NAVAL AVIATION ENTERPRISE 

STRATEGIC PLAN 2012 - 2017
“In a time when we are all acutely aware of budget attention and budget 

challenge, we’re being good stewards of the money the taxpayers of this 

country have entrusted to us...the efficiency effort is going to continue and 

we’re going to constantly look for places to move support tail to warfighting 

tooth.”

~ The Honorable Ray Maybus, Secretary of the Navy
Table of Contents

Section 1- Introduction __________________________________1

Leadership Intent ....................................................................................... 1

Naval Aviation Enterprise Mission ............................................................. 3

Enterprise Principles and Tenets ............................................................... 4

Section 2 – Strategic Objectives and Initiatives ___________ 5

NAE Strategic Plan Alignment to CNO/CMC Strategic Priorities ......... 6

Strategic Objectives and Initiatives ......................................................... 7

Section 3 – Leadership Commitment and Call to Action __ 18

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Section 1- Introduction

Leadership Intent

Operational demands on Naval Aviation combined with 

the fiscal pressures facing our nation are unprecedented in 

recent history. Naval Aviation remains a vital element of 

the Cooperative Strategy for 21st Century Seapower and 

is essential to the core capabilities of forward presence, 

deterrence, sea control, power projection, maritime security, 

humanitarian assistance, and disaster relief. Demand for 

these forces will not decrease. We must meet those demands, 

notwithstanding the significant challenges from increasing global fiscal and Defense budget pressures, 

legacy platform operating costs, procurement costs, and the transition of nearly the entire Naval Aviation 

Force. These factors influence how we man our organizations; design, constitute, and employ our weapons 

systems; plan our operations and deployments; and ultimately execute our mission sets, now and in the 

future. These conditions require tough choices – ones that we must assess and collectively support – 

to maintain the capacity and capability required to ensure the continued effectiveness and warfighting 

relevance of Naval Aviation. 

The Naval Aviation Enterprise (NAE) serves as the means for facilitating collaboration, transparency, 

information sharing, and process improvement across the Naval Aviation stakeholder communities. The 

NAE significantly and measurably enhances our ability to efficiently deliver warfighting readiness; better 

understand our operational cost drivers and degraders; as well as make more balanced resource decisions 

for the overall good of Naval Aviation. The Enterprise’s Mission and Strategic Plan serve as the foundation 

for our priorities, activities, and results. Both address current and future operating environments and 

provide a methodology to overcome the associated challenges to advance and sustain Naval Aviation 

warfighting capabilities at an affordable cost.

We must leverage the collective power of the NAE membership and ensure Naval Aviation is best positioned 

to meet its requirements as effectively and efficiently as possible. This necessitates that each of us as 

leaders think strategically beyond our command boundaries, work collaboratively across organizations, 

stay informed and engaged, understand the risks inherent in our decisions, and be open to innovative 

solutions. In short, function as members of the NAE.

The NAE leadership’s responsibility is to provide the vision, insight, and integrated perspective to 

achieve the appropriate balance of standards, capability, complexity, and capacity. We must identify 

opportunities and take action to improve and sustain the reliability and effectiveness of our weapons 

platforms. Continuous process improvement must evolve into an intuitive and enduring practice within 

Naval Aviation. Leadership is obligated to fully consider and assess the implications of today’s decisions on 

tomorrow’s force, and deliver affordable readiness to meet global requirements. 

The Naval Aviation Enterprise Strategic Plan is the framework for action to advance and sustain the balance 

of readiness and cost. Together, as the Enterprise, we will take advantage of this opportunity to make a 

positive and important difference in the future of Naval Aviation.

A. G. Myers

Vice Admiral, U.S. Navy

Commander, Naval Air Forces

T. G. Robling

Lieutenant General, U.S. Marine Corps

Deputy Commandant for Aviation

D. Architzel

Vice Admiral, U.S. Navy

Commander, Naval Air Systems Command
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“While we hone our individual, unit and family readiness, we 

have to deal with diminishing resources. We must adopt and 

embrace a culture of fiscal responsibility and judiciousness. 

We must be ready and willing to make analytically sound, 

hard choices in the months and years ahead. Further, we 

must also look at innovative ways of maintaining our forward 

deployed and ready posture, while seeking efficiencies and 

reducing costs when we can.”

~ Adm. Jonathan W. Greenert, Chief of Naval Operations
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Mission: Advance and sustain Naval Aviation warfighting capabilities 

at an affordable cost...today and in the future.

The Naval Aviation Enterprise mission changed to simplify and better reflect the absolutely 

essential and core functions of the Enterprise. Advancing and sustaining Naval Aviation warfighting 

capabilities is non-negotiable if Naval Aviation is to respond to national priorities. Doing so at an 

affordable cost is an enduring tenet of the NAE. In today’s context, it ensures the viability of Naval 

Aviation and responds directly to our nation’s fiscal imperatives. 

The NAE serves as the single framework for facilitating collaboration, transparency, information 

sharing, and process improvement across the Naval Aviation stakeholder communities. The NAE 

significantly and measurably improves our ability to deliver warfighting readiness more efficiently; 

better understand our operational and cost drivers and degraders; and make more balanced 

resource decisions for the overall good of Naval Aviation. The new NAE mission provides the proper 

focus on the two fundamental obligations challenging Naval Aviation: capability and affordability. 

The Naval Aviation Enterprise will maintain the effectiveness and warfighting relevance of Naval 

Aviation while exercising appropriate fiscal discipline. It is our mission.

E N T E R P R I S E

N AVA L AV I AT I O

N

N A E
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Enterprise Principles

Enterprise behavior is a commitment to openly share information enabling respectful dialogue and joint 

decisions that place the welfare of Naval Aviation ahead of individual community or self-interests. The 

NAE is committed to these principles.

•	 Consistently apply cross-functional process thinking. Joint decisions verses independent action will 

lead to superior outcomes. 

•	 Establish and maintain process discipline. The process of developing readiness cannot be 

accomplished by a single functional organization; it takes dedicated and coordinated efforts from 

many organizations to accomplish the goal.

•	 Utilize a set of consistent, integrated, and hierarchical metrics. Fact-based analysis facilitates superior 

performance. Consistency means everyone in the Enterprise operates with the same information. 

Integrated means we operate with information using all facets of the NAE so we can make decisions 

leading to the best outcomes for Naval Aviation. Hierarchical means metrics are developed at multiple 

levels in the organization and are available in the level of detail relevant to the user. 

•	 Ensure full and consistent transparency of data, information, and activities. Full disclosure, sharing of 

information, and joint actions allow leaders at all levels to make better decisions for Naval Aviation.

•	 Establish and maintain accountability for actions and results. This is essential to all organizations, 

but is particularly important in the enterprise framework. Full commitment and accountability go 

hand-in-hand for members of the NAE.

•	 Apply an integrated governance structure. An effective governance, architecture and integration 

process is essential to capitalize on opportunities and well-suited to work across boundaries and 

seams to sustain current and future readiness. 

•	 Take a Total Ownership Costs perspective. It is a strategic imperative that the NAE manage current 

and total ownership costs. A strategic financial management view provides the ability to understand 

and manage affordability, while balancing risk and meeting operational requirements. 

•	 Commit to the Single Fleet Driven Metric. It is important to tie our efforts to a single, overarching 

metric in order to measure success. In the case of the NAE, that single Fleet driven metric is Naval 

Aviation forces efficiently delivered for tasking.

Tenets of Enterprise Membership

Enterprise support to Naval Aviation consists of more than 190,000 Sailors, Marines, civilians and contract 

employees. Tenets outline the basis for participation and how members will work together to assist Naval 

Aviation in achieving and sustaining warfighting capability at an affordable cost. The following tenets are 

the cornerstone to NAE success:

•	 Cross-functional process improvement 

•	 Dedication to effectiveness and efficiency 

•	 Active participation in scheduled events and 

tasks as a priority

•	 Transparency in process and data 

•	 Willingness to challenge past practices and 

assumptions 

•	 Commitment to the greater good of Naval 

Aviation

“The NAE supports the delivery of combat 

effects by encouraging the larger process 

view in which information sharing and 

issue resolution become a collective focus 

for leaders across Naval Aviation.” 

~ Vice Adm. Al Myers, Commander, 

Naval Air Forces; Commander, Naval 

Air Force, U.S. Pacific Fleet
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Section 2 - Strategic Objectives and Initiatives

Our nation’s defense strategy relies on the ability of the Navy to provide ready Naval forces capable 

of meeting Combatant Commanders’ requirements. The dynamic nature of today’s global security 

environment ensures those requirements are unlikely to diminish, making the need for us to find 

efficiencies in delivering combat capability ever more pressing. The NAE exists to support Naval 

Aviation’s ability to find efficiencies without sacrificing capability. Readiness of Naval Aviation 

forces is, and will continue to be, an enduring strategic objective. 

The NAE Strategic Plan is the road map for supporting Naval Aviation’s near-term and long-range 

priorities. The strategic planning process is flexible, allows leadership to respond to internal and 

external pressures, and focuses attention on adjustments in priorities needed to meet requirements 

in a changing environment. Carefully developed strategic objectives and initiatives highlight key 

NAE focus areas, each enabling the NAE to meet its overarching mission.

The readiness of our aircraft depends on the men and women who support and operate them. 

The effectiveness of Naval Aviation is reliant on a Total Force trained and equipped to support 

warfighting requirements. Enabling and supporting this Total Force is a critical part of the NAE 

focus.

Naval Aviation capability comes at a substantial cost. Understanding these costs and seeking 

solutions to arrest their growth in legacy and future platforms is our shared responsibility as 

stewards of the nation’s resources. Accordingly, focus on cost is an important theme throughout 

our strategic plan.

The enterprise construct delivers a return on investment that in part, cannot always be quantified. 

Additionally, the principles, tenets and processes embodied in the NAE are not yet fully engrained 

in the culture of our services. This culture is evolving and represents change to many stakeholders. 

The NAE strives to develop a culture of enterprise practices that will ultimately help to build and 

sustain more responsive and effective warfighting readiness.

The Navy and Marine Corps are often the first to be called upon in a crisis and the most versatile 

and effective arm of these services is Naval Aviation. This is a characterization Naval Aviation 

has earned. The following five strategic objectives and underlying strategic initiatives are the basis 

for the role of the NAE in advancing and sustaining Naval Aviation warfighting capabilities at an 

affordable cost.
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Alignment of NAE Strategic Plan to CNO/CMC Strategic Priorities

Naval Aviation as an enterprise is working on strategic objectives that align with guidance published by 

the Chief of Naval Operations (CNO) and Commandant of the Marine Corps (CMC). Committed to a 

uniform set of enterprise principles, Naval Aviation stakeholders are partnering to achieve the objectives 

that will advance and sustain Naval Aviation warfighting capabilities at an affordable cost...now and in the 

future.

“The Marine Corps - has always - given our nation the best bang 

for its buck. Consuming only 8.5 percent of the total Department 

of Defense budget, we provide 31 percent of the operating ground 

forces, 12 percent of the fighter-attack aircraft and 19 percent of 

our nation’s attack helicopters. In today’s fiscally - constrained 

environment, we must continue to improve our efficiency.”

~ Gen. James F. Amos, Commandant of the U.S. Marine Corps
Strategic Objectives

Enterprise Culture and Communication

Achieve a culture that emphasizes and rewards collaboration, ownership, transparency and 

continuous improvement among Enterprise stakeholders and partners in support of Naval Aviation 

readiness.

Current Readiness

Deliver combat-ready forces to meet current and future operational requirements at the optimal 

Operations and Support (O&S) cost.

People

Enrich, shape, and deliver a proficient, diverse, and cost effective Total Force that performs all of 

the functions required for Naval Aviation to fight and win in combat.

Future Readiness

Engage stakeholders to effectively produce required levels of future readiness while optimizing 

costs.

Cost Management and External Integration

Develop cost management products and metrics to reduce total ownership costs for legacy and 

transitioning weapon systems. Develop stronger integration and collaboration with other Warfare 

Enterprises with a focus on efficiency and cost reduction.

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“Now more than ever we must sustain a high state of warfighting 

readiness. Collaboration and maintaining transparency within 

the Naval Aviation Enterprise keeps us on course.” 

~ Lt. Gen. Terry Robling, Deputy Commandant for Aviation,

U.S. Marine Corps
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Strategic Objective 1: 

Enterprise Culture and Communication

Achieve a culture that emphasizes and rewards collaboration, ownership, transparency 

and continuous improvement among Enterprise stakeholders and partners in support of 

Naval Aviation readiness.

Champions: CNAF, DC(A), NAVAIR

Naval Aviation is a cornerstone of our military strategy providing capabilities for global reach and 

dominance of the sea, air and space. Those capabilities are in high demand and far from costfree. An enterprise culture of collaboration, shared information, and common priorities supports 

delivering the right readiness at an affordable cost. A dynamic enterprise culture must be promoted 

and nurtured to fully mature and be sustained. Naval Aviation Enterprise leadership is committed 

to more deeply embedding a culture of collaboration, accountability and transparency throughout 

all levels of Naval Aviation and the partnership of operators, sponsors and providers who support 

it. Successfully addressing readiness requirements in an enterprise construct obliges its members 

to think and act across service and organizational lines, override unique organizational interests, 

and challenge the status quo. NAE leadership will make a conscious effort to stress the importance 

of and recognize stakeholders for their Enterprise work. This culture will mature into a universally 

accepted partnership fully integrated into the organizations it supports while improving warfighting 

readiness and process effectiveness.

Leadership will drive desired culture change by setting an example, recognizing enterprise behavior, 

and maximizing engagement. The NAE leadership acknowledges its responsibility to achieve a 

culture that encourages the efficient and effective delivery of readiness, creates incentives, and 

improves understanding of the Enterprise and its value to Naval Aviation. 

1.1 Develop and implement initiatives that increase leadership engagement 

opportunities and also reduce systemic/organizational barriers.

Leads: CNAF, DC(A), NAVAIR

Naval Aviation Enterprise leaders and members will continually reinforce the philosophy of 

teamwork, collaboration, and transparency to break down organizational barriers. This requires 

leadership buy-in, active participation in the Enterprise and dedicated alignment of effort. Barriers 

are mitigated by creating opportunities 

for Naval Aviation leadership to engage 

through a variety of venues and promoting 

opportunities to interact professionally 

and as decision makers. NAE leadership 

will identify opportunities to combine 

efforts, engage organizational leaders 

across Naval Aviation, and eliminate/

mitigate barriers that inhibit an effective 

enterprise culture.

“The global demand for Naval Aviation 

Forces requires the right data, information, 

and open communication in order to balance 

requirements, resources, and risks. Simply 

stated, this is a job that is well worth doing 

and one that requires all of us within the NAE 

working together to get it done.” 

~ Vice Adm. Dave Architzel, Commander, 

Naval Air Systems Command
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1.2 Create incentives for Enterprise stakeholders to further institutionalize 

enterprise behavior.

Leads: CNAF, DC(A), NAVAIR

The enterprise construct benefits and facilitates increased Naval Aviation readiness by incentivizing 

stakeholders through means that are both individually motivating and organizationally enduring. 

Each member of the NAE must perceive the value in performance consistent with enterprise 

principles and tenets, and derive clear benefits from their participation. The NAE is committed 

to the existing incentive and recognition programs for individuals and exploring additional 

opportunities to reward those entities furthering the culture promoted by the NAE. 

1.3 Implement communication strategies to move the Enterprise across the 

change spectrum from awareness to ownership.

Lead: NAE Strategic Communication Coordinator

Cultural change requires strategic communication that helps stakeholders see and embrace the 

benefits of the desired culture. Individuals, or groups of stakeholders, move from awareness to 

understanding through acceptance and adoption, and finally peak with a sense of ownership of the 

culture.

Senior leadership adoption and engagement is critical to the success of any culture change effort. 

Deliberate efforts to educate and engage Sailors and Marines at all levels are necessary to achieve 

success. These communication efforts support the other change tools available to leadership, and 

are essential to ensuring a Naval Aviation culture committed to continuous process improvement 

and Enterprise principles. The NAE will utilize a strategic communication plan engaging key 

stakeholders and audiences through all the tools available to leadership, including two-way 

communication and proactive development and delivery of key messages.
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Strategic Objective 2: 

Current Readiness

Deliver combat-ready forces to meet current and future operational requirements at the 

optimal Operations and Support (O&S) cost.

Champions: CR CFT Co-Leads

Naval Aviation supports Combatant Commanders by providing combat-ready USN and USMC 

aviation forces that are properly manned, fully trained, well maintained, interoperable, and 

sustainable. In support of this task, the NAE applies enterprise principles and tenets to engage 

readiness stakeholders to efficiently deliver combat-ready forces - Navy Units Ready for Tasking 

and Marine Corps Core Competent Units. This engagement spans all readiness resource areas 

to include People, Equipment, Sustainment, Training and Ordnance (PESTO) and all aspects of 

O&S costs. The challenge is producing the required level of readiness at an affordable cost while 

transitioning the force from legacy to new platforms.

The NAE will address this challenge by engaging Naval Aviation readiness stakeholders through 

several key initiatives. The NAE will help stakeholders define/understand the relationships and 

interaction between Readiness, Resources, Provider Processes, and Costs. Once this complex 

relationship is understood, the NAE will support stakeholders by developing, maintaining, and 

advancing a set of cross-functional analytic tools and processes to resolve the gap between desired 

and actual performance. The NAE will help stakeholders use these processes, tools, and strategies 

to focus on advancing and sustaining warfighting capabilities and to transition from the force 

of today to the force of tomorrow. These efforts will be focused on the ability to man, train, and 

equip Type/Model/Series aircraft, aircraft carriers, and weapons communities. Additionally, NAE 

efforts will positively impact the maintenance and supply chain by developing innovative logistics 

strategies to meet equipment and supply readiness requirements with a focus on doing this at 

an affordable cost. Finally, the cross-functional nature of this objective demands the NAE focus 

on identifying and engaging readiness stakeholders and optimizing their engagement across all 

aspects of the Enterprise. 

2.1 Optimize readiness stakeholder engagement. 

Leads: CR CFT Co-Leads

Effective engagement of readiness stakeholders is essential to the successful delivery of combatready forces. The NAE will optimize engagement of readiness stakeholder organizations and include 

them in enterprise processes to 

ensure understanding, consensus, 

and compliance. Commitment 

to action is also vital in the 

NAE framework because of its 

complexity and collaborative 

nature. Communicating enterprise 

principles to key current readiness 

stakeholders is the first step in 

achieving this commitment.

“Producing ready Naval Aviation forces to meet 

combatant commander demands is what we do, and 

what we have always done. In light of today’s challenges, 

that is simply not enough. The only way to face the 

challenges [before us] is to ensure that all aspects of Naval 

Aviation are in alignment - from the warfighter at sea to 

the provider in both government and industry.” 

~ Rear Adm. Ted Branch, Commander, Naval Air 

Force Atlantic
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2.2 Define/understand the relationship between Readiness, PESTO Resource 

Requirements, Provider Processes, and O&S costs.

Leads: CR CFT Co-Leads

The NAE must understand how readiness is produced to deliver required readiness at an affordable 

cost. Defining required readiness is critical to this understanding. Equally important, the NAE 

must establish the contribution of resource inputs, PESTO, to meet this level of readiness. Finally, 

provider processes producing these resources and the associated O&S costs must be thoroughly 

understood to enable Navy and Marine Corps aviation commands to meet and sustain readiness 

requirements at an affordable cost. 

2.3 Eliminate readiness gaps and reduce O&S costs. 

Leads: CR CFT Co-Leads

The development and advancement of improved processes to identify, validate, and eliminate gaps 

in the ability to produce prescribed levels of warfighting readiness and to reduce costs is critical 

to delivering warfighting capability affordably. The improvement of analytic effectiveness is the 

cornerstone of gap closure. Improving data flow, providing analytic tools and the training to use 

them, are critical to effectively closing gaps at the lowest level possible within the line leadership 

teams. Establishing processes for barrier removal or escalation to higher headquarters for resolution 

when they cannot be resolved at lower levels is also critical to improving the ability to produce the 

prescribed levels of warfighting readiness at an affordable cost. 

2.4 Transition from legacy to new weapons systems at optimal O&S cost.

Leads: CR CFT Co-Leads

Over the next 15 years, the Navy and Marine Corps will transition roughly 23 aviation communities, 

platforms, new classes of aircraft carriers and aviation-capable surface ships. These transitions 

will require close coordination and improved planning across all readiness stakeholders to ensure 

legacy platforms remain viable until the new capability is fully delivered and the new platform is 

sustainable. The Navy Master Aviation Plan (MAP) and Marine Corps Aviation Plan (AvPLAN) 

seek to synchronize future capabilities with current readiness. As new platforms and capabilities 

are produced and introduced to the Fleet, the NAE will support the MAP and AvPLAN by assisting 

with coordination across all stakeholders ensuring resources and sustainment funds are aligned to 

transition milestones.

2.5 Enhance weapon system availability and reduce O&S costs by using innovative 

logistics strategies.

Leads: M&SCM Co-Leads, PEO (Carriers)

The development of strategies to manage Total Ownership 

Costs (TOC) while maintaining or improving operational 

availability is essential to sustaining aircraft and weapons 

systems’ affordability. The NAE will develop and execute 

strategies focused on decision-making to better provide 

ready forces, manage O&S costs and manpower, and sustain 

the supremacy of the U.S. industrial base. These strategies 

will integrate proven process efficiency methods, logistics 

and engineering expertise, and improve their efficacy.
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Strategic Objective 3: 

People

Enrich, shape, and deliver a proficient, diverse, and cost-effective Total Force that 

performs all of the functions required for Naval Aviation to fight and win in combat.

Champion: TF CFT Lead

The mission of the Navy and Marine Corps will always be to fight and win in combat, with warfighter 

readiness serving as the Enterprise’s highest priority. The Total Force strategic objectives reflect 

the belief that Naval Aviation’s competitive advantage is, and always will be, its highly talented 

and dedicated people. This strategy supports the Strategic Plan’s framework to create a capable 

and effective Total Force that meets current readiness goals while building future capability with 

priority focus on the most important product - the warfighter.

The primary goal of the NAE’s Total Force Strategy is to enrich, shape, and deliver a proficient, 

diverse, and cost-effective Total Force, made up of Sailors and Marines, government civilians, and 

contract support personnel, to perform the functions required for Naval Aviation to fight and 

win in combat. The Total Force strategy relies on readiness and capability demand signals from 

the Fleet to clearly define work requirements, to enrich and shape the workforce correctly, and to 

positively affect budgeting and programming decisions. It is a living management tool—one that is 

continually assessed, improved, and refined to maintain relevance and effectiveness.

The NAE will continue to work across the Total Force supply chain to overcome systemic barriers 

and constraints. The NAE will assign resources to attack barriers through targeted continuous 

process improvement initiatives, programmatic enhancements, and effective planning in order to 

build capability efficiently, transition to new platforms successfully, and maintain Naval Aviation 

as the preeminent warfighting force.

3.1 Improve the capability and capacity of a qualified, competent, and diverse 

Total Force to support Naval Aviation requirements.

Lead: CNATT

The NAE will focus on the building and enrichment of the Total Force to deliver a more competent, 

diverse, and agile workforce able to support the evolving needs of the Enterprise. To accomplish 

this, the NAE will pursue Human Resources (HR) programmatic enhancements designed to 

improve the capability and capacity of the Total 

Force so it is better prepared to meet the challenges 

of the future. Through an emphasis upon effective 

enterprise engagement, collaboration, and sharing of 

best practices, the NAE will work to ensure enterprise 

principles and values are commonly understood 

across the Total Force. One of the objectives of these 

enrichment initiatives is to realize the building of a 

future Total Force that understands and embraces 

the value of the Enterprise and works to support the 

transformative efforts enabling both current and 

future Naval Aviation readiness. 

“People are our most critical, 

complex, and costly resource...The 

Total Force Team works to enhance 

Naval Aviation through a focus 

on the delivery, enrichment, and 

shaping of the NAE Total Force.” 

~ Rear Adm. Bill Sizemore,

Chief of Naval Air Training
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3.2 Utilize a capabilities-based approach to more effectively identify, plan, and 

evolve the Total Force required to support the future of Naval Aviation.

Lead: NAVAIR 7.0

In the years ahead, new Type/Model/Series aircraft, unmanned systems, and a new class of 

aircraft carrier will provide new capabilities to warfighters and dramatically change the manpower 

requirements for the Total Force of the future. By assessing manpower and personnel risks 

associated with transitioning platforms, the NAE is better able to drive the shaping of manpower 

requirements, training strategies, and personnel policies for future platforms. The NAE will utilize 

a capabilities-based approach to enable out-year manpower planning to identify, plan, and evolve 

more effectively the Total Force required to support the future of Naval Aviation.

3.3 Optimize the delivery of the Total Force to overcome challenges associated 

with distributable personnel inventories in support of current and future Naval 

Aviation readiness.

Leads: CNAF N1, PERS 4

Over the past two years, the NAE has made tremendous strides in implementing meaningful metrics 

that serve as leading indicators for evaluating the effectiveness of the Total Force supply chain in 

recruiting, training, and assigning personnel. The NAE will build on these accomplishments to 

further define the relationship of these indicators to readiness and continually assess end-to-end 

Total Force supply chain processes to better understand performance and cost, and to support the 

identification and removal of systemic barriers.
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Strategic Objective 4: 

Future Readiness

Engage stakeholders to effectively produce required levels of future readiness while 

optimizing costs.

Champion: FR CFT Lead

Today’s defense budgets present a significant challenge to Naval Aviation’s ability to maintain 

readiness and a global presence while still shaping future forces to meet increasingly diverse 

threats. The Naval Aviation Enterprise is engaging stakeholders to identify solutions that enable 

Naval Aviation to maintain future readiness while optimizing costs. Focusing on readiness and 

affordability, the NAE will champion proactive, holistic cost-saving solutions, and will utilize 

cross-enterprise collaboration to integrate them into the appropriate life cycle processes - from 

program inception to disposal.

4.1 Aggregate, prioritize, elevate, champion, and track issues for fielded systems 

and sustainment infrastructure.

Leads: NAVAIR 6.6, OPNAV N88

Through cross-enterprise participation, systemic issues tied to documented aviation readiness 

degraders and cost drivers are identified and addressed. This approach is applicable to sustainment 

infrastructure as well as to both fielded and developmental aviation systems. The fundamental 

processes behind this undertaking are to identify potential initiatives that will optimize the 

availability and ownership costs of Naval Aviation systems; prioritize, elevate and champion these 

initiatives for funding consideration; and track the investment and return on investment (ROI) of 

championed initiatives. This proven methodology for identifying and evaluating initiatives will be 

established as a repeatable process.

NAE leadership will champion future readiness issues throughout the integrated budget process by 

utilizing proactive funding support actions and issuing specific guidance in the Program Objective 

Memorandum (POM) serial and the Type Commander Priority List. The FR CFT will help define 

how, where, and when the NAE leadership can engage to support future readiness initiatives.

4.2 Engage key stakeholders to continue to drive cultural changes.

Lead: OPNAV N88

The NAE has enabled a shift in culture from readiness at any cost to readiness at optimized cost. 

Acceptance of this Enterprise-wide cultural change....” The changes are from “Enterprise” to “NAE” 

and capitalizing “Enterprise-wide”. Acceptance of this enterprisewide cultural change is necessary to advance and sustain Naval 

Aviation warfighting capabilities. The NAE will continue to engage 

key stakeholders to achieve buy-in and drive actions to support 

the culture within the Naval Aviation community that ensures the 

future readiness of our Naval Aviation forces. Equally important is 

informing stakeholders of future readiness successes in improving 

readiness and reducing cost to continue cultural change.
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4.3 Facilitate NAE engagement in the requirements and acquisition processes to 

make better informed trade-off decisions that consider readiness and TOC.

Leads: APEO(A)-L, NAVAIR 4.0, and OPNAV N43

NAE leadership has a close, vested interest in the development of all program requirement 

documentation. This interest focuses on Operational Availability (Ao

) (reliability, maintainability 

and sustainability) and affordability, which are crucial components of the acquisition process 

that impact future readiness and TOC. This includes identifying appropriate opportunities to 

incorporate sustainment objectives throughout program development ensuring both future 

readiness and TOC are adequately addressed. Additionally, NAE leadership’s active engagement 

will be fostered through participation 

in Program Gate Reviews, Systems 

Engineering Technical Reviews 

(SETR), Independent Logistics 

Assessments (ILA), and Initial 

Operating Capability Supportability 

Reviews (IOCSR).

4.4 Leverage Science and Technology (S&T) for the benefit of future readiness at 

optimized cost.

Lead: NAVAIR 4.4

One of the keys to the long-term effectiveness of both future readiness and TOC initiatives is to 

fully engage the S&T community in the development of potential solutions. The NAE will continue 

to ensure future readiness and TOC objectives are emphasized within S&T roadmaps and will 

champion those ready for transition. The NAE Chief Technology Office implemented, and will 

continue to utilize, a methodology for tracking Naval Aviation project transitions and conducting 

root cause analysis studies to promote transition enablers and remove transition barriers.

“There are no silver bullets for the Navy’s challenge in 

recapitalizing an aging fleet - it will take the combined 

talents and ingenuity of each of us across the NAE to 

find, develop, and implement sustainment efficiencies 

needed to ensure the future readiness of our Naval Air 

forces.” 

~ Rear Adm. Ken Floyd, Director, Air Warfare 

Division
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Strategic Objective 5:

Cost Management and External Integration

Develop cost management products and metrics to reduce total ownership costs for 

legacy and transitioning weapon systems. Develop stronger integration and collaboration 

with other Warfare Enterprises with a focus on efficiency and cost reduction.

Champion: CNAF Executive Director

Naval Aviation is challenged to sustain current platforms while new platforms are developed and 

fielded. In order to manage the TOC of a platform and/or weapon system, the NAE must identify 

and understand the array of costs in TOC. Once an understanding of these costs is developed, 

an identification of the interrelationships between individual costs facilitates an understanding 

of the impact of budget decisions on TOC. This understanding better equips Resource Sponsors 

and leadership to make resource allocation decisions that optimize Naval Aviation’s ability to meet 

operational requirements. Ultimately, understanding TOC will ensure affordability is managed, 

risk-balanced and operational requirements are fulfilled. 

Collaboration with other Warfare Enterprises stimulates an exchange of proven processes and 

metrics, provides for better planning of platform transitions, and establishes an understanding of 

the interdependencies of Warfare Enterprises and their impact on readiness and cost.

5.1 Emphasize cost control in all facets of communication and stakeholder 

engagement in order to reinforce a TOC perspective and practice as a 

fundamental enterprise principle. 

Leads: IRMT, NAE Strategic Communication Coordinator

Cost reduction is a fundamental enterprise principle and should be an integral element of the 

decision-making of internal and external stakeholders. This conscious awareness of TOC as 

fundamental in decision-making will be emphasized by leadership and integrated into all facets of 

communicating about requirements and readiness demands. In a time of constrained resources, 

the balance between resources and requirements must permeate everyday conversations. The 

NAE will drive a culture of cost awareness and transparency from budget development through 

execution.

“Naval Aviation is not the only warfighting community. The work of 

the NAE in support of Naval Aviation has implications across the entire 

Navy. We recently partnered with the Surface Warfare Community 

to improve readiness and gain better visibility on mutual issues, 

particularly aviation-capable ships.”

~ SES Jim Beebe, Executive Director, Commander, Naval Air Forces; 

Commander, Naval Air Force, U.S. Pacific Fleet
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5.2 Create transparency of all cost elements and data sources to promote savings 

and efficiencies.

Leads: IRMT, OPNAV N43 

A necessary step in developing cost awareness is the adoption of a standard cost structure that 

establishes a framework for discussion and facilitates development of actions to reduce cost growth. 

Teaming with OPNAV N43, the NAE will codify a single source Naval Aviation cost structure that 

includes all sub-elements of Operating and Support cost. 

To optimize cost awareness and transparency, the cost element structure will be tied to recognized 

and credible databases and data sources. The data will be documented to ensure it is clearly 

understandable and accepted as valid. Adhering to this construct for cost collection and tracking 

will aid leaders within Naval Aviation to make better informed decisions.

5.3 Ensure tradeoff/bill paying decisions consider long-term cost implications. 

Lead: IRMT

Emergent issues can drive decisions within the boundaries of current year funding levels and 

subsequently limit considerations to short-term financial tradeoffs. These execution year 

decisions have the potential to influence TOC and future year funding requirements. The key 

to fully appreciating the implications of these tradeoffs is directly related to understanding TOC 

interrelationships. Capitalizing on existing financial reporting processes, in conjunction with 

budget submitting offices, the NAE will highlight the cost implications of tradeoff decisions for 

leadership. 

5.4 Leverage coordination and collaboration across all Warfare Enterprises for the 

benefit of readiness at optimal cost for all Enterprises. 

Lead: IRMT

Collaboration with other Warfare Enterprises will identify common issues, barriers and challenges. 

Removing barriers and solving challenges will better sustain existing platforms and more efficiently 

transition them to roadmap platforms for each Enterprise. The NAE will work with other Warfare 

Enterprises to share best practices 

and implement common metrics 

that can be used to advance and 

sustain Naval Aviation warfighting 

capabilities at an affordable cost.
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Section 3: Leadership Commitment and Call to Action

The Naval Aviation Enterprise is a partnership of key decision-makers as well as the many people 

with an active role in supporting Naval Aviation. It includes over 190,000 people. Each stakeholder 

member of the NAE has a responsibility to contribute to the successful accomplishment of the NAE 

mission to “Advance and sustain Naval Aviation warfighting capabilities at an affordable cost...

today and in the future.”

Due to the rapidly changing government and defense environments, we must be flexible and agile 

in aligning our strategy with a mission that fully supports the warfighter. We must be diligent about 

ensuring stakeholder engagement is frequent, regular and all-inclusive – from senior military 

leaders to the deckplate Sailor and flight line Marine.

This plan describes the five most important objectives that we must accomplish to advance 

and sustain the combat effectiveness expected of and associated with Naval Aviation. To be 

successful as the Naval Aviation Enterprise, it is critical that our Naval Aviation leaders and NAE 

Strategic Objective Champions remain actively involved, committed, and take responsibility for 

communicating and supporting the plan throughout their respective communication channels.

NAE leadership will review this strategic document bi-annually in the context of naval, defense and 

national security policies. The strategy will be shifted as needed to ensure that the NAE mission 

is pursued aggressively and continues to support the goals of Naval Aviation. All of us in the NAE 

hold this responsibility and must work together to support the strategy.
“Even as the United States addresses fiscal challenges at home, there will be 

no hollow force on my watch. That will require us all to be disciplined in 

how we manage taxpayer resources...We must preserve the excellence and 

superiority of our military while looking for ways to identify savings.  While 

tough budget choices will need to be made, I do not believe in the false choice 

between fiscal discipline and a strong national defense.  We will all work 

together to achieve both.”

~ The Honorable Leon Panetta, Secretary of Defense
For additional information, 

visit the NAE web page at

http://www.public.navy.mil/airfor/nae

Approved for public release.

Distribution is unlimited.