Always a way to keep learning even in a job you have done a long time. That is incredibly important advice i am just in all of my colleagues they have little the court for a law of years but they still think hard about every case i think everybody on the court does that even those of them there long time. I am a huge fan of my colleagues for that reason. There is nobody there on autopilot. It could be the 23rd time i have seen the issue by will think there is hard as i did the first time. I said she talked about her parents to remind her everyday of the impact of Public Service to pray every day she will live up to that example i think we can all agree she has exceeded that example with those expectations to have a huge impact on public education. Thank you so much. [applause] [inaudible conversations] good morning to the third offset conference here holding today to talk about what the third offset is the progress and the challenges Going Forward and what baby in storer for that third offset so i am pleased to have with us for three of the architects of the implementation that you may not have heard of. Some capability as the third offset. Now we will have each panel speak about the third offset then we will have a conversation how to think about that to shape government activity. And the vicechairman joint chiefs of staff and to my immediate laugh to the principal director intelligence. So the main architect can you talk a little bit about when you first conceived the issues . What is what you were seeking higher dues see that as a frame to implement the departments activities greg. First of all, i cannot rarely take credit i trace that thinking back at 2012 with the deputy secretary of defense it was motivated of what i will talk about followed by a very important presentation given to the National Security council of the growing threats to the space constellation. So the job of the deputy secretary the primary job and as the action group tries to make a cohesive program. So but it is focused on conventional deterrence. It is designed to strengthen u. S. Terence to avoid any major confrontation. It is focused at the operational level of four. The theater leveller campaign level. To have some from that operational wobble because the Historical Perspective that is the surest way to underwrite the offset is that to you start to is your competitors. Did danske abilities you have the conventional. Not adversaries but competitors because they develop advanced capabilities. And the where we are projecting power a car if he still might but those that are outside the land mass the when the potential competitors and bev and shoot mondesi have reached parity of the theater wide battle that works. Of silicon see what is happening to control communications and computers to have a sense of what is happening and what they would like to achieve and then you have logistic san support that keeps though holding running. And that is approaching parity with us. In conventional terms we want to make shirt we can extend our and vintage and third to put a law of money in the Counter Network operations. So they spend a law of money on cybercapability in Electronic Warfare capabilities because the space constellations is a very important part of the ability to put these together. So those three things they might be expected to fight that is a law of Counter Network operations. What we refer to. It is the in here trying to improve congressional deterrence with the best way to go about it. The third offset does not have a destination. It is a journey. And to exploit those entrances into their Battle Networks that we believe will strengthen congressional deterrence. To get to your questions but again its not a unified field theory it is focused on one thing strengthening the deterrence to make sure the board doesnt happen. I want to get your perspective from the combat si side. I will make a couple points to expand. Third the offset isnt an answer, its a question. It questions our ability to offset the advantages we see emerging in the potential competitors for this and i always describe it if it were a fixed point in space i would navigate those into the joint Requirements Oversight Council and mandate them in every program that exists and impose them through the chair man on all of the Services Except its not an answer, its a question. By asking the question repeatedly, what are the advantages that our adversaries are accruing overtime, what threats do they pose and can addressing those threats strengthen conventional deterrence, i think we are asking the right question. The wii to take technologies and ideas and turn them into procedures is through operational experimentation that begins with designing concepts, testing them and ultimately testing them in exercises. From an operational perspective, the journey that we are on has the potential to vastly increase the effectiveness of the conventional forces. But we have to ask the right questions and experiment with the right techniques and procedures and disseminate those in doctrine to the forces and partners and allies and friends and figure out how to offset the capability that all of our competitors are bringing to the battle space which is in simple terms longrange precision strike at volume. In space, cyberspace, in the air, on land and on sea. We can step back and say that we invented it and that would be true that everyone who wishes to compete with us has read our doctrine. Theyve watched us and theyve analyzed our strengths and they are reflecting what we are good at back on us yet figured out how to offset that in the operational battle space and i will stop there because im really interested in your questions. If one thing is not like the other, that presents the Intelligence Community and i would love your perspective about how you all have come to be partnered in the Defense Department and how you think about the process. From th from the moment the department started talking about the third offset, its deeply iy resonated in the Intelligence Community. We share a world in which the threats are changing and which countermeasures are always at hand and. The routing the National Security advances. By that tim the time that we dea new capability and increasingly with cyber from the way we could see the capability, but competitors are working to counter that new capability. So in my view, if we are not driving our own offset, we are receiving ground and losing our ability from the oval office to the war fighters and so i just dont believe it not changing is an option that we have. Thanks very much. Let me if i can hope to revoke a conversation on the topic. You all see each other in various venues but we dont always get to hear the dialogue so we hope to get a little piece of that today. If i could start with you, one of the things people would say is that is all well and good to look at russia and china but theres other issues going on. There are many other operational challenges out there. What is your response in the water Defense Strategy . I knew the question was going to come. This is the kind of question that weve received throughout the department. Its always good to be the straight man. So, i would like you to look at the top first when i say we are injecting and autonomy into the grid we are looking at five different things, a thomas learning systems that can crunch the big data and see patterns humans simply cannot see and they can reveal those to the humans and they affect the icy. Im sure stephanie can talk about that but they were impacted. Remember the collaborative decisionmaking is providing information for the advanced visualization. A couple with machine to communications and allows humans to make more timely relevant decisions and we refer to that as human being machine. Its machines using humans to allow them to make better decisions. Assisted human operations, this is providing us much information to the individual so it cannot allow them to make better decisions at every level and its also wearable electronics, disposable sensors. Thats what we mean by human operations. Advanced human machine combat teaming you see this all over the place with those working together. Finally, the network labeled as autonomous weapons and highspeed weapons like directed energy and hypersonics. All of those things will be injected into the center grid and the affecting the sticks and support allowing the performance impact, and again its not about the kurds technology per se. But he goes through saying here is the requiremenheres the reqo doctrine developers to say this is how we will use this to exercise safe for that is what we are talking about in the third offset. Why wouldnt you focus. This is a white board. He stepped up his special operators on a particular target and he said i need to bring the entire power of the Battle Network to me. At this point in time to accomplish this effect on the battlefield and he sketched out. I need at all connected. The five areas of the way up to the operational level of war this is completely much like railroads and telegraph being driven in the commercial sector. Autonomy is changing all of our lives like the vice chair said at an astounding rate sometimes we dont even notice it. This will be a world of fast followers. If it isnt so much autonomy it is in invested in the battleground terms to work better than the potential competitors and we believe we do have an advantage on the operational level at this time and we might be able to have an advantage if we move to the operational organizational constructs that we may only have an advantage for five years or so you start thinking about what you want to create the next five years. Its like a competitive business where the market is constantly changing and you have to adapt. We know that it will improve. We know that competitors will conclude at the same thing in the world of fast followers as long as you are a fast eater you have an advantage but you have to think about what is the next step when we achieve parity. To pick up on the plates of cars that can drive themselves, thats interesting but it barely scratches the surface of what could happen if every car was perfect the network, if everybody subscribed to a network that optimized sarcast sarcastic, my guys wouldnt have to go through whit delights t me here on time. Having spent time with people who think about Artificial Intelligence and autonomous automation, every one of them would tell you we are barely scratching the surface. We are only beginning to learn the promise of peace for the future and its a question and answer if we walk into systems that continue to bring new information tended networks, we are doomed to singular autonomous things and we wont be able to adapt. The heart of the question is yes and we have to evolve with it. Its born of technologies that are 40yearsold. We are not going to be able to sustain in the environment where Software Applications allow them to adapt quickly so we have to sort out how deeply we are going to look into the problem and predict what the capabilities are going to be and how we can make the infrastructure. While you subscribe to an open architecture the answer is always of course. We have to have open architectures so i would say wonderful here is the application i would like for you to make it work useful to the service that ordered it. We cant do that. It is an open architecture that the only way we can do that is to find a resilient architecture to which all can describe. Asking that question is like we are at the beginning and we cant see all the possible places that could take us but we need to allow it to be explored. See what this could mean and then move it if it is the brush that should have burned. Theres anothethere is another e coming hopefully. My question is the first benefited from the act of 47. Both will help realize all the advantages . The offsets were not just the product of changing the policy apparatus in fact the changes have been a result of whats happening around us so i would suggest a big part of the first was the fact that we found. That posed some questions for the security leadership. In the mid70s we have realized precision would get us to a different e. Creation and by the way some of our competitors say we create Nuclear Effects with conventional weapons. There is a huge difference in what it means. That means we dont have to deploy all the power in the battle space and by the way you wasnt just precision in the network that gave indications to make it useful and we reorganized around it. We had these services but we didnt have a construct to encourage back. So gold water. Last week i found myself describing the Defense Department as a diner and that has already been cut and if you polish it all you will make it do is make it brighter. Thanks for arranging this discussion. Where do allies and partners fit into this an handheld will and e without giving away how do we solve longterm interoperability without giving goodies to potential competitors . I will free advertise and say we have a panel, thank you for bringing your guidance to the panel. Many close allies in norway, united kingdom, japan and many others, this is what we would say. In addition to first advantage we have competitive advantage going back to the ai question because we believe our people in the framework of what we are trying to accomplish provide an enormous competitive advantage, second thing was talk to buy paul, joined this takes all the western armies to a greater or lesser degree going towards joint solutions because your Battle Network, if you have street functional networks, will never operate as well as a cohesive joint network, 30 years since Goldwater Nichols, we have our competitors are trying to copy us, the third you thing you hit on his our allies, our National Security strategy, alliances are central not only to our security and partners security but global security. If you compare us with our potential competitors they dont have a lot of allies. We do from the very beginning we have been talking with our partners and allies about how we work this together. The third offset is very coalition friendly. The point of the realm was mechanized Infantry Battalion or Armored Division or heavy artillery battalion. Now anybody can come up with an application in any one of the domains, cyberspace, air, under the sea and improve the power of the network. Very coalition friendly, we are thinking of it as interoperable. So far all our discussions have been very fruitful. We are in the midst of integration. I would argue that is the current situation, integrating the pieces we have and deepening the partners is foundational to an advantage that we can pull together what we already know. As far as the risks involved, sure. It just requires what we are thinking of. It is thoughtfully engaging, how we can best leverage and help each other. We are doing structural work to make it possible but largely the way you structure the id system. Other questions . There is a young lady. Thank you to the panel. The office of naval intelligence. There are a lot of pieces regarding innovation and advances in the Defense Department. In a resource constrained environment, how you articulate return on investment to doing faster or increase level of fidelity with the data points you have. How do you articulate return on investment . How do you keep the wind in your back when the pentagon doesnt have a competitor where the war fighter goes for a different level of service . You will hear from secretary carter on how he has tackled this problem as far as the innovation agenda but let me say the way term and return on investment is through the operator. The second offset when the army and air force got together which employed the technology and in a very short time, by 1984 the soviet general staff said this is completely unhinged the way we were thinking about the fight. What we will do, paul talked about an Incentive Fund where we incentivize to look at new concepts that bring in technologically enabled operational construct and they will say looks like a big operational return on investment if we do this, then we incentivize the Concept Developers to develop further and then we do exercises and it will be the feedback this loop on how it informs the force that tells us return on investment, to say we really should go this way. We are making modest investment, a lot of tests. I stole pauls line. It is a journey, not a destination. The return on investment for us is going to be when the army, marines, navy, air force and our allies and special operators come back and say this is the real deal and that is where we start to for our money. This is about taking ownership of the question. I am very suspect of hard, objective criteria that we can advertise and i will make up an example, you can push back if you want. Adg 1000 is an incredible ship, stealthy, smart, networked, resilient, 10 times more lethal than any competitors ship of the same class. Someone who crunches numbers for living would say youd wanted 20 so two will do. We have a history in the department. Taking the subject of outcomes of wargames before the services, taken ownership of the tactics and advertise them as success and it hasnt been fruitful. My view is the same as the secretaries. I have airmen and marines echoing back to me that in their workspaces, in their unit, maneuver elements, they are seeing the benefit of this kind of thinking, that is where the return on investment comes in because we can experiment and knit things together in different ways. It will be viewed as a bright idea that makes a difference and that is where we have to go. So i would use the same measure when we have articles in our professional journals, commanders responding, and the wargame centers putting together exercises in bringing us the ideas of young men and women in uniform, that is the return on investment. Best example of this is we would not have gps today had bill perry and harold brown listen to p and e, the return on investment is hard for us to calculate and therefore you articulate. It just so happened to bill perry was in a helicopter and was in the middle of a dicey white out, brownout situation and the helicopter happened to have an experimental, wasnt called gps at the time. The pilot landed, he said i did it all by gps. What is the return on investment of being able to time sink an entire Battle Network . When we get into operation desert storm, we say being able to time sink everybody and do guided munitions through the weather, how do you the return on investment, when the commanders come to us and say this is how we will win. We have to be careful not to say i dont know if you will return on investment on this. It is up about operational organization. We have to make that the last word. This has been incredibly interesting panel in framing the rest of the day. Secretary carter is following this so i am going to ask everyone to stay where they are and not get up and go get coffee or anything but we will switch over very quickly here but i do want to thank secretary sullivan for taking time out to come here and help frame for us what we hope will be a crucial discussion about the way forward. Join is in a round of applause. [applause] now more from the csis conference with ash carter. He talked about technology and organizational structure. This is an hour. Okay, folks would we are a little delayed because of the traffic. I forgive you. A 30 minute introduction 30 seconds introduction. I have known secretary carter for probably 30 years, marveled at his abilities. No one is better positioned to lead the department right now especially on the question of the day, he has been doing wonderful work across the board and came back from a grueling trip. He wont take questions from the floor but i have questions on your behalf. Please welcome the secretary of defense, ash carter. [applause] thanks, john, for that introduction. More importantly, thank you for your many years of service and friendship to me, Wonderful Service to our country over so many years and leadership of this institution. I thank csis for hosting this conference and commend my deputy secretary of defense, bob, general paul selva, thanks for holding the fort down, leadership and hard work, Technology Investment we call the third offset strategy. I will speak about that. I also want to speak about innovation in all dimensions, which technological innovation is a very important piece because being more innovative in every way we can is critical to the future success of the military and our Defense Department. Today we have the finest fighting force the world has ever known. There is no other military that is stronger, more capable, more experienced, more innovative. That is why the military edge is second to none. It is a fact every america not to be proud of. It is also a fact that our militarys excellence isnt a birth right. It is not guaranteed. We cant take it for granted in the 21st century. We have to earn it again and again. That is what this is all about, innovating to stay the best. I want to talk about how we are doing that in some different areas. Are technology, our operations, our organization, our people. It is imperative we do so, we live in a relentlessly changing, fiercely competitive world. Faster pace of change set up a fierce competition between the present and the future. Competition with other nations, and only with us but with each other, competition of terrorists for whom we are the game to beat even if only in one place at one time. Technology is one example of such change that many of us have long been familiar with. My own career in physics decades ago, most technology of consequence originated in america. Much of that was sponsored by government, especially the department of defense. Today we are still major sponsors but much more technology is commercial. Technology base is global. Other countries have been trying to catch up with the breakthroughs over the last several decades made our military more advanced than any other. Much of the frontier innovation is commercial leading to additional sources of competitive dynamism outside our five walls. Against this background your Defense Department is confronting the World Security environment that is dramatically different from the last generation. Even the generation before that the us military addressing five major, unique, rapidly evolving challenges, countering the prospect of russian aggression and coercion, especially in europe, managing historic change in the asiapacific, the single most consequential region for americas future, strengthening our deterrence in the face of north koreas continued nuclear and missile provocations, checking uranian aggression and malign influence in the gulf and protecting friends and allies in the middle east. Accelerating the certain and lasting defeat of isil, destroying it in iraq and syria and everyone else it metastasizes around the world, even as we help protect our homeland and our people. At the same time as all of this we are preparing to contend with an uncertain future, ensuring that we continue to be ready for challenges we may not anticipate today. We dont have the luxury of choosing between these challenges. We have 2 view them all. As the world changes we have to change too. How to invest, fight, and operate as an organization and how we attract and nourish talent which we have to be able to move fast because the advantages we expect to derive from each innovative cycle will not last as long as they used to. All the commercial and Global Change that occurred across the Technology Landscape has made repeated and rapid cycles necessary and made hightech a lot more accessible to competitors. Think about it. The cold war arms race was characterized by the inexorable but steady accumulation of strength, with leaders having more, bigger, better weapons, todays military competition has additional variables of speed and agility such that leading the race frequently depends on who can out innovate faster than everyone else and changes the game. In the area of investment no longer just a matter of what we buy now more than ever it matters how we buy things, how quickly we buy things, who we buy them from and how rapidly and creatively we can adapt them and use them in different and innovative ways to stay ahead of future threats and future enemies technologically. That is why i have been so intent not only to plant the seeds for a number of different technologies we think will be determinative in giving us a war fighting advantage for the future, more on those in a moment but also to be more innovative in all aspects of dod in our operations and organization and Talent Management of our all volunteer forces. In each of these four areas, i along with the chairman and vice chairman of the joint chiefs, service chiefs, excellent Combatant Commanders and civilian leadership have had a lot of help. We had help from washington think tanks like csis, Industry Partners and many innovative americans who understand the innovation imperative, and understand the need for our mission of National Security and want to help and all of us have been pushing the pentagon to think outside our five sided box and invest aggressively in innovation and i want to focus on that in the rest of my remarks, the clear imperative, how we have been innovating so far and need to innovate Going Forward. The strategic imperative to innovate technologically is well known to those who have been paying attention. Nations like russia and china are going to close the Technology Gap with the United States. High end military technology sometimes becoming available like in iran as well as nonstate actors. At the same time our reliance on technological systems like satellites and the internet has grown, creating vulnerabilities our adversaries find easier to exploit. To stay ahead of these threats we are pushing the envelope of research and development and new Technology Like data science, biotech, cyberdefense, robotics, undersea warfare, autonomy, Artificial Intelligence, Machine Learning and much, much more. I will repeat yet again since it keeps coming up, when it comes to using autonomy in our weapon systems we will always have the human being, decisionmaking. Just to remind you, the latest budget we proposed, we encourage congress to pass when they return to washington, we will invest 72 billion in research and development in the next year alone. That is more than double apple, intel and google spent last year combined. This budget marks a strategic turning point of the department of defense. Arthur dossett asset strategy driving new technological investments to advance and sharpen our military edge. We are not exactly certain where this offset will come from. It could be one area of technology or several. Previous strategies were generational successes, reflections of the security environment of their eras, only recognized as such after the fact. Today speed and agility are key because the world we live in, the next offset will not look like the previous ones. It may not be what we might consider a traditional offset strategy at all. That is why we are ceding these investments and lots of technology so we can see which ones germinate, how they develop and how we can use them. In addition to these critical investments it is important to note how dod is innovating technologically, by creating technologies from without and repurpose thing Technological Capabilities we already have and different ways we are focused on each, we have dozens of centers, great technological innovators, both civilian and military working with innovative Defense Industries that long supported us and kept us on the cutting edge and doing so today across a wide range of Critical Technologies which are navy labs developing and prototyping undersea drones, multiple sides, diverse payloads which is important among other reasons unmanned undersea vehicles operate in shallow waters where manned submarines cannot. Army labs are working on gun based Missile Defense which can defeat incoming missiles at lower cost per round and more expensive interceptors posing higher costs on the attacker. Our air force labs, hardware, software and working mechanisms of the human brain, limitations of current computing architectures and enabling information superiority. Air, space and cyberspace. We dont build anything in the pentagon, that is not the american way. And the commercial sector, and those within, welcome into our defense capability. And to build bridges, Technology Firms located in innovation across the United States and more quickly adopt technologies to accomplish their missions and the west coast office in Silicon Valley and we iterated and launched 2. 0 in may in boston and establish an outpost, one important area di ux had proposals was microsatellites and advanced analytics leveraging the revolution in commercial space to Machine Learning and transform how we use space based tools and Data Processing to provide medical situation awareness around the world and add resilience to National Space architecture. The guidance of strategic, adapting how we use platforms and technologies already in the inventory giving new roles of Game Changing capabilities found at times. As some of you know i created it in 2012 as deputy secretary of defense. It lifted the veil on several projects such as arsenal, new antiship capability and swarming drones in sea and in the air. Technology took a large step forward in the month to come. A prominent theme, spearheading creative and unexpected new ways to use existing missiles and advanced munitions on buried domains. I want to highlight something we havent talked about publicly before today is the project to develop capabilities for Army TacticalMissile System, by integrating an existing seeker on the front of the missile enabling it to hit moving targets at sea and on land. What was previously an army Missile System to project power from coastal locations up to 300 km in the maritime domain. Going forward, these and other investments and war fighting capabilities, some much sooner than you might think need to be demonstrated for the effectiveness of a conflict and important to ensure they run their course. We have to protect the most promising and integrate those concepts and ideas into the programs rather than let them be uprooted because they are new which is always a tendency in tight budgets. We use technology, just as important as the technology itself, we are investing in operational must account not only for the evolving challenges we face from our competitors but opportunities of capabilities as they come online. Technological and operational innovation must go hand in glove. The Strategic Imperatives, we spent the last 15 years innovating expertly, i am very proud of how we kill terrorists and counter insurgencies, we did so to some extent using our expertise in fullspectrum fighting. Others have gotten good at that over the years and they have been dividing new methods to counter our advantages and preempt us from being able to respond not just developing hightech weapons and radical operational approaches like cyberor fair. We are reinvigorating training across services to fullspectrum readiness. And new advantages against potential adversaries. And changing and adapting how we fight friends and allies. To adapt a new playbook for strong and balanced strategic approach to russia. One to take the lessons of history and leverages alliances and do network ways to counter new challenges like fiber warfare. Innovation and nuclear deterrence, posture and presence to be more agile and responses. Modernizing alliances, strengthening new partnerships and helping to build principled and inclusive security network. The rubber meets the road in how we are revising our actual plans for potential operations themselves. We are developing new operational concepts to account for changes and capabilities. And updated core contingency plans for innovation to operational approaches, and emerging threats such as cyberattacks, satellite weapons and denial systems. The same time we innovate plans to counter and conventional threats also ensuring that with respect to potential confrontations with Nuclear Powers we continue to sustain Americas Nuclear deterrent as we recapitalize on infrastructure. Overall we are building modularity, chain of command most senior decisionmakers and variety of choices, to prevail if they have to execute their plan at the same time other contingencies are taking place so they are not presuming the one they are planning for would be the only thing they are doing in the world at that time. Injecting flexibility into the process because the challenges are monolithic and have to be dynamic to stay ahead. We are prioritizing trans functional innovation in our plan which is an imperative considering the conflict and the challenges we face are less likely than ever before to confine themselves to be regional or functional boundaries. This is one of the Goldwater Nichols reforms i proposed seven months ago. It will be coordinated by chairman of the joint chiefs of staff general joe dunford, who we are very fortunate to have this job, recommending to president obama, one of the best decisions i made as secretary of defense. The result of this is we revised all of our work plans to be sure we have the agility and ability to win the fight we are in. The wars could happen today and wars could happen in the future and while i cant say more as any audience can appreciate why, csis audience can, i am proud of this evolving family of plans. Innovation and technology and operations are necessary but not sufficient because of the pace of todays world we can only succeed in these by being an Agile Organization that nurtures and follows forms and investing in innovative organizational structure. The Strategic Imperatives here is the dod must be an organization that fosters innovative thinking and ideas to stay ahead of our competitors. The Defense Department is one of the largest organizations in the world. As many of you know, we can be bureaucratic and slowmoving. It is easy to default to the status quo of doing things the same way we have always done, we cant afford that. We need to be a place where thinking differently is welcomed and fostered, where good ideas go to die has become the habit of what we do. Over the last few years i created a number of entities to signify and drive innovation throughout dod including the defense digital service. Most recently created the defense immigration board to advise me and future leadership how we can keep growing more competitive. The Defense Innovation board is one of several Advisory Boards that for it to me with a distinctive mission and membership chosen for distinctive kind of expertise. The defense Science Board comprised of scientists and technologists with weapons systems, the defense policy board of which i also served. Has a membership with exceptional foreign defense policy experience. The defense business board has members who understand the vast business enterprise. Defense innovation board has a different membership, and the record of innovation outside the Defense Department for their ability to suggest innovative approaches that work in their experience and be applicable to us. The innovation board is chaired by eric schmidt, representing crosssections of americas most Innovative Industries and people like amazons jeff bezos, linkedins reed hoffman, jennifer parker, astrophysicist Neil Degrasse tyson, and bill the craven, chancellor of the university, them and the rest of the board to keep dod interviewed with a culture of innovation and the people in the defense enterprise were willing to try new things. And doing everything we can to stay ahead of our competitors. At the outset i gave the specific task of identifying innovative privatesector practices that might be of use to us along the lines of the Pilot Program which invited hackers to help us find vulnerabilities and report them to us. Similar to the bug bounty several Major Companies already routinely conduct. This approach to crowdsourcing cybersecurity is widespread in the private sector. Our use of it at the pentagon was the first time in the entire federal government and was so successful we are expanding it to other parts of dod, the perfect example of the kind of recommendations i am looking for, things that are out there that might be useful to us. Not everything in private sector will the military is dedicated and for Important Reasons we are not always going to do everything the way others do. That doesnt mean we cant look around the country for new ideas and lessons we can learn or ways we can operate. The Defense Innovation board held the first Public Meeting earlier this month making for luminary recommendations to me and the public about innovative practices for us to adopt. I would to tell you about several. First we will increase our focus on talented software engineers. Through targeted recruiting initiatives ranging from reserve officer Training Corps for civilian Scholarship Service program to build the next generation of Science Technology leaders with the goal of making Computer Science a core competence of the department. Second we invest more broadly in Machine Learning through targeted challenges enterprise competitions and not through a new brick and mortar institution but a Virtual Center of excellence model that establishes stretch goals and incentivize privatesector researchers to achieve them. This is an area where they are making significant strides. And focused on Computer Vision and Machine Learning and third we are going to create a chief innovation officer who will act as Senior Advisor to the secretary of defense and serve as your head for innovation activity included but not limited to those suggested by the Defense Innovation board like Building Software platforms and Human Networks to enable innovation across dod sponsoring innovation contests and tournaments and providing training and education that promotes new ideas and approaches to collaboration, creativity and critical thinking. Many organizations have embraced this position and started to rerun these innovation tournaments and competitions including ibm, intel and google. Tile incentivize our people to have innovative ideas and be recognized. Going forward i am confident the logic will be selfevident to future defense leadership. And need to have the momentum to go under the steam and thrive and keep leading the way and keep disrupting challenging and inspiring all of us to change. This brings me to how we are innovating in terms of our people and Talent Management of all volunteer force. Last area of innovation is the most important because the fact is our people are the source of every innovative thing we have ever done, are doing or will do. Much or than Technology Operations and organization, our people are the key, the finest fighting force. Are uniformed military and civilian workforce and in the defense industry, compete for good people as far into the future as we can. The good news is there are lots of opportunities and new techniques and technologies and Talent Management, Data Analytics like linkedin but challenges in terms of limitations of Current Technology and human resources, generations and labor markets change, even so even as our force today is outstanding we continue to attract and retain the most talented young men and women america has to offer. That is why we have been taking step after step to build the force of the future. Announced four link so far, the first on building and increasing onramp and offramp challenges to flow in both directions creating defense digital service, expanding secretary of Defense Corporate Fellows Program and more. This will let americas brightest minds contribute to the mission of National Defense even if only for a time or a project and allow more dod and Defense Industries to innovate technologies which there are many, to engage in new ways especially the part there is no experience with, even hesitations about working with defense. Next the second link focused on increasing retention through increased support for our military families, when you recruit a servicemember you retain a family. It is no secret military life is difficult but especially tough on military families. Our force is largely a married one with 70 of officers, 50 enlisted. We cant change the fundamental of military service but we can make some changes to make life easier for married people and increase the possibility they will want to stay at the critical moment they are trying to reconcile military life and family life. That is why we expanded maternity and paternity leave, why we extended childcare hours and giving more families the possibility of geographic flexibility. The third link focused on how to make common sense improvements in military Talent Management particularly for the officer corps. In some cases the Current System improves too rigid. It can limit the ability of our services to achieve the right force and to promote a wider range of experience perspective and training. That is why we want to give the military service, to do things for more specialties and adjust numbers based on superior performance and most recently, the force of the future, the civilian workforce, they are talking about 700,000 americans serving across the country and around the worlds. 85 live outside the dc area. They operate shipyards and ranges, do critical jobs, the goal is the same as with our military personnel to make sure the civilian workforce is just by directly hiring civilian employees for college campuses, creating the two way Exchange Program for the private sector, expanding scholarship for service program, and in addition to each of these links we opened all combat positions to win and lifted dods a ban on transgender so we can now draw 100 of americas population for the all volunteer force focusing on a persons willingness to serve the country and contribute to the mission. Any opportunity to do so. Going forward there will be more work to do and you will be hearing from me more about the course of the future but these links spans the spectrum of our opportunities, challenges and members of all volunteer force, recruitment, transition. And the civilian workforce. For the first time in a long time dods personnel and Readiness Office has a proactive agenda, a concrete action plan to guide these efforts so they are doing more than being reactive belatedly to issues that crop up. Based on support for these efforts across the department i am confident the implementation of these initiatives will continue moving forward to ensure the force of the future is the force of today. I described today the way the Defense Department is changing and will change in the future but i want to close by reminding all of you and all of america that as the country have strengths are undeniable. The best military force, dedication to the mission and the public support from the American People but much more than that, worldclass schools and universities, we uphold the right values which is one reason we have an unrivaled network of friends. The operational experience workforce is second to none and we have the greatest innovative culture on the planet. And a better world for our children. And we are moving toward a more innovative future, and it will depend whether we the next wave of innovation will be a generational success. Only just beginning, we dont know the names of the people who will make it a reality. And the generation that comes after, Junior Officers and dod civilians out of graduate school, some of them here today. Spending a year outside the department, work with expert in data science or Machine Learning or software engineers, get to know the mission by working on the outposts. The tour of duty in the individual service or labs and the enlisted soldiers, sailors and marines with new operational concepts for overcoming potential adversaries using advanced technologies that might not exist yet or defeating a terrorist group we havent heard of. They are the ones who will reinvent and change how we will deter, fight and win wars in the future. Our job is to give them the foundation, the right kind of pentagon to help them succeed. One that is more agile and innovative than ever before. As long as we do, they will ensure, like those who came before them, that our military remains the finest fighting force the world has ever known. Thank you. [applause] thank you. First of all, my apologies. A lot of you have been standing for almost two hours, we will get this done quick, the secretary has to leave. And get to the coffee first. Thank you. Thank you for your remarkable service. It has been a challenging time and we are lucky to have you. We have very little time. I remember after 9 11 companies all over america came to town and said we want to help and left pretty disappointed. Why have we failed as a government to bring on board interesting ideas from the private sector . Good question. The answer is we seem slow, ponderous, bureaucratic, that is not as true as it seems but the reality is we have to reach them. I am so intense upon the technology industry. And snowden made it worse. We have to build a relationship, familiarity, a lot of these people have no experience, they didnt serve, nobody in their family served, no uncle, father, mom, guidance counselor, no one who told them about the feeling it gives you to be part of the noblest mission a young person no one has given them that feeling. They want to make a difference. They are innovative and talented. They want to make a difference. They can match our mission to that personal aspiration that is where the magic is made. When i started my own life as a physicist, i go into this in the following way. I got an opportunity, what i found was this. I actually could make a contribution. There i was. I had to know what i knew. I didnt know a whole lot but i knew what i knew. I could see without that piece the right decision wouldnt have been made. Secondly i had the thrill of going home every night knowing i had been part of something bigger than myself and making a small part of the majestic mission. Those two things that you can make a difference, it is a huge thing to make a difference, that is magic for any young the person. More americans who feel that magic dont have it in their personal background, the better. That allows us to tap in. That is what we are trying to do. When ceos come to town, it is Mutual Respect and desire to have impact, and a real commitment but they bump up against the opposition system, the bureaucracy. How do we get at that problem . We are making people work with us on our terms. Exactly right. We have to work to lower those barriers to injury so that the people who win are not only the people who play the game. They are the best people and that is on us. It is the taxpayers money. Will never make decisions like people spending their own honey. It is the taxpayers money and the taxpayer expects everything to be done to their standards. At the same time, that is not an excuse. I got to give it to our leadership. We have worked systematically, looking at our problems, volume of paperwork, willingness to take risks. These things that are fundamental to being innovative and finding ways to reduce that. You start out, for example a new contract spearheaded to allow this to disperse funds with in small amounts. It is possible, if you hide behind legendary are, lots of work, we can ask for more so be creative, really wanted, thought they could make a contribution, two readings for the mechanics of how we do this, one of the reasons all of us are driving this. How do people do that q how much as government do we adopt . There is a lot. We had companies that asked to design a product, retest that for two years. This is the interlock for opposition. Very hard. People with intellectual property. We do want to keep a competitive door open. And that is good for us. We need to keep competition going. Innovators to have stuff stolen. That is a balancing act each we are very good at it which working bob helps him, it is doable. There are competing interests but they have the same problem. Other people get locked in. The more you have open systems where they continue to keep ip on the parts they plugged in, not the others can plug their own in we wouldnt do that. We want to go in. It is harder for these, civil service, what can we do . This is a key one to spin it out. That is to do direct college campuses, talk to kids and say i wanted to apply for a government job and apply for the website and filed with at work and getting no word back graduation time came, my first choice, parents are saying get a job, dont come home. I took the job from somebody who can offer me a job which wasnt as meaningful as the one i wanted. I was 6 months into the job and low and behold got an email from the government saying how would you like to interview, that doesnt work for a kid. Todays kids especially because they dont want to live life, they dont want to live a career that is an escalator where you get on the bottom stair, you wait and it takes you to the top. They want a jungle gym where they can get higher by climbing around. We need to recognize that is the way many people see their lives. They need to be able to see us in that context. Opm to the contrary notwithstanding, we cant use that as an excuse, work around where we need to change the law, our committees are receptive to change, trying to give them the right ideas so they can write them into law but there is a lot we can do. Dont take no for an answer. We have got to change it. I have to let the secretary go. The deputy secretary, has debrief him on a meeting in a few minutes. We are coming up things fall through the cracks. It is up to all of us to sustain momentum, this is the purpose of this conference, we cannot afford to let this agenda fall so i want to thank you for your leadership. Thank you and thanks to csis. [applause] two parallel sessions and a three minute coffee break. [inaudible conversations] you are watching booktv on cspan2 with top nonfiction books and authors every weekend. Booktv, television for serious readers