Building the 21 st Century Air Force Top 10 Questions

1. Building the 21st Century Air ForceTop 10 Questions

2. #10 “What are the Air Force’s priorities?”

3. USAF Priorities Our priorities are clear: -- Winning the Global War on Terrorism -- Developing and caring for our Airmen -- Modernizing and recapitalizing our aircraft and equipment - 2006 Air Force Posture Statement The U.S. Air Force must remain ready to Fly and Fight

4. #9 “How will we pay for these things?”

5. Funding Our Priorities “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

6. #8 “Why are we bringing down our end strength in a time of war?”

7. Today’s Fiscal Environment Rising Personnel Costs Rising Personnel Costs Cost to Operate the Fleet Aging Aircraft Inventory Fiscal Environment Personnel costs have increased 51% over the last ten years -- but number of personnel has remained relatively constant

8. Today’s Fiscal Environment Increasing Operating Costs Rising Personnel Costs MC Rates Steady Cost to Operate the Fleet Costs Growing Aging Aircraft Inventory Fiscal Environment Aircraft readiness rates steady, but costs to operate and maintain fleet over the last decade are up 87%

9. Today’s Fiscal Environment Increasing Age of Aircraft Rising Personnel Costs Avg Age in 2005: 23.5 Years Cost to Operate the Fleet Avg Age in 1973: 9 Years Aging Aircraft Inventory Fiscal Environment Aging alone is not the issue – it is the decreasing military utility of some aircraft

10. Today’s Fiscal Environment Fiscal Realities Rising Personnel Costs Slowing Cost to Operate the Fleet 10% Growth Aging Aircraft Inventory Fiscal Environment Budget growth is slowing

11. #7 “How big are the cuts, and when will they occur?”

12. PBD720 End Strength Reductions • … These are significant cuts, but…

13. We’ve Been Here Before… 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 - 40% - 12% 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 Strategy: Capabilities-based, budget constrained Org’n: fewer / much reduced MAJCOMs, FOAs, DRUs, Inst’s Basing concept: nearly 100% expeditionary Weapon Systems: recapitalization Force: 315K AD Strength 1989 2006 2011

14. #6 “So what’s our gameplan?”

15. First, It Calls for a New Mindset 20th Century 21st Century This is a different Air Force we’re building…not “the same, but smaller”

16. Three Avenues of Attack • 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. Active Duty Military Personnel Services Delivery Transformation Logistics Consolidations Financial Mgmt Transformation Comm & Info Restructuring Mil to Civ Conversions ??? AFSO21 Efficiencies Functional communities & MAJCOMs need to take a hard look within.

17. Reduce Legacy Systems • 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

18. 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

19. Organizational Efficiencies ROE • Organize around WFHQs – win today’s warfight & prevent / prepare for tomorrow’s • Reach back for base operating support / policy / advice • Eliminate manning overages & resist temptation to peanut-butter spread the reductions • 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.

20. #5 “How will we reduce management headquarters?”

21. Reducing Management Headquarters • 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.

22. #4 “How will we shape the force?”

23. Slicing Down the Side of the Pyramid G.O.’s • “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

24. 2006 2005 2004 2003 2002 2001 1999 1997 1996 1995 1993 1992 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 1980 1979 1978 1977 2000 1998 1994 1991 Officer FY06 Ending Inventory Force Shaping Board Inventory 5000 Voluntary Separation Pay FY11 Sustainment 4000 3000 Selective Early Retirement Board 2000 1000 0

25. Enlisted FY06 Ending Inventory CJR Years of Service

26. Spaces to FacesPlanned Force Shaping Tools ENLISTED PROGRAMS FY06 FY07 FY08 FY09 FY10 FY11 Career Job Reservation DOS Rollback If Req’d Voluntary Separations (ADSC Waiver) “ “ SERB “ “ OFFICER PROGRAMS FY06 FY07 FY08 FY09 FY10 FY11 Force Shaping Board Voluntary Separation Pay ($) SERB

27. A Closer Look at the Reductions Active Enlisted Active Officers -31.7K -9.2K ARC Civilian * 2K -20.6K * PB 720 shows a Net 2K reduction in civilian growth

28. #3 “What are we doing for those who will leave the Air Force?”

29. 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.

30. #2 “What are we doing to help those who will remain behind?”

31. 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

32. #1 “What can I do to help?”

33. 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