8 Implementation of the competency reform

Pursuant to the implementation of the long-term plan for the defence sector, Proposition to Storting 73 S (2011-2012), which launched personnel and competency as long-term strategic areas for development, a process of change has been initiated to better enable the defence sector to reinforce competency in line with its needs. This White Paper is to be treated as the political platform for the initiation of the competency reform. Projects and measures have already been implemented at different levels of the sector in order to ensure lasting change. To achieve this competency reform, it is essential to ensure good and predictable general conditions for the employees and that all members of the organisation understand the need for measures and further studies to be carried out. It is thus essential to maintain close cooperation with the labour organisations.

8.1 Areas for action

The measures are divided into four areas. These are strategic competency management, competency integrated within management and control, efficient systems for management and development and cooperation and openness. This White Paper submits measures within each area which can be implemented in the short term, and areas which require further analysis. The initiatives presented to date can be implemented within the framework of the current long-term plan for the defence sector. Any economical and administrative consequences of the recommendations to come in subsequent studies will be presented along with the studies.

8.1.1 Strategic competency management

Strategic competency management is the most important area for action. It forms the premises for the other areas for action and is absolutely essential for management of personnel and competency.

• Fact-based competency analyses shall be developed at sector and organisation level.

• A project shall be set up to improve competency within HR among managers at all ranks and among employees occupying HR functions.

• The sector shall follow a goal-oriented strategy to further develop tools utilised for recruitment, development, allocation and phasing out of competency in order to support competency management, both at sector and organisation level.

8.1.2 Competency integrated within management and control

The area of competency and personnel requires more clearly defined integration within the sector’s management and control processes. Competency must be a key factor in planning and decision-making processes for the organisation both in the short and long term, and must be monitored via measurements and reports.

• A common HR strategy shall support the sector's principle strategy and objectives, and help ensure that the area of personnel and competency is included in the sector's continual long-term planning and annual control processes.

• Integration of personnel and competency in the sector's continual long-term planning processes shall be more clearly defined.

• Managers shall be selected and gauged on their ability to contribute to the sector's achievement of principle objectives and the further development of the total competency within the organisations.

• Managers shall have the competency to lead the sector as a knowledge-intensive organisation with a diverse range of employees.

• Managers with responsibility for personnel shall have greater genuine influence over recruitment to own organisations.

• Managers shall be assigned a greater degree of responsibility and authority to make targeted and differentiated use of the range of available tools in order to solve challenges related to competency within their own area of responsibility.

• All organisations in the sector shall evaluate and further develop current systems for and practice of management and employee development. There shall be a more clearly defined correlation between the organisations' objectives and the individual's performance and career development.

8.1.3 Efficient systems for management and development

The defence sector must have efficient systems for management and development of the competency required. In order to meet the extensive range of competency requirements in the future, the sector must be competitive during recruitment and retention of personnel. Personnel schemes and related processes and systems must be sufficiently flexible in order to meet the broad range of competency requirements and increased level of specialisation. Education and training, in addition to tools and incentives, must support these requirements.

• Proposals shall be compiled and submitted for a framework for future defence sector personnel schemes, including the officer corps. Completion of the final recommendation is scheduled for 2014.

• All necessary amendment bills shall be compiled in connection with the investigation into personnel schemes. Amendment bills shall provide for a legal basis which is as comprehensive as possible, easily available and predictable for personnel in the defence sector.

• A review shall be conducted of the military educational system, in order to ensure that it reflects the needs of a rapid reaction capability defence, not least in terms of specialisation and in-depth competency. This review shall follow and be carried out in the light of the framework for future personnel schemes, and will start in 2014.

• Experience gained from obligatory examination of women for military service shall be evaluated in 2014. The evaluation must be seen in light of other measures to increase the ratio of women in the Armed Forces.

• Cross-sector cooperation shall be utilised to a greater extent in order to ensure good exchange of experience and knowledge and to increase the efficiency of management tasks.

• The defence sector shall increasingly coordinate its efforts related to building reputation so that the sector can be portrayed as a modern, attractive and relevant workplace with a diverse range of tasks and opportunities.

• Selection criteria shall be further developed in order to meet the requirements of the rapid reaction capability defence for a greater diversity within competency.

• The sector shall recruit from a more diverse section of society. This may require methods such as practical facilitation, work to change attitudes and changes to systems for recruitment and selection.

• The sector shall acquire better access to competency developed outwith the sector. This applies, for example, to horizontal recruitment of personnel with relevant competency gained outwith the sector, and re-recruitment of former employees.

• The organisation of positions in the Armed Forces shall be reviewed in order to define requirements on competency, irrespectively of whether these are defined as civilian or military. The competency of the individual and the compound competency within a team/agency shall be prioritised during recruitment.

• The defence sector shall establish an internal labour market at sector level which submits vacancies to former and present employees. This internal labour market will help improve the flow of competency within the organisations and across the sector.

• Measures shall be implemented to ensure wider career paths, in particular horizontal career cycles, in order to meet the sector's need for in-depth and specialised competency.

• The defence sector must make wider use of the potential within existing tools and incentive schemes, and shall further develop new schemes.

• The family and personnel policies shall be reinforced. This includes, for example, measures implemented to provide improved opportunities for dual-career families. New measures will be evaluated on a continuous basis as a part of the development of the sector's incentive schemes.

• The Ministry of Defence, in dialogue with the labour organisations, shall initiate a process to review the Armed Forces' payroll system. This will include an assessment of the relationship between fixed salary and supplements, within the boundaries of a sustained payroll limit.

8.1.4 Cooperation and openness

Cooperation and openness are of decisive importance with a view to meeting the defence sector’s competency requirement in an improved and more efficient manner. The defence sector shall therefore have a much closer integration with the other competency groups in society and the labour market. This implies a greater extent of two-way competency flow, strategic alliances and cooperation with other parties. It also requires a wider range of recruitment and improved exploitation of the total competency production within society.

• The defence sector shall increasingly draw upon competency from the civil sector and exploit the potential for cooperation with civilian research and educational groups.

• Competency shall be part of the defence sector's R&D strategy.

• The sector shall work systematically on the establishment of closer cooperation with public and private parties in order to address shared challenges and develop shared solutions, particularly in areas where there is tough competition for labour.

• The opportunity for increased use of foreign manpower, primarily from allied countries, can be exploited where appropriate and necessary, in order to cover competency gaps.

• Personnel shall be able to achieve greater career benefits based on competency and experience developed outwith the sector.

• The defence sector shall further develop systems to maintain contact with employees who leave the Armed Forces or are on leave, in addition to veterans who leave the sector, in order to take care of personnel who have completed service and allow for future re-recruitment. Special attention shall be paid to the establishment of alumni schemes and schemes for employers, in addition to a further development of the policy for veterans, in line with White Paper no. 34 (2008-2009) and the plan of action entitled “In service for Norway”.

8.2 Choice of direction in the future

In addition to the specific measures stated in paragraph 8.1, the Norwegian government faces several major and important choices of direction. Follow-up of these choices will be based on political recommendations in this White Paper.

We aim to increase the ratio of women and the level of diversity within the defence sector. We aim to improve and have more forward-looking personnel schemes, including the officer corps scheme, and a more appropriate educational system in the defence sector. These are major and fundamental objectives to ensure that the defence sector is a modern competency-based organisation. It is therefore important to take the time to identify the best models and best tools to achieve our objectives. The development we are seeking will not occur by itself. It will require hard work and policy choices.

8.2.1 Increasing the number of women in the Armed Forces

Compulsory military service is of fundamental importance for the Armed Forces. Compulsory military service helps enhance legitimacy for the Armed Forces among the general population. Moreover, compulsory military service represents an important source of recruitment for the Armed Forces, via national service. The principle of even distribution of society’s rights and obligations, irrespective of gender, is therefore fundamental. At the same time, there has been a development from voluntary examination for military service in 2007 to obligatory examination for military service for women in 2010. This has now given rise to a need to review the experiences of this scheme while at the same time further developing other tools to increase the ratio of women. This is in line with former policies which pave the way for a gradual and experience-based development. The Norwegian government intends to evaluate the scheme for obligatory examination of women for military service in 2014. This evaluation must be seen in light of the measures to heighten the status of national service and other measures to increase the ratio of women. The Government will come back to the issue of gender-neutral military service.

8.2.2 Future personnel schemes

The Ministry of Defence has reviewed the personnel schemes, including the officer corps scheme, as requested by the Standing Committee on Foreign Affairs and Defence in their Recommendation no. 388 S (2011–2012). The Ministry has also compiled a set of premises for and an evaluation of how the personnel schemes can be further developed. This process has uncovered a need for change and forms the basis for measures to be taken to adapt the schemes to the needs of the rapid reaction capability defence. The review also illustrates a need to study the different personnel schemes in the sector in correlation and to ensure improved accordance between the schemes.

The military profession is unique and future schemes must take this into account. At the same time, complex assignments demand a higher level of diversity within competency. Furthermore, the amended personnel schemes must be more flexible towards making the necessary competency available. The sector must also feature personnel schemes which are much more open to a two-way flow of competency with other sectors and organisations. A more efficient flow of competency, both within and across personnel categories, and more openness towards society and recruitment of civilian competency are all important if the sector is to meet its requirement for generalised and specialised competency.

2013 will see the launch of the work to investigate and make proposals for changes to the personnel schemes, including the officer corps scheme. Completion of the final recommendation is scheduled for 2014. The process involving the officer corps shall also include the further development of the current officer corps including commissioned officers, commanding officers and officers on time-limited contracts, and a model based on a specialist corps, including enlisted personnel. Future personnel schemes shall be supported by an appropriate payroll and incentive system. This process shall be conducted in dialogue with the labour organisations and may generate the need for amendment bills. The Norwegian Government will keep the Storting informed of progress in a suitable format.

8.2.3 The educational system

The military educational scheme is a part of the officer corps scheme and should be included in the investigation of future personnel schemes. This analysis is expected to generate a need for an investigation into the structure and organisation of the Armed Forces’ educational system, a process scheduled for implementation in 2014.

The investigation will principally focus on the total competency requirement in the defence sector. The in-house defence education must primarily provide for the requirements of a military profession. At the same time, it is widely acknowledged that the military profession requires competency which encompasses much more than the exercise of military power. A review of the current educational system must also evaluate those factors the Armed Forces aims to provide in the way of in-house education, what can be obtained from the civilian educational system and what can be achieved in cooperation with civilian educational institutions.

The aim of the educational system is to contribute towards meeting the needs of the Armed Forces for generalised competency while reinforcing in-depth and specialised competency required to solve missions in the future. The education review shall also cover roles, responsibility and authority in the Armed Forces’ educational system.

8.3 Conclusion

The defence sector has a permanent responsibility for providing security for the state, population and society. Changes to the security policy environment bring about an increased need for a flexible defence sector, with a compound mix of personnel who possess diverse and advanced competency. The rapid reaction capability defence must be capable of solving complex assignments in the field, working to provide international peace and stability while at the same time providing an emergency preparedness force, maintaining a presence and upholding sovereignty at home. Competency is a decisive factor for the successful fulfilment of these complex goals and the further development of our modern rapid reaction capability defence in a rapidly changing environment. The defence sector has a much greater demand for specialised competency now than before, and for systems which allow for careers as specialists.

The ability of the defence sector to carry out its social tasks relies on improved exploitation of the total resources within society and a greater degree of cooperation and competency flow across all parts of the sector. Traditionally, the Armed Forces in particular have produced competency for society but have only made limited use of competency developed by others.

In order to attract the competency currently required by the defence sector, it is now necessary to recruit employees from society as a whole. By providing more flexible career cycles and personnel schemes, the defence sector will achieve greater diversity to allow for continuity, quality, flexibility and a balance between generalised and specialised competency. It is also essential to increase the level of cooperation and competency flow with other sectors of society.

The need for a greater diversity of competency and specialisation requires more openness and improved cooperation mechanisms with other parties. At the very core of the military profession are operative requirements and the ability to conduct military operations. These factors shall take a central position when working on competency development within the Armed Forces. The Armed Forces must make more extensive use of knowledge from the civil sector in areas which are not specifically military. The Armed Forces shall recruit more employees with a civilian education and integrate their competency into the organisation. More cooperation with civilian competency groups within education, research and development is also required.

Compulsory military service is and will remain fundamentally important for the Armed Forces. The organisation of compulsory military service and national service requires development so that it is fully adapted to the needs of the Armed Forces, society and the individual conscript. Compulsory military service strengthens the ties between the Armed Forces and society and provides potential for the Armed Forces to recruit from among the most suitable candidates from society.

A working environment in which everyone can take part, and where women have equal opportunities to men, is an important objective for the Norwegian government, and has been a decisive factor for the success of the Nordic welfare model. An increase in the ratio of women in the defence sector is a central objective for the Norwegian government. As such, the government intends to evaluate the scheme for obligatory examination of women for military service. This must be assessed in connection with measures to increase the status and merit of national service. The success of the sector in recruiting and retaining more women will play a decisive role in the sector’s ability to exploit the total competency resources within society and to secure the best competency available on a competitive labour market.

A higher ratio of women is one of several aspects in the principle objective to recruit a more diverse workforce for the defence sector. If the sector is to successfully execute the diverse assignments of a modern rapid reaction capability defence, it requires greater diversity, qualities, skills and experience among its employees. To date, work on diversity has paradoxically been excessively one-dimensional. Diversity has primarily been treated as an issue of recruitment and improving the gender balance. Although both of these are key factors, diversity in a wider interpretation of the term, will only provide added value when differences are merited as part of the daily activities of the organisation, the organisational culture, strategy and choice of direction.

The ability of the Armed Forces to sustain its current combative strength and operative capability relies on the success of the defence sector in attracting, recruiting, retaining and exploiting personnel with the required competency. This is the most important objective for the defence sector’s personnel policy. The sector must be perceived as an attractive workplace, both by military and civilian personnel with a high level of motivation and the right competency, adapted to the needs and assignments of the defence sector, cf. Proposition to Storting 73 S (2011–2012). The competency reform in the defence sector shall reinforce the sector as a learning organisation, which further develops its most important capital – its human resources – systematically and from a long-term perspective. Competency shall therefore be an integrated part of strategic management and a key factor in the control and development of the sector. Competency management shall provide for the best possible exploitation of competency.

The necessity to improve the defence sector’s ability to attract, develop and exploit competency has several origins. From a defence sector perspective, the competency reform is the next phase in a restructuring process from a mobilisation defence to a rapid reaction capability defence. However, the need for reform must also be seen as part of a challenge faced by major parts of the public sector. The defence sector has a unique need for change but shares a number of competency-related challenges with other sectors of society and is governed by many of the same change drivers. The public sector faces fundamental changes which are independent of the specific challenges faced by the individual sub-sectors. In total, this implies a need for new thinking on competency, collaboration and management throughout the entire public sector.

Further development and renewal of the public sector represent a key objective for the Norwegian Government. This requires improved utilisation of technology, utilisation of best practice, the most appropriate organisation possible, development of employee competency and improved exploitation of their skills, ideas and ability to identify good solutions.