Relevant and Ready Today and Tomorrow

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A STRATEGIC FRAMEWORK . . . The 2006 Army Plan,
Budget and Supplementals
Secretary of the Army
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STRATEGIC PRINCIPLES

• Focus on the Soldier, our centerpiece.
• Provide a perspective on the 21st century
  security environment.
• Create a Framework with overarching, interrelated
  strategies and supporting initiatives needed to
  meet todays commitments while preparing for the
  future.
• Transform the Army in a continuous evolutionary
  fashion that leads to revolutionary results.

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THE STRATEGIC FRAMEWORK
21st Century Security Environment An Era of
Uncertainty Unpredictability, Misinformation and
Misconceptions Four Challenges Traditional,
Irregular, Catastrophic and Disruptive
Vision Relevant and Ready Landpower in Service to
the Nation
Mission Provide necessary forces and capabilities
to the Combatant Commanders in support of the
National Security and Defense Strategies
Four Overarching and Interrelated Strategies 21
Supporting Initiatives
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THE ARMY VISION
Relevant and Ready Landpower in Service to the
Nation
The Nation has entrusted the Army with preserving
its peace and freedom, defending its democracy
and providing opportunities for its Soldiers to
serve the country and develop their skills and
citizenship.
To fulfill our solemn obligation to the Nation,
The Army Vision is to remain the preeminent
landpower on earththe ultimate instrument of
national resolvethat is both ready to meet and
relevant to the challenges of the dangerous and
complex 21st Century Security Environment. The
four means to achieve this vision are

• Soldiers
• Leaders
• Modular Forces
• The Institution

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The Ways To Achieve The Vision Are Through
These Four Overarching and Interrelated Strategies
Developing Ready and Relevant Land Forces for the
21st Century Security Environment
Training and Equipping Soldiers to Serve as
Warriors and Growing Adaptive Leaders
Attaining a Quality of Life for Soldiers and
Their Families that Matches the Quality of Their
Service
Providing Infrastructure to Enable the Force to
Fulfill its Strategic Roles and Missions
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STRATEGIES
Developing Ready and Relevant Land Forces for
the 21st Century Security Environment

• Building a Campaign-Quality Force with Joint and
  Expeditionary Capabilities
• Enhancing Joint Interdependence
• Resetting the Force
• Converting to a Brigade-Based, Modular Force
• Rebalancing Active and Reserve Component Units
  and Skills
• Stabilizing Soldiers and Units to Enhance
  Cohesion and Predictability
• Leveraging Army Science and Technology Programs
• Spiraling Future Combat Systems Capabilities in
  the Current Force
• Restructuring Army Aviation

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THE ARMY MODULAR FORCE
WHAT IT IS
KEY ADVANTAGES

• Total redesign of the operational ArmyFull
  Spectrum Force
• Larger and More Powerful
• More Flexible
• More Rapidly Deployable
• Division-centric to Brigade Combat Team-centric
• Brigade Combat Team (Unit of Action)
• Organized the way it fights
• 3,500 4,000 Soldiers
• Self-sufficient, standardized
• Three types Infantry, Armor, Stryker
• Standardized HQs and Support Brigades
• Two echelons of Headquarters
• Five types of Support Brigades

• HQs joint capable and organized the way it will
  operate
• Combat Power
• 33 to 43 BCTs in the AC 34 RC
• Enhanced Combat Power of the UA
• Number of BCTs in the rotational pool
• 48 to 77
• In combination with AC/RC Rebalancing and Force
  Stabilization, the Modular Force will reduce
  stress on the force
• Predictable rotation cycle
• Longer dwell time at home
• Providing an organizational framework for
  implementation of the Future Combat Force
  StrategyLinkage to the FCS Program

(Sustainment, Maneuver Enhancement, Fires,
Aviation, BfSB)
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STRATEGIES
Providing Infrastructure to Enable the Force to
Fulfill its Strategic Roles and Missions

• Business Transformation
• Maintaining our Installations as Flagships of
  Readiness
• Improving Global Force Posture
• LandWarNet
• BRAC Implementation Plan

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A Business Profile of the Army
People

• Active Military 502.4K
• Reserve Military 555.0K
• Civilians 233.0K
• Contracted Svcs 280.0K
• Total 1,570K

Financials

• FY 04 Expenditures 141.6B
• FY 05 Base 160.3B
• (101.9B) Supp (58.4B)
• FY06 Presidents Budget (Base)

513K

• Kuwait 10K
• Korea 26K

• 257,000 Soldiers deployed in 120 Countries
• Iraq 105K
• Afghanistan 15K
• Homeland Defense 14K

• Military Personnel 28.4B
• Operations Maintenance 25.3B
• Procurement 11.8B
• RDTE 9.7B
• Military Construction 1.5B
• Environmental Restoration .5B
• Army Family Housing 1.4B
• Reserve Components 15.3B
• National Guard 10.0B
• Army Reserve 5.3B
• Other 4.7B
• Chem/Demil (OSD) 1.5B
• 100.2B

Plant/Equipment

• Fleet
• Wheels 237,000 vehicles
• Tracks 28,000 vehicles
• Rotary wing 4,200 airframes
• Installations
• 4,100 Installations and centers
• 241B Plant Replacement Value
• 15.4M acres
• 57,700 miles of roads
• 981 Million square feet of buildings

The Army, as a corporation, would rank 5 on the
Fortune 500 based on revenue with as large a
workforce as Wal-Mart and McDonalds (1.5M).
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Business Transformation .freeing up resources
for our warfighting mission

• Establish a performance cultureSES Pay and
  Performance Management System National Security
  Personnel System
• Reengineer our reset, repair, manufacturing and
  administrative processes
• Lean / Six Sigma
• Outsource where it makes sense
• Apply information technology
• Empower our leaders to make the required changes
  and holding them accountable.

Major Reductions in Cost and Cycle Time while
improving Quality of Output
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Establish a Performance Culture

• Require 100 Training in Lean Six Sigma for
  Senior Leaders
• Establish an Army-wide Business Transformation
  Plan with Cost Reduction Objectives in accordance
  with Army Strategic Objectives
• Develop a system of structured management reviews
• Establish a performance management system for DA
  Civilians that is directly linked to the reward
  system
• Establish a concise set of measurable performance
  objectives that are linked to the Army Strategic
  Objectives
• All objectives are focused on tangible outputs,
  milestones or cost savings
• Pay-for Performance Reward high performers
• SES Pay Increases/Bonus (30) tied to individual
  and organizational performance
• Presidential Rank Awards (Distinguished-35,
  Meritorious-20)

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Business Transformation Lean Six Sigma
Milestones
Feb
Jan
Sep
Nov
Dec
Oct
DA Executive Leadership
Deployment Workshop (24-28 OCT)
Deployment Director MTG (20 SEP)
Initial SA/CSA Field Progress Visits
Planning
Executive Launch
Execution Guidance (8 SEP)
Execution
DA Processes Submitted (11 OCT)
DA Process Selection
Process/Project
Certification Standards
Black Belts
Certification Standards
Green Belt
Managerial Training
Process Owner Training
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Business TransformationEssential to Providing
the Financial Resources Required for a Relevant
and Ready 21st Century Army
Army Modular Force48B (FYDP)
Increasing the Operational Army End Strength and
Relevancy18B (FYDP)

• Total redesign of the Operational Army
• More powerful, flexible, rapidly deployable, FULL
  SPECTRUM
• Brigade Centricself Sustaining, standardized

• Growth of 40,000 Soldiers by FY07
• 125,000 changes in units and skills to be better
  aligned to the security environment

Business Transformation Changing and Improving
the Ways the Army does Business
Future Combat System25B (FYDP)
Resetting the Force4B/year

• Army Depots operate 24/7 where needed
• Life Cycle Management Commands enhance support to
  the warfighter
• Army Equipment Campaign Plan structured program
  reduces cost and cycle time

• Near Term Providing advance technologies for
  the current Force
• Long Term Establish a networked Unit of Action
  that consists of 18 manned and unmanned platforms

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THE SOLDIERS CREED
I am an American Soldier. I am a Warrior and a
member of a team. I serve the people of the
United States and live the Army Values. I will
always place the mission first. I will never
accept defeat. I will never quit. I will never
leave a fallen comrade. I am disciplined,
physically and mentally tough, trained and
proficient in my Warrior tasks and drills. I
always maintain my arms, my equipment and
myself. I am an expert and I am a professional. I
stand ready to deploy, engage and destroy the
enemies of the United States of America in close
combat. I am a guardian of freedom and the
American way of life. I am an American Soldier.
ARMY VALUES Loyalty, Duty, Respect, Selfless
Service, Honor Integrity, and
Personal Courage
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A STRATEGIC FRAMEWORK . . . The 2006 Army Plan,
Budget and Supplementals
Secretary of the Army
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Residential Communities Initiative
Improving Quality of Life for Families

• 45 installations (35 projects)
• 83,987 Army Family Housing Units gt90 of U.S.
  Army - owned inventory
• - 19 projects transferred (59,891 houses)
• - 6 projects awarded (12,009 houses)
• - 3 projects in solicitation (3,670 houses)
• - 7 future projects (8,417 houses)
• First 34 installations 670M Govt funds
  resulting in 9.6B in initial private
  construction and renovation
• 3,389 homes built and 5,582 renovated to date
• Partners subcontracting 65 of work to local
  businesses (632M)
• Strong Congressional Support

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TRANSFORMATION
Remarks made by Dr. Francis Harvey, Secretary of
the Army, at his Arrival Ceremony
Transformation is a multidimensional and
interdependent process that involves adapting new
technologies to warfighting and business
operations developing improved joint operating
concepts and business processes changing
organizational structures and, most importantly,
developing leaders, people, and a culture that
are relevant to the future.
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Business Transformation .freeing up resources
for our warfighting mission

• Establish a performance cultureSES Pay and
  Performance Management System National Security
  Personnel System
• Reengineer our reset, repair, manufacturing and
  business processes
• Lean / Six Sigma
• Outsource where it makes sense
• Apply information technology
• Empower our leaders to make the required changes
  and holding them accountable.

Major Reductions in Cost and Cycle Time while
improving Quality of Output
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COMBAT TRAINING CENTERSJRTC, CMTC and NTC

• A total transformation of unit training since
  2001
• Contemporary Operating Environmentrealistic
  battlefield

• Media on the battlefield
• Reconstruction Civil Affairs realitiesCERP and
  Translators
• Balance between warfighting, security,
  governance, civil affairs, and stability

• Arab villagesurban environment
• Iraqi-American role players sheiks, imams,
  mayors, etc.
• Replicates interaction with Iraqi Security Forces

- Opposing Forces - Insurgents and
Fedayeen - IEDs, VBIEDs, and RPGs
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STRATEGIES
Training and Equipping Soldiers to Serve as
Warriors and Growing Adaptive Leaders

• Reinforcing our Centerpiece Soldiers as Warriors
• Recruiting and Retaining Soldiers
• Equipping our Soldiers
• Training Soldiers and Growing Adaptive Leaders
• Enhancing the Combat Training Centers

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STRATEGIES
Attaining a Quality of Life for Soldiers and
Their Families that Matches the Quality of their
Service

• Maintaining the Viability of the All-Volunteer
  Force
• Caring for Army Families and Soldiers
• Residential Communities Initiative
• Barracks Improvement and Modernization

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Secretary of the Army Priorities The Five Army
Priorities that will be given special focus plus
a few Personal Ones
Soldiers and Their Families continually
providing for well being and quality of
life. Land Forces Required to Win the Global War
on Terrorism effectively managing the force and
ensuring readinessthrough recruiting, retaining,
rewarding, organizing, training, and
equipping. Transformation evolutionary change
leading to revolutionary outcomesmajor focus on
business practicesto keep pace with the
transformation in how we fight. Leadership
provide personal leadership to the Army while
growing future leadersa pentathlete for the
21st Century Security Environment. Major
Acquisition Programs successful execution of
key programs particularly FCS, JTRS, WIN-T and
Army Aviation. Financial Resources ensuring
the financial resources to execute the Army
Planworking closely with OSD and
Congress. Partnership and Relationships a no
daylight partnership with the Chiefcoupled with
productive relationships with the Secretary, the
Navy, the Air Force, Congress, Industry and the
Retired Community.