While the Alliance is deeply troubled by the political divisions emerging between its member states, operational progress has been achieved in recent years. NATO’s deterrence posture on the Eastern flank has been strengthened with the establishment of rapid-response elements; what remains to be done now is the generation of follow-on forces among other things. Furthermore, forward-looking decisions about other theaters such as NATO’s engagement in Afghanistan and domains such as the cyber and nuclear realm are pending. This paper analyzes the Alliance's strategic situation in different respects and gives recommendations on how to proceed.