Addendum F
(Progress Report on Strategic Initiatives Identified in the 2006 Army Posture Statement)

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In last year’s Army Posture Statement, the Army leadership described the four overarching, interrelated strategies needed to accomplish the Army Mission and their associated Strategic Initiatives.  The strategies are:

These four strategies and nineteen initiatives make up the Army Strategy Map (Figure 1) and guide the Army through the transformation and the streamlining of business processes.  Since last year, a nineteenth initiative, Enhanced Logistics Readiness, was added due to its importance to mission success.  An update on these strategic initiatives is provided in this addendum.  

Enhance Strategic Communications in an integral part of all strategic initiatives and is conducted in support across all strategies in support of achieving the Army vision.  Securing Financial Resources and Legislative Authorities to Meet Requirements acts as the foundation without which the Army cannot fully execute the other initiatives.

Strategy:  Provide Relevant and Ready Land Power for the 21st Century Security Environment

1.  Initiative:  Support Current Global Operations with Relevant and Ready Land Power

The pace of operations in the new security environment presents a number of significant force management challenges to the Army. Almost 600,000 Soldiers are on active duty today (currently 507,000 active component, 46,000 Army National Guard and 28,000 Army Reserve). Over 40 percent (243,000) of them are deployed or forward stationed, serving in 76 countries worldwide.

Repeated deployments affect recruiting and retention, and they have a very real impact on our ability to care for our Soldiers and their families.  To meet today’s challenges and to better position troops for the future, the Army is pursuing numerous initiatives that will reduce force management risk.  By developing the Army Modular Force, we will significantly increase the pool of rotating units.  By employing the Army Force Generation Model (ARFORGEN), we will reduce the stress on the force.  The results will be greater stability, unit cohesion and readiness, and less uncertainty for families. 

2.  Initiative:  Build a Campaign-Quality Modular Force with Joint and     Expeditionary Capabilities for Today and Tomorrow

To maximize force effectiveness and strategic flexibility, the Army is reorganizing to a modular, brigade-based structure that will:

The re-organized BCTs consist of 3,500 to 4,000 Soldiers and are organized and trained the way they will fight.  The BCTs are more robust, require less augmentation, and are standardized in design, which increases interoperability and eases planning and logistical support requirements. These new modular formations also operate effectively in joint, interagency and multinational environments.  They enhance joint concepts for battle command, fires, logistics, force projection, intelligence, and air and missile defense.  BCTs will be able to take full advantage of expanding joint training opportunities.  Support Brigades are also converting to a modular design.  They will be trained, manned, and equipped to provide support to corps and division-level headquarters without augmentation of people or equipment.

As the Army creates modular capabilities, it also is realigning the active and reserve components.  The Army is creating a better balance and depth of forces in the active and reserve components that can support sustained operations while providing predictability for Soldiers and families. 

Additionally, the Army is rebalancing unit capabilities and critical skill sets to ensure consistency with organizational restructuring, to relieve stress on low density/high demand units, and to improve unit readiness and deployability.  The current AC/RC rebalancing program includes 73,000 skill set changes (restructure) and elimination of 43,000 RC spaces that represent excess overstructure.  By the end of FY 2006, the Army had rebalanced 57,000 spaces (restructured 39,000 skill positions and eliminated 18,000 spaces). 

By the end of FY 2006, the active component had converted 31 BCTs to a modular design.  A converted BCT is defined as a unit that has reorganized and is manned, trained, and equipped within resource constraints.  An additional four AC brigades began the transformation process in FY 2006.

The ARNG began converting in FY 2005 with an accelerated plan that allows early reorganization, manning and training under the new BCT design.  In 2006, 9 ARNG BCTs began conversion.  Completing conversion for an ARNG BCT can take as long as 48 months.    Table 1 provides a summary of BCT modular conversion.  Not listed in Table 1 are the 19 multi-functional and functional Support Brigades (4 AC, 12 ARNG, and 3 USAR) which completed conversion in 2006.   

    Table 1. BCT Conversion Summary
      FY 2004 FY 2005 FY 2006
    AC Converted




    ARNG Converted




    Total Transformed*








    AC Converting




    ARNG Converting




    Total Converting**








    Total Converting




*Converted means the unit has completed its initial reorganization and re-equipping to a modular design within resource constraints, is participating in the ARFORGEN process, and may be used against a requirement.
** Converting means the unit is still undergoing initial reorganization and re-equipping to a modular design within resource constraints. 

3.  Initiative:  Develop LandWarNet Operational Capabilities

LandWarNet (Figure 2) is a combination of infrastructure and services that extends voice, video and data transmissions to the edges of tactical formations.  The goal is to push these capabilities deeper and deeper into the modular Army force -- to brigades, battalions, companies and individual Soldiers.  The result will be improved operational cycle times, unprecedented levels of flexibility and agility for logistical support, and wider availability of actionable intelligence and situational awareness.  LandWarNet’s benefits will echo across the full spectrum of conflict, including lending unprecedented support to natural disaster response. 

In FY 2006, within the operational LandWarNet initiative, the Army equipped divisions with a state-of-the-art satellite and Internet Protocol (IP) communications system, down to the maneuver battalion level.  The Army also implemented Teleport Generation 1 capabilities; achieved Everything over Internet Protocol (EOIP) implementation in Joint Special Operations Command; equipped seven active divisions with EOIP as well as RC units deploying to Operation Enduring Freedom (OEF) and Operation Iraqi Freedom (OIF); and implemented Active Directory on 99 percent of the Army’s portion of the Non-Classified Internet Protocol Router Network.

4. Initiative: Execute Major Acquisition Programs

The Army’s overall capability will be further enhanced through a strong Future Combat Systems (FCS) program.  FCS is the key modernization program for the Army.  When fielded, the FCS-equipped BCT will represent the first full modernization of our ground forces in almost four decades.  In the interim, the FCS program is developing and fielding spin-out technologies to current forces.  Simply put, the FCS program is the fastest and surest way to modernize the Army.

The FCS BCT consists of a family of integrated manned and unmanned systems that provide mobile, networked command and control capabilities, autonomous robotic systems, precision direct and indirect fires, organic sensor capabilities, and adverse-weather reconnaissance, surveillance, targeting and acquisition.  In FY 2006, the Army met developmental milestones for the FCS program on schedule and within budgeted costs.

5.  Initiative:  Restructure Army Aviation 

The Army continues to transform its aviation structure to develop modular, capabilities-based forces that are optimized to operate in a joint and expeditionary environment.  Over the next six years, the Army plans to procure more than 1,000 new rotary and fixed-wing aircraft using funds made available through termination of the Comanche program.  The Army also will modernize aircraft sensors, execute safety and reliability modifications, and add aircraft survivability equipment.  This effort will reduce maintenance costs, increase survivability and improve readiness rates.  Key
components of the aviation modernization plan include accelerating modernization of reserve component aviation and unmanned aerial vehicle programs, as well as pushing forward the development of a common cockpit for cargo and utility aircraft.

    Table 2. Restructure Army Aviation
      FY 2005 Delivered FY 2006 Goals FY 2006 Delivered
    # OF Aircraft Reset (Mix of OEF/OIF Returning Aircraft)




    MH-47G Produced




    UH-60 Recapitalization




    CH-47 Recapitalization




    AH-64 Recapitalization




    Combat Aviation Brigades (CAB) All Components




Strategy:  Train and Equip Soldiers to Serve as Warriors and Grow Adaptive Leaders

6.  Initiative: Reinforce Our Centerpiece: Soldiers as Warriors

Soldiers are the centerpiece of our Army.  No matter how much the tools of warfare improve, it is the Soldier who must accomplish the mission.  The Soldier remains the ultimate combination of sensor and shooter.

Mental and physical toughness underpin the beliefs embraced in the Soldier's Creed and must be developed within all Soldiers without regard to their specialty or unit.  Basic combat training increases the Soldier’s warfighting capability through enhanced training on individual tasks and battle drills.  The Army continues to modify these tasks and drills to ensure that training is relevant to today’s combat environment. 

The Army also is proceeding with the officer education system started in FY 2005, known as the Basic Officer Leader Course II.  This program focuses on critical warrior tasks for all newly commissioned officers.  The Intermediate Level Education program replaced the Command and General Staff Officer Course, expanding the Army’s ability to educate 100 percent of its mid-grade officers, with a focus on their specific career paths.

7.  Initiative:  Train Soldiers

In FY 2006, the Army provided trained and ready forces to support commanders around the globe as well as critical homeland defense missions.  To make sure Soldiers were combat-ready in FY 2006, the Army provided an appropriate mix of live, virtual and constructive training.  The Army changed the method for reporting training operational tempo (OPTEMPO) in FY 2006.  Prior to 2006, OPTEMPO included both home station and deployed miles driven or flight hours flown.  In FY 2006, training OPTEMPO only includes those miles or hours executed during home station training.  Ground and Air home station training OPTEMPO is listed in Table 3.

    Table 3. Ground and Air OPTEMPO (Active)
      FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 Goal FY 2006 Actual
    Ground OPTEMPO (Mileage)







    Air OPTEMPO (Flight Hours)







FY 2006 total execution (including both HST and GWOT) stands at 1,058 actual miles driven and 21.6 hours flown, and includes virtual miles associated with the use of simulators.

8.  Initiative:  Enhance Combat Training Centers

The Combat Training Centers (CTC) provide realistic joint and combined-arms training that approximates actual combat, according to Army and Joint doctrine.  The CTC Program includes:  the Battle Command Training Program (BCTP) based at Fort Leavenworth, Kansas; the Joint Readiness Training Center (JRTC), located at Fort Polk, Louisiana; the National Training Center (NTC), located at Fort Irwin, California; and, the Joint Multi-National Training Center (JMRC) – formerly known as the Combat Maneuver Training Center (CMTC) - at Hohenfels, Germany. The CTCs are at the core of the Army's collective training strategy and have dedicated resources beyond those available at home-station training sites. 

The CTCs have drastically changed their training approach to better prepare Soldiers for the demands of operations in Iraq and Afghanistan, using improved facilities, civilians on the battlefield, and realistic scenarios.  Training is specifically tailored to prepare units for the conditions in the combat zones to which they will deploy.  While the CTCs have retained the capability to return to the high-intensity unit training needed for other potential theaters of war and the new modular brigades, the current focus has shifted to counter-insurgency operations and incorporating lessons learned from combat in Iraq and Afghanistan.  The training environment emphasizes rapid change and adaptation to current situations.  The complex, event-driven scenarios challenge the BCT and support organizations to execute multiple, simultaneous missions that include integrated enablers from the Army and the Joint community.

9.  Initiative:  Grow Adaptive Leaders

The contemporary operational environment has proven that our military leaders must possess skills beyond those of pure tactical war fighting.  They must become pentathletes: strong multi-skilled leaders who are able to transition between complex tasks with relative ease, to think strategically and creatively, and to build teams.  They must be able to negotiate, be culturally astute, have basic foreign language abilities, and be capable of conducting information and stability and reconstruction operations.  The Army is committed to:

Our leaders, both military and civilian, also must be effective in managing, leading and changing large organizations.  They need to be skilled in governance, statesmanship and diplomacy.  They must be confident and competent decision makers, who are prudent risk takers, innovative, adaptive an

Table 4.  Number of Non-Commissioned Officers (NCOs) and Officers trained in leadership courses in FY 2006 accountable.  They must be empathetic and positive.  And, as always, our leaders must set the standard for integrity and character. 

      Warrior Leader Course Basic NCO Course Advanced NCO Course Sergeant's Major Academy Intermediate Level Education Senior Service College
    2006 Trained







The Army is keenly aware of the valuable contributions of our civilians in supporting the National Military Strategy.  The Civilian Leader Development mission is to “…ensure the Army provides training, education and operational experiences to develop leader competencies and enhance capabilities of Army civilians in support of Soldiers, the Army, and the nation.”  To accomplish this, a new training and education approach is required.  The Civilian Leader Development Program course and programs are being transitioned into a training and education system – the Civilian Education System (CES) – that is similar to the military leader development system.  The CES will focus on areas derived from the Office of Personnel Management leadership competencies and those identified by the Center for Army Leadership.  The Army will implement CES in 2007.  It will provide leader development training and education that supports civilian leader career path requirements. 

10.  Initiative: Equip Our Soldiers

Providing our Soldiers with the best possible equipment is our highest priority.  Since there are no front lines in today’s battlefields, we must now equip all of our units with night vision goggles, crew served weapons, communications equipment, and other critical items they need to survive.  We must also provide them with every means available to protect them and to minimize the risks to which they are exposed.  

One of the many programs we have designed to increase individual Soldier capabilities is the Rapid Fielding Initiative.  This initiative accelerates the fielding of commercial, off-the-shelf technologies to quickly deliver state-of-the-art equipment to our Soldiers to enhance their performance.  The Rapid Fielding Initiative provides a specific set of equipment to every one of our deploying Soldiers.  We provide additional items of equipment to our Soldiers assigned to Brigade Combat Teams.  To date, more than 800,000 Soldiers -- including approximately 350,000 in 2006 -- have benefited from the enhancements provided by RFI equipment. 

Recent experiences in operational theaters help us to determine the items we furnish to our Soldiers.  Key examples of Rapid Fielding Initiative successes include:  the Advanced Combat Helmet, which enhances protection, comfort, and permits better hearing; and the Improved First Aid Kit, which improves the ability to treat bleeding from wounds and remove airway obstructions.

Strategy: Sustain an All-Volunteer Force Composed of Highly Competent Soldiers Who Are Provided an Equally High Quality of Life

11.  Initiative:  Recruit and Retain the All-Volunteer Force

While the recruiting environment is challenging, the Army will continue to recruit highly qualified Soldiers.  Our goal was for high school diploma graduates (HSDGs) to comprise no less than 90 percent of recruits.  Typically, high school graduates are at lower risk for attrition and, therefore, are the most desirable group from which to draw.  Although we achieved only 81 percent HSDGs, first-term attrition is declining and training base attrition is at a historic low -- both positive signs that we are recruiting, training, and retaining a highly qualified force.

The Army has continued to aggressively reshape recruiting resources for all components in order to address our recruiting challenges.  The FY 2006 budget provided more than $1.5 billion for recruiting programs.  We thus were able to increase the number of recruiters.  We also raised the maximum enlistment bonus from $20,000 to $40,000 for active component Soldiers, and from $10,000 to $20,000 for reserve component recruits.  The Army College Fund incentive was increased to $72,900 for qualified active component applicants.  Additionally, we created new initiatives, to include the Recruiter Incentive Pay and Referral Bonus.  Due to the GWOT, several special skills are in high demand.  To fill them, it has been necessary to augment our recruiting and retention incentives. Table 5 reflects Army accessions as a result of our recruiting program.

    Table 5. Recruiting Quality Percent High School Diploma Graduates (HSDG)
      FY 2003 FY 2004 FY 2005 FY 2006
    HSDG Goal





    HSDG Actual





Tables 6 and 7 reflect active and reserve component end strength.

    Table 6. Accessions
      FY 2003 Actual FY 2004 Actual FY 2005 Actual FY 2006 Goal FY 2006 Actual
    Active Army






    Army Reserve






    Army National Guard






    Performance Measure:  The number of Soldiers on active duty at the end of the year.

    Table 7. Active Component End-Strength Within 2%
    Performance Measure: The number of Soldiers on active duty at the end of the year.
      FY 2003 FY 2004 FY 2005 FY 2006





    Congressional Baseline










    % Delta





    Performance Measure:  The number of Soldiers in the USAR and ARNG at the end of the year.

    The Army has boosted retention bonuses to a maximum of $40,000 for those not in high-demand specialties.  In our Special Forces specialties, due to high demand, the Army instituted a bonus program that pays up to $150,000 for senior non-commissioned officers to remain in the service.  Also, in order to retain retirement-eligible Special Forces Soldiers who have more than 25 years of service, the Army is developing an Assignment Incentive Pay program.  These programs alone are not enough, however.  They must be matched with a commensurate commitment to Soldiers’ families and provide an excellent quality of life.

    In 2006, we exceeded our retention goals in the active component by five percent, in the Army National Guard by eighteen percent, and in the Army Reserve by three percent (Table 8).  

    Table 8. Selected Reserve (USAR and ARNG) End-Strength Within 2%
    Performance Measure: The number of Soldiers in the USAR and ARNG at the end of the year.
      FY 2003 FY 2004 FY 2005 FY 2006










    % Delta





    Performance Measure:  Measures the number of Soldiers reenlisted during a given FY against the published goals.

Beyond Special Forces, the Army has boosted reenlistment bonuses to a maximum of $40,000 for those not in high-demand specialties.  These programs alone are not enough, however.  They must be matched with a commensurate commitment to Soldiers’ families and provide an excellent quality of life.

Recruiting and retaining Soldiers will continue to be very challenging.  We will require continued resources and support in the coming year to attract and access the best possible Soldiers to man our formations.

12.  Initiative:  Care for Soldiers and Army Families

To retain our Soldiers and meet the needs of their families, we need to care for them with exceptional well-being programs.  The Army is committed to attaining a quality-of-life for our people that matches the quality of their service.  To better fulfill this promise during war, we have initiated programs to improve spouse employment, to ease the transition of high school students during moves and to extend in-state college tuition rates to military families.  We continue to improve healthcare, childcare, youth programs, schools and facilities for our families.  The Army also is concerned about our Soldiers’ financial health and in FY 2006 completed a multiyear initiative to eliminate Soldiers’ out-of-pocket housing expenses. 

To improve unit cohesion and readiness, while reducing unit turbulence and uncertainty for families, the Army is changing how we man our units.  Under Force Stabilization, the Army plans to keep Soldiers in each assignment longer and will synchronize their assignments to BCT rotational schedules.  Stabilization will create more deployable, combat-capable units while improving predictability and quality of life for Soldiers and their families.  Soldiers and their families will be able to build deeper roots in their communities and enjoy better opportunities for spouse employment, continuity of healthcare and schooling, and access to stronger support networks that enhance well-being.

13.  Initiative:  Improve Soldier and Family Housing

Housing programs are essential to demonstrating our concern for Soldiers and their families.  In concert with the private sector, the Army continues to focus considerable effort on the Residential Communities Initiative and the Barracks Modernization Program.  Congressional support for these initiatives has had a dramatic effect on improving the quality of life for our Soldiers and their families.

Our housing programs are on track to eliminate inadequate dependent housing in the United States by FY 2007 through privatization, construction and divestiture of units.  In FY 2006, we privatized 12,000 housing units, bringing the total to 71,500.  The Army also modernized 5,600 barracks spaces. 

Strategy:  Provide the Infrastructure and Support to Enable the Force to Fulfill its Strategic Roles and Missions

14.  Initiative:  Adjust Global Footprint to Create “Flagships of Readiness” 

Collectively, our installations are an essential component in maintaining our Army.  They are the platforms from which we rapidly mobilize and deploy military power.  They play a vital role in training the force and in reconstituting it upon return from deployment.  They also serve as a sophisticated reach-back capability for the deployed commander seeking information and other support.  Equally important, installations sustain our military families. 

As part of the Army’s plan to create installation “Flagships of Readiness”, two rail infrastructure projects were scheduled for FY 2006. Of these, one was completed, i.  Five installation projects expanded shipping centers, built pallet processing facilities and upgraded equipment warehousing, which factors into force readiness.  Since FY 2005, the Army also has completed six aerial port of embarkation (APOE) infrastructure improvement projects.  A seventh, at Peterson Air Force Base, which serves Fort Carson, Colorado, will be finished in FY 2007.  Upgrades to seaports and ammunition storage facilities were underfunded in FY 2006.  As a result, the Army completed only 75 percent of those projects.

As we focus on the demands of current operations, Army installations continue to face many challenges.  Our new modular brigades require new facilities.  The Army will incur substantial infrastructure changes and requirements as global repositioning and Base Realignment and Closure proceed.  As we proceed, the Army must ensure that it maintains strategic responsiveness and a healthy and pleasant environment for its Soldiers and their families. 

15.  Initiative:  Implement Business Transformation

Transformation of our business processes promotes the long-term health of the Army, while freeing human and financial resources that can be used to meet warfighting requirements and reduce risk across the force.  The Army is developing a culture of continuous improvement that will provide dividends now and into the future. 

Toward that end, the Army has embarked on an ambitious Lean Six Sigma (LSS) campaign to improve its processes service-wide.  LSS is a business improvement methodology that maximizes value by achieving the fastest rate of improvement in customer satisfaction, cost, quality, process, speed and invested capital.  LSS, in combination with organizational analysis and design and the effective and efficient application of enterprise solutions and knowledge-based situational awareness, will spread business transformation throughout the Army.

Implementing the President’s Management Agenda
The Army is achieving management improvement results through the implementation of the five government-wide initiatives of the President’s Management Agenda (PMA).  In all five areas, the Army is showing sustained progress and improved results. 

circle Strategic Management of Human Capital – We continued to deploy National Security Personnel System (NSPS), linked Senior Executive Service (SES) performance plans to strategic plans, and reduced hiring time for new SES to 30 days and non-SES to 45 days.

circle Competitive Sourcing – Publicly announced competitions total 1,634 for FY 2006, with 4,945 positions projected for public announcement by the end of FY 2007 under the A-76 process.

circle Improvement of Financial Management – DoD began reporting financial management progress against the Financial Improvement Audit Readiness (FIAR) Plan that measures all services against five initiatives.

circle Budget Performance Integration Initiative – The Army developed performance measures for all 148 of its major programs, which equal 100 percent of the budget.

circle eGovernment – We attained satisfactory information technology business plans (OMB Exhibit 300 forms) for all of major IT systems and met Federal Information Security Management Act (FISMA) requirements.

The Army currently is pursuing process improvement initiatives in numerous institutional areas, including the requirements determination process, the resource allocation process and recruiting.  Among them is the General Fund Enterprise Business System (GFEBS). 

GFEBS is an integrated financial management system that will provide web-based, online, real-time transaction and information capability accessible to all Army and Department of Defense (DoD) components.  GFEBS will fulfill the requirements of the Federal Financial Management Improvement Act of 1996.  It will  enable the Army to comply with the Chief Financial Officers Act of 1990 by improving performance, standardizing processes, reducing legacy stove-piped systems and providing all levels of leadership with reliable, relevant and timely financial information. 

Building on a successful technology demonstration of Release 1.1 at Fort Jackson, SC in FY 2006, two additional releases will be built, tested, and fielded in FY 2007 and 2008.  Release 1.2 will provide increasing capability to the Installation Management Command users in the second quarter of FY Quarter 2008.  In the fourth quarter of FY 2008, Release 1.3 will be fielded Army-wide. 

16.  Initiative:  Develop the LandWarNet Institutional Infrastructure

The Generating Force, the Army’s business platform, must transform if it is to achieve joint, standardized data collection processes, effective communication linkages and efficient information sharing among stakeholders.  The Army intends to increase responsiveness to Combatant Commanders by applying information management concepts and information technologies (IT), and implementing sound investment governance.  This includes:

In FY 2006, the Army improved IT infrastructure at 34 installations; established the Net-Centric Data Strategy Center of Excellence; established mission areas and domains to govern IT investments and developed transformation plans to implement Army IT portfolio management; and delivered an integrated interoperable publish-and-subscribe methodology for tactical command and control functional applications.

17.  Initiative:  Enhance Logistics Readiness

Our success in future campaigns relies on a joint-capable, expeditionary logistics community that maintains domain-wide visibility over requirements, resources, and priorities; that anticipates and delivers capability with speed and precision to meet operational needs of the joint force commander; and that acts with unity of effort to  plan and execute logistics across the joint operations area.

The Army has developed a new Joint-capable concept of support that sustains our expeditionary and campaign-quality Army across the full spectrum of operations.  It enables support to a non-linear, asymmetric, and non-contiguous battlefield.  In implementing the new concept of support, the Army has activated the Army Sustainment Command (ASC) to serve as the Army’s national logistics integrator and transitioned the Surface Deployment and Distribution Command (SDDC) to Army Materiel Command (AMC). 

The Army has made huge strides in equipping and training every Soldier.  We are operating in a joint, interagency, and multinational environment.  We continue to transform our logistics business by blueprinting our future processes to commercial best practices as part of the Single Army Logistics Enterprise.  We are fielding modern logistics information technology and connectivity solutions.  These tools provide us end-to-end visibility, accountability, and capability to better anticipate operational needs.  We have significantly increased property accountability and visibility to establish a corporate view of equipment and readiness. For example, we fielded Property Book Unit Supply-Enhanced (PBUSE) to the company level that enables a 100% inventory of equipment.

Our logistics focus is on 360-degree readiness, completing the transformation effort, and funding and fielding logistics automation.  Building and sustaining combat power is paramount to the Army’s success.

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