The UK's defence procurement industry should learn from Elon Musk

The UK’s defence procurement system is plagued by inefficiencies, cost overruns, and delays, undermining the nation’s security in an increasingly volatile global landscape. Projects like the Ajax armoured vehicle and Type 45 destroyer exemplify these failures, with budgets spiralling and timelines stretching years beyond projections. As threats from state and non-state actors grow, the UK cannot afford a sluggish procurement process that delivers outdated capabilities. Elon Musk’s 5-step algorithm, question requirements, delete unnecessary processes, simplify, accelerate, and automate, offers a radical blueprint to reform the Ministry of Defence (MoD) acquisition system. Successfully applied at Tesla and SpaceX, this methodology could enhance efficiency, reduce costs, and ensure the UK’s armed forces are equipped to counter modern threats. This article explores why reform is urgent and how Musk’s approach could transform UK defence procurement.

Musk’s first step, “Question every requirement”, demands scrutiny of all specifications. In UK defence procurement, requirements often balloon due to input from multiple stakeholders—military branches, civil servants, and contractors—leading to overly complex or obsolete demands. The Ajax programme’s delays, driven by intricate sensor and networking specifications, highlight this issue. By tying each requirement to a named individual, the MoD could enforce accountability, tracing and challenging unnecessary demands. This approach counters the risk Musk identifies: requirements from “smart” individuals often go unchallenged. Encouraging debate across ranks would require cultural change but could align specifications with strategic needs, ensuring equipment meets real-world threats efficiently.

Musk’s second step, “Delete any part or process you can”, targets redundant elements. The MoD’s acquisition process is bogged down by layers of oversight, from Defence Equipment and Support (DE&S) to Treasury approvals, inflating costs and delaying delivery. Eliminating duplicative reviews or paperwork for low-risk projects could free resources. The Warrior Capability Sustainment Programme, stalled by excessive testing, could have prioritised essential evaluations. Musk notes that 10% of deleted processes may need reinstatement, allowing flexibility. By cutting administrative bloat, the MoD could deliver equipment faster, strengthening national security when threats demand rapid response.

The third step, “Simplify and optimise”, refines processes after pruning excess. The Type 45 destroyer’s integration of unproven technologies drove up costs and delays. Prioritising proven systems could mitigate such risks. Simplifying contracts, moving away from single-source deals with firms like BAE Systems, and adopting modular, open-architecture designs could foster competition and innovation from smaller bidders. Musk warns against premature optimisation; simplifying a jet fighter’s requirements must precede refining its systems. This approach ensures resources focus on essential capabilities, critical for a UK facing budget constraints and escalating global risks.

Musk’s fourth step, “Accelerate cycle time”, demands faster delivery after rigorous simplification. UK defence projects, like the Challenger 3 tank upgrade, often languish for years. Adopting agile methods, such as the U.S. Middle Tier Acquisition pathway, could deliver prototypes quickly for real-world feedback. However, accelerating flawed processes risks errors, as seen in the F-35’s costly retrofits. By applying Musk’s earlier steps, the MoD could speed up delivery without sacrificing quality, ensuring capabilities reach the forces swiftly to counter emerging threats.

The final step, “Automate”, follows prior steps to ensure efficiency. Automation could streamline MoD tasks like contract management or cost estimation, reducing human error. Artificial Intelligence could analyse bids or predict project risks, saving time. However, premature automation, as seen in the Morpheus communication system, fails without clear requirements. Automating validated processes, such as supply chain logistics, could enhance efficiency, freeing resources for frontline capabilities critical to national defence.

Implementing Musk’s algorithm faces obstacles. The MoD’s risk-averse culture and stringent safety standards may resist aggressive process deletion. Contractors and bureaucrats may push back, and multi-nation projects like the Global Combat Air Programme complicate unilateral changes. Yet, the stakes are high. Applying the algorithm to the Dreadnought submarine programme could question bespoke components, eliminate redundant reviews, simplify propulsion, accelerate testing, and automate quality checks, saving billions and ensuring timely delivery to deter adversaries.

The UK’s defence procurement system must evolve to deliver capabilities swiftly and cost-effectively in a world of growing threats. Musk’s 5-step algorithm, questioning requirements, deleting excess, simplifying systems, accelerating timelines, and automating strategically—offers a framework to achieve this. By embracing this first-principles approach, the MoD could overcome inefficiencies, equipping the armed forces to safeguard the nation. Reform is not just desirable but essential to maintain security in an uncertain future.