Utilising design-thinking methodology in a series of collaborative sessions to build trust between the Department of Defence, consultants and contractors working on multi-billion-dollar infrastructure projects.

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Defence | Industry Co-Lab III
Enhancing the Australian Defence Force through Effective Collaboration

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1.0 BACKGROUND
2.0 CO-LAB III
2.1 PRINCIPLES – Minutes
2.2 TERMS OF REFERENCE – Minutes
2.3 INITIATIVES
a) Australia-Singapore Military Training Initiative
b) CEO Breakfast
c) Renewed Australia Defence Magazine (ADM) Defence Estate and Base Services summit
3.0 FUTURE TOPICS
4.0 DATE OF NEXT MEETING
APPENDIX
APPENDIX ONE: Blockers
APPENDIX TWO: IMPLMENTATION | PROJECT PLAN
APPENDIX THREE: Terms of Reference
APPENDIX FOUR: Defence Industry Charter

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1.0 BACKGROUND
i. Following engagements beginning late 2016 between Consult Australia, the Deputy Secretary and First
Assistant Secretary of E&IG, it was agreed that government and industry could improve productivity
through working better together.
ii. The first of three two-hour collaborative sessions designed and facilitated by Kevin Keith from Consult
Australia took place on 25/08/2017. The ‘Defence | Industry Co-Lab’ brought senior Defence
officials together with consultants and contractors to explore working more effectively together.
iii. Six themes were identified as blockers [Appendix One] including: contracts, probity, technology,
trust, politics and pipeline. Solutions to overcome these themes were grouped under technology
and collaboration with practical projects suggested: An Innovation Day; Secondments; a ‘Rapid
Prototyping’ process; and the establishment of an E&IG / Industry Steering Group.
iv. At the Defence | Industry Co-Lab II the aim / vision was developed by and for the group: to
enhance the Australian Defence Force through effective collaboration. Three objectives were
developed:
a) ‘Create a safe space for engagement’ to encourage open and honest communication;
b) ‘Increase the timeliness and quality of engagement’ to improve Defence outcomes and
Industry workforce planning.
c) ‘Develop a formal governance structure’ to ensure responsibility of and accountability
for the implementation of agreed activities.
v. A series of tactics were developed to achieve these objectives including: to develop a charter for
Defence | Industry Collaboration; to develop the Steering Group Terms of Reference; to develop a
Defence | Industry joint conference; to develop quarterly industry days to improve communication on
pipeline / skills needs; to explore technology to create a virtual safe space and aid real-time
collaboration; to maintain the Defence | Industry Co-Lab events.
2.0 Defence | Industry Co-Lab III
i. The goal of the Defence | Industry Co-Lab III on Thursday 10th
May was to agree protocols, principles,
discuss resources and agree a plan of implementation. This was unlike previous Defence | Industry
Co-Lab events in that it was a mix of a formal agenda and workshop activity.
2.1 Principles – Minutes
i. It was explained that the principles in the circulated DRAFT Terms of Reference could be adapted to
become a Defence | Industry Charter applicable for broader Defence | Industry engagement.
ii. The group discussed this and made a recommendation that the phrase ‘best for Commonwealth’ be
removed as it primarily applies to Defence.
iii. A reworded and expanded Defence | Industry Charter can be found in Appendix Four. An ‘Out of
Session’ approval of this Charter will be sought for adoption at the next Defence | Industry meeting.
2.2 Terms of Reference – Minutes
i. There was agreement with the majority of items in the Terms of Reference with the exception of the
rotation policy. The consensus was that the rotation policy needed to be slowed and that the group
must continue to have a mix of views from large and small companies. It was also suggested Lendlease
be invited to participate and that another industry body be involved in the selection of contractors –
the Civil Contractors Federation for example. A revised rotation policy (matrix) will be
circulated and agreed out of session addressing 2.2i above.

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ii. It was felt that the IIP referenced in 2.1 in the Terms of Reference was not broad enough as it did
not include other services such as ‘planning’. The following had been added for approval:
“The primary objective of the Initiative is to improve collaboration between the Defence Estate
and Infrastructure Group (E&IG) and industry partners, in order to facilitate the efficient and
effective delivery of the Integrated Investment Program (IIP) and supporting services around
estate and infrastructure planning, while also growing industry’s capacity to respond to Defence
requirements.”
2.3 Initiatives
i. The group undertook a RACI [Responsible, Accountable, Consulted, Informed] exercise using the
‘Activity Table’ in Appendix Two as the starting point.
ii. It was agreed that industry consultation similar to that undertaken by the Australia-Singapore
Military Training Initiative [ASMTI] should be rolled out nationwide. This initiative currently builds
Defence capability through enhancing and improving training capacity whilst providing information to
Central and North Queensland industry on work that is coming up. A national initiative would be used
to help contractors and consulting firms better understand what work is coming up. Actions to progress
this as follows:
a) Defence will be responsible and accountable for the delivery of this project initially through Ese
Rainey, Director of Project Development and Delivery Queensland.
b) Industry will be informed of progressed initially through the Defence | Industry Co-Lab and will be
expected to participate and attend the initiative.
iii. It was agreed to initiate a twice-yearly CEO Breakfast with the first to be prior to the Australia
Defence Magazine (ADM) Defence Estate and Base Services summit in September. This would be small
and targeted; with two per year; potentially in Canberra or other capital city / regional locations. Two
risks were identified: wrong CEOs and wrong topics. It was agreed the Defence | Industry Co-Lab
would agree the theme / topic. Actions to progress this as follows:
a) Defence will be responsible and accountable for the delivery of this project initially through Alison
Clifton, Assistant Secretary Environment and Engineering, who will raise it with Chris Birrer
and co-ordinate the theme with attendees of the Co-Lab.
iv. It was agreed that rather than create a new conference, a refreshed Australia Defence Magazine
(ADM) Defence Estate and Base Services summit (a summit 2.0) could work. It was agreed
Defence could talk to ADM to seek to shape the agenda as whilst industry felt obliged to be there, it
could be of greater use, increased relevance, and less sponsor-driven. It was acknowledged that
planning for the 2018 summit is already well advanced. Actions to progress this as follows:
a) Defence will be responsible and accountable for the delivery of this initiative leveraging the
involvement of Defence officers in the ADM conference to shape the agenda with the support of the
Co-Lab. Brett Cox, Assistant Secretary Estate Planning, will raise it with Steve Grzeskowiak and
Chris Birrer.
3.0 Future topics
Briefly attendees noted some ‘future topics’ for further discussion. These touched on the ‘blockers’ in Appendix
One and included: ‘risk profiles, outsourcing of risk and what it means to industry; access to panels; Design
Services Contract (DSC) and Medium Works; cost of doing business with Defence.
4.0 Date of the next meeting
Thursday August 9th
from 1 pm to 3 pm.

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APPENDICES

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APPENDIX ONE: BLOCKERS
a) The mind-map below is from a discussion on ‘blockers’ preventing Defence and Industry from
working more effectively together. It is from the first Defence | Industry Co-Lab that took place on
August 25th
2017.
b) Six main themes have since been highlighted for further discussion: contracts, probity,
technology, trust, politics, and pipeline.

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APPENDIX TWO: IMPLEMENTATION | PROJECT PLAN
a) The aim and related objectives in the table below were an output from Defence | Industry Co-Lab II
which took place on Thursday 8th
February 2018. The tactics have been updated to reflect opinions
at the Defence | Industry Co-Lab III on May 10th
2018.
b) Replicating aspects of LEWG [Land Environment Working Group] develop Quarterly Industry Days
(QIDs) to understand pipeline / skills requirements was replaced with the rolling out of a consultation
similar to the Australia-Singapore Military Training Initiative; Explore how to use technology to create
virtual safe spaces for ongoing real-time collaboration was replaced with a biannual Defence | Industry
CEO Breakfast.
VISION / AIM ‘…to enhance the Australian Defence Force through effective collaboration.’
OBJECTIVES
What
Create a safe space for
engagement
Increase timeliness and quality of
engagement.
Develop a formal governance
structure
1 2 3
WHY
TACTICS
To encourage open and honest
communication
To improve Defence outcomes and
Industry workforce planning.
To ensure responsibility of and
accountability for the
implementation of agreed activities.
A
Achieve sign-off for a charter for
collaboration for Defence |
Industry to sign up to.
An industry consultation similar to the
Australia-Singapore Military Training
Initiative, to be rolled out nationwide.
A revised ‘rotation’ matrix to be
developed and agreed along with
the updated Terms of Reference.
WHEN MAY 2018 TBC MAY 2018
B
Refreshed ADM summit – to be called
for by Defence to ADM to increase
relevance to industry.
Develop an implementation / project
plan relating to the delivery and
promotion of Co-Lab activity.
WHEN BEFORE MID-SEPT MAY 2018
C
Develop and deliver a biannual
Defence | Industry CEO breakfast.
Maintain Defence | Industry Co-Lab
(or equivalent) sessions.
WHEN BEFORE MID-SEPT Ongoing
D
Maintain Defence | Industry Co-Lab
(or equivalent) sessions.
WHEN Ongoing
Who
RESPONSIBLE
ACCOUNTABLE
1A Chris Birrer, Kevin Keith 2A Ese Rainey 3A Chris Birrer, Kevin Keith
2B Brett Cox / Chris Birrer / Steve
Grzeskowiak
3B Kevin Keith
2C Alison Clifton. 3C Chris Birrer, Kevin Keith, Jan
Irvine.
2D Chris Birrer, Kevin Keith, Jan
Irvine.

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APPENDIX THREE: TERMS OF REFERENCE
Defence Estate & Industry Collaboration Initiative Steering Group
Terms of Reference
1.0 Purpose
1.1 The purpose of this document is to detail how the Steering Group for the Defence Estate and Industry
Collaboration Initiative (the Initiative) will operate.
2.0 Initiative Objective
2.1 The primary objective of the Initiative is to improve collaboration between the Defence Estate and
Infrastructure Group (E&IG) and industry partners, in order to facilitate the efficient and effective delivery of
the Integrated Investment Program (IIP) and supporting services around estate and infrastructure planning,
while also growing industry’s capacity to respond to Defence requirements1
.
3.0 Initiative Outline
3.1 The Initiative will comprise a range of activities, process improvements and engagement events and will
be subject to ongoing development and refinement. The Initiative will embrace and implement ideas and
opportunities to improve the exchange of knowledge, and to open and improve mutual understanding, between
the E&IG and industry partners.
4.0 Initiative Participation
4.1 Initiative participants will include Consult Australia, EIG, and industry partners - comprising consultancy
companies and building contractors that work on the Defence estate and have an interest in improving
collaboration for mutual benefit.
4.2 Industry partners will be invited to register their interest in participation, and to nominate senior
representatives, for future involvement on a rotational basis.
5.0 Role
5.1 The Role of the Steering Group is to shape implementation of the Initiative, including consideration of new
ideas and opportunities for collaboration, guidance for implementation of supported activities, review and
reporting on the effectiveness of ongoing activities and the reporting and sharing of overall progress of the
Initiative.
6.0 Guiding Principles
The Steering Group will operate in accordance with the Defence | Industry Charter.
7.0 Steering Group Membership
7.1 The Steering Group will comprise the following numbers of senior representatives from each participating
group:
a. Four from E&IG
b. Four from consultancy companies
c. Four from building contractors
d. One from Consult Australia (Chair and Secretariat)
7.2 Other participants from these and other Defence or industry groups may be invited, by mutual
agreement, to attend as required to discuss specific issues.
1
Noting that industry capacity to meet Defence requirements is impacted by numerous factors, including market conditions in
competing sectors, decisions on procurement models and scheduling and the amount of advance notice provided.

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8.0 Frequency of Meetings
8.1 The Steering Group will meet once per quarter, or as agreed and advised otherwise. Meetings will normally
be arranged by the Consult Australia representative.
9.0 Rotation
9.1 Industry participation in the Steering Group will be rotated on a rolling basis as follows:
a. The Chair will compile and maintain a list of defence industry partners that are interested in
participating, including the details of their nominated senior representatives.
b. At each meeting, half of the industry representation (two consultants and two contractors) will
agree to rotate out, and new representatives to be identified for invitation to the next meeting.
c. The Steering Group may, by mutual agreement, extend the participation of one or more
industry representatives if required to see a specific activity through. This will not normally
involve more than a one quarter extension.
10.0 Costs
10.1 Participating organisations will meet their own costs, including travel.
11.0 Reporting
11.1 Agenda, minutes and any other reports and documentation associated with Steering Group and Initiative
business will be made available to all participating organisations. The vehicle for this will be further considered,
with a preference for a web-based portal.
12.0 Meetings
12.1 Decisions will be made by majority consensus based on those in attendance at the meeting the decision
was tabled. If this is not possible, the Steering Group Chair will make a final decision.
12.2 The standing agenda for Steering Group meetings is as follows:
1. Safety Share
2. Introductory matters (eg. apologies, previous minutes, outstanding actions)
3. An update on the progress and effectiveness of ongoing activities
4. Workshop / Review / Consider any new ideas or opportunities
5. Any other business
6. Rotation of industry participants
7. Next meeting
8. Informal networking discussion
13.0 Call for Topics
A notice of meeting will be issued to all registered participant organisations in advance of each meeting to call
for topics, ideas, etc. This notice will list industry representatives who will be attending and who may be
contacted by non-attendees wishing to have input.
A list of future topics will be maintained and shared with all registered participant organisations to allow early
consideration and input from the widest possible group.

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APPENDIX FOUR: DEFENCE | INDUSTRY CHARTER
Defence | Industry Charter
These principles are to maximise ‘positive new opportunities for enhanced collaboration and partnering’
between Defence and industry as detailed in the Defence White Paper and related Defence Industry Policy
Statement.
Principle 1
I will adopt a ‘one team’ perspective to enhance Australian Defence Force capability for the protection of
Australia and its national interests.
Principle 2
I will represent the interests of either a government department or an industry sector in an objective,
impartial, independent and apolitical manner. I will not represent personal or company-specific interests.
Principle 3
I will engage in an open, fair and honest way.
Principle 4
I will actively support an open and transparent collaborative process, including the sharing of reports and
minutes, and where appropriate, declare any conflicts of interest.
Principle 5
I expect no commercial advantage as a direct result of participating in a collaborative process between
Defence and industry.
Principle 6
I will place no commercial reliance on any information discussed in a collaborative process between Defence
and industry regarding future projects or programmes.
Principle 7
I will not pursue contractual disputes or other project specific issues in a collaborative process between
Defence and industry.
Principle 8
I agree that involvement in any collaborative process may be subject to rotation and will abide by the
agreed process.
PRINT FULL NAME: SIGNATURE:
PRINT ORGANISATION: DATE:

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