5 Cooperation and strategic alliances

Changes in society are now much more substantial and rapid than before. Both the private and public sectors in Norway are competing for competencies with other nations – and this will have an impact on the defence sector. Due to the special limitations in terms of security clearance for example, the population from which the defence sector recruits will most probably be smaller than for other sectors of society. However, current regulations do allow for some scope.

The defence sector has traditionally contributed much more competency to other sectors than it has received. Previously, the Armed Forces provided a major share of the male population with basic military competency during national service. Only a limited number continued to work in the defence sector after they had completed national service. However, the Armed Forces always had the option to mobilise this personnel and their competency as required. With the transition to a rapid reaction capability defence, the logic of producing an “inventory” of competency is less relevant.

The defence sector needs new mechanisms by which to ensure a two-way flow of competency and the ability to make use of technology, systems, personnel and competency developed by others. This is not least important as the tasks of the defence sector grow increasingly knowledge-intensive. Some of the knowledge required by the sector is specific to defence and, in other areas, cooperation with external parties is made difficult for security reasons. However, there are certain similarities today in a number of areas between the defence sector and major, complex organisations. It is therefore now more relevant to cooperate with civilian parties in order to refine such knowledge.

5.1 Cooperation and mutual dependency

There are several reasons why the defence sector requires a well-structured cooperation and to improve two-way flow of competency both in and out of the sector.

Firstly, society stands to gain a greater benefit if both the private and public sector could make use of competency developed within the defence sector without having to make major investments. A binding, mutual cooperation from an early stage of competency development may help increase the total benefit gained.

Secondly, the sector has a higher requirement than before for competency developed by others, either directly from educational institutions or from employers in both the private and public sector, at home and abroad.

Thirdly, by ensuring an improved structure for cooperation, the sector will benefit from increased predictability. Today and with very few exceptions, the two-way flow of competency is primarily based on individual wishes and needs. Competency is the common denominator for all the capabilities possessed by the sector and which the sector aims to develop, and as such competency must be improved in order to ensure predictability. This requires various forms of formalised cooperation between the organisations within the sector and others.

Fourthly, cooperation aids value creation. Competency increases in value when it is shared. The sector now has a much wider spectre of assignments than before and much more diverse competency. This includes a number of areas which are not necessarily specific for defence, and where there are grounds for exchanging experience and developing competency together with organisations outwith the sector. The level of complexity is on the increase within all organisations and the requirement for competency in both private and public organisations is now more similar to those in the defence sector. At the same time, the defence sector is growing more reliant on external organisations. Knowledge developed externally is therefore more important than before. Moreover, there is an increase in the number of competency areas which can be correlated to competency areas in other organisations.

One final aspect to be considered is that cooperation with other sections of society will augment knowledge of the sector among the general public. This may therefore help enhance the sector’s general reputation and standing. This is particularly important as a much smaller percentage of the population is now in contact with the Armed Forces than before, due to the fact that fewer people do national service and because the defence sector has fewer locations around the country. As the defence sector reaches out and invites other organisations to cooperate, they are sending out signals of openness and the willingness to share. Openness engenders trust and trust engenders legitimacy.

The defence sector, defence-related research and the defence industry have played an important role in the development of new technology. Technology and systems have been developed for military use but have proven to be of great importance for the rest of society. The use of more advanced technology has resulted in increased investments in basic research, applied research and experimental research. The dividing lines between military knowledge development and development within other sectors are now much thinner in a number of areas.

The development and application of knowledge therefore provide new and increased opportunities for cooperation across sector and national boundaries, for example within information and communication technology.

5.2 Two-way flow of competency

The defence sector cooperates extensively with other sectors and organisations both at home and abroad, including various types of competency flow. The mutual obligations, scope, degree of formalisation and activity related to such cooperation vary significantly. The one common feature however is that the flow of competency is not necessarily determined by the defence sector’s long-term competency requirements. In the future, the requirements of the defence sector and the individual organisation shall govern development of competency. The defence sector therefore needs the capacity to predict, plan, control and increasingly facilitate the flow of competency both in and out of the sector.

Photo: Media centre for the Norwegian Armed Forces/Lars Magne Hovtun

As the defence sector has traditionally provided society with substantial competency, but has not made use of competency developed by others to a similar degree, the sector shall now open the doors to a mutual flow of competency. This does not only apply between the defence sector and other sections of society, but also among the different organisations within the sector itself.

Textbox 5.4 Re-recruitment in the Armed Forces

Re-recruitment and professional employment of commanding officers with specialised competency provides the defence sector with rapid access to competency as a result of low lead times for personnel with the correct competency and access to high-quality competency. This applies in particular in areas where total qualifications have increased as a result of experience from outwith the sector. Moreover, re-recruitment may help increase the diversity of competency within the sector in that personnel have gained experience from other fields.

Re-recruitment of former employees and professional employment of commanding officers with specialised competency provide an economic gain in that these personnel are fully qualified and possess relevant qualifications which are in demand, in addition to minimising the risk of recruiting unsuitable candidates.

* The figures from 2012 are provisional.

It may be expedient to introduce short or long term work exchange or work experience for personnel among the organisations in the sector and other private and public organisations, both for management and specialists. The main aim here is to increase competency within the organisations and to ensure a predictable and controlled flow of competency.

Two-way competency flow is also a question of personnel who have moved to a different sector returning to the defence sector at a later date, or so-called re-recruitment. The Armed Forces can in particular benefit greatly from re-recruitment. The sector needs a broader spectre of competency and it is now more common for people to return to former employers as part of what has become known as “boomerang careers”. Moreover, the scheme for reserve personnel may be further developed with a view to recruiting such personnel for short or long term durations based on the needs of the Armed Forces. This area also provides potential gains for the defence sector.

There are a number of benefits to be gained from re-recruitment. The most obvious is the potential for cost savings. The Armed Forces have one of the highest rates in Norway of investment in developing competency for employees, mainly via its in-house educational system. When personnel leave the Armed Forces, they take this investment with them, out of the defence sector. The Armed Forces can therefore make use of re-recruitment to regain this investment. Moreover, the defence sector can utilise the competency of a re-recruited former employee gained during the time he/she spent working outside the sector. As such, the sector can benefit from experience, perspectives and knowledge from other parts of society. Once more, this provides cost savings as the sector has not had to invest in competency development during the period in which the employee has been working outside of the sector. Re-recruited personnel will have a so-called “short lead time”. They already have experience from working in the organisation and can therefore quickly take on a position or function. The Armed Forces have been working systematically on re-recruitment for some time and have accumulated a lot of positive experience. Since 2009, 150–220 persons every year are re-recruited or moved from a position as commanding officer to professional employee. Re-recruitment provides a substantial cost saving when compared with the alternative of developing and investing in competency for personnel who have been recruited with no former background or education from the Armed Forces.

5.3 Strategic alliances

A more systematic and strategic approach is also required in relation to partners in order to enhance access to competency and ensure availability at the right time. When different parties share a common requirement for competency which is scarce, they can either prepare to compete with each other or investigate the potential for cooperation, collaboration and interaction.

The sharing of knowledge and experiential learning is one of the most important elements for success within a competency-based organisation. If the organisation is able to draw upon the experience of others, both the organisation and its individuals can learn without having to make the same mistakes others have made before them. Few organisations rely as heavily on structure and efficiency for knowledge sharing as military organisations. The aviation and maritime sectors are already largely involved in experiential learning and knowledge exchange. The Norwegian Defence Estates Agency has started a cooperation project with Statsbygg and its sister organisations in the other Nordic countries regarding knowledge sharing and experiential learning. For the defence sector, one premise for cooperation with other parties is to have well-developed and successful processes and methods for collecting, processing and sharing knowledge for internal use. These are already in place for certain parts of the defence sector, but there is substantial room for improvement.

Photo: The Norwegian Armed Force's media centre

By entering into strategic alliances which will reinforce and systematise the defence sector’s external relationships, the sector may achieve increased access to personnel, improved exploitation of society’s collective resources and help dismantle the traditional divide between the sector and the rest of society. By introducing a focus on the sector as a whole, we can achieve greater diversity, solutions which may be more cost-efficient and which provide stronger foundations for professional resilience.

The mutual dependency between the organisations in the defence sector and certain civil sectors is substantial. This applies in particular to industries or sectors where competency can be exploited by all parties without the need for major extra investments and where competency resources are scarce. One example of this is the maritime industry where there is extremely tough competition for skilled personnel both in the private sector and for the Royal Navy.

Moreover, the globalised labour market indicates the need to identify possible alliances outside of Norway. By establishing successful alliances, personnel from allied nations or other Nordic countries may also be relevant candidates for a number of positions within the Norwegian defence sector, in order to fill critical gaps in competency. This is not least applicable as a number of allied European nations are currently making cuts to organisation and manpower.