Performance Metric: Provide explicit guidance for budget and performance integration Metric Description. Consistent with the President's Management Agenda (PMA) initiative to integrate budget and performance, the Department is adopting a DoD-wide approach to establishing performance outputs and tracking performance results. The Deputy Secretary of Defense, in Management Initiative Decision (MID) 910, “Budget and Performance Integration Initiative," December 20, 2002, informs the DoD Components that beginning in February 2003, each Component will be graded on its status and progress in: ♦ displaying the linkage of plans, outputs, and resources in budget justification materials; ♦ expanding the treatment of metrics in the FY2004 congressional justification materials; and ♦ establishing a quarterly system of reporting on progress made toward achieving goals. MID 910 directs the Components to associate performance metrics with at least 20% of the resources requested in their FY2004 congressional justification. This requirement increases to 60% for the FY2005 budget, 80% for the FY2006 budget, and 100% for the FY2007 and beyond budgets. The Department will reiterate the guidance in the annual Budget Justification Book Material data call in the outyears. V&V Method. The following outlines the development and publication of the guidance that has lead to the accomplishment of this outcome: • Develop MID 910-October 2002 • Complete formal coordination of MID-November 2002 • Obtain signoff of final MID by the Deputy Secretary of Defense-December 20, 2002 • Develop guidance for inclusion in the FY2004/2005 Budget Justification Book Material data call-December 2002 ⚫ Publish Budget Justification Book Material data call-July 2003 • Reiterate guidance for outyear data calls-annually Performance Results for FY2003. The objective to provide explicit guidance for budget and performance integration to the DoD Components was accomplished in December 2002 with the promulgation of MID 910. Guidance also has been provided in the annual Budget Justification Book Material data call. No further reporting of this metric is necessary. The Office of Management and Budget upgraded the PMA status (budget/performance integration) rating to yellow based on the improved linking of performance and budget information. REPORT OF THE SECRETARY OF THE ARMY THE ARMY - AT WAR AND TRANSFORMING In October 1999, we unveiled our vision for the future - "Soldiers, on point for the Nation, transforming this, the most respected army in the world, into a strategically.... responsive force that is dominant across the full spectrum of operations." The attacks against our Nation on 11 September 2001 and the ensuing war on terrorism validate The Army's Vision - People, Readiness, Transformation - and our efforts to change quickly into a more responsive force. While helping to fight the Global War on Terrorism, The Army is in the midst of a profound transformation. Readiness remains our constant imperative. Transformation advances on three broad axes: perpetuating The Army's legacy by maintaining today's readiness and dominance; bridging the operational gap with an Interim Force of Stryker Brigade Combat Teams; and fielding the Objective Force to fight and win conflicts in the years beyond this decade. 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. American Soldiers are the basis of a flexible force that accomplishes missions in non-linear battlespace by integrating innovative technologies and techniques with current systems and doctrine. Our people adapt under the harshest conditions, whether in the deserts of Kuwait and the Sinai, the mountains and rice paddies of Korea, or the tropics of the Democratic Republic of Timor-Leste. Demanding commitments mean we must nurture a balance between current and nearterm readiness and Army Transformation to meet future challenges. We accept reasonable operational risk in the mid-term to fund Army Transformation to the Objective Force. To avoid unacceptable risk, we are monitoring 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 Nation's surge capacity in industrial base further reduces current risk by keeping production lines warm and responsive. 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. REALIZING THE ARMY VISION: PEOPLE, READINESS, AND 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. 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 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 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. Soldiers Recruitment of Soldiers is crucial to our success. 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 FY 2002, 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 FY 2002 and exceeded its aggregate FY 2002 retention objective of 56,800 Soldiers in all three categories by 1,407. We are poised to make the FY 2003 accession target of 73,800, and we expect to meet our Active Component FY 2003 retention target of 57,000. The FY 2004 accession target is set at 71,500. The Army Reserve has met mission for the last two years, and its recruiting force is well structured to meet FY 2004 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 FY 2003 End Strength Objective. Overcoming many recruiting and retention challenges in FY 2002, 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 us. We continue to examine innovative recruiting and retention initiatives. Resourcing recruiting pays dividends well beyond accessions in execution years. 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. Aggressive transformation of our civilian force – in which projections through FY 2005 indicate a 16% annual turnover due to retirements and other losses I will ensure we continue to meet those obligations. As of FY 2002, The Army employed 277,786 civilian personnel. 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. Personnel Transformation The centerpiece of Personnel Transformation is a comprehensive effort focused on a potential Army-wide implementation of unit manning and unit rotation. We are aggressively examining the feasibility of a unit manning and rotation system. The Army currently uses unit rotations in support of operational missions in the Balkans, Sinai, and Afghanistan. The Army is studying the use of unit rotations for other locations and in the war on terrorism. Units would know of these rotations well in advance, providing families with greater predictability and enabling focused preparation, both of which contribute to increased combat readiness of the unit. Unit manning seeks to synchronize the life cycle of a unit with the life cycle of the Soldier within that unit. All Soldiers and leaders would be stabilized, resulting in a significant increase in cohesion and combat readiness over our present individual replacement system. Such a system has significant second and third order effects across the force - training and leader development, recruiting and retention, unit readiness levels, and total Army endstrength, among others. All of these are being studied intensively. In July 2003, senior Army leadership decisions were made on unit manning and unit rotation. Third Wave Because we operate in an environment in which there are increasing demands for military capabilities - the Third Wave initiative seeks to ensure that we are achieving the best value possible for our taxpayers' dollars. There are three phases to the Third Wave process. First, we determined what activities were core or non-core to The Army's mission. In the second phase, we are validating the breakout between core and non-core functions by determining if any non-core functions should be exempted. In the third phase, key Army leaders will assess appropriate plans to execute non-core functions, select the best means to proceed, and develop implementation plans. At this time, we do not know how many of the 214,000 jobs identified as potentially non-core functions in Phase I will be included in implementation plans. Although implementation plans will target execution in fiscal years 2005-2009, some implementation plans may be delayed. The implementation of competitive sourcing of non-core functions will adhere to OMB Circular A-76 and related statutory provisions. Exceptions to the requirement for publicprivate competition are limited. To lower costs for taxpayers and improve program performance to citizens, OMB has undertaken major revisions to the processes and practices in OMB Circular A-76 to improve the public-private competition process. Army Well-Being Army readiness is inextricably linked to the well-being of our people, and Army WellBeing 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. Well-Being 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, so our Soldiers can better focus on their mission - training, fighting, and winning wars, decisively. Developing Leaders 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, and decisive leaders prepared for challenges in combined, joint, multinational, and interagency operations. |