Defense Industry Can Profit despite Downturn

By Macgregor, Douglas; Burke, Stephen N. | National Defense, August 2013 | Go to article overview

Defense Industry Can Profit despite Downturn


Macgregor, Douglas, Burke, Stephen N., National Defense


* For the first time in decades, the Defense Department must aggressively pursue value, not simply effort. The current practice of rewarding senior military leaders and defense appointees for effort, time, staff size and budget rather than bold, effective achievement must be arrested.

In this environment, industry can still profit over the long term by assisting the customer to get where it is ultimately going, whether the customer knows it or not.

Military leaders have an understandable aversion to bold innovation. At a time when the Defense Department is in dire need of fresh strategic thinking, service chiefs labor under growing pressure to find ways of repackaging today's forces to extract both greater strategic utility and monetary savings, all the while clinging to yesterday's "requirements" to justify excess force structure.

The defense industry needs a hedge strategy to sustain profitability in a declining market, a strategy that will help companies navigate the "no man's land" between the old and the new reality.

In the near-term, the principal challenge for the defense industry is how to move forward without alienating the customer. While industry has the incentive to promote modernization and recapitalization, the customer remains focused on protecting the military's organizational and bureaucratic status quo.

Against this reality, industry should work with its customer toward a "shared discovery" of new business models and priorities. What was previously perceived as valuable and effective would be exposed as unsuited to the current and future environments. The trick is to offer capabilities that allow senior leaders to move in a positive direction, not because their old ways were wrong, but because new options offer better solutions for the evolving security challenges of the future.

The impact of constrained budgets is a major concern for military leaders. The Joint Staff recognized that reality in the latest version of the Joint Operational Access Concept, released in January 2012. The document emphasizes "cross-domain synergy," or an integrative, rather than an additive employment of capabilities from different domains. In other words, the answer is a future "joint" framework that integrates functional military capabilities--maneuver; strike; intelligence, surveillance, reconnaissance (ISR); and sustainment--across service lines.

ISR and strike capabilities--kinetic and non-kinetic--began to decisively influence not only tactical maneuver on land, but also the operational and strategic conduct of operations in all domains in 1991. They gave rise to dispersed, mobile warfare--an environment that creates the demand for high-lethality, low-density forces. On land, at sea, in the air and in cyberspace, America's future armed forces must marshal and apply combat power disproportionate to their numbers. This means organizing and equipping differently, as well as integrating ISR, strike, maneuver and sustainment capabilities across service lines to make the return on capital invested the customer's top metric.

A strategy to help the military transition successfully to future missions demands that industry team with the customer. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Defense Industry Can Profit despite Downturn
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.