AT WAR AND TRANSFORMING

to a successful Future Combat System Milestone B Defense Acquisition Board decision in May of this year.

However, we cannot accelerate Army Transformation without transforming the way The Army does business - from transformation of logistics and acquisition to personnel and installation transformation. Revolutionizing Army business management practices achieves the best value for taxpayers' dollars; conserves limited resources for investment in People, Readiness, and Transformation; enhances management of personnel systems, installations and contracting; and augments our potential to accelerate arrival of the Objective Force. Changing The Army is first about changing the way we think, and better business practices represent practical application of common sense initiatives that best serve The Army and our Nation.

We are proud of our progress. We are grateful for the strong Congressional support that has helped put The Army on its approach march to the Objective Force. The Army 2003 Posture Statement describes our tremendous progress in Transformation - an orchestrated campaign, synchronized with OSD and Joint Transformation, to achieve the Objective Force and keep America's Army the dominant landpower in the world.

THE STRATEGIC ENVIRONMENT-THE REQUIREMENT TO
TRANSFORM

During the last two decades of the 20th Century, information-age technologies
dramatically changed the political, economic, and military landscapes. DESERT SHIELD,
DESERT STORM, and operations

in Kuwait, Bosnia, and Kosovo illustrated the requirement for transforming our forces to meet the evolving, strategic requirements of our Nation. Survivable and extremely lethal, our heavy forces effectively met the requirements for which they were designed; yet, they were slow to deploy and difficult to sustain. Conversely, our light forces were rapidly deployable, but they lacked the protection, lethality, and tactical mobility that we seek across the spectrum of military operations. We were successful in winning the

Cold War and, as a result, smaller than we had been in 40 years. The Army no longer had the luxury of specialized forces built to confront a single and narrowly defined threat like the Warsaw Pact countries.

Today's challenges are more complex; threats are clusive and unpredictable. The fight against international terrorism has overshadowed, but not eliminated, other potential crises. Tension between India and Pakistan persists; stability between China and Taiwan is tenuous; and concern over North Korea escalates. Threats of transnational terrorism and the proliferation of weapons of mass destruction (WMD) - often financed by organized crime, illicit drug transactions, trafficking in women and children, and the sale of arms further complicate the security environment. Geopolitical trends such as scarce resources, youth population-spike in underdeveloped countries, aging populations in developed countries, and the growth of mega-cities, among others, presage a future strategic environment of diverse and widely distributed threats.

Fully appreciating the internal and external difficulties that profound change engenders, we assessed the operational challenges of the new century against the capabilities of our Cold War Army, recognized the opportunity to leverage the inherent combat power of the technological revolution, and set a clear path ahead - The Army Vision.

The 2002 National Security Strategy (NSS) reaffirms our military's highest priority defending the United States. To do this effectively, we assure our allies and friends; dissuade future military competition; deter threats against U.S. interests, allies, and friends; and decisively defeat any adversary, if deterrence fails. The NSS directs the military to transform to a capabilities-based force ready to respond to unpredictable adversaries and security crises. The Objective Force meets these NSS requirements, and Army Transformation will enhance our ability to conduct rapid and precise operations, achieve decisive results at the time and place of our choosing, and safeguard the Nation's ability to exercise our right of self-defense through preemption, when required.

The 2001 Quadrennial Defense Review describes a capabilities-based approach to defense planning that provides broader military options across the operational spectrum, from pre- to post-conflict operations. The force-sizing construct - 1-4-2-1 - takes into account the number, scope and simultaneity of tasks assigned the military: it sizes the force for defense of the U.S. homeland (1), forward deterrence in four critical regions (4), the conduct of simultaneous warfighting missions in two regions (2) while preserving the President's option to call for decisive victory in one of those conflicts (1) - and participation in multiple, smaller contingency operations.

THE ARMY-SERVING TODAY, BALANCING RISK, MANAGING
TRANSFORMATION

Soldiers are the most precise and responsive means to strike and then control enemy
centers of gravity on the ground - where people live, work, and govern. American Soldiers
are disciplined, professional, and trained for success in diverse missions; they are the
foundation of a flexible force that accomplishes its missions in the non-linear battlespace
by integrating new, innovative technologies and techniques with current systems and

Kuwait and the Sinai, the mountains and rice
paddies of Korea, or the tropics of the
Democratic Republic of Timor-Leste.

These demanding commitments mean we must
nurture a balance between current and near-
term readiness and our Transformation to meet
future challenges. The Army has accepted
reasonable operational risk in the mid-term in
order to fund our Transformation to the
Objective Force. To avoid unacceptable risk,
we are monitoring closely the current
operational situation as we support the
Combatant Commanders in the war against
terror, conduct homeland defense, and
prosecute the long-term effort to defeat transnational threats. We have designed and
implemented the Strategic Readiness System (SRS) to provide a precision, predictive
tool with which to monitor The Army and make appropriate adjustments to preserve
current readiness. Our surge capacity in the industrial base further reduces current risk
by keeping production lines warm and responsive. And our first Stryker Brigade Combat
Team will provide the Combatant Commanders with a new capability to further mitigate
operational risk - even as we transform to the Objective Force.

M 1097 Modified Avenger Fire Unit, Kodura Fora, Kosovo

REALIZING THE ARMY VISION -
PEOPLE, READINESS, AND
TRANSFORMATION

In 1999, The Army announced its vision to transform into a more strategically responsive
force, dominant across the full spectrum of military operations. The Army Vision
addresses three essential components: People, Readiness, and Transformation. Soldiers are
the heart of The Army, the centerpiece of our formations, and the foundation of our
combat power. Readiness remains our overarching imperative; it is the means by which
we execute our nonnegotiable contract with the American people to fight and win our
Nation's wars, decisively. To preserve readiness

while rapidly changing, Transformation advances
on three major axes: preserving our Army legacy
by maintaining readiness and dominance today;
bridging the operational gap with Stryker
Brigades the Interim Force; and fielding the
Objective Force this decade to keep The Army
dominant in the years beyond this decade.
Realizing The Army Vision requires the
concerted effort of the entire Army, across all
components from warfighting to institutional
support organizations. The Army published its
Transformation Campaign Plan in April 2001 to
synchronize and guide this complex undertaking. The November 2001 Objective Force
White Paper describes the advanced capabilities and core technologies needed to build
the Objective Force. The Army's June 2002 Army Transformation Roadmap defines
Transformation as a continuous process with specific waypoints that increases our
contributions to the Joint Force while achieving the six Department of Defense (DoD)
critical operational goals. The result will be a more strategically responsive and full
spectrum dominant force capable of prompt and sustained land combat operations as a
member of the joint force.

In support of the emerging joint operational concepts and architectures, The Army - as the major landpower component continues to develop ground concepts for a full spectrum, and multidimensional force. These concepts are producing a Joint Force that presents potential enemies with multiple dilemmas across the operational dimensions complicating their plans, dividing their focus, and increasing their chances of miscalculation.

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.