I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Headquarters U.S. Air Force

Building the 21st Century Air Force

Top 10 Questions

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#10

“What are the Air Force’s priorities?”

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USAF Priorities

Our priorities are clear:Our priorities are clear:

-- Winning the Global War on Terrorism-- Winning the Global War on Terrorism

-- Developing and caring for our Airmen-- Developing and caring for our Airmen

-- Modernizing and recapitalizing our -- Modernizing and recapitalizing our aircraft and equipmentaircraft and equipment

- 2006 Air Force Posture Statement

The U.S. Air Force must remain ready to Fly and FightThe U.S. Air Force must remain ready to Fly and Fight

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#9

“How will we pay for

these things?”

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“We will fund transformation through … organizational efficiencies, process efficiencies, reduction of legacy systems and manpower while sustaining GWOT and ongoing operations in support of the Joint Fight.”

- Michael W. Wynne, SECAF

Funding Our Priorities

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#8

“Why are we bringing down our end strength in a time of war?”

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Personnel costs have increased 51% over Personnel costs have increased 51% over the last ten years -- but number of the last ten years -- but number of

personnel has remained relatively constantpersonnel has remained relatively constant

Rising Personnel Costs

Today’s Fiscal Environment

Rising Personnel Costs

Aging Aircraft Inventory

Cost to Operate the Fleet

Fiscal Environment

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Increasing Operating Costs

Aircraft readiness rates steady, but costs to Aircraft readiness rates steady, but costs to operate and maintain fleet over the last operate and maintain fleet over the last

decade are up 87%decade are up 87%

MC Rates Steady

Costs Growing

Today’s Fiscal Environment

Rising Personnel Costs

Aging Aircraft Inventory

Cost to Operate the Fleet

Fiscal Environment

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Today’s Fiscal Environment

Aging alone is not the issue – it is the Aging alone is not the issue – it is the decreasing military utility of some aircraftdecreasing military utility of some aircraft

Increasing Age of Aircraft

Avg Age in 2005:Avg Age in 2005:23.5 Years23.5 Years

Avg Age in 1973:Avg Age in 1973:9 Years9 Years

Rising Personnel Costs

Aging Aircraft Inventory

Cost to Operate the Fleet

Fiscal Environment

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Today’s Fiscal Environment

Budget growth is slowingBudget growth is slowing

Fiscal Realities

10% Growth

Slowing

Rising Personnel Costs

Aging Aircraft Inventory

Cost to Operate the Fleet

Fiscal Environment

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#7

“How big are the cuts, and

when will they occur?”

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…FY06 FY07 FY08 FY09 FY10 FY11

Active AF -6,571 -19,525 -22,702 -26,663 -30,957 -35,290Civilians (USDH) -1,000 -2,000 -2,000 -2,000 -2,000 -2,000Officers -3,420 -4,030 -4,845 -5,691 -6,555Enlisted -5,571 -14,105 -16,672 -19,818 -23,266 -26,735Guard - -9,040 -10,848 -12,656 -14,464Officer (Drill) - - -1,144 -1,373 -1,602 -1,830Officer (Full-time) - - -41 -49 -57 -65Enlisted (Drill) - - -7,656 -9,187 -10,718 -12,250Enlisted (Full-time) - - -199 -239 -279 -319Reserve - -4,840 -5,808 -6,776 -7,744Officer (Drill) - - -1,152 -1,382 -1,613 -1,843Officer (Full-time) - - -12 -15 -17 -20Enlisted (Drill) - - -3,648 -4,378 -5,107 -5,837Enlisted (Full-time) - - -28 -33 -39 -44Total Manpower -6,571 -19,525 -36,582 -43,319 -50,389 -57,498

These are significant cuts, but…

PBD720 End Strength Reductions

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Strategy: Threat-based

Organization: 13 MAJCOMs, 27 FOAs/DRUs 137 Major Inst’s

Basing concept: Garrison-based

Weapon Systems: adequate #’s, avg

age 17 yrs

Force: 600K Active Duty

Endstrength

1989

We’ve Been Here Before…

Strategy: Capabilities-based

Organization: 9 MAJCOMs, 39

FOAs/DRUs, 84 Major Installations

Basing concept: AEF, semi-expeditionary

Weapon Systems: avg age 23.5 yrs

Force: 360K Active Duty Endstrength

2006

- 40%

Strategy: Capabilities-based, budget constrained

Org’n: fewer / much reduced MAJCOMs, FOAs,

DRUs, Inst’sBasing concept: nearly

100% expeditionaryWeapon Systems:

recapitalization Force: 315K AD Strength

2011

- 12%

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#6

“So what’s our gameplan?”

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Predictable environment, conventional threats

Unpredictable environment, asymmetric threats

Size, mass … large force structure

Agility, speed, precision, lethality … smaller force structure

Garrison-based force, geographically focused

Expeditionary, deployable forces, effects-focused

Large mgmt HQs, manpower-intensive processes, “Checkers checking checkers”

WFHQs, streamlined mgmt HQs, very efficient processes,“Flatter organizations, leveraging technology & reaching back for support”

21st Century20th Century

First, It Calls for a New Mindset

This is a different Air Force we’re building…not “the same, but smaller”

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Three Avenues of Attack

1. Reduce LegacySystems

2. ProcessEfficiencies

3. OrganizationalEfficiencies

Personnel Services Delivery Transformation

Logistics Consolidations

Comm & Info Restructuring Mil to Civ

Conversions

AFSO21 Efficiencies

???

Functional communities & MAJCOMs need to take a hard look within.

- Less MAJCOM / Mgmt HQ Heavy

- More focused on the Joint fight

- Better prepare leaders to be J/CFACCs, JTF/CCs, & ultimately COCOMs

B-52 Redux, accelerated U2 retirement, etc.

Financial Mgmt Transformation

Active Duty Military

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Reduce Legacy Systems

FY06 FY07 FY08 FY09 FY10 FY11Officers - -233 -384 -420 -455 -499Enlisted - -992 -2,325 -2,563 -2,788 -3,064Civilians - -5 -36 -47 -56 -67

Active Manpower - -1,230 -2,745 -3,030 -3,299 -3,630

Some force structure changes (e.g., retiring weapon systems) will be legislatively problematic

If we’re not successful, we’ll need to get more reductions from the other two avenues of attack

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Process Efficiencies

Processes (personnel, logistics, comm, etc.) must be addressed “end to end,” not just locally or regionally

Must develop process improvements that… Are enterprise-wide Produce substantial savings

MAJCOM involvement / support for these initiatives is critical

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Organizational Efficiencies ROE

1. Organize around WFHQs – win today’s warfight & prevent / prepare for tomorrow’s

2. Reach back for base operating support / policy / advice

3. Eliminate manning overages & resist temptation to peanut-butter spread the reductions

4. Fix existing manning & billet shortages; grow in some areas

Eliminating redundancies & streamlining organizations will make it possible to field a more capable force of military, civilians &

contractors & provide the resources for recapitalization.

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#5

“How will we reduce management headquarters?”

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We simply must challenge old assumptions & be willing to do things differently

We have to figure out where work is done … at management HQs, at MAJCOMS, & at field level

We must eliminate redundancies in our structures & processes

We must be willing to reach back for support … big paradigm shift

If your operations tempo remains high, & your manpower has to be reduced, you simply must have a smaller, more efficient

management structure.

Reducing Management Headquarters

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#4

“How will we shape the force?”

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Slicing Down the Side of the Pyramid

“We will take this reduction by slicing down the side of the pyramid.”- Michael W. Wynne, SECAF

“I will not wait to be told to reduce the G.O. Corps … I’ll start there.”- Gen T. Michael Moseley, CSAF

Airmen

G.O.’s

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Officer FY06 Ending Inventory

0

1000

2000

3000

4000

5000 Inventory

FY11 Sustainment

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

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1981

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1978

1977

1982

Force Shaping Board

Voluntary Separation

Pay

Selective EarlyRetirement Board

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0

5000

10000

15000

20000

25000

30000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Inventory

FY11 Sustainment

Enlisted FY06 Ending Inventory

Years of Service

CJR

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Spaces to FacesPlanned Force Shaping Tools

ENLISTED PROGRAMS FY06 FY07 FY08 FY09 FY10 FY11Career Job ReservationDOS RollbackVoluntary Separations (ADSC Waiver)SERB

OFFICER PROGRAMS FY06 FY07 FY08 FY09 FY10 FY11Force Shaping BoardVoluntary Separation Pay ($)SERB

If Req’d

“ “

“ “

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60000

62000

64000

66000

68000

70000

72000

FY06 FY07 FY08 FY09 FY10 FY11

FY06 PB Active Duty FY07 PB

250000

255000

260000

265000

270000

275000

280000

285000

290000

FY06 FY07 FY08 FY09 FY10 FY11

FY06 PB Active Duty FY07 PB

Active Officers Active Enlisted

165000165500166000166500167000167500168000168500169000169500170000

FY06 FY07 FY08 FY09 FY10 FY11

FY06 PB Civilian FY07 PB

155000

160000

165000

170000

175000

180000

185000

FY06 FY07 FY08 FY09 FY10 FY11

FY06 PB ARC FY07 PB

Civilian ARC

-9.2K-31.7K

2K-20.6K

*

* PB 720 shows a Net 2K reduction in civilian growth

A Closer Look at the Reductions

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#3

“What are we doing for those who will leave the Air Force?”

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Reaching Out to Those Who Will Leave

Provide rationale for the reductions – this isn’t arbitrary Express gratitude for their outstanding Service to our country

& Air Force Encourage continued service – Blue to Green, Palace Chase,

Federal / non-Federal Civil Service Offer robust Transition Services

Job Fairs, Resume preparation, employment & relocation information, etc.

Pursue Congressional authorities for additional separation incentives

Keep the process open & transparent – communicate via web sites, focus groups, Spread-the-Word teams, etc.

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#2

“What are we doing to help those who will remain behind?”

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Supporting Those Who Remain With Us

Provide recapitalized & modernized aircraft & equipment Offer robust Force Development across the Total Force

– meaningful education, training, & assignment opportunities

Enhance Quality of Life … new / improved housing, childcare centers, fitness centers, etc.

Provide world-class healthcare & a comprehensive compensation pkg

Maximize deployment predictability via the AEF construct

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#1

“What can I do to help?”

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Helping Build the 21st Century Air Force

Look for better ways to do business – if you have a good idea, now is the time to speak up!

Be proud of who you are & what you do – Airmen save lives!

Be an ambassador for the Air Force – communicate what we’re about – our heritage, support to the GWOT, etc.

Live our Core Values – Integrity First, Service Above Self, Excellence in All We Do

Keep a positive attitude – we’ve survived draw downs before, & we’ll get through this one