Troop surge
Terminology: The phrases "New Way Forward", "The New Way Forward" and "A new way forward in Iraq" were widely used by White House Press Secretary Tony Snow and the news media prior to the President's speech on January 10, 2007, announcing the policy change. The US press also refers to the increase as a "surge" or "Iraq troop surge". Following the speech, some Democrats began using the term "escalation" rather than "surge", though others in the party used the terms interchangeably.

Background: 

Demand: 

2006 election: Polls showed that after the 2006 general election, "A substantial majority of Americans expect Democrats to reduce or end American military involvement in Iraq if they [won] control of Congress". This view of the election as a referendum on the war was endorsed by Democratic leader Nancy Pelosi who in the final days of the campaign said, "This election is about Iraq. If indeed it turns out the way that people expect it to turn out, the American people will have spoken, and they will have rejected the course of action the president is on." The news media viewed the Democratic victory in both houses of the US Congress as "punishing President George W. Bush and his Republicans over ethics scandals in Washington and a failing war in Iraq."

Democratic position: After her party's victory then House Speaker-elect Pelosi (who would a month later make clear her disdain for the "surge proposal") wrote an article entitled "Bringing the War to an End is my Highest Priority as Speaker". The article explained that after visiting wounded Iraq War veterans at the Bethesda Naval Medical Center, "I left there more committed than ever to bringing the war to an end. I told my colleagues yesterday that the biggest ethical issue facing our country for the past three and a half years is the war in Iraq. ... When the House reconvenes on January 4, 2007, Democrats will take power and I will take the gavel knowing the responsibility we have to you and to the country. The new Democratic Congress will live up to the highest ethical standard... [we] are prepared to lead and ready to govern. We will honor the trust of the American people; we will not disappoint."

Republican position: Following the  2006 United States midterm elections in which Republicans lost control of the House and Senate, The Heritage Foundation hosted a conference chaired by Republican whip Rep. Roy Blunt (R-MO), titled, "The New Way Forward: Refocusing the Conservative Agenda" on November 9, 2006, to analyze "setbacks" from the election results. Blunt bemoaned the fact Republicans had "become the defenders rather than the challengers of business as usual."

Blunt opened his speech listing the oft voiced explanations of his party's defeat which included that the results were in part "a referendum on the war in Iraq". He dismissed the notion that any one single reason explained the loss, saying "Different candidates lost for different reasons." He saw a bright side in events saying: The good news is that even with these shortcomings, low presidential approval numbers, and uncertainty about Iraq, our candidates saw, even with all those things happening, their ideas taking hold in the final days of their campaigns. A shift of 78,000 votes in the entire country would have changed the outcome. Our ideas didn't get beat; in fact, we did. He applauded the Constitutional system saying the defeat proves: that no one party has a permanent claim to power. ... This means any viable political movement, such as ours, can never afford to become stagnant or complacent. We must constantly refresh our ideas, assess our performance, and make corrections when necessary. This is a great moment to do all three of those things. For a generation Reagan conservatives have consistently demonstrated an ability to do just that. Nowhere has this been more evident than in our response to the threats of Islamic totalitarianism and the fight with our terrorist enemies. He said: While the threats of Islamic totalitarianism at times require different tactics, we are approaching those challenges with the same resolve that allowed us to defeat communism. I am convinced that in this fight we will also prevail because the American people understand the need to win. We must continue to lead the fight against Islamic totalitarianism and sustain the will to win the war in Iraq and Afghanistan. ... [On the war and on domestic issues] Our plan must avoid the mistakes of the past several years. ... I am confident that we will successfully move forward.

Development of the strategy: 

Senturion forecasts: In January 2005, the National Defense University applied its "Senturion" predictive analysis software to the Iraqi elections in order to determine which factions would support the elections, which would oppose them, and which would remain neutral.  Senturion's forecasts were largely borne out by the actual course of events. Among other things, Senturion predicted that "increased coalition military strength in Iraq would have improved the attitudes of Iraqi stake holders toward the election by making them feel more secure." The simulations indicated that a 50% increase in troop strength was optimal, though a 25% increase would have been sufficient to capture the support of "neutral Iraqis". It also determined that due to Iraqi perceptions, the use of United Nations peacekeepers in place of US or coalition forces could achieve the same results with a smaller troop increase. These analyses were "performed and briefed to senior government decisionmakers well in advance of events."

Iraq Study Group Report: On December 6, 2006, the Iraq Study Group presented their report, which recommended both external and internal approaches for achieving positive progress in Iraq.  Among other approaches, the report suggested that the "United States should significantly increase the number of U.S. military personnel, including combat troops, imbedded in and supporting Iraqi Army units." However, this language is not specifically included in any of the report's 79 recommendations.  The ISG report mentioned a possible 10,000-20,000 troop increase for training but only until early 2008.  Co-chairman James Baker said that since "events in Iraq could overtake what we recommend...[members] believe that decisions should be made by our national leaders with some urgency." Upon receiving the report Bush told the group "we will take every proposal seriously, and we will act in a timely fashion."
Later in the day White House spokesman Tony Snow told CNN's Larry King that Bush was comparing recommendations "by the Iraq Study Group with pending studies by the Joint Chiefs of Staff and National Security Council." Once the review was finished, Snow believed that the President would be able to "announce a new way forward" in Iraq by the end of the year.

State Department: On December 11, 2006, Bush met with Senior State Department advisers (including Secretary of State Condoleezza Rice) "on how to shape U.S. policy in Iraq as part of Bush's mission to come up with a new strategy." He reiterated his intent to communicate that strategy to the nation before Christmas 2006, and said "There is no question we've got to make sure that the State Department and the Defense Department – the efforts and their recommendations are closely coordinated, so that when I do speak to the American people, they will know that I've listened to all aspects of government and that the way forward is the way forward to achieve our objective: to succeed in Iraq."

Experts: Later on December 11, 2006, Bush met "with a group of Iraqi experts, including historians and former generals, in the Oval Office." The Washington Post reported that among the panel of experts were retired four-star generals Barry McCaffrey, Wayne A. Downing, and John Keane; along with academics Stephen Biddle and Eliot Cohen, who panned the recommendations of the Iraq Study Group. The Post went on to say "The group disagreed on the key issue of whether to send more troops to Iraq, with retired Gen. John M. Keane arguing that several thousand additional soldiers could be used to improve security in Baghdad, and others expressing doubt about that proposal." The group also suggested Bush change personnel in his national security team. One panel member reported that "All of us said they have failed, that you need a new team." The President thanked the panel and told reporters "I appreciate the advice I got from those folks in the field. And that advice is ... an important component of putting together a new way forward in Iraq."
The CIA's top counterinsurgency experts conducted an assessment that found the presence of US forces was key to stability. Brett H. McGurk added that "when we have a presence we are able to help resolve local disputes before they get out of control, police illegal conduct by Iraqi forces, and ultimately help the Iraqis develop their own patterns of interaction."

Joint Chiefs: On December 13, 2006, Bush and Vice President Dick Cheney met with the members of the Joint Chiefs of Staff for "more than an hour," discussing different military options for Iraq. While "no dramatic proposals" were put forward, "a pragmatic assessment of what can and cannot be done by the military" was offered.
They did "not favor adding significant numbers of troops to Iraq" but saw "strengthening the Iraqi army as pivotal to achieving some degree of stability." They pressed for "greater U.S. effort on economic reconstruction and political reconciliation." They stressed the need for "employment programs, reconstruction and political reconciliation ... [as] key to pulling young men from the burgeoning militias." They said there was "no purely military solution for Iraq" and "without major progress on the political and economic fronts, the U.S.