1.2 For Defence, the key objectives of the Strategic Defence and Security Review (SDSR) in 2010 were to determine the Armed Forces which the UK will need over the next decade and beyond to meet the most likely future threats; and to bring the over-extended Defence programme back into line with resources in the short-term and for the future. However, the Defence Secretary's view was that the SDSR alone would not be enough to resolve the problems facing Defence. His assessment was that the existing departmental management structure was demonstrably not working well, and had contributed to the Department's financial crisis. Therefore, on 13 August 2010, he launched a full and fundamental review of the way Defence is run: Defence Reform.
1.3 The Defence Secretary established our steering group, chaired by Lord Levene, drawn primarily from outside the MOD, to direct and oversee the review. This reflected his view that a challenge to in-house thinking was necessary and that experience of other major organisational reform across the public and private sectors would be useful. The 2nd Permanent Secretary (2nd PUS) and Vice Chief of the Defence Staff (VCDS) sat on the steering group to provide defence expertise and a departmental perspective. The full membership and terms of reference of the steering group are set out at Annex A. The detailed work in support of the review has been led by a small team of MOD civil servants and military officers.