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It has been stated that some reform of the military staff system is necessary to provide the civilian leadership with more objective judgments as to what priorities should exist. Some believe that it is too much to expect that the JCS, whose members are also individual Service Chiefs, and a Joint Staff composed of members who serve brief tours -always dependent on their individual service for promotion, career path, etc. -- could be institutionally capable of providing the Secretary of Defense with the kind of

objective advice he needs.

Many different proposals have been advanced, e.g., strengthening the role of the Chairman of the Joint Chiefs; changing to a single Chief of Staff, supported by the General Staff with a unique promotion track, etc.

It might very well be appropriate to consider JCS reform in conjunction with our proposals for the reorganization of OSD and the acquisition process.

Proposed Organization
The Defense Executive Office

Secretary National
Comptroller Of Security
Defense Agency
Inspector. Secretary Deputy Secretary General
Of the Secretary Of the COunSel
General Army Air Force
ASD Secretary Chairman
Legislative Of the Joint Chiefs UnderSecretary
& Public Navy Of Policy
JP- Affairs Staff
| |
Joint International International
Chiefs Security Security
H Of Policy Affairs
u". o ry Undersecretary Joint Manpower & on
Engineering ACCuisition Staff o Affairs
| | l | | | F------ –
Defense Defense Defense Defense Unlfled & Chief Chlef Chief COmmandant
COm | Of Of Of
Mapping || "..." | Logistics ||Intelligence] || Specified Staff Staff Naval Marine
Agency Agency Agency Agency COmmands Army Air Force | | Operations COrps



Present Organization


N2tional Secretary
Security Os
Agency Defense
Des -
efense Depu
Intelligence so,
Joint Un
Chlefs Undersecretary Research &
of Policy Englneering
International International Manpower legislative ro. on
Security Security Reşerve Affairs Affairs Affairs Affairs
Policy Affairs & log15tles
Defense Defense
10glstlcs Mappling Communk2-
Agency Agency *: bo
Secretary Secretary Secretary
Of the Of the
Army Alr Force
Unlfled so co Chles Conles Commandant,
Specified o fo Os Os Marine
Commands Sta Staff M2 v2.
Army Alr Force Operations Corps

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Early in our investigations, we found that structural and cultural problems in the Department of Defense (DOD) often inhibited, and sometimes totally prevented, successful exploitation of cost saving opportunities._ We interviewed civilian and military managers at all levels throughout DOD and talked with former officials and other experts with particular insights into these matters. we studied how the organization is structured and how it operates. From this background_and our private sector experience, we developed recommendations for improvement. While’some of our recommendations will result directly in identifiable savings, we expect most of them will accomplish more by improving the structure and functioning of the organization, and thus will provide a supportive apparatus for ongoing cost savings activity.

The Introduction noted that DOD is probably the most complex organization in the free world. Beyond this inherent complexity, there is a major factor which has a pervasive impact on the efficiency and effectiveness of DOD's operation -- management turnover. There are several understandable reasons for this high turnover:

o The political cycle virtually assures a complete change of top management at least every four years. In fact, the average service of Secretaries of Defense has been 26 months.

o Military transfer policies establish the tour of duty for officers in DOD as three years.

o Military and civilian retirement policies provide
incentives for successful top managers to retire
a number of years earlier than their counterparts
in the private sector -- often just as experience
brings them to the peak of their productivity.

o Salaries and other rewards for top managers are
not competitive enough to attract or retain the
highest caliber people, except for those who are
more motivated by psychological rewards.

o Frustration over not being able to make right

things happen frequently drives managers to leave after brief careers.

TOP management turnover is a problem throughout Government, and certainly is not unique to DOD. Even though we understand that reduction in turnover could bring improved efficiency, we have taken high turnover as a given and focused our attention on factors more controllable within DOD.

In our investigations, we probed primarily to find the areas which need to be improved. Thus, we deal in our report almost exclusively with the negative aspects of organization structure and culture. Lest this be misunderstood, we must make several important points:

o To varying extents, most large organizations
exhibit the kinds of problems we saw in DOD. Our
interest is to point out, based on private sector
experience, how DOD might improve the way it
handles organizational problems.

o We interviewed, and were otherwise exposed to,
large numbers of managers throughout DOD during
the four months of our investigation. While our
objective was not to evaluate individual perfor-
mance,-we were impressed with many of the civilian
managers and their level of talent and experience.
We were particularly impressed by the breadth of
outlook, the dedication and level of administra-
tive and managerial skill we saw in the senior
military officers.

We have not dealt with the question of financial
rewards. Obviously, the statutory limit on the


salaries of top managers and
ting salaries of those below
to provide a wrenching force
zation. When we talk of the

the rapidly escalathis limit combine within this organireward system, we

mean to include promotion, status, recognition
and all of those intangibles which are so helpful

in motivating managers to take increased responsi

bility, to perform better, and to gain additional

satisfaction from their jobs.

In cur study we found attitudes, traits, traditions and practices which prevent DOD from performing its mission as effectively and economically as it might. These can be

grouped into four major topic areas:

o Roles and Missions,

o Personal Accountability,
o Management Focus, and

o Resistance to Change.

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