Defining a 21st Century Air Force (Services) Business Model

: This paper addresses the need to define a new business model for the financially failing Continental United States (CONUS) morale, welfare, and recreation (MWR) nonappropriated fund (NAF) activities in the U.S. Air Force. It is broken down into two major parts -- eliminating NAF activities that have sustained consistent financial losses and replacing those NAF activities with more relevant services on the installation.The 40-year old CONUS base-level MWR business model for NAF activities is out of sync with the needs of today's Airmen (officer and enlisted) and their families. As a result of this outdated model, created for the needs of military members two generations ago, many NAF activities are failing financially because services offered are irrelevant to the desires of this generation. The Air Force attempted to resolve this issue through Services Transformation; however, that concept has largely failed because it was not a strategically comprehensive approach. Furthermore, it did not redefine the outdated services business model that has existed for decades. In addition, Services Transformation has neither generated the programming excitement necessary to keep the interest of todays Airmen and their families nor has it achieved the savings the Air Force had hoped to realize during these fiscally challenging times.In order to overcome this dilemma, the Air Force (and Army) should develop a new business model by requesting the Army Air Force Exchange Service (AAFES) take lead on negotiating national and local community business partnerships.