Defence Leaders: Defence Materiel Organisation (DMO)
Dr Stephen Gumley
Chief Executive Officer of the Defence Materiel Organisation (CEO DMO)
Dr Gumley is an internationally experienced senior executive and entrepreneur, who has successfully built, managed and directed many national and international entities. He has fostered significant performance growth within numerous industries and led extensive development of international alliances, strategic direction, public representation and managed Mergers and Acquisitions.
In February 2004, Dr Gumley was appointed the inaugural Chief Executive Officer of the Defence Materiel Organisation (DMO) part of the Australian Department of Defence and responsible for acquiring and sustaining all military equipment. He guided the organisation in its transition to an Australian Government Prescribed Agency on 1 July 2005. In 2007/08 DMO has a cash budget of over $9 billion (43% of Defence’s budget and 0.9% of Australia’s GDP) and about 7000 staff. Additionally, Dr Gumley is National Armaments Director (Australia). Under a Ministerial Directive, he is accountable to the Minister for Defence for DMO performance.
DMO has approximately $65 billion of projects under management and a further $40 billion of whole of life sustainment commitment over the next 10 years. It is Australia’s largest project manager, responsible for more than 200 major acquisitions (each over $20m, some $6-12 billion) and several hundred sustainment projects across air, land, maritime and electronic domains, each at different stages from initial planning and costing to procurement, finalisation, and maintenance in service with the Australian Defence Force.
In July 2002, Dr Gumley commenced as Chief Executive Officer of the Australian Submarine Corporation (ASC) and also became Managing Director in October 2002. After overseeing the end of the Collins Class submarines build program, he managed and implemented the transition of ASC to becoming a whole-of-life support organisation able to undertake modifications, maintenance, capability enhancements and training for the submarine fleet. Further, he led ASC towards the imminent restructuring of the Australian Naval shipbuilding industry in line with the Government’s Defence Capability Plan and prepared the Company for sale in accordance with government policy objectives. His position at ASC required effective and successful interface with Defence and other stakeholder departments including Finance, Treasury, Prime Minister & Cabinet, Industry and Foreign Affairs and Trade. The company repositioning culminated in the award of the ASC 15+5+5 year contract (valued at around $3.5 billion) to support the Australian submarine fleet.
In April 1998, Dr Gumley commenced as Chief Executive Officer of aviation software supplier, The Preston Group, Melbourne. Dr Gumley conducted an overhaul of the Company’s project management, business model and HR practices. Following the successful company turnaround, he oversaw the sale of the company to Boeing in September 1999. Dr Gumley joined Boeing Seattle USA as Vice President (Information Services) Commercial Airplane Services in January 2001. He graduated from the Boeing Executive Leadership program in October 2001. Whilst at Boeing, he led a new division within the Corporation and succeeded as a Business Unit leader developing strategic growth plans for information services in the aerospace industry.
From 1993 to 1997, he was the CEO of the entrepreneurial Global Lightning Technologies Group (GLT). He embraced progressive HR practices and successfully guided the Company to significant revenue and profit growth that resulted in multiple national awards for innovation, quality, research, design and marketing. The Company was awarded an Australian National Export Award in 1996 in recognition of its export success to 30 countries. GLT was sold to a US corporation in May 1997 at high earnings multiples.
Between 1987 and 1993 Dr Gumley was General Manager of Critec Pty Ltd, an electronic design manufacturing and exporting firm, where he developed large revenue and profit growth.
Dr Gumley was a Director of Melbourne IT Limited when it conducted its very successful IPO onto the ASX in November 2000. He was a Council Member of the University of Tasmania 1996-2000 and Chair of the Finance, Audit and Investment Committees.
Dr Gumley was born on 26 October 1956. He obtained a Bachelor of Engineering with First Class Honours in 1979 and received a Rhodes Scholarship in 1979. He was awarded a Doctor of Philosophy from Oxford University in 1982, an MBA from the University of Tasmania in 1994, and an Advanced Diploma in Corporate Governance – AICD in 2003. He is a Fellow of the Institute of Engineers Australia, the Australian Institute of Company Directors and the Academy of Technological Sciences and Engineering.