System life cycle management: The next step to ensuring performance

According to NATO’s Systems Life Cycle Management (SLCM) policy the main goal of systems life cycle management is to deliver, use, and maintain NATO capabilities efficiently and effectively while ensuring a high level of Operational Availability (A_O), reducing in-service costs. The application of System Life Cycle Management (SLCM) is based on the following principles: Commitment to Systems Life Cycle Management, Cooperation and Interoperability, Efficiency, Collaboration with Industry, and Quality. Nowadays, an important detail is that Interoperability is perceived at capability level as well as on maintenance and support level.

Approximately 70% of the total cost of ownership will happen in utilisation/in-service/operations. On the contrary, roughly 80% of the decisions which influence maintainability, supportability and reduction of down-time are to be designed in concept/design stages, contractual, technical, and processual. Doing this on purpose or by chance or not at all, makes a significant difference. It is essential to influence requirements from the very beginning, design to reflect, next to technical needs, the needs for supportability as well as predictability. In this context, an A_O driven business approach, as well as processes, methods and tools have to be set up in a coordinated way, robust and flexible enough for continuous optimisation to reflect an ever-changing operational and technical environment. Standardisation is key to facilitating re-use, acceptance and efficiency.

SLCM is a scientific methodology, an organisational business approach, focusing on the Life Cycle of a System which is determined to use a System to perform capabilities, in, with and by an organisation, as well as across organisations.

The application of SLCM is crucial to implement operational efficiency, that allows for more targeted actions, shortens adjustments to the ever-changing operational environment, and strengthens both the quality and flexibility of the systems and its operations. The transformation from product to services business, the modularisation into systems-of-systems and systems-of-subsystems, and share of risk and gain, as well as the establishment of sustainable processes and business models are crucial measures to establish and maintain the efficiency to survive.

The system concept of NATO AAP-20 (NATO’s System Life Cycle Management Framework) defines a System as a System-of-Interest (SOI – equivalent to the term product, with all its product data, breakdown, configuration, life cycle) and all Enabling Systems (enablers, like infrastructure, material, personnel, training, documentation, etc.) for the SOI in its operational environment. The aim is to achieve and maintain A_O of the SOI in an efficient and cost-effective way, supported by the enabling systems. Thus, in this concept the enabling systems are an integral part of the system along its design and development, production, utilisation, support and disposal. The SOI and its Enabling Systems cannot be divided. These are to be organised together in a most flexible way to directly reflect and react to technical changes, as well as to changes of the operational environment.

To use a System of Interest (SoI) in an economical way, reducing downtime to a minimum is the main goal. That means, there is to be a focus on the enabling systems to ensure economical A_O.  For that a mature organisation is necessary.

This breaks down into an integrated/support optimised approach of:

• Contract management;
• Programme management;
• Organisational setup/alignment;
• Integrated, interrelated process-/information management;
• Design of supportability & predictability into the system including thorough configuration management based on a re-use strategy;
• Clear interfaces (IP) and information with suppliers and customers;
• Re-use of information, based on international standards such as: ISO/IEC 15288, NATO AAP-20 (NATO’s SLCM Framework), AAP-48 (NATO SLCM Processes), ALP-10 (NATO Standard to Integrated Life Cycle Support), AQAPs (NATO Suite of Quality Assurance Standards), etc.

Delivering Operational Availability throughout the entire life cycle of a system — and doing so in a cost-effective way — represents a profound conceptual shift. Availability is no longer just a technical metric: it becomes a product in itself, enhancing the portfolio, flexibility, and performance of today’s organisations. A sound processual, contractual, methodical, interoperable backbone provides a capability to react and deliver quickly.

To seize this opportunity, organisations must evolve from traditional non-efficient project to product-based approaches and finally towards service business models, grounded in classical, but optimised, as well as outcome- or performance-based contracting. This shift enables more competitive offers, helps to implement re-use strategies, reduces transactional efforts, secures intellectual property, and ensures sustainable long-term relationships.

From a NATO/countries perspective it is all about WHO, WHY, and HOW:

• WHO: the organisation, which wants to fill a capability gap, so plans to get a SOI in its organisation and makes itself mature and sustains this status to us a SOI;
• WHY: to plan and steer (control!) a System and to build up and sustain that System;
• HOW: by following the principles of SLCM (maturities, stages, processes activities), managing by decision making on controlling-data by responsible personnel.

System Life Cycle Management (SLCM) remains the key enabler in turning plans and investments into actual combat power in the hands of the warfighter. It is to support the warfighter in a most efficient, flexible, fast, and efficient way. Operational Availability of Systems and a sound System-of- Systems design, all across the value chain, are key elements for a sustainable allocation and use of capabilities.

The annual NATO LCM Conference will present new visions, innovative approaches, developments, lessons learned, and achievements made by representatives of government, military, industry, and NATO in applying SLCM as a basis for new and innovative approaches. The event will again be organised in cooperation with the NATO Life Cycle Management Group (AC/327) and the NATO Industrial Advisory Group at the Holiday Inn Brussels Airport on 20/21 January 2026.

Andreas Kirchhofer

Author: Andreas Kirchhofer is the Global Head of System Life Cycle Management (SLCM) for Sopra Steria, and also holds positions as Vice-Chair of the Customer Support Services Training Operational Group of the Service Commission of the Aerospace, Security and Defense Industries Association of Europe, and Vice Chair at the NIAG Industrial Interface Group (NIIG).