Strengthening the Core Working Group 1

This is the fourth working group session for Strengthening the Core.

Working Group 1: "Models of Incentives, The Business Proposition" focuses on the basic business proposition offered to industry. Phase One research shows that the defense industry environment is far more volatile than is popularly believed, and the growing importance of investors to defense firms will drive their behavior in certain ways.

Working Group 1 discussed issues including: what is the risk-reward relationship in the defense industry? What are the financial metrics that matter to industry? Which current incentives/acquisition policies are generating undesired behavior (unintended consequences)? How do you align government policies, financial measures that matter to industry and incentives strategy in order to the right behavior out of industry? How do you ensure that the defense industry remains competitive in the battle for capital and talent? What tasks should be done by industry, by government/depots?