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Three years ago we began exploring this topic through conversations with senior defense leaders around the world. The outcome of these discussions was a paper titled “Agile Defense” which outlined this concept and the organizational characteristics that defined the attributes an agile defense organization should cultivate and promote. In the interim, increasing budget pressures have exacerbated this demand for change as defense organizations have been forced to reduce spending dramatically even though the proliferation of security threats has proceeded unabated. These opposing dynamics will continue to raise significant questions about the future structures and capabilities of defense organizations, but perhaps no question will be more salient in the next several years than this one: “Can we reduce costs without sacrificing the mandate for even greater agility?” This paper attempts to answer that question in the affirmative.