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AOF Acquisition Operating Framework

The high level principles and information that guide how the UK MOD Defence Acquisition Community works

version 2.0.21 – March 2010

Content

Director Business Review

What is it?

The Director Business Review (DBR) is the single Defence Equipment and Support (DE&S) wide review mechanism between a Team (which can be a Project Team, Programme, Business Change or Support Team) and their Director.

The review covers the Team’s business performance, including the component projects, urgent operational requirements and support activities.

The Review is designed to ensure:

  • All of the Teams activities are managed and delivered in accordance with:
    • Through Life Management Plans (TLMP),
    • AOF guidance,
    • DE&S Standing Instructions (SI)
    • Joint Business Agreements (JBAs).
  • Management information produced is accurate and reliable.
  • Governance arrangement for the project, including reporting processes and Assurance Plans, are in place and being used.
  • Help and support is being provided where necessary.

The Chief Operating Officer (COO) issued this DE&S policy guidance in 2007, which was endorsed by the Chiefs of Material (CoM) for use in their teams. This guidance was produced to support DE&S Standing Instruction 19External link to Ministry of Defence Intranet content.

The guidance, together with the example Business Review templates [1.6MB PPT], provides the information necessary to prepare and conduct a review. The downloadable templates contain example spreadsheets which must be populated with your own data to help conduct the review.

Why do we need it?

The formation of DE&S, together with the launch of Through Life Capability Management (TLCM), has changed the way MOD procures new equipment, and how it supports that equipment through life.

The use of non standard Business Review practices poses a significant risk to the success of projects and support delivered by the business areas, and to the reputation of DE&S.

The purpose of the DBR is to enable the Director Operating Centre to understand the business performance of the entire project, and provide support to the teams they are responsible for.

The DBR helps DE&S to manage its business effectively and deliver its business outputs.

Where does it fit in to the DE&S Governance Structure?

The Project and Programme Management section of the AOF provides the management principles that are to be applied to all DE&S projects and equipment support activities.

Project approvals and JBAs define the delivery requirements of DE&S. These underpin the review of Team business.

Regular (monthly) reviews are held between 3* (COO or CoM) with each of their Directors. In addition the COO assesses performance at the monthly Programme and Performance Board (PPB).

These senior reviews will be informed by the DBR conducted between the Director, or their nominated representative, and the Project or Support Teams they are responsible for.

Who is this for?

DE&S requires DBR’s to be used by all teams who deliver through life project and equipment support activities.

How will it operate?

The review can be customised to allow the Director to decide on the level and detail of the review required. This will provide confidence in the information gathered.

The flexible structure of the review recognises that there are different review requirements applicable to major projects, cluster projects, and equipment support activities.

Normally 2*/1* led Team reviews will be chaired by the Director, whereas other reviews may be delegated to the appropriate Operating Centre.

For all through life project and equipment support activities, the reported view of the DBR must be concise and accurate, and that output delivery is in accordance with requirements and targets.

How often will reviews be carried out?

The DBR will be conducted monthly and the relative timing of these reviews is shown below. .

This image shows the relative timing of the Director Business Review (DBR). A textual description of this image is contained in the following paragraphs.

Who needs to attend the review?

DBR attendance would normally be limited to the Reviewer (the Director), Team Leader and Team Financial Controller.

The reviewer will be assisted by commercial, functional and finance staffs as appropriate; other contributors, including industry, may be invited to cover key issues.

What happens at the review?

The review will be a discussion between the attendees and should:

The emphasis of the review will be on any key areas previously agreed between the Team Leader and Director, based on the type of business activity of the team and its position in the life cycle.

The information gathered in the templates should support the assessment of the business and answer the following key questions:

  • What are we trying to achieve?
  • Where are we against outputs, milestones, plans and approval parameters?
  • If we are not where expected, what are we doing about it and are we keeping stakeholders informed, including Investment Approvals Board (IAB) / Assistance Assurance (AA)?
  • If we are where expected, what could go wrong?
  • Do we have the resources and skill to do what is needed?
  • Is the stakeholder community being effectively managed and supported?

Each data pack should contain some or all of the following information topics.

Business Information Topics Project Support
Programme outline Baseline Level 0 plan Baseline Level 0 plan
Status against plan
  • Targets,
  • Progress against plan,
  • Position against milestones,
  • Management / delivery of Benefits,
  • Cost analysis,
  • Evidence that the Assurance Plan is being applied,
  • EVM charts,
  • Forecast for improvement.
  • Availability against JBAs,
  • Supply Chain issues,
  • Capital Equipment issues,
  • Cost Analysis.
Risk Report
  • Top risks showing mitigation and progress,
  • Risk Budget and Exposure.
  • Top risks showing mitigation and progress,
  • Risk Budget and Exposure.
Financial Report
  • Forecast Against Approval,
  • In-Year management,
  • Asset Deliveries Vs Plan.
  • Forecast Against Approval,
  • In-Year management.
Team Performance
  • People,
  • Meetings,
  • Visits,
  • Successes.
  • People,
  • Meetings,
  • Visits,
  • Successes.

A single monthly review should be applied to the whole span of the Team's business.

What are the expected outputs?

The principal outputs of the DBR are expected to be:

  • An integrated and validated view of the business/projects status and forecasts, as presented in the Business Review templates [1.6MB PPT] with supporting information.
  • A clear understanding and agreement of what has been, and what will be reported in the management information system.
  • An action list assigning owners to the issues requiring attention by the Director, the Project Team or other stakeholders.
  • The clear direction, support and advice needed by the Team Leader to take the work forward.

The DBR should provide the Director with enough information to report to the COO with confidence that the business is under control, and that the integrated views of status and forecast are valid.

The review should also provide an early signal to all stakeholders (including IAB / AA) that a business activity may be facing risks, or issues that the team is not able to manage. These may include:

  • Potential breaches of approval against Performance, Cost and Time parameters
  • Significant changes to the endorsed acquisition or support strategy.

The Smart Approvals guidanceExternal link to Ministry of Defence Intranet content provides further information on this topic.

Contacts

Defence Equipment and Support

Owner

Post
DE&S Head of Secretariat and Communications

Point of Contact

Post Email Phone
DES-Sec-Asst Hd-Gov-Brd-Supp DESSEC-GOVBDSPT-ASSTHD@mod.uk
  • Mil: 9355 67045
  • Civ: +44 (0) 1225 467045
Change History

Change History

The AOF has been updated to Version 2.0.0 on 1st April 2008 following the introduction of the main content in the tactical layer. In addition small changes have been added to the Operational layer. Individual document Change History pages will detail any changes other than minor editorial amendments.

1 October 2009
Minor amendments made for Plain English review.
1 August 2009
Contact details updated to reflect the changes to DE&S post titles.
Revised Business Review Timescale, updated content and inserted link to DE&S Standing Instruction 19.
1 June 2009
Contact details updated.
1 November 2008
Amendments to document in line with refined process.
1 March 2008
Contact details amended due to change of personnel and DII migration.
1 October 2007
Owner and POC information updated.
1 July 2007
Point Of Contact information updated.
1 June 2007
Contact names deleted due to IAW DDefSy Hd InfoSy Pol advice with regards to potential Security and Data Protection Act issues.