Defence Infrastructure Organisation

Board Chair

Recruitment Information Pack 2 Contents Page Number

 Welcome Message 2

 The Story of DIO 3

 Background to the Strategic Partner 5

 Governance Structure 6

 DIO Board Terms of Reference 7

 Chair o Role Description 9

o Person Specification 11

 Indicative Timetable 13

 Response Instructions 14

3 Welcome Message

Thank you for your interest in this unique opportunity as Non-Executive Chair of the Defence Infrastructure Organisation.

Our organisation, commonly abbreviated to DIO, was formed on 1 April 2011 to deliver the facilities and services that Defence personnel need to live, work, train and deploy at home and overseas. By any standards, what the DIO manages on behalf of the MOD is enormous. Larger than either the National Trust or Forestry Commission in terms of land, property and infrastructure managed, as the largest landholder in UK, the estate managed by DIO is worth an estimated £25bn and has an annual budget spend of £3.3bn.

We are transforming the way we work to ensure all those who use our estate get the very best service from us and our industry partners. The Armed Forces are at the heart of everything we do.

The DIO plays a vital role in supporting our armed forces by building, maintaining and servicing the infrastructure needed to support defence. Our vision is to become a world- class infrastructure delivery organisation over the next few years.

Under the executive leadership of David Mitchard, the DIO is now in its next phase of delivery; not only in terms of improving efficiency and effectiveness in the delivery of estate services and capital projects, but also in creating a more efficient and effective footprint, aiming for up to 30% less built estate over the next 10-15 years. To achieve this it will need to maximise and leverage investment to deliver better value for the taxpayer together with continuous improvement of support to the military.

We are now seeking a highly reputable and effective Non-Executive Chair. Tasked with developing and leading the DIO board, this role requires an individual with a respected track record of operating at the highest corporate levels, with the confidence and ability to work effectively at the public/private interface.

As Chair, you will have been central to delivering bold visions on the largest scale, using your gravitas and highly developed commercial, political and communication skills to support and challenge, while providing sustainable solutions that support the overall strategic direction of the Defence Infrastructure Organisation.

This is a fantastic opportunity to truly shape our future. If you are interested in this position then we look forward to receiving your application.

4 The Story of DIO

DIO was established in April 2011 following the 2010 Strategic Defence and Security Review and the Defence Reform Review led by Lord Levene. His recommendations led to the MOD being reformed to be more efficient and more effective. DIO brought the management of Defence infrastructure together under a single organisation for the first time. Staff who had previously managed infrastructure from other parts of the Department, including Defence Estates, Front Line Commands and other Top Level Budget holders, joined DIO.

What we do

DIO is responsible for the acquisition, disposal, allocation of assets, construction, and maintenance of the estate infrastructure in the UK and abroad, as well as providing the catering, cleaning, guarding and other services that keep the military ‘on the go’.

We employ some 4,900 people from a diverse range of professions including town planners, airfield pavement experts, foresters and construction engineers, working across the world: in Germany, Cyprus and the Falkland Islands, Norway, Poland, Kenya, Belize, Nepal and Oman.

Who we are

We are led by Chief Executive David Mitchard and supported by an Executive Management Team comprising: Marcus Leek (Director of Finance and Commercial), Colin Wood (Chief Operating Officer), Air Vice- Marshal Elaine West (Director of Project and Programme Delivery), Leo O’Shea (Director of Service Delivery), Tony Gosling (Director of Data Analytics and Insight), Carrie (Director of Transformation and Change) and James Colman (Head of Strategic Stakeholder Engagement and Communications).

We are responsible for enabling defence people to live, work, train and deploy at home and overseas. Our vision is to equip defence with a significantly smaller, more efficient, better quality estate.

The DIO manages:

 An annual budget of £3.3 billion for the Defence Estate  An asset base with the value £20 billion  An annual spend of £350 million on utilities  4,000 sites worldwide  25,000 hectares of land  370 contracts, 170 suppliers  700 scheduled monumnets  800 listed buildings  170 sites of special scientific interest  135,000 single living spaces  50,000 houses

5  45,000 buildings  4,500 employees

To see DIO on a page, please click on the following link: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/427946 /DIO_WORK_LIVE_TRAIN_Infographic_A3.pdf

Priorities

Our priorities for 2015 to 2016 are to:

 provide a safe and sustainable estate in a changing world;  enable directed outputs of defence;  be recognised and trusted worldwide as an agile, proud and professional provider of defence requirements;  invest in the capability and well-being of its people to create an empowered workforce with the confidence to innovate and the support to learn and grow;  focus on customer satisfaction and incentivising;  source and manage effective infrastructure solutions and contracts; partnering to provide the best possible service in the most responsible way;  enhance its strategic influence and role in enabling capability.

Further information about the Defence Infrastructure Organisation can be obtained at Defence Infrastructure Organisation - GOV.UK

6 Background to the Strategic Business Partner

1. Defence Management is undergoing significant, demanding and public change, some of which is evolutionary to current process, some of which is new, in order to make Defence operationally responsive, and its business more agile and efficient. Changes to the management of the delivery of infrastructure services to Defence is a key element of this change;

2. On 03 September 2014 (contract Effective Date) a Strategic Business Partner (SBP), Capita Business Services Ltd. with URS (now AECOM) and PA Consulting as key sub- contractors assumed responsibility for the management of Defence Infrastructure Organisation (DIO) outputs and existing DIO staff;

3. The purpose of the SBP contract (which runs for 10 years) is to improve DIO’s capability to:

a) Develop and deliver an estate strategy which best meets the operational needs of Defence within Departmental financial constraints, as well as enabling the delivery of Defence’s contribution to key Governmental targets e.g. release of land for house building;

b) Deliver the infrastructure services required to support the estate to customers’ required standard as efficiently as possible, and in the process realise sustainable savings;

4. The SBP will enhance the capability of DIO as a whole through the provision of an Executive Leadership Team with specialist market knowledge and high quality skills, reach-back into parent organisations and the up-skilling of the existing DIO workforce;

5. DIO is operating under an Unincorporated Model1, where DIO remains part of the Department, but with an embedded SBP executive management team. A study is currently underway to determine if there is benefit in moving to an incorporated model (or other business model) for DIO. A recommendation on the way ahead is expected to be made to the Defence Board in the Autumn of this year.

7 Governance Structure

The relationship between the DIO Board, the DIO Audit Committee and the DIO Senior Leadership Team (part of DIO’s internal governance arrangements) is shown below.

8 DIO Board Terms of Reference

Purpose

1. The purpose of the DIO Board is to provide strategic governance and leadership of DIO in delivering its objectives. In undertaking this role it will review DIO performance and provide support and constructive challenge to CE DIO and the DIO executive team.

Composition

2. Membership of the DIO Board is:

Non-executive Chair Non-executives (2) DG HOCS DCDS Mil Cap DG Fin CE DIO DIO Fin Cmrcl DIO COO Secretary - DIGA

The Secretary will be provided by the DIGA and other stakeholders or members may attend or be co-opted as required. The Board will meet monthly.

Responsibilities

3. The Board’s support and challenge responsibilities will include:

a. DIO’s purpose and role, strategic direction and the application of relevant good practice from public and private best practice to the way DIO operates. b. DIO’s objectives and the organisational level plans and budgets developed to achieve them. c. Performance against Defence and business objectives and KPIs. d. Regular review of DIO’s relationships with customers and suppliers.

4. Strategic Direction - The DIO Board will:

a. Provide oversight of the development and implementation of DIO’s strategy in line with the direction and objectives set by Defence. b. Endorse the Command Plan for agreement by PUS/CDS. c. Endorse the DIO Business Plan and associated budget.

5. DIO Performance - The DIO Board will:

9 a. Monitor and challenge DIO’s performance in delivery of infrastructure services (including DIO KPIs). b. Monitor effective use of resources in achievement of objectives. c. Monitor and manage strategic risks, and agree escalation to the Defence Board as appropriate. d. Ensure effective internal controls are in place (supported by Audit Committee).

6. Transformation/Continuous Improvement - The DIO Board will:

a. Oversee and monitor DIO forward transformation. b. Consider major initiatives and proposals for change. c. Encourage innovation in delivery of objectives.

7. Stakeholder Management - The DIO Board will:

a. Monitoring DIO’s relationships with customers and other key stakeholders. b. Ensuring effective communication with stakeholders on the activities of the Board.

Meetings

8. The DIO Board will usually meet formally every month. Members may send substitutes to meetings if they are not personally available, but only if they are empowered to make binding decisions on behalf of their principal.

9. Meetings will be quorum if at least half the members are able to attend, and those attending include a non-executive member.

Board Procedures

10. Items for the agenda (other than standing items) should be submitted to the Secretary 10 working days before the meetings. Supporting papers must be submitted at least 8 working days before meetings. Where these timeframe cannot be met submission dates should be discussed and agreed with the Secretary.

11. Where issues are complex or likely to be controversial, a paper should be circulated to Members in draft for comment and revision beforehand.

Reviews

12. An annual review will be undertaken of both the TOR of the Board, and also the Board’s effectiveness in carrying out its role.

10 Role Description

The Chair is responsible for ensuring the effectiveness of the Board in all aspects of its role, including:

 oversight of the development and implementation of DIO’s strategy in line with the direction and objectives set by Defence;

 advice to MOD on DIO’s strategic direction, objectives and risks, its business performance and its governance arrangements.

Principal Accountabilities

 Chair the Board and manage the business of the Board: ensure that Board membership in terms of its composition and capability is aligned with the challenges facing the business; and ensure the effective utilisation of the skills of Board members, both individually and in teams;

 Determining in consultation with other committee members the agenda for the Board, ensuring that systems are in place to provide members with accurate and timely information of good quality to allow the Board to consider properly all matters before it;

 Advising on the composition of the Board, taking into account its diversity and ensuring a balance of relevant expertise and experience, and obtaining approval for the appointment of new independent NEDs;

 Ensure that the Board has accurate and clear financial information, has visibility of objectives achieved and is advised of all likely future developments and trends;

 Ensuring that the Board is supported by effective and properly constituted subcommittees;

 Ensuring there is a Board Operating Framework in place consistent with the Government Code of Good Practice for Corporate Governance and a code of practice for board members, consistent with the Cabinet Office Code of Conduct for Board Members of Public Bodies;

 Ensuring that the Board as a whole is effective, including assessing the performance of the Board and of individual NEDs, and making recommendations on areas of development;

 Encouraging all board members to express their views frankly and challenge constructively in order to improve the standard of discussion in board meetings;

11  Oversee and make a strong contribution to the development of strategy, acting as a sounding board for the Chief Executive who will present future strategic plans for approval by the Board;

 Take responsibility for building and maintaining an effective Board, in particular ensuring that the performance of individual members of the Board and its committees is evaluated annually;

 Ensure that the performance of the Chief Executive and the Executive Directors are monitored by the Board and that a strong management succession is at all times developed and plans therefore are in place;

 Support, as appropriate, engagement with key stakeholders in order to instil confidence in DIO and promote effective relations.

The Chair of the DIO Board will focus on the performance of DIO as an organisation, in particular on how the business is delivering against customer requirements, and in providing support and challenge to the chief executive in leading and managing DIO. They will not have a direct role in the management of the Strategic Business Partner contract; this activity is undertaken by the Defence Infrastructure Governing Authority.

However, they may be required to provide advice to the Department by providing an independent perspective on the performance of the executive team, both individually and collectively, in driving delivery of DIO’s business objectives and transformation of the organization.

The Chair is appointed for a fixed term, normally up to three years, following a process of open competition managed by MOD following the principles of the Code of Practice for Public Appointments2. The Chair may be reappointed for a further term, subject to meeting required performance standards, but the total appointment should not normally exceed six years.

2 The role is outside the remit of the Office of the Commissioner for Public Appointments

12 Person Specification

In your written application, please give evidence of proven experience in response to as many of the criteria listed in "Part One" of the Person Specification as possible.

These responses will be further developed and discussed with those candidates invited for interview, together with the other criteria listed in "Part Two".

It is expected that the successful candidate will be able to demonstrate a strong record across a broad range of the criteria in both Part One and Part Two:

Part One - Key Experience

1. Highly successful and widely respected individual, with proven commercial and organisational leadership and management at the most senior corporate level within a property, investment, infrastructure, facilities management or service outsourcing environment, providing strong strategic direction and demonstrating an understanding of business needs;

2. Extensive experience of senior leadership, preferably at NED/Chair level within a FTSE 250, or comparable organisation, maximising efficiency and value for money, of infrastructure investment and portfolio management through strategic partnerships and joint ventures;

3. Proven track record of success in chairing boards/committees in a high profile organisation of similar scale and/or complexity to the Defence Infrastructure Organisation;

4. Experience in service delivery and/or large scale capital project delivery to a diverse customer base;

5. Experience of “turning around” organisations and leading complex, large scale change management programmes;

6. Proven commercial acumen backed by a track record of success in the private sector;

7. Proven track record of success in building and motivating senior teams to deliver a clear strategic vision through effective communication of strategies and plans, influencing and developing the capability of an organisation, and the people within them, to deliver real achievements;

8. Proven track record of success working in highly political environments, effectively handling high-profile and sensitive political issues at the local and national level;

9. Proven track record of successful and effective handling of the media in a high profile role under intense public and political scrutiny.

13 Part Two - Abilities, Skills and Knowledge

1. An understanding of major transformational change, within complex, politically sensitive environments, bringing best practice from relevant industries to the work of DIO;

2. Strong vision and capacity to lead and represent the DIO, giving a clear sense of overall strategic direction and purpose;

3. Ability to effectively communicate with knowledge and understanding of the strategic context and objectives of the DIO; gaining ownership and publicly promoting the organisation’s achievements and commitment to delivery;

4. An ability to inspire the delivery of results and outcomes in highly complex political environments, getting things done using public money in an efficient and accountable manner;

5. A sophisticated, shrewd and media friendly individual with a high level of political awareness, understanding and knowledge of how delivery of an organisation of this scale and complexity can be achieved practically whilst under the constant glare of parliamentary, public and media scrutiny;

6. Has an understanding of governance, standards of public life and the need to ensure the DIO spend is subject to strong Board scrutiny and addresses the organisation’s key strategic objectives.

14 Indicative Timetable

(Please note that these dates are only indicative at this stage and could be subject to change).

28 day advert appears/6 week search begins Monday 27th July 2015

Advert closing date Monday 24th August 2015

Search period ends: Monday 7st September 2015

Longlist meeting (MOD/Rockpools): w/c 14th September 2015

Preliminary interviews (Rockpools): w/c 21st September 2015

Shortlisting meeting (MOD/Rockpools): w/c 28th September 2015

Final panel interviews (MOD): w/c 28th September 2015

15 Response Instructions

Ref Number: Chair (X MOD001)

If you wish to apply, please supply the following documentation:

 A comprehensive CV/biography setting out your career history, with responsibilities and achievements.  A supporting statement that addresses the criteria in Part One of the person specification.  Please also state details of two referees together with a brief statement of the capacity in which, and the length of time for which, they have known you (referees will not be contacted before final interviews without your express permission).

It is essential in your written application that you provide as full an answer as possible to the questions being answered to ensure your application covers all the relevant experience that the selection panel will be looking for in the sift process.

If you wish to receive a hard copy of the information content, or in an alternative format e.g. Audio, Braille or large font then please contact Kelly Rooke on +44 (0)20 3137 3449 or by e-mailing her at [email protected]

If you can not apply online, please post applications to:

Kelly Rooke Coventry Techno Centre Coventry University Technology Park Puma Way Coventry CV1 2TT United Kingdom

We would also be grateful if you could provide us with the details of two referees. Referees will not, of course, be contacted without your prior consent.

The closing date for applications is Monday 24th August 2015.

For an informal and confidential discussion, please call our advising consultants at Rockpools: David Thomas on 020 3137 3446 or Balvinder Sangha on 020 3137 3453.

Rockpools will, of course, respect the privacy of any conversations regarding this role.