DEFENCE BUSINESS: Strategic Change for Resiliency and Adaptation

BY LEIGH HARRIS & JAG GOSAL

To meet the rapidly evolving geopolitical landscape, the Canadian government is investing more than $9-billion in the Department of National Defence (DND) and the Canadian Armed Forces (CAF) for fiscal 2026 alone aimed at empowering military personnel, equipping them properly, and bolstering organizational resiliency to respond to cyber threats and keep defence information safe and secure.

That is a lot of change in a short amount of time.

On top of that, DND and CAF are committed to operationalizing an artificial intelligence (AI) strategy by 2030 that will make the Defence Team AI-enabled, in line with achieving overall digital transformation within five years.

CHANGE MANAGEMENT STRATEGY

The success – and return on investment (ROI) to taxpayers – will depend on a robust change management strategy and implementing it effectively.

A change management strategy is a planned methodology that provides a structured approach to planning, communicating, and implementing changes, and managing people and processes at every step along the way. It will minimize disruption and the risk of unexpected consequences. Ultimately it helps leaders lead people through the change – and builds confidence and trust in the organization.

Without a change management playbook, employees will resist and fear change, costs will spiral out of control, trust in leadership will erode, potential opportunities could be missed, and it’ll take twice as long, if not longer, to deliver the change initiative.

While it’s best practice at any time, change management becomes more critical when an organization undergoes rapid change.

In any organization, a prevailing culture of risk aversion can also stifle innovation. In defence, this is particularly concerning when adopting new systems, tools, or models, such as various types of human- and AI-operated drones or 5^th-generation fighter jets.

Change management helps guide the organization through cultural shifts, technological advancements, and operational expansions. It facilitates seamless integration and retention of new recruits through enhanced user experience, while maintaining operational readiness and strengthening digital foundations.

By equipping personnel with the necessary skills and mindset to leverage new technologies effectively, change management minimizes disruptions and fosters a culture of innovation.

It is not limited to training sessions or merely communicating the change.

The successful adoption of new technology, processes, or behavioral shifts must begin at the onset, as a mindset for foundational change and initiatives, not just when new tools or solutions are identified.

A one-size-fits-all solution is insufficient and imprudent given the diversity and breadth of the DND/CAF transformation ambition and mission. The changes being planned require flexibility and adaptability to accommodate organizational nuances and unforeseen circumstances and changes.

FOUR KEY CONSIDERATIONS

In brief, here are four key considerations when developing a change management playbook that will be necessary in the defence transformation:

One, a consistent approach to managing change provides a structured framework, ensuring that personnel know what to expect and what channels of communication will be used, minimizing and mitigating change fatigue. Consistency creates a sense of stability, reducing uncertainty and anxiety.

Two, foster leadership alignment by creating shared objectives and a unified strategy for navigating transition. Alignment promotes a unified vision and direction, consistent communication, and effective role modelling, which builds trust and credibility for the organization and leaders. Leaders must be aligned on priorities to effectively allocate resources, manage and reduce resistance, and cultivate a culture of trust, innovation and resiliency.

Three, aligning the organizational structure and processes with strategic direction is critical. This includes updating procurement systems, enhancing cyber resilience, maturing data management practices by establishing clear standards, policies, roles and responsivities for data governance; operationalizing these through the adoption of modern data management platforms; enhancing data security and privacy protection; and, integrating these practices and tools with AI and machine learning capabilities.

Four, training and development programs equip personnel with the skills and knowledge required to adapt to new technologies and processes. These programs should be tailored to different roles and levels within the organization to ensure all personnel is prepared for the changes. Additionally, using appropriate modalities, such as bite-sized learning and podcasts, can accommodate the needs of troops on the ground who may not have the capacity for lengthy instructor-led training sessions, as well as be utilized to create and share excitement around the transformational initiatives and tools.

A commitment to effective change management is paramount to success in navigating the complexities of the modern missions. Embracing flexibility, fostering innovation, and ensuring alignment across all levels of the organization, the DND/CAF can achieve strategic goals and maintain its position as a resilient and adaptive force.

Leigh Harris is a Management Consulting Partner and Lead Partner, Federal Government, at KPMG in Canada. Jag Gosal is a Director in People and Change Management Services at KPMG in Canada. For more information, visit, www.kpmg.ca. The views expressed here are their own and do not necessarily reflect a CDR editorial position.