Installation Leadership Forum

August 7, 2012

Dr. Craig College, Deputy Assistant Chief of Staff for Installation Management, Department of Army

2012 ADC ANNUAL CONFERENCE| PAGE 2

The Fiscal Driver

Federal Surplus / Deficit

-1,600

-1,400

-1,200

-1,000

-800

-600

-400

-200

0

200

TY

$ in

B

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

Su

rplu

s / D

efi

cit

as %

of

GD

P

CBO 5 Mar 10 ProjectionCBO 5 Mar 10 Projection

40-year average(1969-2009):

-2.6%

FY08 – $459BFY09 – $1413BFY10 – $1500BFY11 – $1341BFY12 – $915B

FYDP average(2011-2015):

-5.4%

Federal Surplus / Deficit

-1,600

-1,400

-1,200

-1,000

-800

-600

-400

-200

0

200

TY

$ in

B

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

Su

rplu

s / D

efi

cit

as %

of

GD

P

CBO 5 Mar 10 ProjectionCBO 5 Mar 10 Projection

40-year average(1969-2009):

-2.6%

FY08 – $459BFY09 – $1413BFY10 – $1500BFY11 – $1341BFY12 – $915B

FYDP average(2011-2015):

-5.4%

FYDP average(2011-2015):

-5.4%

2012 ADC ANNUAL CONFERENCE| PAGE 3

.0 M

1.0 M

2.0 M

3.0 M

4.0 M

5.0 M

6.0 M

7.0 M

8.0 M

$ B

$100 B

$200 B

$300 B

$400 B

$500 B

$600 B

$700 B

$800 BDoD Military Manpower DoD Total Manpower DoD $ (FY12 Constant $) FY01-11 Base (FY12 Constant $)

Korean WarArmistice (1953)

Vietnam WarEnds (1973)

Height ofVietnam

War (1968)

Gulf WarEnds (1991)

Height ofCold War

(1985)

9/11(2001)

The Defense Budget Over Time• Discretionary spending is ~35% of total federal budget – Defense budget is ~50% of discretionary spending • Increasing emphasis on reducing spending/deficit – Congress and the Administration• Historically, funding levels have decreased as military demand decreases

BCA

BCA impact

?

OCO?

2012 ADC ANNUAL CONFERENCE| PAGE 4

The Army Budget

$78 $84$97 $103 $103 $105 $112

$131 $143 $144 $140 $135 $135

$26 $40

$64 $72

$109

$121 $92 $99 $100

$68 $50

$78$86

$123

$143

$167$177

$221

$252$235

$243 $240

$203

$185

$ B

$50 B

$100 B

$150 B

$200 B

$250 B

$300 B

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Execution Approp Request

Base OCO OCO Request

2012 ADC ANNUAL CONFERENCE| PAGE 5

Efficiencies at an Installation Near You

• Personnel Reductions– FY11: Eliminated 2,620 Temporary and Term Employees – FY12: Further reductions of Department of the Army Civilians

• HQDA Re-design– Eliminated National Capital Region Division – Eliminated 2-Star FMWRC and merged into IMCOM HQs– Reduced Regions from 7 to 4

• Budget Cuts– Reduced reliance on contractors and implemented quarterly efficiency

reviews of contracts– Reduced Conferences and Travel– MILCON transfer to SRM

2012 ADC ANNUAL CONFERENCE| PAGE 6

2012 ADC ANNUAL CONFERENCE| PAGE 7

Organizational Theory

Hierarchal Chain of command Centralized

Starfish“No head, cut off an arm, and it

grows into a new starfish”

Spider“Cut off the head and it dies”

The most affordable future for military installations and their surrounding communities is to create partnerships in far greater numbers that feed off each other’s strengths and economize on our weaknesses to survive the coming economic challenge. These approaches must become routine and pervasive and the Community Covenant is one such effort.

No defined leader (catalyst) Devoid of chain of command (circles) Decentralized Open system Standing on five legs Passion and enthusiasm

Building Spider and Starfish Collaboration and Partnerships

Concept taken from : The Starfish and the Spider: The Unstoppable Power of Leaderless Leadership by Ori Brafman and Rod Beckstrom

2012 ADC ANNUAL CONFERENCE| PAGE 8

NDAA Legislative Language

• SEC. 331. Intergovernmental Support Agreements with State and Local governments.

– “Secretary of the Military department concerned may enter into an intergovernmental support agreement with a state or local government to provide, receive, or share installation-support services …”

– Allows for mutually beneficial partnerships

– Reduces costs/spreading

– Enhances partnerships, strengthening bonds

2012 ADC ANNUAL CONFERENCE| PAGE 9

Army Community Covenant

Community Covenant beyond the signing ceremony

Where We Are Today• More than 700 Community Covenants signed in all

states, 3 territories, the District of Columbia and OCONUS communities in Europe and Korea

• Communities embracing the Covenant as a platform to build collaborative, coordinated local support

• Community Covenant partners include National Guard, Reserve, Civilian Aides to the Secretary of the Army, Army OneSource Community Support Coordinators, and Recruiters. Partners continue to inspire Community Covenant commitments

• Communities continue to heed the call and take the Community Covenant beyond the signing ceremony and build tangible, innovative local support

2012 ADC ANNUAL CONFERENCE| PAGE 10

QUESTIONS