In future joint operations, Objective Force units will be capable of directing major operations and decisive land campaigns with Army headquarters. Objective Force headquarters at all levels will provide the Joint Force Commander (JFC) with seamless, joint battle command and decision superiority. The modularity and scalability of our Objective Force formations will provide an unprecedented degree of flexibility and adaptability to the Combatant Commander - providing the right force at the right time for decisive outcomes.

PEOPLE - OUR MOST VALUABLE RESOURCE

The Army Vision begins and ends talking about people. People are central to everything else we do in The Army. Platforms and organizations do not defend this Nation; people do. Units do not train, stay ready, grow and develop leadership - they do not sacrifice

and take risks on behalf of the Nation. People do. Institutions do not transform; people do. People remain the engine behind all of our magnificent moments as an Army, and the well-being of our people - the human dimension of our Transformation - is inextricably linked to Army readiness.

In our Vision, we recommitted ourselves to doing two things well each and every day - training Soldiers and civilians and growing them into competent, confident, disciplined, and adaptive leaders who succeed in situations of great uncertainty. We are dedicated to preparing our Soldiers to lead joint formations, to enabling our headquarters to command and control joint forces, and to providing to those joint formations the capabilities only The Army can bring to the fight: the ability to control terrain and populations.

MANNING THE FORCE

The objective of our manning strategy is to ensure we have the right people in the right places to fully capitalize on their warfighting expertise this is The Army's commitment to the Nation, Army leaders, Soldiers, and our families. Correctly manning our units is vital to assuring that we fulfill our missions as a strategic element of national policy; it enhances predictability for our people; and it ensures that leaders have the people necessary to perform their assigned tasks. In FY00, we implemented a strategy to man our forces to 100% of authorized strength, starting with divisional combat units. The program expanded in FY01 and FY02 to include early deploying units. In FY02, we maintained our manning goals and continued to fill our Divisions, Armored Cavalry Regiments, and selected Early Deploying Units to 100% in the aggregate, with a 93-95% skill and gradeband match. We remain on target to accomplish our long-term goal of filling all Army units to 100% of authorized strength.

AT WAR AND TRANSFORMING

Recruiting and Retaining the Force

In 1999, The Army missed its recruiting goals for the Active Component (AC) by about 6,300 inductees, and for the Reserve Component by some 10,000. Our recruiting situation was simply unacceptable, and we committed ourselves to decisive steps and reversed

that trend.

In FY02, The Active Component achieved 100% of its goal in recruiting and retention
- for the third consecutive year. The Army exceeded its AC 79,500 enlisted accession
target in FY02 and exceeded our aggregate FY02 retention objective of 56,800 Soldiers
in all three categories by 1,437. We are poised to make the FY03 accession target of
73,800, and we expect to meet our Active Component FY03 retention target of 57,000.
The FY04 accession target is set at 71,500 (Addendum B).

The Army Reserve has met mission for the last two years, and its recruiting force is well
structured to meet FY04 challenges. The Army Reserve continues to maintain a strong
Selected Reserve strength posture at 205,484 as of 17 January 2003 - over 100.2% of
the FY03 End Strength Objective. Overcoming many
recruiting and retention challenges in FY02, the Army
National Guard (ARNG) exceeded endstrength mission,
accessions were 104.5% of goal, and we exceeded
reenlistment objectives.

To ensure that we continue to recruit and retain
sufficient numbers, we are monitoring the current
environment - GWOT and frequent deployments - to
determine impact on morale, unit cohesiveness, combat
effectiveness, and support of Well-Being programs that
draw quality people to The Army. We continue to
examine innovative recruiting and retention initiatives.
The challenges we face in FY03 and 04 are two-fold: increase recruiter productivity and
recruiting resources necessary to maintain recruiting momentum when the economy
becomes more robust. Resourcing recruiting pays dividends well beyond accessions in
the year of execution. For example, Army advertising in FY02 influenced not only
FY02 accessions, but also potential recruits who will be faced with enlistment decisions
in FY03 and beyond. We attribute our success to a series of programs described in
Addendum C

Reserve Component Full-Time Support (FTS)

Today, more than 50% of our Soldiers are in the Reserve Component (RC). The GWOT and Homeland Defense are significant undertakings that demand a high level of resourcing, The RC has been Key to our success in these operations. To ensure The Army's RC continues to meet ever-increasing demands with trained and ready units, The Army plans to increase Full-Time Support authorizations 2% each year through FY12, increasing the FTS from the current level of 69,915 to a level of 83,046. The Army recognizes

additional Full-Time Support authorizations as the number one priority of the Army National Guard and Army Reserve leadership.

Civilian Component

As a comprehensive effort to consolidate, streamline, and more effectively manage the force, The Army has begun an initiative to transform our civilian personnel system. High quality, well-trained civilians are absolutely essential to the readiness of our force and our ability to sustain operations today and in the future. Recruiting, training, and retaining a highly skilled, dedicated civilian workforce is critical in meeting our obligations to the Combatant Commanders and the Nation. Aggressive transformation of our civilian force in which projections through FY05 indicate a 16% annual turnover due to retirements and other losses - will ensure we continue to meet those obligations.

As of FY02, The Army employed 277,786 civilian personnel. To forecast future civilian workforce needs with precision, we developed the Civilian Forecasting System (CIVFORS), a sophisticated projection model that predicts future civilian personnel requirements under various scenarios. The Army is working closely with the Office of the Secretary of Defense (OSD) and other federal agencies to demonstrate the power of this system so they can fully leverage its capabilities, as well.

The Civilian Personnel Management System XXI (CPMS XXI) has identified the reforms necessary to hire, train, and grow a civilian component that supports the transforming Army. To achieve this, we have redefined the way civilians are hired, retained, and managed. Mandatory experiential assignments will become the vehicle by which we develop future leaders. CPMS XXI fully responds to current mandates in the President's Management Agenda and incorporates the results of the Army Training and Leader Development Panels. For example, two initiatives for recruiting well-trained civilians are:

The Army Civilian Training, Education, and Development System (ACTEDS) a centrally managed program that accesses and trains civilian interns and grows a resource pool of personnel who can accede to senior professional positions.

• The DoD Appropriations Act for FY02 and FY03 provided Direct Hire Authority (DHA) for critical, hard-to-fill medical health care occupations and enabled the reduction in average fill-time for these positions to 29 days.

ARMY WELL-BEING

The readiness of The Army is inextricably linked to the well-being of our people, and Army Well-Being is the human dimension of our Transformation. Well-Being responds to the physical, material, mental, and spiritual needs of all Army people - Soldiers, civilians, retirees, veterans, and their families. We recognize the fundamental relationship between Well-Being programs and institutional outcomes such as readiness, retention, and recruiting. To support mission preparedness as well as individual aspirations, Well-Being

AT WAR AND TRANSFORMING

integrates policies, programs, and human resource issues into a holistic, systematic
framework that provides a path to personal growth and success and gives our people the
opportunity to become self-reliant. We recruit Soldiers, but we retain
families - Well-Being programs help make The Army the right place
to raise a family. And when our families are cared for, Soldiers can
better focus on their mission training, fighting, and winning our
Nation's wars, decisively.

Soldiers appreciate the Nation's devotion to them, and they are
grateful for the country's recognition of their service and sacrifices.
Recent improvements to the Montgomery GI Bill, TRICARE for
Life, TRICARE Reform, Retired Pay Reform, the 4.1% general pay
increase, and additional pay increases in 2003, are all important to
Soldiers and their families. These initiatives have helped The Army
respond to the well-being needs of our people. Army voluntary
education programs improve our combat readiness by expanding
Soldier skills, knowledge, and aptitudes to produce confident,
competent leaders. Other Well-Being initiatives include:

Spouse Employment Summit. The Army is developing
partnerships with the private sector to enhance employment
opportunities for Army spouses and provide improved job portability for them.
Spouse Orientation and Leader Development (SOLD). SOLD connects Army
spouses and enhances their opportunity to serve as valued leaders who contribute
to the readiness and future of The Army and our Nation.

Army University Access Online. eArmyU offers Soldiers access to a variety of
on-line, post-secondary programs and related educational services.
www.eArmyU.com is a comprehensive web-portal widely accessible to Soldiers,
including those in Afghanistan, Bosnia, and Kuwait.

In-State Tuition. To level the playing field for access to education opportunities,
The Army is working to encourage states to grant in-state status for military
personnel and families at public colleges and universities in their Soldier's state
of legal residence and state of assignment.

High School Senior Stabilization. This policy enhances predictability by allowing
families to request stabilization at their sponsor's current duty location if they
have a child who will graduate from high school during that year.

Secondary Education Transition Study (SETS) Memorandum of Agreement
(MOA). Facilitated by The Army, this agreement among participating school
superintendents is their commitment to partner and improve high school transitions
for DoD children. Currently, over 110 school superintendents have signed the
SETS MOA.

LEADER DEVELOPMENT - TRAINING SOLDIERS AND CIVILIANS,
AND GROWING LEADERS

The Army is a profession - the Profession of Arms. Conducting decisive ground combat
operations in defense of the United States and its interests is a core competency of this
profession. The development of each member of The Army is the foundation of lifelong
devotion to duty - while in uniform and upon returning to the civilian sector.

By its nature, our profession is extraordinarily complex and dangerous. The American people entrust The Army with the sacred responsibility to apply lethal force in defense of US interests. As such, the Profession of Arms must remain firmly grounded in constitutional values and must constantly change and grow to preserve its competitive advantage in an evolving strategic environment. At all levels, our leaders - military and civilian - must apply their professional knowledge in increasingly varied and unique

situations that are characteristic of today's strategic environment. Ultimately, we must grow professional Army leaders who provide wise and discerning military judgments founded on long experience and proven professional expertise. This capacity is developed only through a lifetime of education and dedicated service - in peace and in war.

Soldiers serve the Nation with the full realization that their duty may require them to make the supreme sacrifice for others among their ranks. Soldiers fighting the war on terrorism today, those who will fight our future wars, and those who have fought in our past wars are professional warfighters and a precious national asset. To ensure we remain the greatest landpower in the world defending the greatest country in the world, The Army and the Nation rely upon their unique and hard-earned experiences and skills. To develop the operational skills required to defend the Nation, training must remain our number one priority. The evolving strategic environment, the gravity of our responsibilities, and the broad range of tasks The Army performs require us to review and periodically update the way we educate, train, and grow professional warfighters. The Army's strategic responsibilities to the Nation and Combatant Commanders now embrace a wider range of missions. Those missions present our leaders with even greater challenges than previously experienced. Therefore, leader development is the lifeblood of the profession. It is the deliberate, progressive, and continuous process that trains and grows Soldiers and civilians into competent, confident, self-aware, and decisive leaders prepared for the challenges of the 21st Century in combined arms, joint, multinational, and interagency operations. In June 2000, we convened the Army Training and Leader Development Panel (ATLDP). The ATLDP's purpose is to identify skill sets required of Objective Force Soldier and civilian leaders. Further, ATLDP assesses the ability of current training and leader