LEADERSHIP AND MANAGEMENT IN THE AGENCY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90G01353R000500550001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 34
• Document Creation Date: December 27, 2016
• Document Release Date: July 5, 2012
• Sequence Number: 1
• Publication Date: February 1, 1988
• Content Type: MEMO

STAT
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OF-0023-88
1 February 1988
STAT
Deputy Director of Finance
SUBJECT: Leadership and Management in the Agency
1. I have read your memorandum with a good deal of interest. While
I will not pretend to know enough to respond to the customer-related
issues of intelligence, I will give you some of my thoughts about senior
officer development and "change." _
2. It seems to me that senior officer development within the Agency
is an issue that has "ebbed and flowed," most probably caused by
differing management styles and budgetary highs and lows. I asked myself
"what's broken" with each encounter of "we must do more to improve senior
officer development." In the early seventies, senior management sent me
to the Massachusetts Institute of Technology for a year of study in
management and systems core, courses. A program I found stimulating and
rewarding, in that I'd like to believe this year contributed a great deal
to what I have achieved. The management style during this period was to
send their future managers off to executive broadening of this ilk, which
I continue to support as an excellent venture. I am sure that during
this time we must have been on a budgetary high as this program is not
"cheap." Six future managers went off to various universities that
year. I'll leave it to you to determine if the right employees were
sent. I would be pleased to hear your views on this type of executive
development. The selection process, then, as well as now, perhaps, could
use some consideration.
3. Another area of executive broadening that also enjoys "highs and
lows" within the Agency is the "senior officer rotational"
program--whatever that might be. During Jack Blake's tenure as DDA, he
instituted an inter-directorate program that fell on hard times due to
lack of commitment by the office directors and was soon shelved. If we
cannot get a rotational program to work within a,Directorate then one has
to wonder if we can ever get a viable cross-directorate program working.
As a DDA officer, I continue to question why we only see officers coming
to the DDA and no DDA officers going into other directorates for
executive broadening. Perhaps I might not like the answer but I would
nevertheless like someone to take the time. As an example, I offer one
area to consider. Much of what goes on with our covert action efforts
centers around close and continual administrative support. I submit that
a strong DDA officer could at least be the deputy of a task force or more
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SUBJECT: Leadership and Management in the Agency
STAT
STAT
pointedly could have been Chief of Basel I There are others.
A serious Agency-wide rotational program would be a real plus. We might
also want to consider rotational assignments with industry. The military
had this program a few years ago; I'm not sure if this has continued. At
one time I had wanted a year with IBM or a bank. This experience would
have been a real plus for both myself and the Agency, however, as things
usually happen "the press of business" negated any consideration.
4. Being a "change agent" can be a difficult task and at times
hazardous to one's health. Yet, in the final analysis, fostering and
implementing change in the organization is the fun part of our jobs. You
mention "change of our control mechanisms to ensure quality, legal, and
other fundamental requirements continue to be met." I see steps being
taken to ensure that we will have the same and even better controls in an
electronic environment. I have far greater confidence that the "system"
can test that a specific document was approved by "James H. Taylor" than
relying on an officer being able to read a signature (yours is fine and
easy to read, other's not so). We must change to accept "electronic
signatures" for our financial transactions--we are now developing that
system. A piece of the total system will IOC summer 1988. This system
will place the entire operational accounting process in an electronic
environment (menu driven with electronic signatures). With proper
communication capability, the case officer could process their
accountings directly to Headquarters. This is part of Finance's long
range plan that was set into. motion in 1984. Logistics is also pushing
towards this electronic approval environment. In the future, the control
mechanisms must be tested differently by our auditors and finance
officers. More time, much more, must be spent testing each system's
internal controls. The approach we now employ (testing once a year or
every other year) will not suffice. There must evolve a continual
"testing" approach for our systems. A slice of each system must be
reviewed and tested monthly by system auditors and functional users. The
Audit Staff must have high level agency approval to run live data through
the system to see if the checks and balances (controls) desired by
management remain as originally designed and implemented. The Director
must have that assurance.
5. Sorry to be so tardy but hopefully this is the kind of feedback
you were looking for.
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SUBJECT: Leadership and Management in the Agency
STAT
DDA/ OF/ DD/ OF
(28Jan88)
Distribution:
Orig. - Addressee
4 Executive Registry
- D/OF Chrono
1 - OF Chrono
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Central Intelligence Agency
Washington, O.C. 20505
STAT
Senior Scientist Collection
Technology Group, ORD
STAT
I want to thank you for taking the time to
give me your thoughts on my paper on leadership
and management. I particularly liked the point to
the effect that ...a vision which does not
include the means for coping with those external
factors which directly affect the Agency is not
comprehensive enough," and I am going to figure
out how to word the paper to include this idea.
Thank you again for your comments. I'm happy you
were able to participate in our year long program.
cc: ER
EXDIR
James . Tay or
g 3
ER'0236'x-88
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 STAT
STAT
SUBJECT:, (optienoq
;`'ROUTING AND RECORD `SHEET
TO: (Officer designation, room' number, and
buiwirwt
Executive Director
7E12, Hqs
OFFICER'S
INITIALS
DATE
19. January 1988
COMMENTS (Number each comment to show from whom
to whom. Draw a fine across column after each comment.)
FORM um v1lEVlous
i ... - O...EDITIO U.S.aor.rnmmt Matins Office: lU5-4s4$34 5 53$
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NPIC/NEL/D-05/88
19 January 1988
DCI Seminar Participan
25X1
125X1
SUBJECT: Comments on Leadership and Management in the Agency
1. I enjoyed reading your paper and was encouraged that you support the
points raised in your paper. I also appreciate the fact that you took the
time to write them down, and that you. were willing to submit them for critique
by seminar participants.
2. First, I would like to say that the Agency is a great place to work -
exciting, challenging, and rewarding. My jobs within the Agency have put me
in contact with other government agencies, private corporations, and
universities, and I have yet to see a better place to work. We have the best
people, the best tools, and the best management.
3. But people, tools, and management are input items and don't
necessarily guarantee the best output,.i.e. intelligence products. In order
to continue to produce the best intelligence, we must continually look for
ways to improve the quality of our output and our methods of generating and
distributing our output. It is in the spirit of making the best better and
keeping us the best that I provide the following comments divided into six
topics:
Doing More, Better, Faster
The Information Technology Explosion
Customer Service
The Control Process
People - Motivation, Loyalty, and Performance
- Cooperation and Teamwork
A Vision for the Future.
4. I thank you for inviting these comments.
Attachment:
. Comments on Leadership and Management in the Agency
UNCLASSIFIED Upon Removal
of Attachment
S T
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Comments on Leadership and Management in the Agency
Doing More, Better, Faster or Quantity, Quality, Quickly
The Agency is in the business of.producing foreign intelligence and we
will have to do more, better, faster if we are to. survive in this business.
We live in a volatile world of rapidly changing events, but have almost no
control over the pace of these events. NPIC, for example, is currently
reporting on about a dozen regional wars and armed conflicts spread throughout
the world, and each requires intense effort to satisfy customer's demands.
I believe we should place additional emphasis on producing intelligence
faster, assuming of course that more (quantity) and better (quality) are not
sacrificed. Our product, no matter how good, is worthless if we don't get it
to our customers in time for them to use it. The more time customers have
with our product, the better. For example, when National leaders are
responding to a regional crisis in some part of the world, time is of the
essence and they will need high quality intelligence quickly. Faster
reporting is an imperative not only for events like regional conflicts, but
for analytical estimates on National issues. We have no choice. That's just
the way the world is, especially in the intelligence business.
The production of foreign intelligence requires us to collect data,
analyze the data, and report to our customers regarding National issues and
the events that impact National issues. But the Agency must do more than
monitor and chronicle the history of world events. We must also excel at
anticipating National issues and the events that impact them. I believe that
we should place additional emphasis on improving our capability to anticipate.
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Anticipation in the foreign intelligence business is risky, and the supporting
technology is primitive. Our research and development offices should expand
the pursuit of the application of scientific methodology such as predictive
modeling to our intelligence problems, and this leads to my second topic.
The Information Technology Explosion
The Information Technology Explosion is a fact in business, in industry,
in government, and in our private lives. It is here and it will continue to
explode. The Agency must harness the explosion - not shy away from it.
Twenty-five percent of our resources dedicated to information technology may
be too low. Our computers and data processing, storage, and manipulation
systems are basic tools for the future. Information technology systems, I
believe, are the key to our ability to do more, better, faster in the
anticipation, monitoring, analyzing and reporting of National issues. And
information technology systems can be the answer to my specific concerns about
doing our work faster and improving our capability to anticipate.
Harnessing the information technology explosion requires a plan. It won't
just happen and we can waste a lot of money if we aren't careful. An
efficient approach, I think, includes the idea of_"build a little, test a
little".. Through the use of modular designs that are upgradable, and.the use
of commercial off-the-shelf technology where possible, we can get the biggest
bang for our buck. The technology for large ground based data processing
systems will be driven and controlled primarily by the commercial market. The
amount of money that the intelligence community could invest in this general
technology is small compared to the commercial market. We must preserve our
limited research and development funds for our own unique requirements so that
we don't duplicate what will be available to us on store shelves. In the
-field of information technology systems, the latest isn't necessarily the
best. I believe the Office of Information Technology and the DDS&T are
jointly going to have to work this one out - and prepare a plan.
2
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Customer Service
The concept of customer service is one with which I strongly agree. The
.Agency is a service organization. Our people, at all levels, can provide
.improved products when they remain close to their customers. I was somewhat
surprised that you felt you had to convince us of that concept. In my
opinion, we should stop debating the merits of high quality customer service
and, as senior managers, start demanding it of our people. Most Agency
officers probably think of themselves as customer oriented, but that does not
necessarily mean they provide high quality customer service. It is up to us
as senior Agency managers to see that high ualit
customer service becomes a
y
part of our work ethic.
The Control Process
Your comment about internal customers (each of us as part of a continuum)
puts a satisfying positive perspective on much of our support work. However,
this continuum can degenerate into high internal transaction costs when our
control mechanisms dominate the intelligence production process. For example,
by the time many of our creative ideas are scrutinized by lawyers, ADP control
officers, security officers, contracting officers, procurement officers,
finance officers, auditors, inspectors, configuration management officers,
wage and classification inspectors, personnel officers, review panels,
oversight panels, and supervisors, our enthusiasm and creativity have been
buried. I would like to emphasize that when dealing with individual people in
the control process, most are extremely professional and try to be helpful.
But the internal transaction process in its totality can be debilitating to
the point of paralysis. I think we can do something to try to improve the
process. For example, can we provide relief from some of the controls for
some parts of the Agency? Are any controls applied to the whole Agency that
only need to be applied to covert action units? Why can't support officers
complete the required paperwork and forms with or for the customer? Why can't
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we try some experiments where we relieve or modify the control mechanisms for
some Agency units - such as one Office, Group, or Division? Can we delegate
some control mechanisms to the line managers and periodically audit the
manager's performance? Can we better train managers as to the legal limits of
their authority? Can we just plain eliminate some of the bureaucracy?
People -'Motivation, Loyalty, Performance
I believe one concept in your paper needs further emphasis - the critical
importance of people. You mention that our senior managers should demonstrate
an acceptance of the critical importance of people. But what do we do as an
Agency to assure strong, positive action that recognizes the critical
importance of people? How do we generate and sustain creativity, motivation,
excellence, professionalism, loyalty, and high performance in such a diverse
work force?
When we talk of producing intelligence, we have to focus on people. Our
people get the job done. Our people are our most important asset.
Information technology systems and other scientific tools are just that -
tools. People make the tools work. Ultimately, doing more, better, faster in
our anticipating, monitoring, analyzing, and reporting on National issues
depends upon our people. So any vision of our future must include the concept
of enhancing the motivation, loyalty, and performance of our people. For
example, have we done a cost benefit analysis or a risk assessment with
respect to the impact on the motivation, loyalty, and performance of our
people when we periodically interrogate them with a lie detector on a series
of subjects under a broad interpretation of the term "counterintelligence"?
I'm not against the polygraph. I believe entrant and certain employee
interrogations using the polygraph are a key aspect of our security program.
I do believe we are interrogating all of our people too often, over too wide a
range of issues, and in too belligerent a fashion. The negative impact of
employee interrogations is difficult to quantify and therefore easy to
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ignore. But based on my observations, frequent employee interrogations have a
negative impact on people, as well as on our recruitment of new people. And
to make matters worse, the confidentiality of the process is not very good. I
believe a fresh look is warranted - and not by a bunch of insiders.
People - Cooperation and Teamwork
Regardless of the issues we are addressing and regardless of the tools we
are using, we will provide a better intelligence product if we work together
as a team, both within and outside the Agency. I believe our Agency managers
.should take strong positive action to break down organizational barriers. We
are organized vertically, but we must learn to operate laterally. And the
example should start with the Office of the DCI with strong participation by
the Deputy Directors. Each of us at one time or another has adopted the
philosophy of "management by moats and castles". It is up to us to see that
this philosophy remains in the Dark Ages where it belongs. Our best products
come from cooperation and teamwork. Strong, aggressive leadership is always a
necessary ingredient in good management - but not elitism at the expense of
teamwork. A strong senior career service would go a long way towards
minimizing elitism and promoting teamwork. We need to break down Directorate
and Office barriers. I think a panel of Deputy Directors managing SIS careers
is a great idea. The panel would not only improve SIS career development but
should improve Deputy Director. communication as well. However, strong
management from the Office of the DCI is needed to-ma ke this work.
A Vision for the Future
I think a vision for the future has to include a better merging of all
sources of intelligence where reasonable security standards allow, in order to
better anticipate, monitor, analyze, and report on National issues. The INTS
(HUMINT, COMINT, IMINT, etc.). will need to be blended more than they are today
in all phases of the intelligence production process. The Counterterrorism
Center is a good start. We must continue to dry up the "moats" and demolish
the "castles" -- our survival depends on it.
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ORD-0001-88
?4 January 1988
MEMORANDUM FOR: Executive Director
'Senior Scientist
Collection Technology Group
Office of Research and Development, DS&T
SUBJECT: Comments on memo dated 19 Nov '87, on "Leadership and
Management in the Agency"
1. It was intellectually very stimulating to read and ponder about the
many issues addressed in the above referenced memorandum. It is always
beneficial to periodically step back and attempt to see a larger picture
which transcends the day to day concerns of any one component of the Agency.
2. The notion of having a vision of what the Agency should be was
particularly appealing. It formalizes the notion that an Agency employee
should have a sense of mission of the Agency of which he is a part; stated
differently, having a vision of the Agency's role implies that the employee
is not simply "holding a job" as one would in private industry, but is a
part of a dedicated corps of individuals who share a set of goals and
beliefs.
3. The thoughts in the above reference memo striked many resonant
chords and the temptation was great to comment at length on many different
issues, concurring with most of the views presented in that memo. Rather
than preaching to the choir, however, and realizing that the reader's time
is very precious, the comments below focus only on the small percentage of
issues about which this writer felt slightly differently.
25X1
ga:~) -,//-
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SUBJECT: Comments on Memo dated 19 Nov '87, on "Leadership and Management
in the Agency"
4. The attached comments are offered with considerable trepidation.
This writer is still "green behind the ears" in the Agency and, thus, runs
the risk of appearing presumptuous by professing to have formed opinions
based on relatively little exposure to the Agency. As such, the attached
comments may be totally without merit. Even so, the very lack of extensive
association with the Agency on the part of this writer may be responsible
for a, hopefully, different perspective here and there.
5. In attempting to state some of the views below, this memo may
appear to deviate from the party line. The intent is emphatically not to be
heretical, eccentric, or controversial; the intent is only to communicate a
few thoughts in the best democratic tradition in the hope that some of them
may contribute towards an even better vision of the Agency in the future.
a. Comments on A Vision of the Agency Is Role
Much has been written about the difficulties occasionally
associated with having an effective intelligence agency in an open
society.
One has the option of leaving such issues for the legislators to
debate, and assume the position that "legislators know best" and that
it is not for an employee of an intelligence agency to venture beyond
meeting the statement of his job description sheet.
This writer is diametrically opposed to this position for two
reasons:
1) Unlike a soldier in the military, an intelligence officer
should be expected to think, think, and think again before
proceeding with any recommendation, let alone any action. Part
of this thinking, in order to be effective, most include an
assessment of a multitude of issues which on the surface may
seem only peripherally relevant.
2) Legislators, in fact, do not necessarily "know best" by virtue
of having been elected to office. They know best only when
they have been informed well, and it is therefore appropriate
for the intelligence community to inform legislators to the
extent permitted by security considerations. There is a=sticky
issue here: since the Agency is not permitted to "lobby".,
Congress, it is a matter of personal integrity to determine
where "informing" ends and "lobbying" begins.
The earlier referenced memo appears to take the position;-. by
implication, that any vision of the Agency should restrict itself to
internal efficiency, effectiveness in meeting the needs of internal and
external customers; in short, internal excellence.
2
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SUBJECT: Comments on Memo dated 19 Nov '87, on "Leadership and Management
in the Agency"
While internal excellence is absolutely necessary, it is this
writer's opinion that a vision which does not include means for coping
with those external factors which directly affect the Agency is not
comprehensive enough. This is particularly so because this Agency,
more so than any intelligence Agency in the world, is subject to
extremely extensive external scrutiny by authorized legislators,
unauthorized legislators, both responsible and irresponsible news
media, and by just about every activist in the world. And unlike any
other intelligence agency (which can shield itself from this barrage of
intrusive and not always well intentioned scrutiny through some sort of
an Official Secrets Act), this Agency has to cope with such intrusive
scrutiny.
It is apparent these days that practically every U.S. citizen
considers himself qualified and having a constitutionally guaranteed
right to personally approve (or at least to pronounce judgment on)
every CIA activity. Also, the majority of the news media have
interpreted their duty to inform to include the right to inflame and
manipulate the opinion of the nonthinking populace. And the result is
that the Agency ends up being portrayed as a villain (or, at best, as
the "rogue elephant") without being able to say much beyond "no
comment".
This unfortunate predicament is not about to go away in the
foreseeable future and the vicious circle continues: an operation is
leaked to the press, the news media make a scandal out of it, the duly
manipulated public concurs, the Congress is pressured to "do
something", and additional restrictions are eventually imposed on the
Agency. The big loser from this exercise ends up being the Nation
itself.
The question is what can the Agency itself do about it? Given that
the Agency is legislatively precluded from trying to influence either
U.S. public opinion or to lobby the Congress, it may appear that there
is not much it can do on its own.
One area which could help a little, however, is the situation where
Agency personnel routinely visit U.S. colleges and universities for
recruitment and interviews. College students, no less so than the
general public, are singularly uninformed about the Agency's purpose,
history, integrity, high ethical standards, etc. Perhaps these
recruitment visits could be upgraded to include a professionally
conducted unclassified presentation of the Agency's side of the story
as part of the recruitment information "package". A lot of educated
individuals who may be influential in the future can be reached this
way every year.
3
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SUBJECT: Comments on Memo dated 19 Nov '87, on "Leadership and Management
in the Agency"
On a related note, perhaps the Office of Public Affairs could find
a way to be more sensitive to the P.R. aspects of its "no comment"
terse pronouncements. One could, for example, state to the news media
the same "no comment" message but in a more palatable fashion, such. as:
"if we were to deny all false accusations and have 'no comment' for the
valid accusations, then our foreign adversaries would be able to
readily infer what is false and what is not, and you wouldn't want us
to give an advantage to the adversary and betray the American Public's
trust in us, would you? So we say 'no comment', and we are sure that
you (the news media) and the American public are mature enough to
appreciate our reasons for so doing".
Stated differently, Public Affairs seems to make a virtue out of
being tight-lipped, and by so doing often antagonizes the news media
and the public. One can still be equally tight lipped, but explain the
reasons why, and in so doing obtain the high moral ground in dealings
with the media and the public. Somehow the public should be made to
understand that this Agency is in the business of serving the U.S.
public's own long term interests and that, therefore, the public itself
should be protective of the Agency's mission and operation. The
present adversarial relationship in a society with no Official Secrets
Act is very counterproductive.
b. Comments on the Role of the Agency as a Customer Support Entity
It is true that, since this Agency (as well as any other branch of
the Government for that matter) exists in order to provide a needed
function, one may see this Agency as existing only to serve the needs
of its special customers.
This writer is not too enamored to the use of the term "customer",
in this case, because of some of the term's'= connotations in the
commercial world which, when carried through to the Agency's context,
are patently inapplicable.
In particular, the "customer" is king in the commercial world, and
his will is by definition infallible. One refers to the "wisdom of the
market place" and to the "power of the purse"; in a sense, the slogan
that "the,c:ustomer is always right": is a commercial truism which says
that a product's intrinsic worth is irrelevant and that all that
matters is the product's appeal in the marketplace.
In the case of an intelligence Agency,: this writer feels that
consumerism has a distinct twist,. and a different term may perhaps be
less misinterpretable; specifically:
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SUBJECT: comments on memo dated 19 Nov '87, on "Leadership and Management
in the Agency"
1) An intelligence product is what it is, and it is irrelevant
what its "consumers" may want it to be beyond it being the
truth.
2) The expressed needs of an intelligence consumer do not and
should not constitute the only marching order for the Agency.
The intelligence consumer may not even be aware that he needs
to know more than the specific information that he asked for;
it is the job of an intelligence agency to assume the role of
surveying all possible threats and determining what other
information an intelligence, consumer actually needs to know,
whether he asked for it or not.
Stated differently, this Agency may need to be pro-active rather
than simply re-active to the expressed needs of its "customers".
Traditional "customer service" is a 9-5 job. Effective awareness
of all potential threats and tools at our disposal is a 24 hr/day job.
Perhaps this writer is reacting needlessly to the commercial
connotations of consumerism, however. After all, the earlier reference
memo seems to be perfectly aware of the special breed of consumerism
involved in Agency functions; as stated there, "it is like bringing
water to the horse; effective use of communications ....and perhaps
adding a sweetner.... might improve the odds that he would (drink)."
The only point being made here is that an Agency employee should
not be content to simply meet the stated requests of intelligence
consumers, but should assume the much more responsible task of
surveying the territory at large and determining what else he should do
to serve the unstated needs for meaningful intelligence of the Agency's
"consumers".
And, as for external intelligence consumers, so with internal
consumers of technical means for collecting intelligence. It is
natural that a nontechnically inclined collector of intelligence may
request "device A" because he is not aware that the newer "technique B"
may be more suitable to his needs. It is the job of the "technique and
device provider" to go beyond meeting his "customer's" stated desire;
he must take it upon himself to understand what the real problem is, to
assess the technical options, and then to present his "customer" with a
well-founded recommendation along with a few alternatives that the
customer may have never even conceived.
And this ties in with the separate issues of "which qualities
should the Agency look for in its cadre of employees", brought up in
the earlier referenced memo. This is discussed next.
5
SECRET
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SUBJECT: Comments on memo dated 19 Nov '87, on "Leadership and Management
in the Agency"
c. Comments on an Optimal Profile for Future Senior People
This writer has listened with great interest to a group
presentation by one of the Agency's psychologists on issues related to
the psychological evaluation of applicants.
It appears that the Agency does a very careful job of screening out
those individuals who are apt to cause harm or embarrassment to the
Agency.*
Over and above the task of identifying the undesirables, however,
there should be a means of identifying the particularly desirable
traits in prospective employees; this writer is not aware of any
psychological screening intended to identify particularly desirable
traits in an applicant. But then again, this is perhaps a judgment
which can only be made after an employee has been with the Agency for a
number of years, and others have had an opportunity to assess his
personal strengths and weaknesses in many situations and under various
conditions.
This writer will not resist the temptation to offer his two cents
worth on his pet list of desirable personality traits in an Agency
employee over and above demonstrated competence, impeccable
professional qualifications and a clean security bill of health.
1) High self esteem. An individual who think highly of him/her
self will consider it beneath his/her dignity to engage in
conduct that he/she would be ashamed of. Care must be taken,
however, to screen out the pathological manifestations of high
self esteem which border on self-righteous dogmatism.
A straight-laced fundamentalist may well pass all background
investigations with flying colors, but may lack the
*In this capacity, pre-employment screening has been clearly quite
successful as evidenced by the relatively small number of cases when
employees did end up causing "harm or embarrassment" to the Agency. Even
so, however, this writer feels that the psychological screening
questionnaire is not hard to fool; an applicant can make an effort to.answer
each question only after having asked himself "how would the personality I
am trying to appear to possess have answered this?" If reasonably
successful in that exercise, the enterprising applicant will not be summoned
for a personal interview with the staff psychologist thereby having fooled
that portion of the pre-employment screening.
6
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SUBJECT: Obmments on Memo dated 19 Nov '87, on "Leadership and Management
in the Agency"
intellectual breadth needed; and intellectual breadth is needed
to see beyond the straight confines of'a dogmatically defined
"right and proper".
2) A sense of humor and a good dose of humility to moderate the
high self esteem. Unlike artists who don't really have to work
with others, Agency employees have to continuously interface
with others in order to be effective. An arrogant or obnoxious
employee of the "Prima Donna" variety is not only unproductive,
but is a nuisance to others, too.
3) A sense of compassion and a sensitivity to human needs.
Assessing adversaries, and even just providing technical
support to internal customers, requires an understanding of
human needs and traits. In senior managerial positions within
the Agency, sensitivity to others' motivations and weaknesses
should be an absolute requirement much more so than in private
industry or in the rest of the Government; this is so partly
because of the high potential costs associated with a
terminated vengeful employee.
4) An activist involvement attitude. There should be no place in
the Agency for the "it is not my job, so therefore I won't do
it" attitude, nor for the "it is my job, but let somebody else
do it" attitude. An Agency employee should, ideally, have the
same personal interest in the effective operation of the Agency
as he/she would normally have for his/her own household.
The assignment of the task of determining the presence (or lack
thereof) of desirable personality traits in prospective Agency
employees is a little nebulous. Most of it is done by the interviewing
officers for whom the applicant would be working if hired; some of it
is done through the psychological screening"written questionnaire, but
only in the sense that negative traits trigger an alarm. None of it is
done by the polygraphers, especially the younger ones, who, like a
modern day Diogenes, seem bent upon looking for The Honest Person and
frown upon anybody else. Perhaps a personal interview with a qualified
psychologist may be appropriate for each applicant, rather than only
for those whose answers to the written questionnaire trigger such an
event. Granted, this implies hiring a few additional psychologists to
handle the workload; the benefits from such a program, though, should
more than offset the cost of the administration of the effort.
6. Conclusion
This paper makes no pretense of being complete or thorough. Each issue
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SUBJECT: Oomments on Memo dated 19 Nov 187, on "Leadership and Management
in the Agency"
addressed is complex enough to warrant considerably more thought than can be
summarized in this brief memo.
This paper was only meant to verbalize some opinions related to the
thoughtful "Leadership and Management in the Agency" memorandum that this
writer received a copy of.
8
SSCRE.T
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? to '2Qdn R7
19 November 1987.
25X1
25X1
MEMORANDUM FOR: Members of 1987 Running of DCI Seminar
FROM: Executive Director
SUBJECT: Leadership and Management in the Agency
1. For the past year now, we as a group in the DCI Seminar,have been
exposed to a number of management issues that have faced top Agency people
over the past few years. This, and a private-sector conference I recently
attended, got me thinking again about management and leadership issues of
the future within the Agency. Attached is a think-piece that I put together
as a result of this personal brainstorming.
2. As seminar participants, mid-level managers, and likely top managers
of the future, I would appreciate having your reactions--in person, via
telephone on AIM or in a memo--to the thoughts presented here. AIM user ID
is EXDIR, and the
address is 7E12 Headquarters.
UNCLASSIFIED Upon Removal
of Attachment
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Leadership and Management in the Agency
The Agency does many things well.- We properly pride ourselves on the
quality and objectivity of our analysis, the effectiveness and contribution
of our operations, our ability to do difficult tasks with minimal resources,
our technical creativity and achievement, and the high quality of our people.
We have earned the right to be proud of all of these aspects--and more.
But of course it isn't sufficient to be proud. We also have an obligation
to identify areas where we can do better. I see my responsibility as
talking to you about what we need to do to the whole Agency and the whole
intelligence process. For some, these ideas may be gospel. For others, the
worst-sort of heresy. My goal is to stimulate thinking and dialogue about
issues which need more consideration.
This paper argues three basic points:
That we need to exploit more fully the continuing information
technology revolution swirling around us, in"particular, the
potential for better customer service.
That we need to elaborate a model or vision of what. our agency
should be like in the future.
That all of us need more from our future senior leaders and that
getting more may require changes in the way our career service
operates.
S E C R E T
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The past decade has been characterized, for us no less than for others,
by accelerating change-change driven by an admixture of world developments,
evolving community and agency interdependence, growing reliance on
technology, and evolving customer demands...as well as by recognition of the
expanding mission for intelligence. That expanding mission itself has
resulted from a widening definition of national security and a growing
recognition that we are the government's preeminent mechanism for managing
and exploiting technology to meet many information needs. Our programs have
grown dramatically. Yet most of us are uncomfortable about whether the
increase in resources has kept pace with growing demand. Clearly, too, the
resources which have fueled our growth may be choked off. There is also a
question whether something other than continued increases in resources is
required.
So how do we manage ourselves in a world where customer demands are
evolving faster than our ability to respond, and where there is increased
competition for resources?
Up to now, our approach has been to do more, better, faster, and we have
been assisted in this by continuously evolving technology. Indeed, the
continuing computer-communication revolution (I call it the information
technology revolution) has directly facilitated 'more, better, and faster'
by allowing us to increase our productivity and the quality of our work.
All of us are familiar with Agency uses of information technology to
accomplish tasks more productively (CRAFT and ALLSTAR are but two that come
to mind) as well as to increase the quality of our work...(SAFE is an
excellent example).
But I believe it's time to consider adding new dimensions to the old
'more-better-faster' formula. We really have no choice if we hope to remain
vital and relevant. I believe the continuing revolution in information
technology, which continues to support our efforts to do more, better,
faster, also offers fundamental additional opportunities.
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We can even now see changes in the workplace driven mostly by advances
in information technology or by its wider availability. Networking large
numbers of people together through the use of computer technology is already
facilitating horizontal lines of communication and creating electronic work
groups in our organization. Such networking, in turn, has profound
implications for established notions of control over organizational
activity, for the flow of essential information, for our compartmentation
and security practices, and even...perhaps...for our reliance on traditional
hierarchically organized structures.
Some people even see a flattening of the typical pyramidal
organizational structure, with fewer layers of supervision and much larger
spans of control. Many private sector firms already exhibit this
phenomena. Will our continuing efforts to enable more of our employees to
communicate with each other by computer create similar pressures here? And
what effect will such pressures have on such things as the review process,
organizational span of control, and our traditional way of rewarding
performance through promotion to supervisory status?
The implications of such developments for our profession could be
enormous. Of equally profound impact in the private sector, though to a
much lesser extent in our profession so far, is an important evolution
toward the use of information technology tools to improve relationships
with, and support to, customers.
Some businesses are already using this concept to focus organizational
attention much more relentlessly on activities which may improve the quality
of service to their customers. A familiar example is the ?800? number
catalog operation which enables a salesperson, once you have dealt with the
company, to bring up details of previous transactions after you have given,
for example, your zip code and your last name. Cheap but powerful computer
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.technology allows a degree of personal attention to customers which wasn't
possible.in a paper-and-pencil world. Automatic teller machines provide
another good example of using computers to improve service and build
customer loyalty. Clearly, some see that computer technology can be used to
help bind customers to products... whether the product is something tangible
or merely a service.
Of course, there are differences between the kinds of customers we serve
and those served by the private sector. Our customers are the Government's
policymakers. Clearly, the service we offer is different too. For one
thing, it's 'free.' And, even then, our customers sometimes don't want it
(or won't accept it). Nevertheless, we owe it to ourselves to reflect much
more thoroughly than we have so far on the very powerful concepts of
customer support being explored in the private sector.
- Isn't it likely that focusing on customer support will itself cause
us to devote more attention to how we should be adapting to-changing
circumstances...in other words, customer support can be a powerful
agent for change.
- If we truly concentrated our attention on customer support, might we
not find ways to enhance our performance? One logical result of a
relentless focus on customer support is likely to be further
movement toward "customized' products.
Isn't our fundamental mission to provide high-quality intelligence
to our customers in the form most likely to get them to take proper
account of it? And aren't we obligated to devote continuing
systematic attention to improving our capability to accomplish this
goal?
Simply put, it's like bringing water to the horse...and perhaps adding a
sweetner. We still can't make the horse drink, but effective use of
interactive communications devices might improve the odds that he would.
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Serious managerial focus at all levels on effective customer support
could have other profound effects on the intelligence profession. Such a
focus might, for example, be used to help guide our investment strategy.
Why not, for starters, examine our annual investments in information
technology (which consumes some 20 to 25 percent of our budget) with an eye
to how they enhance service to customers?
Two other comments about the critical importance of focus on customer
service. One is that there. are outside customers, and there are inside
customers... and different sets of considerations apply. Obviously, our
first obligation is to policymakers outside the_Agency. But most of us
serve internal customers as well. Each of us is part of a continuum...a
process in which we provide-a service, product, or capability to others in
our profession, all of which eventually comes together to provide support to
a policymaker. Human-source collectors provide information to analysts.
The concept of customer service seems relevant-here ...as it is.in our S&T
and Support worlds. How many are aware, for example, that our Office of
Information Technology has formally entered into a dialogue with its
customers and established customer service standards? I believe that the
concept of customer service has relevance to.ever Agency component.
One last point I would like to make about the idea of customer service:
Not only would efforts to get closer to the customer and provide better
service probably improve such service, but it is also likely to generate
better feedback about what customers really want, thereby enabling us to
improve our performance. So the idea of customer service is circular:
Better service can create more information about what is wanted, which can
yield better service, and so on. Effective customer service might someday
generate continuous feedback about what is needed.
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In addition to making the concept of customer service more central to
all our decisions and processes, I believe it is important to articulate a
concept or model or vision of the entire intelligence process of the future,
a. vision that encompasses not only the notion of customer support but also
two other critical goals: compressing the time required to perform the
necessary aspects of the intelligence process, and finding ways to manage
the flow of information within our Agency so that we deal much more
precisely (and much more securely) with that information.
Why is such a vision desirable? Most obviously, if our people have an
overall idea of where we want to go, we will receive more useful ideas from
them for getting there. Just as important, if we have a well-defined idea
of what and where we want to be a decade hence, we can weigh the capability
of our future leaders to take us there. We could even help equip them to
take us there. And, as I have already suggested, such a vision could help
us measure current investment proposals against their future contribution.
It is little different than using a compass to determine whether we are
headed in the right direction.
I have tried above to explain why I believe that a vision of the future
needs to include the idea of customer support. But why should our model of
the future include the idea that we seek to compress the time required to
accomplish the intelligence process? Because this is the historical trend,
because technology will likely make it possible, and because the pressures
on decisionmakers to deal with many kinds of issues more quickly are likely
to continue to increase (thereby lessening the attention they can give to
each one). Let me mention a recent example with which some of you may be
familiar. As Soviet weapon systems have become more mobile, we have
recognized that holding these hostile mobile missile systems at risk may
require that we target collection systems; actually collect the relevant
information; process, interpret and analyze it; and communicate the
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results...all within minutes. Twenty years ago this chain of events would
have taken months to complete. Thirty years ago we couldn't do it at all.
Today, the task is well within the realm of possibility. There are similar
examples in every part of our profession.
Why should the concept include the idea of 'managing' the flow of
information within the Agency so that we deal much more 'precisely' with
it? I contend that we face an increasing need to find better ways to put
needed substantive information in only those hands that need it, for two
essential reasons: to reduce the information overload that all of us can
already feel, and to help us contain-and reduce the security challenge we
face as we make increasing volumes of highly classified information
available to more people.
If the Agency of the future will need to accomplish its work faster,,
with closer attention to customer needs, and with more success in putting
exactly the correct information in the right hands all of the time, then we
need to encourage thinking about overall Agency performance, not merely the
functioning of the individual parts. In particular, we will have to address
a number of critical questions over the next several years, none of which
are bound by organizational lines:
What will it mean to 'collocate people electronically'--people from
different disciplines, different components, and even different
agencies working on the same substantive issues--so that they can
quickly and thoroughly share information and argue about judgments?
- How do we ensure a uniformly high-quality product if production and
dissemination decisions are handled on a more decentralized basis
(and, therefore, by more people)?
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How can we systematically examine our investments in people or
programs in terms of how they help us meet our customer service and
other goals?
How can we reduce what Tom Peters calls 'internal transaction costs'
in our organization (i.e., the time all of us spend communicating
ineffectively with each other, assembling the information we need to
do our work, coordinating our views with other interested parties,
and so forth.) Some definitions of improved customer service
require drastic reductions in such costs, possibly requiring
fundamental organizational and other changes.
How must we change our control mechanisms (represented by our
supervisory layers, our inspectors, our lawyers, our finance and
logistics officers) to ensure that quality, legal and other
fundamental requirements continue to be met in a changed work.
environment?
Will we want to recast our personnel practices to provide greater
rewards to those who most contribute to the achievement of our
overall goals (not unlike the way we provide incentives for overseas
service today)? And how can we effectively measure employee
performance when less of what is produced goes through the
traditional chain of command before it is delivered?
How will we manage our communications and computer resources so that
the promise and potential of these new technologies does not create
a. security nightmare?
I think there is much to be said for elaborating a long-range vision of
our organizational future, and for considering ways to evaluate better the
relationship between today's decisions and such a vision. But even more
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important, now more than ever we need a more thoughtful and more broadly
accepted understanding of the qualities we seek in the Agency's future
senior leaders, and such an understanding should be an integral part of our
vision of the future. As such, it should give us a 'profile' that we can
search for, argue about, teach, point to, and ultimately reward. I submit
that we're long past the time when it is sufficient that our leaders be
superior analysts, operators, project managers or whatever. The point seems
controversial. But I believe it's fairly well accepted. What isn't so well
accepted is, what additional qualities should we seek or attempt to develop
in our future leaders?
Let me suggest five such additional qualities we might consider as we
talk about an optimal profile for our future senior people:
Demonstrated commitment to the criticality of customer service.
- Ability to adapt to changing times and technology and to communicate
the need for such change to others.
Tangible experience with our many different work cultures. (This
seems important not only because of its broadening effect on the
individuals involved, but because people operating outside their own
career service boundaries often have the ability to tell us that we
need to change...in effect, opening up needed dialogue about
problem-solving.)
Demonstrated acceptance of the critical importance of people.
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And finally, an understanding of the need to articulate and
communicate a vision of the whole organization for the future.
(Individual leaders don't themselves have to be able to create such
a vision, although it's an added benefit if they can. But they do
have to understand the importance of having one and sponsor the
efforts of others to keep it alive.)
All of this brings me to my last, related point, which is my belief that
changing our existing career-service structure may be a precondition to
achieving the development of a future leadership cadre with these or similar
characteristics. Our career service system is properly credited with
developing and sustaining what is, in the aggregate, one of the
best-qualified and most expert workforce which exists anywhere. Our system
has faults, but compared to any I am familiar with, it compares very
favorably. Whatever our system's strengths, however, it does not function
effectively to generate senior managers who are accustomed to considering
that their fundamental responsibility is to improve the overall performance
of the whole Agency.
I suggest that establishment of a truly Agency-wide SIS service would
constitute a first step toward evolving a new process by which we identify
and develop our future senior people. In effect, oversight of the careers
of our SIS population would become the joint responsibility of each of the
Deputy Directors, while the existing career services would be entrusted with
the careers of employees below the SIS level. Such an approach would allow
us to begin recommending assignments and rewards in accordance with an
agreed-to set of goals or precepts, along the lines of those suggested
above. Managed sensibly, it should not lead us toward development of a
'professional managers' class whose members are only minimally grounded in
the substance of our business. Rather, the new system should be entrused
with broadening the experience and perspective of individuals who are
destined for important leadership positions but whose early development and
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S E C R E T-
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growth occurs in a traditional, specialized, career service context. The
existence of such a new system would also slowly alter the personal planning
of employees who aspire to senior leadership positions as a different set of
values begin to take hold in the assignments and promotion processes.
Finally, it should serve--slowly, but inevitably--to yield a more-change
oriented, broadly-based cadre of future senior leaders.
These suggestions aren't original, though there have been remarkably few
proposals for change in our career-service structure over.the years. It can
certainly be argued that we'll more than muddle through if we don't make
such.dramatic changes, and even that such changes might ultimately be
destructive of some of our deepest values. As you may suspect, I see the
issues differently. I don't believe we will achieve the performance of
which all of us are capable if we don't move in these directions. Neither
do I think we will be able to continue to attract the kind of people we need
to collect and produce the best intelligence in the world.
People and organizations don't change for the sake of changing. They
change because they can see how to improve themselves and agree that the
improvement is worth the turmoil. So the crucial first step is to lay out
the vision... what we should try to become. Consider the one I've tried to
sketch out, test it against your own experience and improve on it...or throw
it out and give us your vision of the future. Out of such ferment can come
real progress.
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DIRECTOR OF CENTRAL INTELLIGENCE
HUMINT Committee
HC 88-016
26 January 1988
25X1
25X1
25X1
25X1
25X1
Richard F. Stoltz
Deputy Director for Operations
Central Intelligence Agency
D e a r D5-ci
The contributions by various elements of the DO in planning and
co-chairing with DIA a Community seminar to address the complex
problem of international S&T conference tion was very much
appreciated. The 13-14 January seminar held under the
auspices of the HUMINT Committee, brought together 45 involved and
concerned collection and analysis managers to focus on more efficient
application of the limited Intelligence community resources available
for coverage of this key target.
The comments byl were very appropriate to
our proceedings and complimented well the remarks of DIA's MG Chuck
Scanlon who was the other keynote speaker. Otalk provided a
useful reference point to highlight the seriousness of the seminar
objective--enhancing interagency planning, coordination, targeting and
exploitation of international S&T conferences during a period of
multiple priorities and constrained budgets. F I
Discussions during the seminar clearly demonstrated the value of a
collective Intelligence Community approach.. With ahigh degree of
focus, realism, and organization, the interagency participants
identified a number of relevant problem areas, and recommended a
collaborative course of action toward their resolution. While much
more has to be done to effectively tackle the problems that were
addressed, I believe that we have taken some important and realistic
initial steps to meet our shared concerns.
The effort which the DO representatives undertook in framing the
problems and issues was particularly noteworthy. The conference
evoked strong and positive support from all concerned and will permit
us to move ahead more smoothly in meeting common intelligence needs.
While a number of DO officers contributed to this effort,
6-966-//-
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Richard F. Stoltz
Division, as well a .Directorate of Operations, played
major roles in the successful outcome of the off-site conference, both
in the preconference planning and preparation and through their
leadership and informative presentation during the sessions. Please
pass on my appreciation f9_r_th_eir commendable efforts and demonstrated
leadership capabilities.
I look forward to further collaborative efforts in this and other
areas of Community concern.
Sincerely,
cc: DDCI
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