"The U.S. Department of Defense is one of the world's largest employers, with more than 1 million men and women on active duty and hundreds of thousands of civilian personnel. To control costs, the government has implemented several initiatives over time to adjust personnel levels, reduce spending outright, and streamline management. In this report, RAND researchers analyze several issues related to direction from the Secretary of Defense in 2013 to reduce headquarters spending by 20 percent and to strive for 20-percent reductions in headquarters staff authorizations. Specifically, they assess whether the Air Force achieved a 20-percent reduction in headquarters spending and personnel end strength by fiscal year 2015 (when compared with plans for fiscal year 2018); compare the Air Force's methodology and approach to reductions with practices from literature and industry, focusing on organizational design, process improvement, consulting practices, and sound management practices; and identify opportunities for further reductions. The authors conclude that the Air Force did indeed achieve its planned 20-percent reduction in spending and end strength, and that all major commands contributed to those savings. In addition, they found that the Air Force's approach to reducing its headquarters management functions included many sound practices, such as identifying improved business processes that streamline information flow and eliminate work, eliminating or combining redundant organizations, and ensuring that work is conducted at an appropriate organizational level"--Publisher's website.