This paper concerns the relationship between the military transformation now under way and the manpower and personnel policies that are needed to support a transforming force. It was prepared for the Conference on the All-Volunteer Force After 30 Years, held in Washington, ., on September 16–17, 2003, and should be of interest to the defense manpower policy community. The paper and the research that underlies it are part of a larger RAND Corporation project on the flexibility of military compensation,.