the NP program to align expenditures with their business plans. Level One Managers can invoke changes to approved NP requirements, subject to the concurrence of the Level One Manager's ADM(Mat) service provider organization.
2. The following points should be noted:
a. The apportionments found in Annex B of Chapter Four have been established in accordance with the NP priorities table in section 207 of the DPG;
b. In addition to the large common user (cross-environmental) apportionment provided to ADM(Mat) to plan and manage on behalf of the Department, there are also common user elements within each Level One Manager's apportionment. Level One Managers must ensure that the requirements of other Level One Managers are afforded an appropriate level of priority.
c. The NP planning apportionment for CMS, CLS and CAS include their respective environmental share of the COLOG and Ammunition/Sonobuoy programs.
3. Level One Managers will be required to review their NP program from September to November 2000 for the Fiscal Year 2002-03 planning cycle. DFPPC will issue detailed coordinating instructions to Level One Managers requesting their participation in the National Procurement Working Group to conduct the Fiscal Year 2002-03 National Procurement Review in accordance with the priorities in Article 207. The result of this review will be the Fiscal Year 2002-03 NP apportionments.
503. Capital
1. The Department delivers Long Term Capital Plans (LTCPs) to the Government annually in the Spring or early Summer. These plans illustrate the scope and character of a Defence capital program that aims to deliver the capabilities required to achieve the Defence Objectives. The LTCP will cover the overall capital program strategy, "other" capital (see Chapter 2, Section 207), as well as Miscellaneous Requirements and Equipment (including IM/IT projects). The LTCP (Construction) will address the infrastructure strategy, including acquisitions and disposals and related capital construction projects.
2. LTCPs are developed in accordance with strategic guidance and priorities issued from the Defence Management Committee, with project details supplied by Level One Managers. LTCPs include provisions to continue the implementation of approved projects, including the remaining portions of approved projects that are either 'gated' or 'phased' and require further Departmental approvals. Level One Managers supply this project detail. In addition, as outlined in section 502, Level One Managers are required to assess and report on the impact that the introduction of new or life-extended systems will have on Personnel, Operation & Maintenance costs including National Procurement.
3. Table 2-2 lists high-priority projects with target dates for an Initial Operating Capability (IOC). Sponsoring Level One Mangers are to report on these projects and specifically confirm or amend the target IOC date.
4. Level One Managers are to submit a Level One Capital Plan (L1CP) in accordance with direction provided in Chapter Two of the DPG and Chapters Five and Six of the DMS Manual. While the LTCP focuses on the next five years, Level One Managers must accommodate the longer-term realities for major defence acquisitions. Accordingly, business plans and Level One Capital Plans should provide forecasts for acquisitions that are just entering the planning window. Similarly, where a significant acquisition is planned to start within the planning period with a demand for resources beyond the DPG 2001 period, the continuing resource demand is to be identified. Level One Managers who do not have a submission for strategic projects are still required to provide Level One Capital Plan information for non-strategic equipment, construction and Miscellaneous Requirements projects.
504. Human Resources
1. Consolidated Human Resource (HR) Coordination. The Human Resource Group publishes the Strategic Human Resource Planning Guidance (SHRPG) each year in April. This document provides Level One Managers with detailed information on HR planning and reporting. The SHRPG eliminates most of the requirement for separate call letters. It also promulgates training priorities and establishment change restrictions. Specific coordinating instructions for exceptions to this document are addressed in the following paragraphs. The deadline for these unique submissions is 1 September 2000, with the exception of General Military Establishment Adjustments.
2. General Military Establishment Adjustment Limitation. As stated in Chapter Two, the limitation for adjustments to the Military Establishment is plus/minus one percent, unless otherwise authorized by the VCDS. Establishment Changes (ECs) submitted to adjust military regular force positions during Fiscal Year 2001-2002 must be received by DFPPC no later than 31 December 2000. Submissions later than this date will normally be approved for not earlier than APS 2002. VCDS is responsible for monitoring and controlling Regular Force Military establishment adjustments, including but not limited to Officer-to-NCM ratios, changes to critical MOCs and overall total establishment.
3. Civilian Salary Wage Envelope (SWE). Level One Managers have the responsibility for the devolved Civilian SWE, which provides the necessary flexibility for managing civilian human resource requirements. ADM(Hr - Civ) and Compt ADM(HR) are to be advised and consulted regarding any Level One structural, financial or employment initiative which has an overall impact greater than 5% of their total civilian workforce or $1M in SWE.
4. Military Pay Apportionment/Envelope. The notional apportionment of Military pay is based upon the current establishment structure and targets or known adjustments. Level One Managers must review their military HR plans early in the calendar year and seek necessary approvals so that Service Level Agreements (SLAs) or equivalent arrangements can be finalized with ADM(HR - Mil). Level One Managers are to apprise ADM(Hr - Mil) of future intentions so that this factor may be considered during the preparation of the Annual Reference Level Update (ARLU).
5. Military Postings. Operational and career development requirements have attendant costs that must be optimized, given the fiscal restraints imposed upon the Department. Level One Managers shall identify and prioritize their overall manning requirements based on their known and projected operational and business plans. These staffing priorities are to be submitted to ADM(Hr - Mil)/DGMC staff, who will develop appropriate succession plans for the following APS.
6. Personnel Quarterly Update. The Personnel Update Report is presented to PMB on a quarterly basis, detailing historical and projected Regular Force, Primary Reserve and Civilian personnel numbers and expenditures, categorized by Level One Manager. Commencing 1 April 2001, the Personnel Quarterly Update will be available online one week after presentation to PMB.
505. Readiness and Sustainment
1. Readiness. The DCDS and the three Environmental Chiefs of Staff, in coordination with DGSP, are responsible for determining the readiness states for operationally committed forces. In September of each year, DGSP, in consultation with ADM(Pol), will initiate a review of readiness levels associated with all areas of CF operations, as described at Table 2-6. Recommendations for changes to readiness levels will be discussed with the ECS and the DCDS prior to submission to the VCDS for approval by the end of October. Amendments to OPLANS and the resulting effects of readiness changes will be assessed and communicated to NATO and Allies through the Annual Defence Review process.
2. Sustainment. The resources required to sustain those forces committed to the contingency operations described in Chapter Three are to be reported in Level One business plans. Any adjustments to approved business plans will be staffed in accordance with the procedure described at Section 506.
506. Business Planning
1. DND/CF is committed to the continued use of the business planning process as the foundation for strategic resource management. ECS/Groups Principal and other Level One Managers must manage within their existing resource allocations, both for operating budgets and corporate accounts. Level One Managers are therefore required to develop their Fiscal Year 2001-2002 business plans within their assigned resource planning levels. Requests for resource or capability changes through the business planning process must be linked to changes in priorities, capabilities or direction.
2. Adjustments to approved business plans may be required due to unforeseen activities. In these instances, Level One Managers will be expected to reassess internal priorities and attempt to reassign resources before submitting requests for additional resources to the VCDS or Program Management Board (PMB). In extraordinary circumstances, where Level Ones are unable to undertake the required activity with the resources currently available and there is no funding available from central reserves, the DM and CDS may direct the in-year reallocation of resources.
3. In an effort to improve strategic gap analysis, the business planning process and the template will be amended. A new annex will be developed to allow Level One Managers to introduce activities which are unfunded. Single and multi-year activities should be included for review as part of the business planning process.
4. The business planning templates will be further refined for the FY 2001-02 cycle. Level One business plans are to be submitted as follows:
a. A full business plan for large organizations (CMS, CLS, CAS, DCDS, ADM(IM), ADM(HR Mil & Civ) and ADM(Mat));
b. A reduced business plan for medium-sized organizations (CFNA, ADM(IE), ADM(Fin CS), ADM(S&T), VCDS and CSE); and
c. A strategic letter for the small-sized organizations (ADM(Pol), CRS, JAG, DGPA, NSS, CFLA, CMJ and EPC).
5. Direction concerning the contents of the business plan submissions will be promulgated by DGSP.
6. To allow time for appropriate analysis, it is critical that business plans be submitted on time. Fiscal Year 2000-2001 business planning cycle timelines and milestones are confirmed as follows:
a. 1 November 2000. Level One business plans due to VCDS;
b. November-December 2000. Business plans and corporate priorities for the next planning period are reviewed and assessed;
c. February 2001. Business plans are approved by the DM and CDS following the Level One Manager interviews. Interviews with the DM and CDS are being scheduled for the period 14-28 February 2001;
d. March 2001. Issue final allocations for Fiscal Year 2001-2002; and
e. April 2001. Issue DPG 2002.
507. Performance Measurement Framework
1. Framework. The departmental Performance Measurement Framework (PMF) will continue to evolve incrementally and in concert with the Performance Management Agreement (PMA) used at the executive level. DMC has endorsed the following five key performance-measurement perspectives:
a. Operational Forces;
b. Defence Team;
c. Leadership, Professionalism & Values;
d. Contribution to Government of Canada; and
e. Resource Management.
2. Measures and Indicators. The perspectives are the windows through which we will monitor our performance against assigned tasks and goals. Within each window are focus areas that are intended to define specific areas of performance interest. Measures and indicators will be as follows:
a. Periodic Reporting. Departmental performance reporting to DMC will be implemented progressively, initially semi-annually and then quarterly. This will permit the establishment of trends and provide senior management the opportunity to provide steerage. The Operational Status Display (OSD) will be progressively developed to include all operational units and formations and harmonized criteria. The OSD status and trends will continue to be briefed to DEM not less often than monthly.
b. Level One Annual Performance Report Content. Direction for the DPG 2001 Level One annual performance report content will be based on Table 5-1 with details issued by I February 2001. This information will include amplification of the specific measures and indicators. While a template will be provided to facilitate integration into the departmental report, there will be sufficient flexibility to permit each Level One Managers to reflect the uniqueness of their function, their own internal priorities established in their business plan and their existing performance measurement framework.
4. Coordination. Level One performance reports will be submitted by 30 June annually. These reports will be integrated, cross-distributed via the intranet to other Level One Managers, briefed to DMC and then fused with other sources to produce the Departmental Performance Report to Government in September. A list of the major Departmental internal and external reports is included as Annex B.
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