Managing for Excellence in the Defence Industry Today

The defence industry has been widely criticised for selling six hundred dollar wrenches that may be purchased for under ten dollars at a local hardware store. Currently the United States Attorney General is conducting a major investigation of the contracting practices of civilian suppliers to the Department of Defence. The United States Congress has direct funding control of over two thousand individual budgetary line items and one hundred spending categories for the Department of Defence. Richard Cheney, Secretary of Defence, has submitted a budget request that includes $145 billion for products and services. Based upon previous studies (Packard, et al., 1986), this will generate over fifteen million separate contract actions by the government. With a history of problems, the defence industry needs to establish, nurture, and maintain excellence in organisations and personnel.