CNO Guidance for 2003

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Achieving Sea Power 21!

In the future, we will use the extended reach of naval weapons and sensors to provide unprecedented power, protection, and freedom to joint campaigns. We will do this by exploiting the largest maneuver area on the face of the earth: the sea.

I. Taking a Fix

The past year has been one of tremendous accomplishment for our Navy. Our men and women operating in the air, on and under the sea, and on the ground are at the leading edge of the Global War on Terrorism. Forward deployed, combat ready naval forces – sustained by naval and civilian shipmates around the world – are proving every day the unique value of sovereign, independent forces projecting power from the sea.

In last year's Guidance, I challenged each of you to make our great Navy even better by enhancing mission accomplishment, deepening the growth and development of our people, and developing innovative operational concepts and capabilities…and you delivered! Your dedication to service has provided our nation the persistent, responsive combat power needed to fight and win.

As we look to the future, we must transform to retain the advantage against innovative and determined enemies. Sea Power 21 provides the framework to align, organize, and integrate our Navy to meet the wide array of challenges that lie ahead. This will require accelerating operational concepts and technologies to improve warfighting effectiveness and enhance homeland security; shaping and educating our force to operate tomorrow's fleet; sustaining readiness; and harvesting efficiencies to invest in the Navy of the future.

Working together during 2003, we will build on our accomplishments to enhance our Navy's effectiveness and our nation's security.

2002 Accomplishments Combat excellence in Global War on Terrorism Improved readiness Record recruiting and retention Better pay and allowances Sea Power 21 vision

Manpower. We are winning the battle for people! Last year we invested billions of dollars in retaining, recruiting, and training our Sailors to create an environment that offers opportunity, promotes personal and professional growth, and provides the kind of workforce needed for the 21st century Navy. Most importantly, we developed a more responsive force — one that surged forward with the right people, to the right place, at the right time to fulfill our national security requirements. We are enjoying now, the best manning I have witnessed in my career. With few exceptions, we achieved C-2 manning status for all deploying battle group units at least six months prior to deployment. Our investment in personnel readiness was merely the foundation, your efforts were the reason for our operational success. You encouraged our people to excel and focused them on mission accomplishment.

• Recruiting. Recruiting has never been better. Recruiters made goal for 16 straight months and the Delayed Entry Program is at the highest level ever. Our recruits are of high quality, as well. Last year, we accessed 92% high school graduates -- up from 90% -- and nearly 6% of new recruits had some college education.

• Retention. Retention is at record levels. We reduced at-sea manning shortfalls by more than 36% in 2002. Superb retention also allowed us to lower recruiting goals by over 7,500, saving millions of dollars that were applied toward fleet readiness and quality of life initiatives.

• Attrition. The trend is improving. Zone A attrition was reduced by 23%, just missing our goal of 25% in 2002. Overall drug losses were down 8% and Recruit Training Center drug losses declined more than 37%.

• Force Shaping. We are growing a more senior force to lead and manage the increasingly technical 21st century Navy. We increased the overall number of E-4 to E-9s (Top 6) by 1.7% to 71.4% working toward a goal of 75.5% by FY07. This healthy trend in improving the Top 6 allows us to retain more of our experienced leaders and maintains advancement opportunity through FY07.

• Detailing. We are revolutionizing the personnel distribution system. Last year we challenged our professionals in Millington to overhaul our detailing process. They produced Project SAIL (Sailor Advocacy through Interactive Leadership) to fundamentally change the relationship between a Sailor and their detailer and put choice in the system. Additionally, we improved Master Chief distribution to balance our most senior leaders at sea and ashore. We also piloted geographic incentive pay to examine other potential improvements in the distribution process. We are postured for big changes in 2003.

• Optimal Manning and Sea Swap. We are deploying innovative manning initiatives. USS Milius (DDG 69) was the first guided missile destroyer to deploy using the Optimal Manning program. New technologies and great deckplate leadership in Milius produced innovative shipboard watchstanding practices, reduced ship's manning requirements, and focused Sailors on their core responsibilities. The USS Fletcher (DD 992) crew will be relieved on deployment by the USS Kinkaid (DD 965) crew to extend unit on station time and capitalize on transit savings to the Persian Gulf.

Current Readiness. We have the most ready force in our history! Over the past year, our investment in training, spare parts, ordnance, and fuel accounts enabled our Fleet to be ready earlier, deploy at a higher state of readiness, and build a more responsive surge capability. These investments were vital to sustaining the war on terrorism and assuring friends and allies with our global response.

• Fleet Investment. Our readiness is improving. We reduced our major ship depot maintenance backlog by 27% and aircraft depot level repair back orders by 17% in 2002; provided 32 additional ships with depot availabilities; ramped up ordnance and spare parts production; maintained a steady "mission capable" rate in deployed aircraft; and fully funded aviation initial outfitting. COMNAVSURFOR's SHIPMAIN Process Improvement Team was formed to examine the ship maintenance process and obtain the maximum benefit per maintenance dollar. This kind of innovation, where leaders challenge assumptions, is just what we need to better understand how to provide the readiness to respond to 21st century operational requirements.

• Forward Operations/Presence. We are taking the fight to the enemy. Eight carrier battle groups, six amphibious ready groups, and nearly 100,000 Sailors and Marines deployed around the world in support of the Global War on Terrorism. Also, two attack submarines established homeport in Guam with a third on the way.

• Force Protection and Homeland Security. We are improving our defenses. We invested over $1.7B to improve security across our Fleet, improved information sharing between agencies, assigned over 10,000 Sailors to AT/FP duties, and grew the MAA rating from 1,900 to 4,600 Sailors. Additionally, we aligned force protection under CFFC as the fleet integrator for Navy-wide requirements.

Future Readiness. We developed a clear and concise vision -- Sea Power 21 -- to achieve a more powerful 21st century Navy. Our success in Manpower and Current Readiness sets the stage for focusing additional resources on Future Readiness. Accomplishments last year included drafting a bold new Navy vision, harvesting efficiencies for reinvestment, adding potent new platforms to the Fleet, and launching an integrated Navy-wide experimentation plan.

• Transformation. Sea Power 21 prescribes a strategy-to-concepts-to-capabilities continuum that will result in greatly enhanced power, protection, and operational freedom. It provides the framework for how we will organize, align, integrate, and transform our Navy to meet the challenges that lie ahead.

• Recapitalization. We are saving for our future. We achieved a projected cost avoidance of $43B over the future years plan by improving business and infrastructure processes; divesting of legacy force structure and programs; and using multi-year procurement contracts.

• Warfighting Capabilities. Impressive new units are joining the Fleet. We commissioned USS McCampbell (DDG 85), USS Shoup (DDG 86), and USS Preble (DDG 88), and laid the keel for USS Texas (SSN 775). We are beginning conversion of two Ohio-class ballistic missile submarines to launch Tomahawk missiles and deliver Special Operations Forces (SOF). We also invested over $12B in Research and Development; only Operations and Maintenance and Manpower accounts received more funding. Projects being pursued include developing next-generation platforms, ballistic missile defense, advanced weapons, and enhanced surveillance systems, among many initiatives.

• Experimentation. We put the fleet in charge of experimentation. Joint wargames, experiments, and exercises coordinated by CFFC are developing new operational concepts and technologies, such as the Joint Fires Network and High Speed Vessels. The Undersea Experimentation Working Group was also established to more fully integrate submarines into joint experimentation programs. We intend to raise the bar in experimentation and speed the delivery of new concepts through the Fleet's Sea Trial process in 2003.

Quality of Service. We invested in our most valuable asset -- our people. 2002 witnessed continued improvements in compensation, operating facilities, information technology, spare parts, and educational initiatives leading to an improved environment for mission accomplishment.

• Compensation. Pay and benefits continued to improve. Everyone earned at least a 5.0% pay increase in 2002. Targeted pay increases were as high as 6.5% for officers and 10% for enlisted. In 2003, all hands will receive a minimum 4.1% pay increase. Average out-of-pocket housing expenses were reduced to 11.3% in FY02. They will be reduced to 7.5% in FY03. These improvements put more money in the pockets of our Sailors and provided the opportunity for many of them to own their own homes.

• Investment in our Navy family. New and expanded programs are helping our Sailors invest in their future. The Thrift Savings Plan was implemented and Navy has the highest enrollment of all Services, with nearly 90,000 members. We also increased the number of customers served by the Spouse Employment Assistance Program by 29% and increased our childcare capacity by over 10% last year.

• Healthcare. TRICARE benefits are improving. Coinsurance and deductibles were eliminated for active duty family members. Additionally, TRICARE-for-Life expanded pharmacy benefits for retirees over 65 and eliminated the need for supplemental insurance.

• Housing. We are investing in infrastructure. More than $2.0B was spent over the past two years on family housing. Over 4,900 homes are to be constructed, replaced, or improved in FY03, almost double the number funded in FY02.

• Training. We are transforming the way we learn. Task Force EXCEL (Excellence through our Commitment to Education and Learning) initiatives include establishing a more responsive organizational structure, partnering with industry and academia to implement individual training and education, and initiating pilot projects that leverage civilian training programs.

Organizational Alignment. We put the Fleet at the center of all we do, creating a single voice for fleet requirements, streamlining organizations, and eliminating redundancies. Better alignment enhances mission accomplishment and reduces costs through organizational and process efficiencies. To enhance alignment, we expanded the Fleet's authority to determine requirements, influence resourcing decisions, and direct experimentation. We will continue to strengthen organizations and eliminate redundancies to make our Navy more effective and efficient.

• Organizational Focus. Improved alignment is strengthening Navy integration and generating efficiencies. Specifics include:
  • Established CFFC as the Lead Agent for Sea Trial to formalize experimentation and fully integrate concept development and technology insertion under the Fleet.

  • Aligned the Navy Warfare Development Command and warfare centers of excellence under CFFC to stimulate concept development and technology insertion for the Fleet.

  • Established the Naval Network Warfare Command (NNWC) as the Fleet's coordinator for information technology, information operations, and space activities.

  • Merged OPNAV N6 and N7 into N6/N7 to enhance integration of platform and network requirements, and resource planning and programming. Established N6/N7 as the Director of FORCEnet.

  • Consolidated Navy Recruiting Command and Naval Reserve Recruiting Command to achieve total force recruiting.

  • Established the Civilian Community Management Division (OPNAV N11) to consolidate and manage our Civilian workforce.

  • Streamlined NAVSEA, PEO, and ASN (RDA) organizations to improve efficiency.

• Joint Integration. Innovative joint concepts and programs are key to improved organizational performance.
  • Issued a Naval Transformation Roadmap and Navy Strategic Planning Guidance, outlining capabilities to enhance joint warfighting effectiveness through Sea Strike, Sea Shield, and Sea Basing.

  • Developed a Global Concept of Operations (CONOPs) to widely distribute naval striking power, achieving a more responsive force disposition.

  • Signed a USN-USMC tactical aviation integration plan to enhance interoperability, more fully integrate our people, and save billions of dollars for both services.

  • Invested in the USCG's Deepwater Integrated Systems Program, new munitions development with the USAF, joint experiments with the USA on high-speed vessels, and warfighter talks with the USMC, USAF, and USA.

  • Assigned CFFC as NAVNORTH, the maritime component for USNORTHCOM.

II. Leadership Guidance for 2003

Our focus in the upcoming year is on winning the war on terrorism; protecting our nation, forces, and people; and shaping the force of the future. This will not be easy. It will require hard choices and determined leadership at all levels. We must challenge every assumption and search for new and better ways to accomplish our tasks. We must refine requirements, conduct innovative operations, and optimally allocate resources to achieve efficiencies and recapitalize the Fleet. As such, all executive agents listed below are to prepare and track measurable goals in support of this guidance, providing updated information to the Director, Navy Staff by the final day of each quarter.

Actions for 2003 "Be Ready" Protect our nation, bases, ships and Sailors Achieve efficiencies to buy more ships and aircraft Accelerate Sea Power 21 capabilities Streamline and align manpower and skills mix

Manpower. We must continue the battle for people and talent. Our young men and women make it possible for us to sustain and transform our great Navy. Your unprecedented success last year in retention, attrition and recruiting is providing the most ready force in our history. This year we must streamline and align our manpower and skills mix to balance our end strength and to shape our 21st century force. Our goal is a more highly educated and skilled workforce.

We must complement our improved retention with selective recruiting, training, and assignment policies and a more open and interactive distribution process to maximize our combat effectiveness. We are winning the battle, but we must continue this fight everyday. The key to victory is to ensure the growth and development of every Sailor so they contribute their fullest to mission accomplishment.

Guidance for Leaders:

• Sea Warrior. The right skills, in the right place, at the right time. As new platforms, technologies, and rotational crewing concepts revolutionize crew sizing, we will ensure our Sailors have the interactive web-based tools and training for their personal and professional development and career management. Initiatives include Project SAIL and Task Force EXCEL.
  • Accelerate implementation of the Sea Warrior plan for developing Navy professionals who are highly skilled, powerfully motivated, and optimally employed for mission success. (CNP)

  • Fully implement Project SAIL. Put choice in the process for both Sailors and gaining commands and bring about the revolution in the personnel distribution. (CNP)

  • Create and develop a web-based career management system that combines the products of Task Force EXCEL, Project SAIL, and the Improving Navy's Workforce project by June 03. (CNP)

  • Adjust the skill mix in the Fleet to improve fleet readiness using the Perform to Serve (Retrain to Retain) and the Selective Reenlistment Bonus (SRB) programs. (CNP)

  • Expand the Team Detailer Outreach Program to contact 100% of Sailors within 13 months of their PRDs. (CNP)

  • Develop a communications strategy to ensure a consistent and accurate message to the Fleet on personnel development issues; continue Career Decision Fairs in each Fleet concentration area every six months; and expand training for Navy Career Counselors. (CNP)

  • Classify all new recruits using the Rating Identification Engine (RIDE) to optimally match their talents to Navy ratings. (CNP)

  • Develop a plan (by June 03) to refine the process of Command Master Chief selection and assignment. (N1/MCPON)

  • Provide a plan (by August 03) to lower OCS attrition by 40% to include analysis of the "drop on request" rate. (CNETC)

  • Establish the DoN baseline civilian workforce requirement. (N1)

  • Conduct a full analysis of the geographic incentive system and report findings/recommendations via the CNO Executive Board (CEB) by 31 July 2003. (CNP)

• We must continue to mentor our Sailors.
  • Issue a standardized, Navy-wide, web-based counseling and professional development tool by July 03. (N1)
    • All commands implement this counseling tool by September 03, to include mapping progress toward a college or advanced degree.

  • Create a mentoring culture and assign a mentor for every service member by March 03. (All Echelon II)

  • Create a Task Force to study the performance appraisal system and provide recommendations for improvement. (CNP)

• We must recruit and retain the right people.
  • Shaping the Force. Working with CFFC, leverage gains from higher retention and lower attrition to enhance the skills mix across the force and continue to improve recruit quality in FY03. (N1)
    • Reduce attrition by 25% from FY02 level.
    • Implement initiatives to retain highly skilled and motivated Sailors, to include Perform-to-Serve, OBLISERV-to-Train, and SRB increases.
    • Meet the following reenlistment goals for 2003 to grow our Top 6 to 72.5%: 56% (Zone A), 73% (Zone B), 86% (Zone C).
    • Increase number of high school graduate recruits from 92% to 94%.
    • Review policy on High Year Tenure (by June 03) to optimally shape our force.
    • Conduct a zero based review of the force shaping strategy for the 21st century to include a challenge of the seniority requirements and reenlistment zone alternative strategies.

• Diversity. We will value our unique backgrounds, traditions, and experiences.
  • Conduct an assessment of diversity trends and opportunities in the Navy by March 03. (N1)

  • Increase minority officer program applications 25% by August 03. (CNETC/USNA/CNRC)

  • Increase minority Sailor applications for the Seaman to Admiral program by 25%. (All Fleets)

Current Readiness. We are at war and our orders from the President are to be ready– now and in the future. We will maintain our readiness to respond to global crises while remaining vigilant at home and overseas. Our enemies are widely dispersed, persistent, and innovative. Our task is to keep them on the run.

We will continue to make the investments needed to sustain the Navy the taxpayers have provided to us. While we budget for the necessary training, equipment, supplies, and ordnance, we must achieve and maintain readiness more effectively than in the past. A key ingredient to sustaining both our readiness today and our investments for the future, is ensuring we produce current readiness from every dollar. This requires involved and energetic leadership, innovative thinking, calculated risk taking, and a willingness to change to strengthen our combat effectiveness.

Guidance for Leaders:

• We must continue to improve fleet readiness.
  • Reduce enlisted at-sea gaps from approximately 4,000 in FY02 to 2,000 in FY03 and maintain C-2 manning status for all deploying units at least six months prior to deployment. (CNP)

  • Develop capabilities-based USNR/USMC/Fleet Air Support flight hour requirements as well as the Flying Hour Support requirements. (N4)

  • Provide an integrated plan for expanded simulation that provides realistic maintenance and operator training across all warfare areas. (CFFC)

  • Install the TYCOM Readiness Management System as the common readiness database in support of the joint Global Command and Control System by October 03. (All Fleets)

  • Reduce Class "A" mishaps by 25% over FY02 numbers. (All Fleets)

  • Develop common databases (by June 03) for operations modeling, analysis, and accomplishments to improve warfighting effectiveness. (DNS)

  • Provide a plan (by September 03) detailing how the reserves will adjust billet structure and mission areas to fulfill Sea Power 21. (CNRF)

  • Analyze lessons-learned from manning pilot projects and develop a recommendation regarding Navy-wide application by October 03. Provide IPR by 1 April 03. (CFFC)

  • Provide a plan (by May 03) that standardizes development of shore manning requirements, reflects efficient alignment of functions and the use of new technologies, and pilots shore manning models in at least two functional areas. (CNP)

• We must sustain the war against terrorism.
  • Develop requirements and plans (by June 03) to achieve mean-time-between-repairs goals for aircraft engines and reduce aviation depot level repair cost growth by improving aircraft reliability. (N4)

  • Standardize Fleet-wide deferred maintenance reporting procedures, validate actual costs of deferred maintenance, and reduce the deferred maintenance backlog by 25% by October 03. (All Fleets)

  • Re-engineer ship maintenance planning and execution through the SHIPMAIN process to increase efficiency. (All Fleets)

  • Include SOF interoperability, inter-agency coordination, Carrier Strike Group/Expeditionary Strike Group (CSG/ESG) tactical requirements, and global MIO/LIO training within the IDTC. (CFFC)

  • Execute the Integrated Readiness Capability Assessment Concept (by March 03) to maintain forward presence and surge, sustain, and reconstitute additional combat power as needed to meet regional combatant commander requirements. (N4)

• We must provide for homeland security and force protection.
  • Establish standard use of force protection personnel (active and reserve) to ensure uniform practices in CONUS and overseas. (CFFC)

  • Increase the number of MAAs to approximately 6,700 by the end of FY03, working toward a goal of 9,000 by FY05. (N1)

  • Finalize instructions for the "Use of Force and Deployment Orders" to support homeland security and force protection missions. (OJAG)

  • Formalize procedures with USCG and Federal Agencies to strengthen maritime domain awareness, ensure timely dissemination of actionable intelligence, and provide recommended courses of action to reduce vulnerabilities by June 03. (N2)

  • Evaluate emergent Force Protection technologies and accelerate the most mature and promising systems to the Fleet. Provide analysis results by June 03. Technologies that save manpower should receive priority. (CFFC)

  • Evolve medical capabilities as a "Defensive Weapon System" to deliver enhanced medical surveillance, detection, and protection. (SG)

Future Readiness. Sea Power 21 is the vision to deliver enhanced warfighting capabilities through new concepts, technologies, organizational initiatives, and improved acquisition processes. It is dedicated to a process of continual innovation and committed to total jointness. Among the critical challenges we face is finding and allocating resources to recapitalize our Navy. The significant progress made over the past two years in Manpower and Current Readiness makes it possible to place more emphasis on Future Readiness to transform our Navy for the challenges ahead. It will take the combined energy and teamwork of our entire Navy and Marine Corps team to achieve our vision, capture efficiencies, and strengthen how we organize, train, equip, and integrate to fight.

Guidance for Leaders:

• Sea Power 21. Develop a Naval Capabilities Package (NCP) Campaign Plan for Sea Strike, Sea Shield, Sea Basing, and FORCEnet to accelerate transformation. (N6/N7)
  • Standardize Mission Capabilities Packages (MCPs) that support Sea Strike, Sea Shield, Sea Basing and FORCEnet. (N6/N7)

  • Develop MCP CONOPs for near-, mid-, and long-term by June 03. (N6/N7)

  • Develop metrics to track progress in the development of MCPs; identify, prioritize, and recommend investment in programs that contribute to MCPs; and recommend divestment of programs that provide less support to MCPs. (N6/N7)

  • Prepare to execute the Global CONOPs by defining force structure options and programming resources to meet the Defense Planning Guidance. (N8)

  • Partner with the USMC to develop a Naval Operating Concept that is integral to the Joint Capstone Concept by June 03, to achieve fuller integration of service capabilities. (N3/N5)

  • Align Navy planning documents, (e.g. the Naval Strategic Planning Guidance and NOC) with Sea Power 21. (N3/N5)
  
  

• Sea Strike. Projecting precise and persistent offensive power.

  • Define Intelligence, Surveillance, and Reconnaissance (ISR) requirements to include improving platform and sensor capabilities, investing in sea-based long-dwell manned and unmanned sensors, and integrating with joint intelligence efforts. (N6/N7)

  • Develop Information Operations (IO) as a major warfare area; define IO requirements and coordinate Navy IO efforts with other Services and Department of Defense. (All Fleets)

  • Enhance time sensitive targeting capability by developing, acquiring, and integrating systems with increased connectivity, reach, speed, persistence, and lethality. (N6/N7)

  • Deploy an Expeditionary Strike Group from each coast in 2003. (CFFC/CPF)

  • Partner with USMC to develop force structure recommendations and key metrics required to achieve Ship to Objective Maneuver (STOM) goals. (N6/N7)

  • Improve conventional force interoperability with SOF. (CFFC)
  
  

• Sea Shield. Projecting global defensive assurance.
  • Accelerate work with the Missile Defense Agency to deploy initial sea-based ballistic missile defense systems by 2004. Report to the CEB quarterly beginning in March 03. (N6/N7)

  • Develop CONOPs (by June 03) to enhance sea and littoral control capabilities. (CFFC)

  • Develop an integrated strategy (by June 03) to improve ASW readiness and capability in the near and mid-term. (All Fleets)

  • Provide resource recommendations to support Northern Command; enhance Maritime Intercept Operations (MIO); and increase maritime domain awareness. (CFFC)
  
  

• Sea Basing. Projecting joint operational independence.
  • Provide employment concept and procurement plans (by June 03) to integrate the Surface Combatant Force and enhance joint support from a fully netted, dispersed naval force. (N6/N7)

  • Develop reconfigurable modules and packages tailored to Littoral Combat Ship missions. (N6/N7)

  • Create a Task Force to develop a plan that leverages the payload modularity offered by the SSGN and includes clandestine expeditionary force employment. (CFFC)

  • Determine a strategy to maximize aircraft carrier capabilities for command and control, information distribution, and logistics support for Navy, joint, and SOF. (CFFC)

  • Partner with other Services and the Defense Logistics Agency to develop integrated joint logistics capabilities. Experiment with at-sea heavy lift transfer capabilities, intra-theater high-speed sealift, pre-positioning forces, and at-sea assembly technologies to determine a joint logistics CONOPs. (All Fleets)

  • Work with other Service staffs to determine C2 requirements to support a sea-based Joint Force Commander and to improve interoperability with coalition forces. (N6/N7)

  • Develop a plan to integrate USN-USMC logistics, command and control, and intelligence organizations. (N3/N5)
  
  

• FORCEnet. Integrating the power of warriors, sensors, weapons, networks, and platforms.
  • Draft a FORCEnet Campaign Plan (by May 03) that defines the architecture and performance standards for implementing FORCEnet. (N6/N7)

  • Bring forth near-term proposals that capitalize on Coalition-Wide Area Network (COWAN) and NATO-like systems to maximize interoperability with allies. (CFFC)

  • Develop and execute a plan (by June 03) to web-base NMCI. (N6/N7)

  • Provide a plan to establish a common operational picture (air, surface, and subsurface) to achieve advances in tactical engagement speed, accuracy, and range. (N6/N7)
  
  

• Sea Trial. Accelerating enhanced capabilities to the fleet through innovation and experimentation. Coordinate the efforts of concept and technology development centers and integrate them into wargaming, experimentation, and exercises.
  • Draft and implement a comprehensive roadmap (by May 03) that integrates studies, wargames, experimentation, and exercises with evaluation metrics and an execution timeline. This roadmap should include those promising concepts and technologies, information gathering and knowledge processing systems, high-speed weapons, and force protection improvements that speed Sea Power 21 capabilities to the Fleet. (CFFC)

  • Maintain at least $10B in RDT&E investments. Employ the Future Naval Capabilities Program to coordinate and integrate the development of next generation warfighting capabilities. (N7/N8)
  
  

• Sea Enterprise. Resourcing tomorrow's fleet. Improve organizational alignment, reduce overhead, streamline processes, and reinvest savings to recapitalize our Navy and deliver increased combat capability.
  • Establish a Sea Enterprise organization and process that coordinates efforts between the Navy Secretariat, USMC, and other Services, to generate corporate efficiencies for reinvestment. (N09/N4)

  • Propose and implement innovative ways to reduce the acquisition and program life-cycle costs of weapon systems. Report findings via quarterly CEBs. (SYSCOMs)

  • Create a web-based tool that shares best practices leading to cost savings and reductions in overhead. (N09)

  • Develop and implement a revised Planning, Programming, and Budgeting System (PPBS) pilot program. (DNS)

  • Develop a proposal to modify the program and budget database so it provides more detail on personnel resource costs for all manpower categories (military, civilian, contractor). (N8)

  • Develop a plan to implement the virtual SYSCOM concept to streamline activities, achieve efficiencies, and improve interoperability between the material commands. Provide quarterly updates to CNO beginning in March 03. (Senior SYSCOM commander lead)

  • Develop equipment and system replacement schedules to achieve manpower, operations, and support infrastructure savings. (N7)

  • Develop an integrated Navy Enterprise Resource Planning campaign plan that maps legacy infrastructure and retires selected systems to capture savings. (N4)

  • Undertake "skunk works" initiatives in each Echelon II command to achieve efficiencies via organizational streamlining, technology insertion, and divestment of non-core functions. (All Echelon II)

  • Fully sustain facility inventory, achieve a 67-year shore infrastructure recapitalization rate by FY07, and achieve C2 condition by 2010 to meet DoD guidance. (N4)

Quality of Service. Quality of Life and Quality of Work remain a priority focus area for our Navy. Providing our Sailors high quality operating facilities, the spare parts, the information technology, and the environment to achieve their goals is fundamental to mission accomplishment. We must continue to exercise covenant leadership. We remain committed to ensuring our Sailors and civilian shipmates are compensated with proper pay, attractive housing, generous benefits, and quality workspaces and equipment. We must also implement innovative learning techniques and empower our Sailors to excel professionally and personally.

Guidance for Leaders:

• We will speed the revolution in training. Task Force EXCEL will introduce our people to a lifelong continuum of learning and improve their personal and professional development.
  • Accelerate implementation of Task Force EXCEL. (CNETC)

  • Establish the organizational structure to bring about the Revolution in Training. (CNETC)
    • Establish the Naval Personnel Development Command, Human Performance Center, and Training Support Centers by Jun 03.

  • Improve Navy Education and Training effectiveness, to include: (CNETC)
    • Apply information-age methods to accelerate learning and improve proficiency. Increase eLearning opportunities by 20%
    • Expand use of advanced trainers and simulators to reduce Technical Training Equipment costs by 15%
    • Establish instructor to student ratios that capitalize on distributed learning methods and technologies and harvest manpower efficiencies
    • Accelerate Time-to-Train by 15%
    • Eliminate course redundancies to achieve a 15% reduction in the number of courses

  • Expand Task Force EXCEL to include officer and senior enlisted community professional development continuums and address the role of undergraduate and graduate education requirements and opportunities. (CNETC)

  • Develop and implement a standardized set of initial training objectives and guidelines for newly-selected chief petty officers. (MCPON/CNETC)

• We will continue to invest in our Sailors. They remain our number one resource and are vital to our success. We will continue to provide the technologies and programs that enhance their personal and professional growth and development.
  • Develop systems that enhance mission accomplishment by maximizing Sailor performance in new platforms and weapon systems. (SYSCOMS)

  • Complete Homeport Ashore to move all single sea duty Sailors to Bachelor Quarters by FY08. (N4)

  • Eliminate inadequate bachelor housing via MILCON, PPV, and private sector initiatives. (N4)
    • Eliminate community heads ashore by FY07
    • Achieve 1+1 Bachelor Housing Standard by 2013

  • Improve drug abuse prevention training and awareness. Reduce the number of positive drug tests while sustaining or increasing FY02 testing levels. (All Fleets)

  • Conduct an assessment of Navy uniform regulations and provide recommendations by October 03. (MCPON)

• Our Navy Family.
  • Reduce average BAH out of pocket expenses to zero by FY05. (N1)

  • Institute revised worldwide accreditation standards for Fleet and Family Support Centers. (N1)

  • Establish partnerships with private industry to provide mobile career opportunities and enhance the Spouse Employment Assistance Program. (N1)

  • Improve alcohol abuse prevention training and awareness. Reduce the number of alcohol-related fatalities by 50% in FY03 compared to FY02. (All Fleets)

Alignment. We have pursued organizational and operational alignment to streamline our efforts and maximize warfighting effectiveness. Aligning our organization is an ongoing effort that involves continual assessment of processes and systems. The goal is to rapidly and efficiently deliver warfighting capability, while maximizing the growth and development of our people. When an organization is aligned, everyone from junior to senior shares an understanding of the goals and purposes of that organization, allowing them to contribute to their fullest.

Guidance for Leaders:

• We will better align for joint warfare.
  • Conduct warfighter talks with USMC, USAF, USA, and USSOCOM to discuss key inter-service issues. Specific areas include:
    • Command and Control: Identify methods to improve structures, systems, and interoperability. (N3/N5)
    • Operations: Review and integrate Operation ENDURING FREEDOM and Global War on Terrorism lessons learned, Global CONOPs, CSG/ESG deployment plans, C4ISR initiatives, joint and SOF operations. (N3/N5)
    • Platforms/Weapons Systems: Develop plans to co-develop and optimally employ joint emergent and future systems. (N3/N5)

  • Fully implement the Training Resource Strategy by March 03. Include an annex detailing simulation use as part of this effort. (CFFC)

• We will continue Fleet and organizational alignment.
  • Establish Commander, Navy Installations Command (CNIC) with responsibilities for the operation, administration, and support of U.S. Navy installations worldwide. Establish a single claimant for all base operating support resources. Formalize supported/supporting relationships with all Echelon II commanders. (N4)

  • Establish DoN civilian workforce communities. Assess each community's health and develop strategies to enhance retention and career/leadership development. (CNP)

  • Improve knowledge sharing and training opportunities for Command Master Chiefs through the use of the Direct Line web site and appropriate forums. (MCPON)

  • Provide a recommendation (by Jun 03) to realign resources and billets to support CFFC's expanded mission. (CFFC)

  • Provide recommendation on the optimum command arrangement for Expeditionary Strike Group deployments, and future steps to develop this concept. (CFFC)

  • Develop a strategy to employ the Amphibious Ready Group in Japan as an Expeditionary Strike Group. (CPF)

  • Develop a plan (by July 03) that establishes a Missile Defense Strike Group in FY04. (CFFC)

  • Emphasize the enhanced distributed striking power attained through implementation of the Global CONOPs by standardizing the terminology for Carrier Battle Groups and Amphibious Readiness Groups as Carrier Strike Groups and Expeditionary Strike Groups, respectively, by March 03. (All Fleets)

  • Integrate C4ISR and network initiatives, and coordinate information technology, information operations, and space activities. (N6/N7)

• We will improve our communications alignment.
  • Develop an information master plan to tell the Navy's story both internally and externally. (CHINFO)

III. Sailing Directions for the 21st Century

Winning the Global War on Terrorism is our number one priority. This will not be quick or easy, but victory is our goal and it will be achieved. Our Navy will play a leading role in this historic struggle by contributing precise, persistent, and responsive striking power to the joint force, strengthening deterrence with advanced defensive technologies, and increasing operational independence through sea basing. This is the Sea Power 21 vision.

We will innovate operationally by distributing striking power to the furthest corners of the earth and sustaining fleet readiness to surge additional warfighting power on short notice. The Global Concept of Operations, in concert with the United States Marine Corps, packages our forces to meet 21st century challenges. This CONOPs requires a fleet of approximately 375 ships and procurement of 11 ships per year. This is an ambitious goal we cannot achieve unless we are a smarter and more efficient consumer of resources.

Last year I told you I wanted every leader to be evaluated on two things, their commitment to the growth and development of their people and above all to mission accomplishment. This year I want to elaborate on that guidance. I want each of you to understand that mission accomplishment means both warfighting effectiveness and resourcefulness. It has been said that great leaders do the right thing, and great managers do things right—we need to do both.

We have a big budget. We must ensure we are spending the taxpayers' dollars on the right things. Sea Enterprise will coordinate a Navy-wide effort to align and optimize use of these funds. It will allow us to harvest efficiencies throughout our organization to be reinvested in warfighting capabilities. We must generate resources to recapitalize our Navy. I am convinced we must make Sea Enterprise a success or we will not have the Navy our Nation needs in the future. I ask for your support of this critical initiative.

People remain at the heart of all we do; they are capital assets in our Navy. We have invested heavily to do what is right for our people. As we look to the future, we will build on the impressive progress we have made in recruiting, assigning, and retaining our military and civilian professionals. "Growth and development" is our byline and I expect every leader to be deeply involved in developing their shipmates. Active leadership is making it happen today and will do so in 2003. We will reward leaders who understand the challenges and through innovative and creative leadership develop their people and accomplish the mission efficiently and effectively.

Our Navy is the finest it has ever been and getting better every day. I am counting on you to continue our superb record of accomplishment and shape the Navy of tomorrow. Working together, we will achieve the vision!