ACADEMY STUDIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00530R000200170003-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 16
• Document Creation Date: December 27, 2016
• Document Release Date: January 16, 2013
• Sequence Number: 3
• Publication Date: December 7, 1988
• Content Type: REPORT

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Officers of the National Academy
Joseph L. Fisher, Chairman of the Board
Robert P. Biller, Vice Chairman
Ray Kline, President
Sheldon S. Cohen, Secretary
Anita Alpern, Treasurer
Academy Studies
Roger L. Sperry, Director
National Academy Panel on Intelligence Agency Personnel Systems
Philip A. Odeen) Chair
Honorable Julius W. Becton
James Colvard, Ph.D.
Admiral Bobby R. Inman
Honorable Carol Laise
Fred Meuter, Jr.
William G. Miller
Project Staff
Don I. Wortman, Project Director
Frank A. Yeager, Deputy Project Director
Sammie Bear, Executive Assistant
John M. Clarke, Research Associate
Joseph W. Howe, Research Associate
Elaine L. Orr, Writer/Editor
Donald E. Smith, Research Associate
Winifred Steinbach, Secretary
John R. Wilson, Research Associate
James Y. Sweet, Research Associate
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As required in the Intelligence Authorization Act for Fiscal
Year 1988, the National Academy of Public Administration is
submitting to Congress the final report on its study of the
Intelligence Community's personnel systems.
The study was lead by an Academy panel of senior executives
with experience in national security and managing large
organizations.
The objective is to provide the congressional intelligence
committees with findings and recommendations to help them and the
Intelligence Community improve human resources management. This
analysis is timely as these agencies prepare to fulfill their
complex missions in the face of a changing workforce and increased
private sector competition for talented people.
Throughout the study, the panel and its project staff received
the cooperation and assistance of many men and women within the
Intelligence Community, and the Academy appreciates their support.
Ray Kline
President
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 -I?
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In the 1988 Intelligence Authorization Act, Congress directed
that the National Academy of Public Administration (NAPA) perform
a comprehensive review and comparative analysis of the civilian
personnel management and compensation systems of agencies in the
Intelligence Community (IC). In requiring this study, Congress
emphasized the importance to national security of effective human
resource management (HRM) within the intelligence agencies and
further highlighted its recognition of the many unique aspects of
the intelligence work environment.
The breadth and complexity of global issues with major
national security implications have grown in the past decade.
Issues such as arms control verification, narcotics traffic,
terrorism and international capital flows are now high on the
agenda of U.S. policy makers, resulting in a demand for new types
of intelligence. Changes in intelligence collection techniques
over the past 20 years have dictated new and highly technical
skills. At the same time, the intelligence agencies had to
accommodate large fluctuations in staffing levels. Substantial
reductions between 1969 - 1979 were followed by major rebuilding
in the 1980s. The U.S. intelligence agencies have responded well
to these challenges and in most cases have maintained and further
developed a multi-skilled, technologically adept workforce.
As the intelligence agencies approach the 1990s, neither they
nor the NAPA panel expect growth rates as in the 1980s. Instead,
staffing levels will probably hold steady or be reduced. The U.S.
labor force will also grow at a slower rate, and the number of
young people entering the workforce will decline relatively and
absolutely. While this might imply that the Intelligence
Community will not be disadvantaged by the diminishing supply of
entry-level workers, this is not the case. In fact, at the same
time that jobs are requiring higher levels of math, science and
literacy than ever before, employers are becoming increasingly
dependent on workers who often receive the poorest education. The
prognosis for a match between the increasing skill demands of the
intelligence agencies and the crop of future workers is poor.
Given the challenge posed by these labor force projections, the
intelligence agencies must develop even more resourceful and
innovative responses to ensure continued ability to staff
positions with the required skill mix.
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Flexible Authorities Make the Difference
The intelligence agencies with the most flexible appointment
and compensation authorities -- CIA, NSA and, beginning in 1984, DIA
-- demonstrated the greatest ability to recruit and retain a quality
workforce in the 1980s, a time of rapid agency growth coupled with
extensive marketplace competition for skills most crucial to
intelligence agency needs. The panel believes flexibility is
fundamental to the ability of the intelligence agencies to
successfully carry out their unique missions, and urges that
Congress continue to provide authorities that permit flexible
personnel policies.
To further equip the intelligence agencies to meet the
workforce challenges of the coming decade, the panel recommends that
Congress grant additional personnel authorities.
- All intelligence agencies should have the authority, similar
to that of CIA, to select, appoint and compensate staff such
that they can attract and retain a high quality workforce.
The panel does not believe the Department of State needs
additional authorities, but rather must create incentives to
make service in its Bureau of Intelligence and Research more
career-enhancing for foreign service officers.
- In the case of the FBI, whose employees move in and out of
counterintelligence work, these authorities should be
extended to the entire bureau.
Compensation authorities should be broad enough to permit
the intelligence agencies to establish and pay domestic
local pay premiums for those employees who are moved at the
order of the government. The panel cites the approval of a
recent demonstration project for the FBI in the metropolitan
New York area as an example of what can be done in an
extreme situation.
NSA should be granted authority to test its proposed revised
compensation systems. Within these proposals, the panel
endorses recruitment, performance and relocation bonuses,
but not retention bonuses for individuals.
The director of central intelligence should be permitted to
bring all intelligence agencies' allowances and benefits
into alignment with those the secretary of state establishes
on behalf of the Foreign Service.
The intelligence agencies should be granted exemptions from
those portions of the Government Employees Training Act that
restrict certain expenditures for external training. Should
a government-wide exemption not be proposed early in the
101st Congress, the agencies should seek a presidential
exemption, as permitted in Title 5, U.S.C., section 4102.
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- The head of each intelligence agency should be authorized to
issue dual compensation waivers for a limited number of
individuals who possess specific skill needs.
- Heads of IC agencies should be authorized to approve early
optional retirement when it is necessary to reduce strengths
or when overages occur in specific occupational skills.
- The panel believes the IC agencies should have the kind of
reciprocity -- i.e. ability for a tenured employee to
transfer from an excepted or exempt personnel system to the
competitive Civil Service -- with the Civil Service
personnel system that other federal, independent personnel
systems have. The panel recomends that the IC Staff, on
behalf of the agencies, research this possibility.
The military department intelligence components have received
authority to implement additional authorities, similar to those
granted DIA. The panel strongly supports the timely implementation
of the Civilian Intelligence Personnel Management system, which
unfortunately has been delayed to January 1989, and even then will
not be fully implemented by all military departments.
One area in which the agencies did not take full advantage of
their more flexible personnel authorities was in recruiting members
of minority groups and, in some agencies, women. While the panel
recognizes that many of the occupations in the intelligence agencies
are not those. that have traditionally been filled with large number
of women and members of minority groups, some agencies clearly did
better than others. The panel believes that the intelligence
agencies' top management did not focus on equal employment issues to
the same extent as other federal agencies did in the 1980s. The
agencies now describe recruiting programs that indicate strong top
management interest and active levels of effort. The panel firmly
believes that intelligence agency equal employment efforts need
strong commitment from the agency head and senior staff, and should
be an integral part of overall workforce management -- recruiting,
training, career development and succession planning.
Within the parameters of its personnel authorities, the CIA has
designed a flexible benefits program which it believes will enable
it to better meet the needs of an increasingly diverse workforce.
The panel fully endorses implementation of the proposed benefits
program, with a caution that the CIA carefully monitor the cost
implications of changes to health benefits. The panel recommends
that the CIA supply information on the results of this to the Office
of Personnel Management and Congress, for their use in evaluating
similar proposals from other agencies and determining whether the
flexible benefits can be extended throughout the federal government.
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Better Coordination Will Yield Enhanced Effectiveness
The panel sees a clear need for enhanced coordination of human
resource management (HRM) policies, and recommends that the IC
establish a Senior Coordinating Group (SCG), composed of IC
employees at the director of personnel level or higher. The panel
envisions that this group would report at a minimum semi-annually to
an NFIC-like committee composed of the heads of CIA, NSA, DIA, and
the intelligence components of the military departments, the FBI and
the State Department.
The panel envisions the SCG would coordinate a number of HRM
efforts, and that it would establish an annual agenda to review all
aspects of HRM. Specific topics to include are:
- Recruitment, such that -- mindful of Privacy Act
implications -- the agencies share information on good
candidates when one agency cannot follow through to hire a
potential recruit.
- Training, so that smaller intelligence agencies have better
access to the programs of larger agencies, and there is less
potential for duplication.
Basic ordering contracts so agencies can attain more
efficient delivery of eternal training. DIA is examining
this now, and this has the potential for Community-wide use.
- Compensation rate comparisons, especially as they pertain to
overseas pay. Equity and good management require that
employees performing like duties under comparable
circumstances be comparably compensated. (This NAPA panel
will examine this issue further, particularly in the case of
overseas pay, and will issue a separate report to Congress.)
- Shared information on involuntary removal cases -- being
mindful of employee rights of privacy -- with the other
agencies of the IC, perhaps in coordination with the IC
Staff. The other agencies would have an opportunity to do
their own risk assessment, as may be applicable.
Placing surplus employees with other IC agencies when one
agency is faced with a staffing level reduction or shift in
skill needs.
Developing outplacement programs for those agencies which do
not have them or which have only limited programs. Other
agencies can look to the CIA and the Department of State, as
well as the private sector, for examples.
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Better Coordination Will Yield Enhanced Accountability
A further role, perhaps the more important one, for the Senior
Coordinating Group pertains to coordinating legislative proposals
before they are delivered to Congress. Such an inter-agency group
would help ensure an integrated approach toward proposed HRM changes
within the IC. At the same time, this would leave responsibility
for assessing the potential impacts of change with the intelligence
agencies, rather than forcing congressional committees to try to
assess the implications of proposals.
Further, the panel recommends that the intelligence agencies
work to apprise congressional committees of major proposals as they
are developed. The panel emphasizes that this communication should
be at the broad, policy level. The panel sees no reason for
congressional committees to become involved in most aspects of
agency management.
The objective is to strike a balance between appropriate
communication and reporting mechanisms, so that Congress has the
information it needs to perform effective oversight and the agencies
have the freedom they need to operate within the parameters of their
statutes and management structures.
While the panel favors coordinated change, it cautions that the
Congress not regard uniformity as an end. The intelligence agencies
are, in varying degrees, parts of larger organizations with
different cultures, authorizing committee jurisdictions and
missions. Uniformity would be difficult to achieve and -- given the
diverse missions and agency structures -- would thwart innovation.
Also, there is clear evidence that the federal government is moving
away from the concept of uniformity, as reflected in the Office of
Personnel Management's advocacy of decentralized approaches to
personnel management and many demonstration projects.
A final area, one which Congress has paid particular attention
to in recent years, is counterintelligence and the role of agency
personnel security programs in safeguarding national security
information. The panel notes that agencies operate under similar
statutes with respect to sensitive compartmented information, and
they are covered by a DCI directive on security procedures.
However, practices vary greatly, as does the extent to which
counterintelligence issues are woven into agency training and career
development programs. The panel strongly supports the Intelligence
Community's efforts to upgrade personnel security and more fully
integrate it into all aspects of human resource management.
The panel commends the individual agencies and Congress for
their efforts to anticipate workforce changes and develop HRM
systems to help address issues which arise. The panel is confident
that the IC agencies and Congress can work together to ensure the
flexibilities that will produce an intelligence workforce able to
fulfill the required missions of the 1990s and beyond.
389/ December 6, 1988
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VOLUME ONE
Table of Contents
Preface
Executive Summary
Table of Contents
List of Acronyms
Chapter One: Introduction
I. Changing Functions Reflect Breadth of Missions
II. History of Different Treatment of Intelligence Agencies
A. Personnel Systems Reflect Special Circumstances
III. Observations on Counterintelligence
IV . Value of Flexible Human Resource Management Approach
Chapter Two: Changing Workforce Will Alter World of Work
I. Who Will Work in the Coming Decade
A. Basic Demographic Projections
B. Expected Impact of Change on the Federal Workforce
II. Availability of New Workers
A. Education Preparation
B. Higher Education Trends and Job Requirements
C. Growth in Occupations Requiring Advanced Degrees
III. Changing Values Associated with Work
IV. The Workplace Responds
A. Private Sector Response
B. Federal Response
C. Responses Within the Intelligence Community
V. Conclusions: Changing Workforce and Intelligence Agencies
References for Chapter Two
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Chapter Three: Hiring and Keeping the Best Staff
I. Impact of Changing Authorization Levels
Conclusions and Recommendations: Changing Authorization Levels
II. Recruiting the Best and the Brightest
A. Varying Success for Critical Skill Recruiting
Conclusions and Recommendations: Varying Success in
Critical Skill Recruiting
B. Continuing Difficulty Predicted
Conclusions and Recommendations: Continuing Difficulty
Predicted
C. Military Intelligence Components: Greater Hiring Difficulty
Conclusions and Recommendations: Military Intelligence Hiring
D. Predicted Changes to Agency Skill Needs
E. Recruitment Coordination Lacking
Conclusions and Recommendations: Recruitment Coordination
III. Impact of Personnel Security Requirements on Recruiting
Conclusions and Recommendations: Personnel Security
IV. Retaining Talented Staff
Conclusions and Recommendations: Retaining Talented Staff
Chapter Four: Investing in the Intelligence Community Workforce
I. Training for Mission Accomplishment
A. Different Levels of Effort
B. Intelligence Community Cooperation on Training
C. Agency Assessments of Training Programs
D. Agencies Looking Ahead
Conclusions and Recommendations: Training for Mission
Accomplishment
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II. Career Development of Intelligence Community Staff
A. Amount Varies Among Agencies
B. Relation of Career Development and Agency Planning
C. How the Agencies are Looking Ahead
Conclusions and Recommendations: Career Development
III. Staffing Reductions and Outplacement: Ensuring the Investment
is With the Right People
A. Staff Reductions
B. Removal Authorities
C. Outplacement Programs
Conclusions and Recommendations: Staffing Reductions and
Outplacement: Ensuring the Investment is With the Right People
Chapter Five: Creating a More Diverse Workforce
I. Marked Variations in Workforce Profiles
II. Recruitment Efforts
Conclusions: Recruitment Efforts
III. Working Within the Heterogenous Workforce
A. Promoting and Retaining Staff
B. Preparing the Workplace to Deal with Differences
Conclusions: Working Within the Heterogeneous Workplace
IV. What the Future Holds
,Conclusions and Recommendations: Creating a More
Diverse Workforce
Chapter Six: Compensation Systems for the Next Century
I. IC Strategies to Cope with a Stagnating General Schedule
A. Intelligence Agency Independence from General Schedule
xiii
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STAT
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Chapter Seven: Coordinating Human Resource Policy
I. Congressional Concern on Lack of Coordination
II. Framework for Coordination
III. Possible Options for Coordination
Option 1: Agency Comparative Analysis of
Legislative Proposals for HRM Change
Option 2: Senior Coordinating Group
Option 3: DCI Expanded Leadership
III. Panel Preference for Senior Coordinating Group
Chapter Eight: Managing the Intelligence Workforce
for the 1990s and Beyond
I. Flexibility and Strategic Planning
II. From Flexibility to Enhanced Productivity
III. Support for Appropriate Rates of Pay
IV. With Flexibility Comes Accountability
Attachment A Biographies of NAPA Panel and Staff
Attachment B List of All Report Recommendations
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Appendixes
A. Scope and Methodology
B. Intelligence Agency Compensation Programs
C. The Central Intelligence Agency Flexible Benefits Proposal
D. Compensation Experiences of Some Other Organizations
E. Agency Removal Authorities, Staff Reduction Policies and
Outplacement Programs
F. Agency Staffing Programs
G. Impact of Personnel Security on Recruitment
H. Agency Efforts to Create a Diverse Workforce
I. Agency Training and Career Development Programs
J. Summary of Employment-Related Restrictions on IC Personnel
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List of Acronyms
ACTEDS Army Civilian Training, Education and Development System
CIA Central Intelligence Agency
CIARDS Central Intelligance Agency Retirement Disability System
CIPMS Civilian Intelligence Personnel Management System
CSRA Civil Service Reform Act
CSRS Civil Service Retirement System
CSS Central Security Service
DCI Director of Central Intelligence
DIA Defense Intelligence Agency
DIC Defense Intelligence College
DISCAS Defense Intelligence Special Career Automated System
DOD Department of Defense
DOE Department of Energy
FBI Federal Bureau of Investigation
FCI Forein Counterintelligence
FEGLI Federal Employees Group Life Insurance
FEHBP Federal Employees Health Benefits Program
FERS Federal Employees Retirement System
FES Factor Evaluation System
FS Foreign Service
FSI Foreign Service Institute
GAO General Accounting Office
GETA Government Employees Training Act
GS General Schedule
HPSCI House Permanent Select Committee on Intelligence
HRM Human Resources Management
HUMINT Human Intelligence
IC Intelligence Community
ICDP Individual Career Development Plan
ICS Intelligence Community Staff
INR Bureau of Intelligence and Research
MSPB Merit Systems Protection Board
NCS National Cryptologic School
NFIC National Foreign Intelligence Committee
NFIP National Foreign Intelligence Program
NSA National Security Agency
OPM Office of Personnel Management
OTE Office of Training and Education (CIA)
PATCO Professtional/Administrative/Technical/Clerical/Other
RIF Reduction in Force
SCI Sensitive Compartmented Information
SSCI Senate Select Committee on Intelligence
TPF&C Towers, Perrin, Forster & Crosby
U.S.C. United States Code
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