Strategic Framework Arrangement

Five Objectives against which a coherent, strategic relationship will be developed, embedded and measured.

What is the SFA?

The Strategic Framework Arrangement (SFA) establishes a unique, formal mechanism for high-level, strategic engagement between EADS and the UK Government. It recognises the special relationship that already exists between the parties and is a major step in developing and maintaining a long-term, strategic partnership.

The agreement outlines five objectives by which a coherent relationship will be established, developed and measured.

It was signed in September 2007 by Louis Gallois, CEO, EADS and by four major UK Government Departments at Ministerial level.

"The Strategic Framework Arrangement is a quantum leap in the relations between Her Majesty’s Government and EADS. The UK is a home market of EADS. Therefore, it was, is and continues to be a core element in the long-term strategy of our company."

Louis Gallois, CEO, EADS

"This Strategic Framework Arrangement is a significant step forward in developing an effective and co-operative working environment between EADS and HMG, based on increased transparency, openness and trust."

UK HMG Ministers

What are the Objectives?

The overall purpose of the SFA is to achieve a strong relationship based on openness and trust, shared values and respect for each other’s needs and priorities. That relationship has been described under five objectives:

• People and Culture
  Align values, processes and behaviours around shared interests, understanding and communications
• Openness and Transparency
  Share and communicate innovation and best practice
• Professional Ethics
  Improve mutual decision making and performance
• Capability
  Identify opportunities for technological and business innovation
• Strategic Relationships
  Commit to a long term strategic relationship through a co-ordinated Strategic Engagement Plan.

How does it work?

Working together, EADS and the Government departments have developed a plan – the Strategic Engagement Plan (SEP) – to ensure that the objectives and principles of the SFA are implemented in practice. Governance and management of the SEP is undertaken by the Strategic Engagement Implementation Team comprising representatives from EADS and the UK Government.

The SEP has various strands of activity which have been clearly set out and agreed. They are being implemented by individual EADS business units and Government departments against the five objectives.

They include:

• 12 month cycle of strategic review meetings
• Work-streaming to align joint technological strategies and business processes
• Ongoing dialogue supplemented by the EADS Improvement Programme’s Customer Review process (CRp) and by the MoD’s Key Supplier Management (KSM) cycle
• Two-way performance assessments.

What are the benefits of the SFA?

There are considerable benefits to EADS, the UK Government and the UK.

For EADS, the SFA:

• enables EADS to work as a single, customer-focussed entity in the UK
• formalises the process of engaging in strategic dialogue with the UK Government
• positions the company as one of the UK’s long term providers of intellect, technology, capability and services
• increases understanding of EADS by UK customers and investors
• improves the company’s capacity to understand the UK’s requirements.

For the UK Government, the SFA:

• increases understanding of the capabilities of EADS
• helps to deliver better value for the UK taxpayer via improved understanding, better decision making and mutual improvement in performance
• improves the delivery of programmes and services it receives from EADS by enabling full and open discussions, greater transparency and closer partnership
• contributes to improvements in UK competitiveness by generating an environment which will allow for more confident, long-term investment in the UK by EADS
• creates better access for the UK to a wider pool of technology and innovation.