The new NATO Strategic Concept offers an important opportunity to strengthen efforts to reform and modernize NATO institutionally and develop new defense capabilities for the Alliance. To achieve these aims, NATO must begin a separate transformational process to assess current military capabilities and pursue future requirements over a 5-10 year period. The goal should be to develop specific sets of initiatives and reforms for approval by Heads of State and Government at the Lisbon Summit in November 2010. This process should be informed by the development of the new Strategic Concept and run parallel to it. In a rapidly changing security environment, postponing such a process until after the Strategic Concept is completed would increase risks for the Alliance. This report is designed to stimulate that parallel process.