SSCI HEARING- 23 JULY 1986

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88-01192R000100020001-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 27, 2016
• Document Release Date: November 19, 2012
• Sequence Number: 1
• Publication Date: July 23, 1986
• Content Type: MEMO

Declassified in Part - Sanitized Copy Approved for Release 2012/11/19: CIA-RDP88-01192R000100020001-1
?~- 3249 /7
23 July 1986
MEMORANDUM FOR: Executive Director
Deputy Director for Administration
Deputy Director for Intelligence f~
Deputy Director for Operations
Deputy Director for. Science and Technology
Director of Personnel
FROM: Director of Central Intelligence
SUBJECT: SSCI Hearing - 23 July 1986
Attached is the statement I made today before the SSCI on personnel
management.
Y want to move out on this immediately. You should begin now to
articulate and schedule the steps I said we are going to take.
William J. Casey
Attachment:
As stated
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 r INAL
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DCI TESTIMONY
SENATE SELECT COMMITTEE ON INTELLIGENCE
23 JULY 1986
CIA PERSONNEL MANAGEMENT
STAT
IT IS A PLEASURE FOR US TO BE HERE TODAY TO TALK ABOUT
ASPECTS OF PERSONNEL MANAGEMENT IN THE INTELLIGENCE COMMUNITY.
DIRECTOR FOR ADMINISTRATION FOR NSA, AND SECRETARY MORTON
ABRAMOWITZ FOR INR WILL ADDRESS PERSONNEL NEEDS AND INITIATIVES
IN THEIR ORGANIZATIONS.' I WILL COMMENT GENERALLY ON THE COMMUNITY
AND ADDRESS DEVELOPMENTS IN CIA MORE SPECIFICALLY. IN AN AGE
OF HIGH TECHNOLOGY, IT IS EASY TO LOSE TRACK OF THE FACT THAT
INTELLIGENCE IS A MANPOWER INTENSIVE BUSINESS.
EXECUTIVE DIRECTOR OF UTA,~ , DEPUTY
WHEN _1 'CAME TO THIS JOB I FOUND AN ENTHUSIASTIC, DEDICATED
AND, ABOVE ALL, HIGHLY TALENTED WORKFORCE. THEY WERE STRETCHED
DANGEROUSLY THIN FROM THE CUTS OF THE LATE 1970s, BUT THE SENSE
OF DAILY CHALLENGE-AND FULFILLMENT THEY GOT FROM THEIR WORK WAS
AN INSPIRATION.- WITH YUUR-SUPPORT, THEIR RANKS HAVE BEEN
REBUILT AND THEY HAVE OBTAINED THE RESOURCES THEY NEEDED AND
DESERVED.
OUR PERSONNEL SYSTEM HAS SERVED US 'WELL AND HAS MANY
STRENGTHS. IT ACCOMPLISHES OUR MOST FUNDAMENTAL GOAL`,------
DEVELOPING PEOPLE WHO ARE EXPERTS IN THEIR FIELDS AND DEEPLY
COMMITTED TO OUR MISSION. BY AND LARGE OUR EMPLOYEES SAY
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OUR PERSONNEL SYSTEM IS FAIR. EACH INDIVIDUAL CAN MAKE,A
DIFFERENCE AND GOOD PERFORMANCE IS REWARDED. TODAY, WE ARE
FOCUSING ON MAKING OUR MIX OF TALENT AND EXPERIENCE MESH BETTER
WITH THE LANGUAGES AND THE CULTURES AND THE NATURE OF THE
PROBLEMS AND THREATS WE MUST DEAL WITH.
THE WORLD IS CHANGING. WE 'NEED TO CHANGE WITH IT.
WE MUST SEE THAT OUR INTELLIGENCE COMMUNITY DOES NOT SUFFER
THE MIDDLE AGE MALAISE THAT MANY ORGANIZATIONS EXPERIENCE.
WE MUST ANTICIPATE KEY FORCES WHICH WILL SHAPE OUR PERSONNEL
NEEDS FOR THE FUTURE.
-- WE NEED A LARGER PERCENTAGE OF-EXPERTS IN OUR
WORK FORCE, EXPERTS WHO HAVE HIGHLY MARKETABLE SKILLS ON
THE OUTSIDE.
-- WE FACE INTENSE COMPETITION FROM THE PRIVATE
SECTOR, AND PARTICULARLY FROM BELTWAY CORPORATIONS WITH WHOM
.WE DO BUSINESS AND WHO INCREASINGLY CAN ATTRACT OUR PEOPLE.
-- THE RATE OF. CHANGE IN SOME SKILL AREAS IS SO
HIGH THAT CONSTANT, CONTINUING RE-EDUCATION IS IMPERATIVE.
-- WE SEE INCREASING NUMBERS OF VERY TALENTED BUT
INEXPERIENCED AND SOMETIMES IMMATURE YOUNG PEOPLE. THE LACK
OF MILITARY EXPERIENCE IN OUR RECRUITS., FOR EXAMPLE, !-SHOWS*
-- TANDEM COUPLES AND SINGLE-PARENT FAMILIES ARE A
FACT OF LIFE. WE MUST ADJUST TO THEM OR WATCH OUR RECRUITMENT
PROBLEM GROW.
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TODAY WE FIND MORE AREAS DENIED TO US. WE HAVE TO COPE
WITH RELATIVELY NEW AND RAPIDLY INTENSIFYING THREATS OF TERRORISM,
NARCOTICS SMUGGLING, ARMS TRAFFICKING, INSURGENCIES AND COUNTER-
INSURGENCIES. THIS IS HEAVILY CONCENTRATED IN LATIN AMERICA,
THE MIDDLE EAST, THE INDIAN SUBCONTINENT, SOUTHERN AFRICA, AND
THE GREAT PACIFIC ARENA. HERE WE ARE REQUIRED TO WORK WITH
LANGUAGES AND CULTURES WHICH UNTIL RECENTLY OCCUPIED ONLY A
RELATIVELY SMALL PORTION OF OUR PEOPLE. WE MAY WELL BE DENIED
ACCESS TO ' ST I Lt OTHER- AREAS.
THE TERRORISTS AND SOME OF THESE OTHER THREATS HAVE
BURGEONED SO RAPIDLY THAT WE CAN'T AFFORD FOUR TO FIVE YEARS
TO DEVELOP YOUNG OFFICERS TO HELP US COPE WITH THEM. TO MEET
THIS NEW CHALLENGE, WE ARE REACHING-OUT TO RECRUIT, TRAIN AND
USE MORE PEOPLE WHO-BRING WITH THEM THE LINGUISTIC AND CULTURAL
APTITUDES RELEVANT TO THESE NEW THREATS. WE ARE REACHING OUT
FOR PEOPLE WHO HAVE THE BACKGROUND AND EXPERIENCE TO SUCCESSFULLY
LIVE, VISIT OR TRAVEL IN AREAS IN WHICH WE HAVE NOT HAD TO BE
SO ACTIVE. IN EARLIER YEARS. FOR A BROADER BLEND OF PEOPLE, WE
ARE REACHING OUT FOR PEOPLE TEN TO FIFTEEN YEARS OLDER THAN
THOSE WE HAVE TRADITIONALLY SOUGHT TO BRING ON DUTY. THIS
SHIFTING OF. GEARS IS URGENT AND CRITICAL. IT CALLS FOR NEW
DEPARTURES AND BOLD INNOVATIONS IN OUR RECRUITING, TRAINING,
COMPENSATION, AND GENERAL PERSONNEL MANAGEMENT.
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HISTORICALLY, EVEN WITH THE-SPECIAL AUTHORITIES GRANTED
THE-DIRECTOR OF CENTRAL INTELLIGENCE BYLAW, WE HAVE GENERALLY
WORKED WITHIN THE BROAD FRAMEWORK OF THE-OVERALL FEDERAL
PERSONNEL STRUCTURE. THE PRESIDENT HAS FOUND THE GOVERNMENT I.S
PRESENT COMPENSATION SYSTEM INFLEXIBLE AND OUT OF DATE.' AS
YOU KNOW, THE OFFICE OF PERSONNEL MANAGEMENT JUST FORWARDED
TO THE CONGRESS MAJOR PROPOSALS FOR SIMPLIFYING THE FEDERAL
PERSONNEL SYSTEM. WE TOO BELIEVE IT IS TIME FOR CHANGE. WE
ARE EXPERIENCING SEVERAL PROBLEMS:
-- TODAY'S SYSTEM DOESN'T FACILITATE LATERAL ENTRY.
-- WE CANNOT ADJUST BENEFITS TO SUIT EMPLOYEE AGE
OR CIRCUMSTANCES.
-- OUR ABILITY TO REWARD PERFORMANCE IS NOT NEARLY
SO WELL STRUCTURED AND DEVELOPED AS OUR ABILITY TO REWARD
LONGEVITY.
-- THE PROCESS RELATING SALARY AND BENEFIT STRUCTURE
-TO -MARKET- FORCES (PARTICULARLY IN HIGH-DEMAND;_SPEC_IALIZED7
SKILL AREAS) IS PONDEROUS.
WE HAVE ALREADY BEGUN THE PROCESS OF ADJUSTING OUR
COMPENSATION SYSTEM TO MEET THE CHALLENGES WE FACE. WE ARE
ALREADY INTRODUCING INNOVATIONS INCLUDING:
-- SPECIAL AGENCY-SPECIFIC PAY SCHEDULES FOR
SCIENTISTS, ADP PROFESSIONALS, ENGINEERS, AND MEDICAL
OFFICERS;
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-- A PAY BANDING EXPERIMENT IN OUR OFFICE OF
COMMUNICATIONS;
-- A NEW SECRETARIAL. CAREER AND PAY SYSTEM WITH
FOUR BROAD PAY LEVELS, MODIFIED PAY FOR PERFORMANCE, JOB
ENRICHMENT AND SIGNIFICANTLY INCREASED TRAINING;
-- NON-SUPERVISORY SPECIALIST TRACKS FOR A LIMITED
NUMBER OF PROFESSIONS AND POSITIONS;
-- OVERSEAS PAY THAT IS 9.6% HIGHER THAN DOMESTIC;
AND
-- AN EMPLOYEE SPOUSE PROGRAM FACILITATING JOINT
ASSIGNMENTS AS WELL AS GUARANTEEING REEMPLOYMENT AT CURRENT
TRADE ON RETURN TO DUTY WHEN JOINT ASSIGNMENTS CANNOT BE
ARRANGED.
NOW LET ME TELL YOU SOME OF THE OTHER STEPS I BELIEVE
WE NEED..TO TAKE:
-- WE NEED TO ADJUST OUR PAY SYSTEM TO ACCOUNT FOR
THE PROBLEMS I ENUMERATED EARLIER, PARTICULARLY TO BETTER
RELATE PERFORMANCE AND COMPENSATION. WE NEED TO EXPAND OUR
EXPERIENCE WITH PAY BANDING IN THE OFFICE OF COMMUNICATIONS
AND OUR NEW SECRETARIAL CAREER SYSTEM TO MOST, PERHAPS ALL,
OF OUR WORK FORCE. (WE HAVE NOT HAD A CHANCE TO STUDY THE
NEW OPM PROPOSAL IN DETAIL, BUT WE BELIEVE MANY OF THEIR
IDEAS TO BE PARALLEL TO OURS.)
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-- WE NEED TO MAKE EXTENSIVE CHANGES IN OUR PERSONNEL
STRUCTURE TO ALLOW US TO MORE ADEQUATELY REWARD EXPERTS AS
OPPOSED TO MANAGERS. WE NEED TO PROVIDE A WAY FOR TECHNICAL
AND SUBSTANTIVE EXPERTS WHO DO NOT GO INTO MANAGEMENT TO
CONTINUE TO BE RECOGNIZED AND REWARDED SO THAT THEY STAY WITH
CIA AND HELP US WITH THE INCREASINGLY COMPLEX COLLECTION AND
ANALYTICAL PROBLEMS WE FACE-
-- WE NEED TO RETHINK THE CURRENT SET OF INCENTIVES,
ALLOWANCES, AND OTHER BENEFITS SO THAT WE CAN OFFER A BROAD,
FLEXIBLE COMPENSATION PACKAGE THAT RECOGNIZES THAT THE NEEDS
OF OUR EMPLOYEES VARY AT DIFFERENT STAGES OF THEIR LIVES AND
CAREERS.
-- WE NEED TO REFOCUS OUR TRAINING PROGRAMS AND
DEVOTE MORE OF OUR RESOURCES TO THEM, BOTH TO BRING NEW
EMPLOYEES UP TO SKILL AND MATURITY LEVELS THEY DO NOT HAVE
WHEN THEY JOIN US AND TO HELP MANY OF OUR EXPERIENCED PEOPLE
REFRESH THEIR SKILLS AND UPDATE THEIR KNOWLEDGE IN THEIR
FIELDS.
WE NEED TO TAKE FURTHER STEPS TO ENHANCE MANAGEMENT
AND LEADERSHIPS SKILLS OF THE PEOPLE ENTRUSTED WITH THESE.,
RESPONSIBILITIES. WE LONG AGO REALIZED-THAT IN MANY CASES
WE CANNOT PAY EMPLOYEES WHAT THEY MIGHT EARN IN THE PRIVATE
SECTOR. OUR ABILITY TO ATTRACT AND RETAIN PEOPLE RESTS
STRONGLY ON OUR ABILITY TO LEAD AND MANAGE THEM IN WAYS WHICH
CONSTANTLY REINFORCE THE EXCITEMENT AND CHALLENGE OF'OUR PROFESSION.
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THE CULTURE IN OUR INTELLIGENCE COMMUNITY HAS FOSTERED
OVER THE YEARS A LEVEL OF DEDICATION AND ENTHUSIASM WHICH
I' HAVE NOT SEEN IN ANY OTHER ORGANIZATION. EWE MUST SEE THAT
THIS SPIRIT IS SUSTAINED AND STRENGTHENED AS WE FACE THE
UNPRECEDENTED CHALLENGES I SET FORTH FOR YOU IN MY NATIONAL
INTELLIGENCE STRATEGY. OUR IMPORTANT AND EXCITING MISSION
ATTRACTS PEOPLE TO US. WE HAVE TO PROVIDE THE FRAMEWORK FOR
ACCOMPLISHMENT AND FULFILLMENT, AND RECOGNITION THAT KEEPS
THEII HERE? WE LOOK- FORWARD TO WORKING WITH YOU TO IMPROVE
THE MANAGEMENT OF OUR MOST IMPORTANT RESOURCE SO THAT WE CAN
CONTINUE TO PROVIDE OUR COUNTRY WITH THE BEST INTELLIGENCE
PROFESSIONALS IN THE WORLD.
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