Restructuring the Norwegian Defence Logistical Organization

The Norwegian Logistic Defence Organization (NDLO) has a total life cycle responsibility for all defence equipment and weapon platforms - from procurement through operational support to disposal - in other words cradle to grave responsibility. In addition NDLO delivers administrative services to all Norwegian Defence forces. These services include transportation, catering, accommodation, security services and information resource management. NDLO employs 1/3 of all employees in the Norwegian Armed Forces, is responsible for 45% of the annual defence budget and uses 65% of total floor space. Within the Norwegian Armed Forces, NDLO is a large and complex organization, and has implemented a comprehensive reorganization and downsizing process since 2002. This reorganization process is probably the largest downsizing program ever in the Norwegian public sector. The purpose of this professional studies paper (PSP) is to make a case study of the reorganization and downsizing process in NDLO. The process is interesting for several reasons: First, the process has contributed extensively to give the organization a joint perspective.