Secretary of the Navy Richard V. Spencer Surface Navy Association Annual Symposium Banquet Washington, DC 11 January 2017

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1 Secretary of the Navy Richard V. Spencer Surface Navy Association Annual Symposium Banquet Washington, DC 11 January 2017 Thank you for the introduction Vice Admiral [Barry] McCullough it s an honor and a privilege to be with you tonight. It s inspiring to see the dedication towards strengthening our Surface Force. Talking to our industrial partners, our surface community leaders, and all of you Surface Warriors is a true pleasure. Tonight as we examine where we have been, assess what we have done, and incorporate lessons learned to build our future, we commit to continuing to have the Navy the nation needs. It has been an eventful year for our Enterprise. Naval aviation was central in combating ISIS in Syria and Iraq. Marines brought increased stability to Afghanistan. The Navy-Marine Corps team provided critical disaster relief in the wake of Hurricanes Jose, Irma, and Maria. Navy and Marine Special Forces were fully engaged around the globe working alongside allies and friends combating extremism and unrest. We showcased American naval power in the Pacific with three carrier operations. Along the way, we have also experienced tragedy and the fortitude of our Surface Force has been tested in unimaginable ways. We will always remember those who have paid the ultimate sacrifice for our freedom and we will insure their sacrifice will make for a stronger and more lethal Navy. Recently the CNO directed a Comprehensive Review into the factors that led to the collisions of the USS JOHN S. MCCAIN and USS FITZGERALD. Simultaneously, I directed a Strategic Readiness Review, to conduct a root cause analysis on systemic issues in the 7 th fleet. In both reviews it was found that there was not a single action but a series of actions, a culmination of well-meaning decisions made along the way which over time resulted in unacceptable consequences. 1

2 The SRR team came to four main recommendations: The reestablishment of readiness as a priority Matching force demands to supply Establishing clear command and control relationships Become a true learning organization As you have read the report s recommendations highlights the focused need of ensuring warfighting readiness above all else. The implementation of these recommendations will hone our efforts in order to further our contribution to our nation and our national security. We must undertake these actions because we are, at our core, a maritime nation a beneficiary and user of the global maritime lanes of commerce. We have a responsibility to provide security and contribute to the collective safety and stability of the global markets. No one else has our capabilities or our reach. We have a commitment to all Americans, and to all our allies, that drive our operations. Readiness is a top priority; we have and will continue to meet our obligations to our nation and its security. Readiness requires training and preparation. That s where we have always found the resilient strength of the Navy-Marine Corps team. We must reinforce that strength. We have learned, and in some instances we will relearn, important lessons provided by the Comprehensive and Strategic reviews that point to adjustments affecting everything from procedures to culture, which fleet leadership has been actively addressing. We will continue to build a culture that empowers commanders to recognize and respect operational limits in order to manage risk on a sustainable basis. Continual operations with a true can do spirit, has caused us to do more with less, and pushed responsibility for readiness and training down to the unit level. Standards designed for safe and effective operations were amended to meet operational requirements and fiscal constraints. Risks were not properly assessed. We must return to a culture of true risk management. 2

3 We will not and must not sacrifice training and maintenance in favor of operations without properly weighing and mitigating the risks. I will clear the maneuver lanes at the top so that no commander feels that they cannot say not today. To that end, my leadership team and I will work to better communicate our challenges and establish realistic operational availability parameters so that leaders both on the civilian and military side of the equation understand what resources are available and on what timelines. Assessing availability is not only tied to unit readiness, but also Sailor readiness. We must master critical skills. We must be brilliant at the basics. The ball is in my court to insure that the resources and time are available to those areas where needed so we may attain the required goals. To rebuild that proficiency, we must also address institutional deficiencies and their root causes in order to reinvigorate a culture of accountability. These deficiencies come in many forms gaps on filling billets, training and readiness certification shortfalls, and waived training requirements which led to a culture that accepted deviation from accepted standards. A deviation that was prolonged, becoming normalized over time and led to the acceptance of lower standards of performance. Accepting lower standards is never the right outcome, and we will correct it. We must have the expertise found in a well trained talent pool to carry us forward for the foreseeable future. We will analyze proposed changes while assessing the 2 nd and 3 rd order effects in order to not impose unintended consequences on the enterprise. We have identified policies and processes that require attention. The Strategic Readiness Review Implementation Team is working in conjunction with the Comprehensive Review Oversight Board to determine which recommendations merit implementation and how to most efficiently and effectively implement those changes. Many recommendations produced by the CR and the SRR can be implemented within the department and require no new authorities to take corrective actions. 3

4 Other recommendations, especially those involving personnel processes and command structure, will require Congressional assistance and partnership to complete. We are already talking to Congress regarding the way forward. Change is never easy and we must get it right. We can t buy back lost time so we will operate with a sense of urgency. We, the Department of the Navy leaders, will do everything in our power to ensure our Sailors and Marines are trained, equipped and ready to do their jobs. We must, and will, set them up for success. This is not a call of despair, but rather a call to action. This is not a time to point fingers at past mistakes, but rather to learn from them. This is an opportunity to shape the Navy and reestablish, renew, and enhance our professionalism and lethality. There is always room to improve our skills, expand our capabilities, and increase our lethality. We must drive improvements with a clear sense of urgency. As you well know countries like China and Russia are doubling down on military spending. They have been growing their capabilities at a nearly exponential rate. The U.S. Navy has entered a competitive environment we have not witnessed in 25 years. We cannot and will not allow our competitive advantages to erode. We will not lose this fight. We have the leadership in place. And we are working to secure resources. However, there is one resource that we simply cannot buy or manufacture more of, and that is time. We must move forward with a sense of urgency. While we have been tested, our United States Navy and Marine Corps are still the strongest and most lethal fighting forces in the world. We are ready to take the fight to the enemy tonight, and we will win. We must address the issues of the past, incorporate lessons learned and drive improvements. As we look to the future and what this fight entails, we must develop and quickly field advanced capabilities to maintain our competitive edge. We must increase our capacity and build the 355-ship Navy as soon as practicable. Doing so will increase our ability to provide presence where it is needed, because we are the nation s away team. 4

5 Everyone has a role to play in righting this ship. Everyone has to uphold and reinforce the standards. When our Sailors and Marines wear their uniforms, when they identify themselves as Sailors or Marines they represent the entire organization. When the public looks at us, they need to have confidence that we are professional, competent, and ready. When the enemy eyes us it should make them think twice. Never think that you cannot make a difference. Naval forces are here to win. We need all hands on deck to effect the change we need to see. When we all move forward, with a sense of urgency and personal accountability, we will come out stronger on the other side. Remember, the surface Navy is the forward deployed force the world can see. Ladies and gentlemen of the surface fleet you are responsible for delivering peace through presence. You are also responsible for the destiny of our country when the aggressors appear on the horizon. Every morning when you awake know that this is how your country view you. Thank you to our industry partners for being here and getting to know the challenges that our Surface Navy is facing. Your partnership is crucial going forward. Most importantly, thank you to the Surface Warriors here tonight. I am confident that with your dedication and effort, we will continue to have the Navy the Nation needs. Thank you. 5

Secretary of the Navy Richard V. Spencer USNI Defense Forum Washington Washington, DC 04 December 2017

Secretary of the Navy Richard V. Spencer USNI Defense Forum Washington Washington, DC 04 December 2017 Thank you for the introduction Vice Admiral [Pete] Daly and I would like to extend my thanks to everybody