Navy Total Force (Manpower, Personnel, Training and Education)

1. Navy Total Force(Manpower, Personnel, Training and Education) FLTCM(SS/SW/AW/PJ) Michael J. McCalipFleet Master Chief 3 April 2009 Unclassified

2. New missions Riverine Warfare, Humanitarian Assistance, GWOT Support Increased emphasis on old missions Security cooperation, maritime interdiction Increased sphere of engagement More places simultaneously Different operating environments (blue/green/brown water) Emerging peer competitors More platforms and fewer Sailors Optimal manning – no “excess” capacity New skill combinations = new training approaches Changing marketplace Changes in demographic mix Impact of multiple generations in the workforce A Changing Navy It’s a different Navy...not just a smaller Navy

3. Total Force Challenges • Pulling out of the manpower glideslope while facing… • New missions and a changing force structure mix • An enduring augmentee requirement • Rising personnel costs • Recognize demographic changes and… • Reflect diversity • Address generational value-shifts • Answer demand for increased learning and development Delivering FIT with the Total Force

4. Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY09 Active Navy Strength Weekly Tracking FY08 E/S 332,228 FY09 NDAA 326,323 FY09 OPLAN 329,042 • Legend • FY09 PRESBUD PLAN • FY09 Weekly Actuals • FY09 NDAA • FY09 OPLAN CNO, this week we have 399,408 military (332,060 AC, 11,545 FTS, and 55,803 SELRES) and 185,804 civilians (183,360 Appropriated Fund employees and 2,444 Foreign National Direct hires). There are 5,134 reservists activated for the GWOT. 6,280 Active Component are on IA assignments. Our recruiting posture for the month of February is 3,070 (shipped and DEP) against a goal of 3,023. We currently have 18,779 in our out-month DEP against a remaining goal of 23,211 (81%) . Data as of 25 Feb 2009

5. FY09 Reserve Navy Strength Weekly Tracking FY08 E/S 68,136 FY09 OPLAN 66,000 FY09 NDAA 66,700 • Legend • FY09 PRESBUD PLAN • FY09 Weekly Actuals • FY09 NDAA • FY09 OPLAN Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

6. Retention Reenlistment Rate vs Unemployment There is a moderate to strong positive correlation between unemployment rate and reenlistment rates

7. Attrition Statistics

8. FIT Transformation FILL FIT Platform-centric A Sailor in every billet Capability-driven Right person, right position The Keys to Transition Sizing Shaping Stabilizing The right number of billets The right type of individuals available to fill billets A personnel system that proactively addresses changing demands FIT is about delivering the right person in the rightposition at the right time at the best cost

9. Navy Augmentation ImpactEnd Strength (ES) Capabilities Impact on sea billets • Civil Affairs • Provincial Reconstruction • Training Teams • Detainee Operations • Customs Inspection Temporary 4,400 7,100 • IED and Combat Support • MP/Master-at-Arms Adaptive Core 2,700 • Base Operations • Medical Support • Intelligence • JTF/COCOM Staff Support • NMCB (“SeaBees”) • Airlift Support • Cargo Handling • Maritime & Port Security • Medical/USMC Support Impact on shore billets Core 7,000 *Includes OIF, OEF and other global requirements, as well as estimated required training “tail.” Growth in OEF additional Data as of September 2008

10. GSA Detailing • Shift to GSA deployments • Sep 08  29% Officer, 22% Enlisted on GSA (24% total) • Jun 09  53% Officer, 59% Enlisted on GSA (57% total) • CFFC as IA executive agent • N1 – policy, reporting, and oversight • USFF – execution and enforcement • Policy incentives • Advancement points • Exam flexibility The goal: stable and predictable GWOT assignments

11. Principles • Retain our best Sailors with the right skill mix • Target incentives to critical skills ratings • Keep a balanced force – seniority, experience, and skill sets matched to requirements • Focus on performance – retain and safeguard careers of top performers • Continue to attract and recruit our Nation's brightest • Continue our efforts as a "Top 50" Company – remain brilliant at the basics • Continue to use FIT as our primary metric • Stability and predictability to support Fleet readiness

12. Generational Value-Shifts “Go with the Bold Ones!” “It’s not just a job. It’s an adventure!” “Accelerate your life!” Boomers Generation X Millennials Idealistic Champions of social causes; seek to change their world Individualistic Non-conformists; 63% aspire to be different than other people Self-Completing 61% feel they need to know themselves better Acquisitive Often believe the more they give away or let get away, the less special they are Media Consumption Passive Cynical Shaped by divorce, recession, commercial hype, & morally suspicious social leaders Independent/Pragmatic Take it upon themselves to plan, analyze and make solid decisions -always hedging Entrepreneurial 57% take what they can get in life Diverse Social choices reflect consumption pattern Media Consumption Selective Optimistic Products of their close relationships with parents and extended families Interdependent Record number choosing to join large institutions and government agencies in search of team work and protection against risk. Balanced #1 goal: balance personal & professional life. Sense of Urgency Want responsibility quickly, need short-term goals Media Consumption Multi-source 55% of Navy 43% of Navy 2% of Navy

13. Task Force Life Work TOP 50 COMPANIES KNOW: WHAT WE’RE DOING: • 10 Days Paternity Leave • Operational Flex. for Parenting • Career Intermission Program • Social Enterprise Fellowships • Flexible Work Schedules • Virtual Command Parenting is a Priority Flexibility is the Key Demand for Balance

14. MCPON Top 5 discussion topics • Standards and Conduct instruction • Brilliant on the basics • New CPO evaluation • Continuation board • Uniforms • CMC progression