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Installation Leadership Forum

Installation Leadership Forum. Dr. Craig College, February 28, 2012. Efficiencies… the Last 12 Months. Secretary Gates efficiencies ($100B) and reductions ($78B) POTUS April 2011 deficit speech… cut $400B in defense over 12 years… amended by OMB to 10 years

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Installation Leadership Forum

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  1. Installation Leadership Forum Dr. Craig College, February 28, 2012

  2. Efficiencies… the Last 12 Months • Secretary Gates efficiencies ($100B) and reductions ($78B) • POTUS April 2011 deficit speech… cut $400B in defense over 12 years… amended by OMB to 10 years • Budget Control Act of 2011… cuts $487B from defense over 10 years, and potentially an additional ~$500B with sequestration • FY12 Army budget ($203B) enacted 23 December 2011 • ~$13B below President’s Budget (PB) Request ($216B) • POTUS and Secretary Panetta announce defense strategy 5 January 2012 • FY13 Army PB ($185B) submitted without consideration of sequestration 2012 ADC WINTER FORUM PAGE 3

  3. The Fiscal Driver Federal Deficit/Surplus 2012 ADC WINTER FORUM PAGE 4

  4. The Defense Budget Over Time • Discretionary spending is ~35% of total federal budget – Defense budget is ~50% of discretionary spending • Increasing emphasis on reducing spending/deficit – Congress and the Administration • Historically, funding levels have decreased as military demand decreases Height of Cold War (1985) Height of Vietnam War (1968) Korean War Armistice (1953) 9/11 (2001) OCO? Vietnam War Ends (1973) Gulf War Ends (1991) BCA BCA impact ? 2012 ADC WINTER FORUM PAGE 5

  5. The Army Budget 2012 ADC WINTER FORUM PAGE 6

  6. A Strategic Budgetary Way Ahead • Future budget decisions must… • Preserve ability to provide national security • Be capability-based (not ad hoc or piecemeal) • Not break faith with the men and women who are fighting, or their families (preserve the all-volunteer force) • Challenges • Impact of budget Control Act 2011 • Uncertain status of FY13 Defense Appropriation timelines • Ability to sustain modernization objectives • To achieve budget reductions, everything is on the table • Force Structure, O&M, and Investment programs • Military compensation • Military health care 2012 ADC WINTER FORUM PAGE 7

  7. Three Time Horizons • FY 12: Current Year / Year of Execution • Must adapt to a ≈$1.5B reduction from FY11 • Must reduce manning by 3766 employees this FY • FY13: Transition Year • Execute changes in organization, manning, contracts, & services to adapt to expected funding • FY 14-18: IMCOM Operations in the “New Normal” • IMCOM delivers to standards set by HQDA adapting to a ≈$2.5B reduction from FY10 funding levels Sustain Army’s Commitment to Soldiers and Families 2012 ADC WINTER FORUM PAGE 8

  8. Installation Management Efficiencies • FY11: Eliminated 2620 Temporary and Term Employees • FY12: Further reductions of Department of the Army Civilians • MILCON transfer to SRM • Reductions in IMCOM reliance on contractors and quarterly reviews of contracts • Reductions in Conferences and Travel • Reductions in Regions from 7 to 4 • Eliminated National Capital Region Division • Eliminated 2-Star FMWRC and merged into IMCOM HQs 2012 ADC WINTER FORUM PAGE 9

  9. Organizational Theory Starfish “No head, cut off an arm, and it grows into a new starfish” Spider “Cut off the head and it dies” • Hierarchical • Chain of command • Centralized • No defined leader (catalyst) • Devoid of chain of command (circles) • Decentralized • Open system • Standing on five legs • Passion and enthusiasm Building Spider and Starfish Collaboration and Partnerships The most affordable future for military installations and their surrounding communities is to create partnerships in far greater numbers that feed off each other’s strengths and economize on our weaknesses to survive the coming economic challenge. These approaches must become routine and pervasive and the Community Covenant is one such effort. 2012 ADC WINTER FORUM PAGE 10 Concept taken from : The Starfish and the Spider: The Unstoppable Power of Leaderless Leadership by Ori Brafman and Rod Beckstrom 9

  10. A Starfish Strategy • Army Garrisons and municipalities tend to think like spiders – but we both need to begin thinking like starfish • The deleterious effects of municipal and federal budget challenges can be ameliorated through public-public partnerships • Army Community Covenant is one very successful example - BUT • We must catalyze the search for partnerships to solve everyday problems shaved by communities and installations • Much remains to be done to make these broadly applicable – most importantly, new ways of thinking 2012 ADC WINTER FORUM PAGE 11

  11. Impact on Defense Communities • Potential Reduction in Department of the Army Civilian and Military personnel • Potential reduction in dollar value of contracts • New opportunities for Public-Public and Public-Private initiatives • Some potential for additional units arriving from overseas 2012 ADC WINTER FORUM PAGE 12

  12. Team of Teams “We play with our cards facing out.” 2012 ADC WINTER FORUM PAGE 13

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