And followup with a little good discussion here between him and me and then let your questions. All that by 230. It will be a crisp, boom boom session. Mr. Mccarthy is a native of chicago. A bachelors degree in history which seems appropriate given what i have around vmi and all of the traditions and history that it holds and sustains our country. Then joined in an Operational Army unit was deployed in afghanistan during his 1997 and two 2002. As a soldier. With combat with rangers in afghanistan. I think secretary mattis was there as well. Since that time has done all of the additional things that you want someone to do so as a kind of job he is today. Because he is worked on capitol hill. He has worked as a special assistant to both secretary gates and also the under secretary of defense for Acquisition Technology and logistics and he has been in the Defense Industry most recently prior to coming to the pentagon when he was with lockheed martin. Many of you know that after his confirmation this past summer that he was the acting secretary of the army in addition to being the under secretary of the army while we waited for to get through the process. He has got a lot on his plate including some very interesting ideas in army modernization. Before we start the conversation please join me in welcoming the under secretary of the army, ryan mccarthy. [applause] thank you. I really appreciate this opportunity to come sit here with the Brookings Institution for this is a worldclass organization. I had my first blush with this on capitol hill and then during my Job Interview with secretary james mattis i was looking at the bookcase and they were to books of doctor hamlin on the bookcase of course i got on amazon, i purchased them and i read them. A history, obviously ugly back help and in general marshall then secretary marshall. It is a real privilege for me to be here, thank you. And thank you for the support your guinea pig is an evolution in the last four months. We have been looking a lot outside of the army to help us go through this Major Initiative and restructuring the entire department of the army. Thank you for having me and thank you. Quickly, in august it started in the springtime with my interview with secretary mattis. His inhibitor is National Defense strategy that they intend to publish and i think he was, he published it a couple weeks ago about how do we modernize the force, maintain our overmatched position against competitors. The rise of four countries in particular north korea, iran, china and russia. The competition both military economically has definitely garnered a lot of attention. It is clear that the choices that they have made have started to get closer, closing the gap towards our overmatched position. And it is the kind of why now . The army has to continue to modernize itself to maintain his position as number one in the world. So that there is no time like the present. Even though when you look at the challenge the army bases. With the troops worldwide. Even in the midst of all the challenges we face, we know that we had to evolve. We have an Industrial Age system that was created in 1973. A major command that we have today. The responsibilities of how we do Material Development design, it is spread across. And the relationships are not as close and is formed and diffusing of information of how we develop a requirement, work to the tradeoffs in going through the process. There was really on my first day on the job when i was talking to the generals at the time, it was hard to get better and had to get faster . And look at where the responsibilities lie in the institution. First and foremost, we had to be very specific in what we wanted. What are the priorities that we need to put our management attention, our funding together and through and get increased capability. And they were very simple. The army shoots and moves and communicates. We sat there and looked at the portfolio pair looked at the capabilities and we recognize that future vertical lift, networks, integrated air Missile Defense, and it spans across all fundamentals. And we locked in on these capabilities. Then said, hell reinvesting in these capabilities . Conducting several reviews. Move the funding against these six priorities. In the upwards of 80 percent of our budget. Locking it against the six capabilities. We looked at how do we look at the process and conduct Material Development. And we saw across the enterprise, they were responsibilities against his major commands. And resend rather than just creating a new organization, how do you restructure and put it all under one roof . So the talent is where it is in the country. Where reports are and how it works together is what we are really focused on. Formalizing relationship between the requirements and the acquisition community. And how do you do that . I give them all the credit to my wing man. He went and handpicked the officers that we put in across these teams. The qualified officers that lead is Cross Functional Teams that fuses requirements and acquisition, technical testing. One of them is sitting here in the front row. General gallagher. It was amazing went to this process and he talked about the education and the Staff Experience and the command experience. If you look at history will never we are successful in the Department Defense it really was about people. When you put in charge, who is accountable and how you generationally changed the outcome. They were very successful because they laid in the right people. And over time they worked the career paths and sustained those great outcomes. We have these teams that we stood up immediately i send update acquisition directives last fall. There were authorities granted to us in the National Defense opposition act. It put the system in motion. The dr. Was confirmed in november and is biggest thing that has brought into this is communication. The four of us have to be constantly interacting and engaging Senior Leadership and industry. Not just a traditional industry but across the country. So much so that when you look at sort for partners as potentially work with them as well. If you want to open up the aperture is what is can be to get the best ideas the industry can bring to bear. And even said what the first days said we are not changing our priorities. We have to communicate and put our money where our mouth is. With this quickly since he came on in november. And when our project hundred 20 day mark that i laid in our task force that is looking at the restructure. And the courses of action that we need to look at and ultimately make a decision on how we move some of these roles and responsibilities into this organization that would call ideally looking an end of march timeframe to make an announcement. And have an operating capability by the summer in the calendar year 2018. I thought maybe it will be helpful to leave some context. Fantastic thank you. Let me know if i could, trial narrative, my understanding what youre doing and ask you to comment. I will together different slant. We know that the us army had a tremendous Success Story in the reagan. And into the 1990s. Great helicopters, great Missile Defense system that kept Getting Better. And we did very well and well in operation desert storm. Then we start to see it getting more complicated. Even a couple of years after that in somalia. Wessel started to see the arm have trouble. So we had successfully had been five of problems. That done system, future combat system, comanche crusader. We all know the list. It was the 90s and early 2000. None of the programs quite lived up to what was hoped for. And most were ultimately canceled. The army did a lot of great stuff in that. And i think your predecessors both uniform and civilians workforce, did a lot of innovative things. But the big problems were less successful. On top of that may be more importantly, we have also seen the pace of innovation not only here in the military but also on china and russia, as he said secretary mattis unveiling the strategy two weeks ago and we have this tremendous Technological Base in our country of rapid innovation that the department of defense is not very well placed to keep pace with. In the kind of time cycles that really modern, Silicon Valley and others are capable. Because of the past problems in the state like the big five legacy issues but maybe even more because of the rise of china and russia and the pace of Defense Innovation around the world. They decided they need to do this. There are two things you accomplish and with this. For one, two great dysfunctional teams in six major areas of Army Technology that involve technology, the work writers, the acquisition in realtime. Then second you have to go to congress. See how best to make decisions. What kind of authorities you have to reallocate and move quickly. How much of that story did i get right and please spell think to correctly where i am wrong. Keep going i absolutely, the nature of the Cross Functional Teams really kind operational concept with the technical concepts. You highlighted some of the catastrophic failures with the defense acquisition programs. We changed the operational concept. Midstream. Because when you got it right or not or world events altered the thinking of objectives you want to achieve with the system. It is the discipline along with getting it right the first place making it survive first contact. So that aligning the technical requirement in the communities is the foundational element of the Cross Functional Teams. With respect to the governance model he describes. If you look at the Cross Functional Teams and then getting into the secretary and the army staff, we are trying to reduce a number of layers. The by the reduction of layers it also brings accountability to the system. Speedy decisionmaking. And so that is where the challenge and the frustration congress has been in for a long time puree program fails to is accountable enough it really does start with the four people in the hallway. It is a secretary, myself, the chief and we are trying to bring that into the fall that we have to provide the access to the good decisions brought faster so we can move money and have the authorities necessary. It is the heart of what we are trying to achieve. Are six categories if i can summarize, longrange fires so artillery and missile strikes were we realize that weve been sort of falling behind. Its defenses against those same technologies being used by the enemy against us. So it is missile and error defense as a second category. And then, commandandcontrol Sensor Networks would be the fifth. Then the soldier is of course the six. Not imperative at six the way i listed. Other anyone of the six that you feel is most in need of this reform that will benefit the most above all others from the new concept . Not to sidestep that but we fight in formation. The choices that we make within those portfolios affect the others. Wherever the Technology Comes forward, we will make those choices. What i have described before, our leaders, you provide us a portfolio of capabilities. Like a hedge fund manager. How are you going to be able to help us defeat a variety of threats but then how does this integrate against the other five teammates . So when these choices come through, we can mitigate the threat of technology that is there based off of investments in the other portfolios. When i sit back with those six knobs i have to do them just right. When we are bringing forward recommendations for the program, it will be a very interesting days ahead of us. That is how we are approaching the challenge. Because you cant make defense on the technology that is immature for your sake mitigate that for increased capability . We are to look for the other information. You described a couple of things were hoping to them accomplish. When his improved speed. But even more he talked about Cross Functional Teams in its combination of talent they bring together. And the link between the visionaries and the doctrine writers with technologists, to make that link real day today. It strikes me as i think for the six technology, that the speed benefit is perhaps going to be most notable in the network area. When you have as we discussed earlier, the pace of modern Electronics Innovation is so fascinating to be able to react. Whereas the benefit of having the cfcs and technologies talk to the visionaries, is that you maybe avoid the probably have with future combat system hopefully. Where is concept that sounded great in a brookings seminar that he wasnt quite as readily deployable and it was partly because he had visionaries here in one command, technologists here in another and they did not see themselves as part of the same daytoday team. Is that a fair way to look at some of the potential benefits . Jump in . Quincy of general gallagher here in the front row. One of the leaders. Major general pete gallagher, thank you. For all of you it is an honor to be here today. One of the things that we have learned relatively weve got to move with speed and precision. We have to stay ahead for our adversaries. Weve not been able to do that because we have very large programs that are taking a sears to fill based on how the money is allocated to fill the programs. As he took a good hard look at the network, we realized we need to cut on some of the programs that might not deliver in the future. Fixed the ability to fight tonight by adopting and buying new solutions that are readily available. If the report teammates or joint teammates industry has something that we can pour in immediately, we want to get in the hands of our soldiers and get out there as quickly as we can so we can improve our ability to fight. And then we are pivoting to what is next . What will allow us to explore the art of the possible and be able to insert technology . What weve been trying to do relatively quickly is get associated with the units that are focused on the Global Response force and the most pressing plan. Get capability in the hands of the soldiers as quickly as we can. Get the feedback, make adjustments and learn as we go. As a secretary and i talked about we want to fail early. Fail cheap. When something is working and is ready want to test it and get out there as quickly as we can in formation. We have to move it a much more rapid pace. Especially in it. For every one of those cross functional things, we and the network, we are cross cut. Sensor, shooter, target, we have to have a network that enables appeared have to have a network that enables the short range Missile Defense, integrated air Missile Defense. The network has to be trusted. We have to make sure that what we are shooting at, we will hit the target we need to hit. The vehicles come our platforms, it has got to be an ecosystem and so the secretary mentioned before all of the teams, horizontal integration day in and day out, make sure we have shared understanding and what we are focused on has really been a think pretty significant. Ive had the privilege to do this for the last 75 days. Weve taken a hard look at areas that we probably were not looking at before. And that is the science and technology portfolio. What are we investing in in the network that will deliver capability . And what has Industry Research and development efforts, one of a developing in that we may not need to worry about . What is dod, what are other players in this space that have network implications, where are they investing . The past 75 days as we stood up. We find out whats doing what. Where the investments and how do we explore that and exploit that as quickly as we can by getting this in the hands of the soldiers and making sound recommendations on how to move the money to get the best tip the best capability. Maybe it is unfair because it is just too broad of a question. Too many different technologies but how much better do you want to get . There is a program that is historically taken as five or 10 years, use whatever example you would like. How much faster can we realistically become in the space of the network . I would say in my opinion, theres Technology Today that we can coordinate pretty quickly. And when we have been hampered is large programs that have taken years to fill. And in many cases, because of the budget where it is, we have a couple of brigade combat teams a year and we are on a path to a 30 year field and schedule of a big box and a solution. We are giving them the day after tomorrow, we are giving them the day before yesterdays technology in many cases. It will not be what we need. There is no doubt in my mind we can go faster. If we are working with industry to identify what are the quick wins and what can we get quickly . Make a show where freedom of action to insert the technology and scale as we need. I think we can move pretty fast. I think over the horizon there is and technologies that we dont know about yet. And to really get after the next generation threats more, Artificial Intelligence knowledge learning in the network so it is much more intuitive and simpler. So we can simplify with the soldier and the leader has to do on the edge so they are not worried about configuration and change management and all that. It is done in sanctuary and the machinery does all of the work. Technology is evolving and we just need to keep pace with it. The space in particular, utilization of the authority granted to us it is critical. Getting this as quickly as possible. Both programs are challenging. Going through jurisdiction to get the authority to move the money around. That will always be the challenge. Weve got to be clear and move quickly. With respect to the other portfolios i