Meld. St. 14 (2012-2013)

Competency for a new era

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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.

Textbox 5.1 International cooperation enhances total competency

The Norwegian Defence Research Establishment, via a comprehensive cooperation with Norwegian and foreign research groups, is able to generate more knowledge and competency for the Armed Forces than would have been possible using only their own research. This is part of a deliberate strategy. More than 50 percent of the Establishment’s research projects involve international cooperation. In practice, such research cooperation involves researchers from different countries getting together to solve joint tasks. This allows the Establishment’s researchers to test their skills against some of the best researchers in the world, and to build networks. As such, scientific employees, during their career path with the Establishment, help increase the total competency in and the flow of such competency to the civil sector.

In 2012, the Norwegian Defence Research Establishment was involved in specific research cooperation projects with associated organisations and other institutions in 16 different countries. The majority of these were within NATO, in the European Defence Agency, EU research and in relation to a number of high-priority cooperation partners.

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.

Textbox 5.2 Centre for integrity in the defence sector

The Ministry of Defence has established a Centre for Integrity in the defence sector, in connection with the Norwegian Institute for Defence Studies at the Norwegian Defence University College. The purpose of this centre is to reinforce, coordinate and further develop competency on integrity in an improved and more comprehensive way and to help support cooperating nations, partners and allies. The Centre is charged with interacting between conceptual reasoning and executive activities. The main aim has been to establish a competency centre for the defence sector, with a focus on a proper system of government generated by developing integrity and work on anti-corruption. The centre was motivated by NATO’s initiative in 2007, in which Norway was named one of the leading nations and has since won significant acclaim.

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.

Textbox 5.3 Centre of expertise for securing buildings

The Norwegian Defence Estates Agency has established a centre of expertise for securing the Norwegian government’s property, buildings and plants. Based on the requirement to protect military installations and plants, the Agency has developed leading expertise within protection and security. The centre has been established to translate this experience gained in the defence sector so that it can be applied by other governmental sectors, and to assist owners and users of critically important buildings and infrastructure by protecting values and functions from terrorism, sabotage, espionage and other hostile attacks. The centre cooperates with other key organisations in this area, including the Norwegian National Security Authority, Statsbygg (the Norwegian government’s key advisor in construction and property affairs) and the Norwegian Police Security Service. Other governmental bodies from abroad participate in the cooperation. The centre of expertise is involved in an intensive public scheme for securing buildings. The scheme is governed by the provisions of the Norwegian Security Act and the Regulation relating to object security, adopted in 2010.

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.

Figure 5.1 The Derby deployment force of the Home Guard

Figure 5.1 The Derby deployment force of the Home Guard

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.

Figure 5.2 Number of employees re-recruited to the Armed Forces and professional employment of commanding officers from 2009 to 2012

Figure 5.2 Number of employees re-recruited to the Armed Forces and professional employment of commanding officers from 2009 to 2012

* 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.

Figure 5.3 The bridge on a navy vessel

Figure 5.3 The bridge on a navy vessel

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.

Textbox 5.5 Maritime competency

Norway is an international superpower in maritime terms. The Norwegian maritime industry has a significant competitive edge, vast innovative capacity and world-leading technological competency. The industry consists of a number of segments, such as suppliers of maritime equipment, suppliers of maritime services, ship-owners and shipyards. These different segments have a high level of cooperation, allowing for enhanced innovation and technological developments. The Norwegian controlled fleet comprises around 2,300 vessels and is regarded internationally as the seventh largest fleet in the world, in terms of number of vessels. The Norwegian controlled offshore fleet is the second largest in the world. In terms of value, the Norwegian controlled fleet is estimated to be the fourth largest in the world, corresponding to 10 percent of the global fleet. Value creation for the maritime industry has more than doubled over the past decades. A significant share of the total value creation takes place in WesternNorway. The Norwegian government has a goal for Norway to be the world-leading nation within maritime competency, research and innovation.

The civilian maritime industry employed around 100,000 persons in 2011. Of this number, around 39,000 worked for ship-owners of which 18,800 as seamen on Norwegian registered ships. Approximately 32,000 persons were employed by suppliers of maritime services, 18,000 by manufacturers of maritime equipment and 12,000 by Norwegian shipyards. As a result of the strong growth and rate of innovation, the maritime sector now has an insufficiency of skilled manpower.

The maritime educational environment has a dispersed structure, a low level of formal education in the industry as a whole, costly teaching aids and difficulties related to recruitment within certain categories, such as marine engineering. Research and development (R&D) is experiencing a significant increase in activity at Universities and colleges, often in close cooperation with the maritime industry.

The Royal Norwegian Navy forms an important part of the Norwegian maritime cluster. The Royal Navy is based at Haakonsvern in Bergen and has personnel with unique and high expertise. The shipping industry makes use of technological solutions developed for military projects. Eight percent of the employees in the maritime industry are qualified naval officers. Such personnel are in high demand in a number of areas. The Royal Norwegian Naval Academy and other Royal Navy schools have a high status and are recognised for educating personnel who are perfect for all branches of the maritime industry, integrated into a modern management model. The academies and the Royal Navy training centres are therefore seen as a beacon for maritime education in Norway.

Historically, the Royal Navy has been a net supplier of personnel and competency to the maritime industry. As demand for personnel has increased considerably in recent years, a process has been implemented to study how the defence branch will be impacted by future developments and what measures are required.

The current level of cooperation between the Royal Navy and the civilian maritime industry is on the increase. The Royal Navy has comparative advantages in relation to the civilian part of the maritime sector in terms of recruitment, access to infrastructure, accumulation of sea service and a culture for interdisciplinary work and the quality of competency development. The maritime sector on the other hand has comparative advantages in relation to the Royal Navy in terms of financing, the ability to rapidly restructure an organisation in relation to new requirements and the ability and willpower to invest resources in new projects.

By developing a more organised and cross-sector cooperation, the resource and competency groups in both maritime sectors can develop on a more even keel.

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.

Textbox 5.6 Cooperation and competency development with academia

The Norwegian Defence Research Establishment has an extensive cooperation with Universities and colleges, national research institutions and the Armed Forces’ schools and academies. This provides for increased quality and efficiency for research, contributes towards transfer of competency and good recruitment. Researchers at the Establishment have part-time posts as Adjunct Professors and Adjunct Assistant Professors at Norwegian and foreign Universities and colleges, in addition to teaching and providing guidance at the Armed Forces’ academies. Correspondingly, several external professors have positions as Adjunct Professors at the Norwegian Defence Research Establishment.

This cooperation is most active with the Norwegian University of Science and Technology, the Universities in Oslo, Bergen and Tromsø and the Norwegian University of Life Sciences, Gjøvik University College, the Institute of Marine Research, the Norwegian Space Centre, the Norwegian Polar Institute, the Norwegian Institute of International Affairs, the Institute for Energy Technology, the Norwegian Mapping Authority, the Geological Survey of Norway, the Norwegian Geotechnical Institute, Simula Research Laboratory, Oslo University Hospital and the Fridtjof Nansen Institute.

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