What Small NATO Nations Can Learn from the Not-for-Profit Sector to Enhance Defense Acquisition

Abstract

Managing defense acquisition in small nations is a considerable challenge that can be overcome by introducing innovative management approaches, strategies, and systems. This article presents a case study on one of the smallest NATO nations, Luxembourg. It demonstrates how ap-plying management concepts from not-for-profit organizations can help small NATO nations to increase their organizational effectiveness. The author employs a framework devised by the Bridgespan Group, consisting of five effectiveness vectors—leadership, decision-making and structure, people, work processes and systems, and culture. This framework facili-tates a systematic analysis. The article provides analysis along each of the five vectors with an account of the specific context of the Luxembourg Armed Forces, incorporating pertinent concepts, such as systems think-ing, bureaucracy, organizational learning, and organizational culture. This exhaustive analysis unveils four systemic gaps in effectiveness: delayed corrective action, challenges associated with tacit knowledge and second-and third-order learning, the demand for an embedded learning cycle, and the impact of organizational subculture. The article concludes by out-lining the necessity for subsequent research aimed at rectifying these identified effectiveness gaps.