Aerospace & defence insights - A new intensity: Programmes under pressure

Aerospace & defence insights: Programmes under pressure
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For our 3rd edition of A&D Insights, PwC interviewed 28 CEOs and senior executives in the industry on the subject of programme management effectiveness and profitability as well as the impact of changing dynamics from market shifts and globalisation. They told us what the next generation of programme management will look like.

Programme performance is a hot topic.

Why talk about "programmes under pressure"? A&D companies are experiencing more pressure from more directions than ever before—on price, supply chain risk, the need to expand globally, the risks associated therewith and broader macro-economic uncertainty. Alongside this, customers expect that innovation will continue while costs come down or are capped. Innovation is a must-have but can no longer come at any price. This convergence of pressures is leading to a change in programme management that moves it well beyond its traditional heartland of scheduling, progress tracking, managing risk and pressurising or sometimes penalising suppliers.

How can companies respond to this convergence of pressures?

In the past, companies would respond to pressure by majoring on excellence in one of solutions leadership, operational excellence or customer intimacy. But today’s environment means that excellence in one alone is not enough. Companies, and in turn their programme managers, need to be top of their game in all three. And they need to be able to deliver innovation and affordability in tandem.