Hagel Announces New Defense Innovation, Reform Efforts

By Cheryl Pellerin DoD News, Defense Media Activity


WASHINGTON, Nov. 15, 2014 — In a keynote speech tonight at the 2014 Reagan National Defense Forum, Defense Secretary Chuck Hagel announced a plan to harness the brightest minds and cutting-edge technology to change the way the Department of Defense innovates and operates.

On the second day of a five-day trip nationwide to see some of the critical training the force receives to maintain readiness, Hagel addressed members of Congress, DoD officials, military leaders, and members of the defense industry during the annual forum held in Simi Valley, California.

Along with the new innovation initiative, the secretary also announced a project to reform the defense enterprise, preparing it to deal with dwindling budgets in an uncertain future.

DoD Experiencing a Time of Transition

“The Department of Defense is undergoing a defining time of transition,” Hagel said. “We [face] a reshaping of our enterprise by a fiscal environment plagued by … budget uncertainty and a large decline in resources, and by an historic realignment of interests and influences around the world.”

As these dynamics unfold, he added, the U.S. military is engaged in crises and security challenges around the world -– degrading the terrorist organization the Islamic State of Iraq and the Levant, helping to stop the spread of Ebola virus disease, and reinforcing NATO allies.

“Few would have predicted these missions a year ago,” the secretary said, adding that DoD is responsible for addressing a range of contingencies and crises.

New, Old Threats, Challenges

“We face the rise of new technologies, national powers and non-state actors,” as well as “sophisticated, deadly and often asymmetric emerging threats ranging from cyberattacks to transnational criminal networks, [and] persistent, volatile threats we have faced for years,” Hagel said.

The nation’s long-term security, he added, depends on whether the department can address today’s crises while preparing for tomorrow’s threats.

Hagel described the department’s two most-important investments as bolstering the United States’ unrivaled capacity for innovation and reforming the defense enterprise to ensure that the military foundation is reliable, agile, accountable and worthy of the men and women who serve.

While the United States and its allies spent more than a decade at war, he said, countries like Russia and China have heavily invested in military modernization programs to blunt the U.S. military’s technological edge, fielding advanced aircraft, submarines and longer-range and more accurate missiles, and developing new anti-ship and air-to-air missiles, and counter-space, cyber, electronic warfare, undersea and air-attack capabilities.

New Defense Innovation Initiative

“Today I am announcing a new Defense Innovation Initiative,” Hagel told the audience, describing the effort as an ambitious, departmentwide effort to identify and invest in innovative ways to sustain and advance America’s military dominance for the 21st century.

“Continued fiscal pressure will likely limit our military’s ability to respond to long-term challenges … so to overcome challenges to our military superiority we must change the way we innovate, operate and do business,” the secretary explained.

The innovation initiative, he said, will ensure that U.S. power-projection capabilities continue to sustain a competitive advantage over the coming decades.

Identifying, Developing Cutting-edge Technologies

As part of the initiative, Hagel said, a new Long-Range Research and Development Planning Program will help identify, develop and field breakthroughs from the most cutting-edge technologies and systems, especially in robotics, autonomous systems, miniaturization, big data and advanced manufacturing, including 3-D printing.

“The program will look toward the next decade and beyond,” he said, “[but] in the near-term it will invite some of the brightest minds from inside and outside government to … assess the technologies and systems DoD [should] develop over the next three to five years and beyond.”

The innovation initiative will explore and develop new operational concepts, including new approaches to warfighting, and balancing DoD’s investments between platforms and payloads, Hagel said.

People Are DoD’s Premier Asset

New approaches to war-gaming and professional military education already are in development, the secretary added, “and [the initiative] will focus on the department’s most-important asset -- people -- by pursuing time-honored leadership development practices and emerging opportunities to reimagine how we develop managers and leaders.”

Deputy Defense Secretary Robert O. Work will guide the innovation initiative’s development and lead a new Advanced Capability and Deterrence Panel to drive it forward, Hagel said.

“The panel will integrate DoD’s senior leadership across the entire enterprise -- its policy and intelligence communities, the armed services, the Joint Chiefs of Staff, and research, development and acquisition authorities,” he said.

Hagel said he expects the panel to propose changes to the way DoD diagnoses and plans for challenges to the military’s competitive edge, and to face a new challenge head-on -- the fact that many breakthrough technologies are no longer in the domain of DoD development pipelines or traditional defense contractors.

Seeking Private-sector Proposals

“We all know that DoD no longer has exclusive access to the most cutting-edge technology or the ability to spur or control the development of new technologies the way we once did,” the defense secretary said. “So we will actively seek proposals from the private sector, including firms and academic institutions outside DoD’s traditional orbit.”

The Defense Innovation Initiative will shape the department’s programs, plans and budgets, Hagel said, adding that as the initiative matures over time he expects its impact on the defense budget to scale up as well.

“As the world in which we operate changes, we must change too,” the defense secretary said, adding that he has ordered full reviews of the department’s business and management systems.

“The first reviews are underway now, starting with the Office of the Secretary of Defense,” Hagel said. “DoD must embrace better business practices that are core to any modern enterprise, private or public.”

Upgrade Business, Information Technology Systems

The department will upgrade business and information technology systems and processes, striking the right balance between civil service and contractor support and avoiding duplication of support functions in OSD and the services, he said, adding that after years of postponement and delay the department is making progress in moving toward greater financial accountability.

Hagel said the department has been making hard choices and mustering the flexibility required by new geopolitical and fiscal realities.

“But to succeed,” he said, “we need the support and partnership of Congress, especially at a time when demands on our military are surging and our resources are shrinking and our ability to manage our institution is being more and more limited.”

The continuation of sequestration could impose nearly $1 trillion in cuts to the defense budget over 10 years, the defense secretary said, in a department that has already begun taking deep cuts over the last few years.

Sequestration ‘Would Devastate’ Military Readiness

Sequestration, he said, “would devastate our military readiness and threaten our ability to execute our nation’s defense strategy. Congress has an opportunity this year to help the Defense Department, and I and all the leaders of DoD look forward to working with Congress on this challenge.”

Hagel added, “If we make the right investments in our partnerships around the world in innovation and in our defense enterprise we will continue to keep our nation’s military and our nation’s global leadership on a strong and sustainable path for the 21st century.”

(Follow Cheryl Pellerin on Twitter: @PellerinDoDNews)