Department of DefenseOverview

Director for Administration and ManagementOffice of the Secretary of Defense

10 September 2007

2

Outline

The mission of the Department of Defense is to provide the military forces needed to deter war and to

protect the security of our country.

Official Mission Statement of the Department of Defense

• The Constitution and National Defense

• Key Statutory Authorities of the Secretary of Defense

• Evolution of the Department

• DoD Organizational Structure

• Corporate Governance, and Corporate Processes

• Policy Framework, Senior Leaders, and Key Advisory Boards

• Key Developments/Initiatives, and Institutional Challenges

3

Article I – Congress

• Authorizes and appropriates

• Makes rules for governance; e.g.: – National Security Act of 1947, as amended

– Goldwater-Nichols Reorganization Act of 1986

– Intel Reform and Terrorism Prevention Act of 2004

• Declares war

• Advice and consent:

– Principal appointees

– Military officer promotions

The Constitution and National Defense: Congress

3

4

Article II – President

• Shall be the Commander in Chief of the Armed Forces of the United States

• Exercises authority over the military by:– Selecting Presidential appointees and senior officers, and

approving military promotions

– Managing the federal budget process

– Formulating/implementing national security policy

– Personal engagement in matters of high importance

The Constitution and National Defense: The President

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5

Key Statutory Authorities of the Secretary of Defense

• Principal Advisor to the President on Defense matters

“The Secretary of Defense is the principal assistant to the President in all matters relating to the Department of Defense.”*

• Cabinet member as the head of an executive department

“The Department of Defense is an executive department of the United States.”*

• Leader and CEO of the Department

“There is a Secretary of Defense, who is the head of the Department of Defense … [who] has authority, direction, and control over the Department of Defense.”*

• Deputy to the Commander in Chief

“… the chain of command to a combatant command runs (1) from the President to the Secretary of Defense and (2) from the Secretary of Defense to the commander

of the combatant command.”*

* Title 10, United States Code

6

Evolution of the Department: Recurring Themes in DoD Organization

• Centralization of authority in those officials responsible for integration of effort at the expense of previously independent Services

• Internal authority of the Secretary of Defense competing with external, Congressionally-imposed requirements

• Emerging role and increased authority of Chairman of the Joint Chiefs of Staff as Principal Military Advisor

• Increasing scope and missions of the Combatant Commands

• New technologies, threats, and operational experience as the impetus for organizational change

• Extending the concept of jointness from military operations to corporate governance, management, and processes

• Consolidating common-service functions in Defense Agencies/Field Activities and joint task assignments

• Improving business functions to achieve savings

• Continuing pressure to reduce bases and installations

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2001-2002– Principal Deputy Under Secretary for Personnel & Readiness – Defense Technology Security Administration – Missile Defense Agency; DoD Counterintelligence Field Activity; Pentagon Force Protection Agency– US Northern Command; merged US Strategic Command and US Space Command and assigned missions to new

US Strategic Command for: Global Strike, Missile Defense, C4ISR, and Information Operations– US Joint Forces Command of geographic responsibilities split between USEUCOM and USNORTHCOM

2003-2004– Under Secretary for Intelligence; Asst Sec for NII/DoD CIO; Asst Sec for Homeland Defense– All combatant commands directed to maintain Standing Joint Task Force core element– Syria, Lebanon, Seychelles Archipelago aligned to US Central Command– US Special Operations Command to lead planning/synchronization global operations against terrorist networks– US Joint Forces Command to lead integration of multinational and interagency warfighting transformation efforts

2005-2007– Business Transformation Agency– Congress approved 10th Assistant Secretary (ASD for Asian & Pacific Security Affairs)– US Strategic Command directed to lead and synchronize DoD efforts to combat WMD– US Special Operations Command designated as Special Operations Joint Forces Provider– Established Joint Improvised Explosive Device Defeat Organization– Established US Africa Command

Evolution of the Department: Selected DoD

Component & Staff Element Changes since 2001

Unified Policy and Direction

OSDCJCS

JCS Joint Staff

Secretary of DefenseDeputy Secretary of Defense

Supporters & Suppliers

Defense Agencies &DoD Field Activities (28)

Departmentof theArmy

Departmentof theNavy

Departmentof the

Air Force

Operators: Combatant CommandsFunctional Regional

Navy USMC

DoD Organizational Structure: The DoD Components

IG,DoD

StrategicCommand

Transpor-tation

Command

Special OperationsCommand

NorthernCommand

EuropeanCommand

CentralCommand

SouthernCommand

PacificCommand

JointForces

Command

DoD Components:OSD 1JCS / Joint Staff 2Defense Agencies 17DoD Field Activities 11Military Departments 3COCOMs 9DoD IG 1Total 44

DoD Direct Reporting Officials: 28

DoD Workforce: Military: 1.3MCivilians: 700KGuard and Reserve: 825K

AfricaCommand

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Secretary of Defense

Deputy Secretary of Defense

ASD(Networks

& InformationIntegration)/Chief

Information Officer

USD(Comptroller)/Chief Financial

Officer

USD(Policy)

Director,Operational

Test &Evaluation

USD(Acquisition,

Technology &Logistics)

USD(Personnel & Readiness)/Chief Human

Capital Officer

ASD(Legislative

Affairs)

ASD(Public Affairs)

DoDGeneralCounsel

Assistant to the Secretary ofDefense (ATSD)

(IntelligenceOversight)**

Director,Net

Assessment

Director,Administration

andManagement

Director,Program

Analysis & Evaluation

DoD Organizational Structure: OSD (with IG DoD)

USD(Intelligence)

Direct Reports

OSD 14

IG* 1

Total 15

Authorized PersonnelCivilians 1674Military 444Total 2118

InspectorGeneral *

*Although the IG is statutorily part of OSD and is under the general supervision of the Secretary of Defense, the OIG functions as an independent and objective unit of the Department of Defense.

** On August 28, 2007, the Secretary of Defense decided to move the Intelligence Oversight function to the DoD OIG; this transfer effort us currently underway and will probably be effective as of October 1, 2007.

Immediate Office of the Secretary

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Secretary of Defense

Deputy Secretary of Defense

USD(Policy)

USD(Comptroller)

USD(Personnel &Readiness)

ASD (Networks& InformationIntegration)

USD (Acquisition,Technology &

Logistics)

USD(Intelligence)

DefenseSecurity

CooperationAgency

DefenseContract

AuditAgency

DefenseFinance &Accounting

Service

DefenseCommissary

Agency

DefenseAdvancedResearch

Projects Agency

DefenseLogisticsAgency*

DefenseIntelligence

Agency*

DefenseSecurityService

*DefenseContract

ManagementAgency

DefenseInformation

SystemsAgency*

Director,Administration

andManagement

PentagonForce

ProtectionAgency

DefenseThreat

ReductionAgency*

MissileDefenseAgency

DefenseLegal

ServicesAgency

NationalGeospatial-Intelligence

Agency*

NationalSecurityAgency*

DoD Organizational Structure: OSD PSA Oversight of Defense Agencies

DefenseBusiness

TransformationAgency

DoDGeneralCounsel

DefenseContract

ManagementAgency*

* Seven are designated as Combat Support Agencies with Joint oversight with the Chairman, Joint Chiefs of Staff** Established as an operating agency of the Department of Defense

National Reconnaissance

Office**

Defense Agencies: 17 (18)

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Secretary of DefenseDeputy Secretary of Defense

AmericanForces

InformationService

DoDEducation

Activity

USD(Intelligence)

DefensePrisoner of

War/Missing Personnel

Office

DefenseTechnology

SecurityAdministration

DoDCounter-

intelligenceField Activity*

Defense Technical

Information Center

DoD Organizational Structure: OSD PSA Oversight of DoD Field Activities

•DirUSD

(Acquisition, Technology &

Logistics)

Office of Economic Adjustment

DoD TestResource

Management Center

Director, Administration

and Management

WashingtonHeadquarters

Services

USD(Personnel & Readiness)

TRICAREManagement

Activity

DoD HumanResources

Activity

ASD(Public Affairs)

*Select functions designated as combat support

DoD Field Activities: 11

USD(Policy)

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Corporate Governance: Framework

• The Secretary and Deputy Secretary of Defense establish, direct, and oversee Departmental governance councils and decision-making processes

• Decision authority rests with the Secretary and Deputy Secretary of Defense– SecDef as CEO—strategic direction, policy, program and resource priorities – Deputy Secretary as COO/CMO directs and integrates DoD planning and resource allocation consistent

with SD direction, and oversees management, business systems, and processes

• Defense Senior Leaders Conference (DSLC) – One of two most senior level advisory bodies to the Secretary; DoD Principals participate– Advises the Secretary on strategic issues; SLRG and COCOMs, usually 3x/year

• Senior Leader Review Group (SLRG)– Second of two most senior level advisory bodies to the Secretary– Senior civilian leadership team, as well as CJCS, VCJCS, and Service Chiefs

• Deputy’s Advisory Working Group (DAWG)– Most senior level advisory body to the Deputy Secretary; DoD Principal Deputies participate– Oversees and directs enterprise management and business issues

• Supporting Tier of Governance – Aligned with functional activities across the Department– Has representation in the SLRG and DAWG, and relies on civilian-military collaboration

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Supporting Tier of Governance

Principal DAWG Members *Deputy Secretary of Defense, Chairman & Vice CJCS

Under Secretaries of Defense or Deputy Military Department Secretaries or Deputy

Service Chiefs or DeputyCDRUSSOCOM or Deputy

Principal SLRG Members*Secretary of Defense, Chairman JCS

Deputy Secretary of Defense, Vice Chairman JCSUnder Secretaries of Defense

Military Department SecretariesService Chiefs

COCOMs (2-3 times per year as DSLC)

Principals plus

Advised by DoD Principals, the Secretary as CEO:

– Provides strategic direction– Reviews lower level decisions on an

exception basis

Deputies plusThe Deputy Secretary as COO/CMO:

– Oversees and directs enterprise management and business issues

– Ensures integration of effort among DoD boards / councils

– Ties together PPBE elements– Refers issues to SLRG as appropriate

Corporate Governance: Linking Corporate and Supporting Tiers

Deputy’s Advisory Working Group (DAWG)

Senior Leader Review Group (SLRG)

JCS: Joint Chiefs of Staff (Statutory)JIEDD: Joint Improvised Explosive Device Defeat Senior Resource Steering GroupJROC: Joint Requirements Oversight Council (Statutory)MHSER: Military Health System Executive ReviewNSPS: National Security Personnel SystemNWC: Nuclear Weapons Council (Statutory)PSC: Policy and Strategy CommitteeRPIGB: Real Property and Installation Life Cycle Management Governance Board SAPOC: Special Access Program Oversight CommitteeSROC: Senior Readiness Oversight Council

*SLRG and DAWG normally includes a number of additional principal staff advisors

DAB: Defense Acquisition BoardDBSMC: Defense Business Systems Management Committee (Statutory)DHRB: Defense Human Resources BoardDLB: Defense Logistics BoardDoD CIOEB: DoD Chief Information Officer’s Executive BoardDSLC: Defense Senior Leaders ConferenceFMLC: Financial Management Leadership CouncilGFMB: Global Force Management BoardIO&SEC: Information Operations and Space Executive CommitteeISRIC: Intelligence, Surveillance, and Reconnaissance Integration Council (Statutory)ITAB: Information Technology Acquisitions Board

Military Departments (Under Secretaries and Service Vice Chiefs)

P PA&ECDSDP&R JS AT&L INII / CIOP PA&ECDSDP&R JS AT&L INII / CIO

PSC

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DBSMCAT&L – ES

SAPOCAT&L – ES

SROCP&R – ES

NSPSP&R – ES

JIEDDAT&L – ES

DHRB

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MHSER

DAB

DLB

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NWC

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ISRIC

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RPIGB

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Corporate Processes: Framework

• The Department has several DoD-level management processes for strategic and operational planning, capabilities development, and acquisition; for example:

• Planning, Programming, Budgeting, and Execution (PPBE) is the Department’s primary resource management process

– Links corporate strategic direction with lower level planning and execution– Incorporates outputs from secondary processes from across the Department

• PPBE is the engine that moves DoD decision-making along Executive Branch budgeting and Congressional appropriations cycles

• Fiscal Years (FYs) 2008 and 2009 will be the last budgets submitted to Congress by this Administration; FY 2010 and beyond will be amended by next Administration

Function Players / Partners Corporate Body Product / OutputPolicy, Strategy, and Plans USD(P) / J-5 Strategy and Plans Policy and Strategy Committee QDR Report, SPGRequirements USD(AT&L) / J-8 Requirements Joint Reqs Oversight Council (JROC) Joint force prioritiesResource allocation USD(C) / PA&E / J-8 Requirements 3-Star Group (Programmers / Ops Deps) JPG, President's BudgetForces employment USD(P&R) / J-3 Operations Global Force Management Board Deployment Orders

QDR – Quadrennial Defense Review SPG – Strategic Planning Guidance JPG – Joint Programming Guidance

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Corporate Processes: Key PPBE Timelines & QDR-Related Events

QDR “Implementation” Phase Begin Transition to . . . QDR ’10 (Review Phase)

QDR 2005“Review” Phase

Pla

nn

ing

1st Report due Feb ‘07

QDR Quarterly Reports to Congress

Pro

gra

mm

ing

Bu

dg

etin

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xecu

tio

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QDR Report Published

Feb’06

Strategic Planning Guidance

FY2010-2015

Strategic Planning Guidance

FY2008-2013

EndFY08

FY08 Posture Hearings

FY08 Posture Hearings

FY08-13Program Review

FY09-13Program Review

FY10-15Program

Review

FY07-11 QDR ProgramReview

FY07 Posture Hearings

PB08 to Congress

Feb’07

FY10Budget Review

PB09 to Congress

Feb’08

PB07 to Congress

Feb’06

FY08 Budget Review

FY09Budget Review

FY07 QDR BudgetReview

FY08-13 Joint Programming Guidance(s)

FY09-13 Joint Programming Guidance(s)

FY10-15 Joint Programming Guidance(s)

2008 Election

Today

Oct Oct Jul Jul Jul Apr Apr

2006Jan Apr Oct Jul Oct

2007Jan

2008Jan

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Policy Framework: DoD Directives System

• Establishes and maintains DoD policy framework– Codifies incumbent Secretary/Administration policies– Provides an authoritative baseline for change

• Includes ~1364 DoD Issuances (Directives, Instructions, and Publications)– 503 are Directives signed by the Secretary/Deputy Secretary– Current policy is to reduce number of Directives by delegating authority to OSD

PSA direct reports to issue functional policy guidance

• Communicates the Secretary’s guidance– Delegations of authority and assignments of responsibility– Policy direction on specific matters– Prescribes relationships of and between OSD PSAs/DoD Comp Heads

• Provides the correlation between statutes and wiring diagrams– Statutes require interpretation and implementation– Wiring diagrams do not convey subject matter/relationships

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Senior Leaders and Managers

Political Appointees– Presidentially Appointed, Senate-confirmed (PAS) Officials;

o 48 PAS officials are senior level, corporate policy makers– Non-career Senior Executive Service (SES)

o ~90 Non-Career SES—principally in OSD and MilDep Hq Staffs

Career SES– Career Reserved whose purpose is to ensure impartiality of the Government– General positions (most OSD positions are General SES)– ~1120 Career SES (344 in OSD)

General Officers/Flag Officers (GO/FOs)– ~905 GO/FOs– 83% assigned to Military Departments – 13% to Joint Staff/COCOMs– Remainder: Defense Agencies, DoD Field Activities, and other organizations

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Key Advisory Boards to the Secretary

• There are 50 DoD Federal Advisory Committees– 22 active non-discretionary and 28 active discretionary– Total members: approximately 1,000

• Three senior advisory boards directly support the Secretary of Defense:– Defense Policy Board USD(P) lead Members: 25– Defense Science Board USD(AT&L) lead Members: 35– Defense Business Board DepSec lead Members: 18

• Department advisory boards are independent entities, not subject to the direction or control of the Department.

• They are a source of significant expertise not otherwise available to the Department.

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Key Developments/Initiatives (Organization & Management)

• DoD Transformation Priorities (“DoD Top 25”)– Prevail in GWOT– Strengthen Joint Warfighting Capabilities– Focus on People– Transform Enterprise Management

• Key Management and Process Milestones

• Quadrennial Defense Review (QDR) Implementation

• Chief Management Officer (CMO)

• Wounded Warrior Matters

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Key Developments/Initiatives (Organization & Management), Cont’d

• Biennial Review of Defense Agencies and DoD Field Activities

• Update Directive on DoD Executive Agent for Space

• Study to Assign DoD Law Enforcement Policy to an OSD PSA

• Annual Statement of Assurance (Sep 2007)

• DoDD 3000.06, “Combat Support Agencies” (Jul 2007)

• USD(I) Serving as Director of Defense Intel/ODNI (May 2007)

• Pentagon Occupancy and Space Allocation Study (Nov 2006)

• OUSD(Policy) Reorganization (Sep 2006)

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Institutional Challenges: High-Visibility Congressional Reports, Next 15 Months

10th ASD Report on OUSD(P)

Re-organization(§901)

FirstAnnual

Report on Intelligence Oversight

(§932)

Oct

2008Jan Apr Jul

2007Jan Apr

Feasibility of Creating a Combatant

Command for Africa(§1033)

Integrating Operations in

Support of Stability

(§1035)

Commission on National Guard and Reserve

(§528-529)

Operationally Responsive Space Office

(§913)

Due 14 Feb 07120 days after 17 Oct 06

Review and Assessment of DoD Organization and

Management for National Security in Space

(§914)

DoD Biometrics Programs

(H.Rept. 109-676) *

Due 17 Oct 07

First QDR

Quarterly Report

(§1032)

QDRQDR QDRQDRQDR

InitialReport

FinalReport

Source: National Defense Authorization Act for Fiscal Year 2007* Conference Report, Department of Defense Appropriations Act, 2007

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Institutional Challenges: Organization and Management

• Continuing shift in balance away from Military Departments and towards COCOMs as sources of capability requirements

• Improving the Secretary’s ability to track, assess, and evaluate organizational performance in relation to DoD’s strategic objectives

• Fully integrating new missile defense mission within the Unified Command system

• Finding DoD’s underlying budget baseline in the midst of multiple wartime supplemental budgets

• Finding correct balance between SecDef and DNI authorities and responsibilities for intelligence

• Further defining the scope and level of DoD responsibilities in Homeland Defense/Security

• Improving the capabilities and effectiveness of other departments and agencies in the interagency process and in complex contingency operations

•

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Core Take-Aways

• Policy Framework: Understand the DoD Directives System.

“Foundation of the Department.”

• Organization and Structure: Understand your organization’s status relative to the other DoD Components.

“Building blocks of the Department.”

• Customers: Know/understand your organizational customers.

“Internal and external customer satisfaction is key.”

• Cooperation and Collaboration: Building partnerships across organizational boundaries is crucial.

“The common defense is strengthened with aligned efforts.”

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Recommended Reading or Reference Documents

• The Department of Defense, 1947-1997: Organization and Leaders, Historical Office, OSD

• Department of Defense Key Officials, 1947-2004, Historical Office, OSD

• Assignment Pentagon: The Insiders Guide to the Potomac Puzzle Palace by MajGen P.M. Smith, USAF(Ret)

• QDR Report, February 6, 2006 (The strategic plan for the Department) QDR web site on SIPRNET: https://esnet.itiss.osd.smil.mil/ats

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Quotes on Organization

“The secret of all victory lies in the organization of the non-obvious.”

Emperor Marcus Aurelius

“The achievements of an organization are the results of the combined effort of each individual.”

Vince Lombardi

“Once an organization loses its spirit of pioneering and rests on its early work, its progress stops.”

Thomas J Watson