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The NOR: NATO Office of Resources
NITECH ››› A TRANSFORMATIONAL DECADE
THE NOR:
NATO OFFICE OF RESOURCES
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Simon Michell talks to Anne-Marie Pick, the Director of the NATO Office of Resources (NOR), to find out what the NOR does and how it collaborates with the NCI Agency
The Director of the NATO Office of Resources (NOR), Anne-Marie Pick, understands the challenges that the NCI Agency must address, having served as the first NCI Agency Chief Financial Officer/ Financial Controller when the Agency was established in 2012. She has very fond memories of her time there. “I served in the NCI Agency for six years as we brought together five disparate legacy organizations, modernized NATO IT and communications, changed funding models, significantly reduced personnel and implemented many other significant and far-reaching changes. It was one of the most interesting and challenging positions I have held,” she says. This has afforded her an in-depth awareness of the NCI Agency – an understanding that is extremely useful to her in her current role of driving efficient and effective NATO-wide stewardship of the Alliance’s common funding, much of which is allocated to the NCI Agency.
NATO common funding amounts to some 2.5 billion EUR a year, or approximately 0.3% of the combined defence budgets of the 30 NATO Allies. The amounts are minimal in terms of total defence spending, but the “multiplier effect” is significant as common funding enables Member Nations to pool and leverage resources, and most importantly to operate as one. Pick considers common funding as part of “the glue that binds the Alliance” as it enables political consultations and decision-making, deterrence and defence, and interoperability. Very importantly, NATO Nations coming together and committing to common funding sends a clear and tangible message of political resolve, unity and solidarity.
The NOR plays a key role as the NATO IS (international staff) lead for NATO common-funded capabilities
One of the NOR’s responsibilities is to support resource-informed political decisions that are taken by Heads of State and Government at NATO summits
and common-funded resource management. It supports the achievement of NATO’s goals and objectives by providing expert advice to the Secretary General, the NATO Resource Committees and other stakeholders on the efficient and effective use of common funding. “We provide advice on policy, strategic planning, programming, budgeting and the execution of over 2 billion EUR of military common funding each year. The funding supports our NATO Command Structure, training and exercises, readiness, Command and Control (C2) capabilities (which the NCI Agency delivers and supports) and reinforcement infrastructure. As of very recently, we also provide advice on the planning for civil budget funding, which supports the running of NATO Headquarters and its international staff,” Pick explains.
VALUE FOR MONEY
It is imperative that common funding is used purposefully and effectively. “Value for money is key, as are accountability and transparency. Common funding is taxpayers’ money, so it is very important that we continue to apply due diligence in the use of common funding and retain the trust of the public as an efficient steward of resources,” says Pick. Crucially, as a customer-funded entity, some 90% of NCI Agency funding emanates from common funding.
NATO’s goals and objectives are reviewed and adapted regularly, particularly at NATO summits where Heads of State and Government meet to deliberate on where the Alliance is heading, what steps need to be taken to achieve those goals, and how much investment will be required. At the 2021 Brussels Summit, Heads of State and Government agreed to NATO’s adaptation for the future and the ambitious NATO 2030 Agenda, which entails increased defence spending as well as common funding. In addition to the daily functions of the NOR, Pick and her team of committed experts have been very busy working with key stakeholders and implementing agencies, including the NCI Agency to prepare for the 2022 Madrid Summit.
Pick states, “The Russian invasion of Ukraine has further reinforced the need for NATO’s adaptation that our Heads of State and Government agreed at the Brussels Summit. It really is more important than ever to implement the ambitious NATO 2030 Agenda and increasing common funding will be key.” Therefore, the NOR is supporting the NATO Resource Policy and Planning Board, in its deliberations on the resource implications of the NATO 2030 Agenda. This work supports the June 2022 Madrid Summit where leaders decided, among other things, on the funding levels for Military Budgets, the Civil Budget, and the NATO Security Investment Programme. The increase in common funding is critical for the NCI Agency as currently more than 30% of NATO’s total common funding is allocated to the Agency’s activities for C2 capability delivery and ICT service provision to more than 30 entities across the NATO enterprise.
BUILDING A STRONGER NOR-NCI AGENCY RELATIONSHIP
With so much at stake, it is crucial that the NCI Agency has strong relationships with its key stakeholders – including the NOR. “Our relationship is very good and improving all the time. My team and I work very closely with the NCI Agency General Manager, Ludwig Decamps, and his staff. There may be some friction at times because our roles are different, but it is positive friction and a good professional relationship which adds value for the overall 31
NITECH ››› A TRANSFORMATIONAL DECADE
stewardship of NATO funds and to ensure we are meeting the capability requirements of the Alliance. We are all in this together and when you consider the scope and breadth of the NCI Agency’s responsibilities, the Agency’s success means success for the NATO enterprise,” Pick explains.
Examples of the requirements that the NCI Agency helps to deliver through common funding are broad in scope and vital in nature, from the IT networks across the NATO Alliance to the Alliance Ground Surveillance (AGS) system in Sigonella, Italy. AGS is a good example of where the NCI Agency has been working hard to enhance collaboration with its stakeholders including the NOR and the NATO Support and Procurement Agency (NSPA). The AGS has recently transitioned to common funding. The complex funding transfer brought about numerous challenges for both agencies relating to ongoing sustainability and future upgrades. “We have made good progress recently in terms of setting up the framework for common funding and how to deal with resourcing challenges for this key NATO capability,” says Pick. She also points to the efforts the new NCI Agency General Manager has been making to enhance delivery and stakeholder engagement. “I am very pleased to see the improved positive collaboration between the NCI Agency and the NSPA. Furthermore, the NCI Agency’s focus on “excellence in delivery” as a top strategic goal is paramount and critically important for NATO.”
Other key capabilities where the NOR supports the NCI Agency relate to the so-called ’digital backbone’, which the NATO Military Committee considers to be the primary key requirement area of the NATO 2030 Agenda. The digital backbone includes capabilities currently in place and under development, as well as new advanced capabilities to enable implementation of the Concept for Deterrence and Defence of the Euro-Atlantic Area and the NATO Warfighting Capstone Concept, which guide the Alliance’s deterrence activities and warfare development to remain militarily strong now and in the future.
Fully implementing the NATO 2030 Agenda will require a rigorous and concerted effort by all stakeholders to deliver better, faster and smarter, and, without a doubt, the NCI Agency will continue to play a critical role in NATO’s adaptation.
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NATO’s Investment Committee visits NCI Agency facilities in The Hague, Netherlands (PHOTO: NCI AGENCY)
