PROGRESS REPORT - MANAGEMENT ANALYSIS OFFICE OCTOBER 1950 TO DECEMBER 31, 1951

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04718A002700130003-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 9, 2016
• Document Release Date: May 11, 2001
• Sequence Number: 3
• Content Type: REPORT

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PROGRESS REPORT - MANAGEMENT ANALYSIS OFFICE
October 1950 to December 31, 1951
1. CONCEPT
a. Presidential and Bureau of the Budget pronouncements point up the
need for and prescribe management improvement programs in all Federal
Agencies. The CIA Management Analysis Office therefore recognizes Presidential
Executive Order No. 10072 in the performance of its functions. The Hoover
Commission had the following to say regarding its inability to delve into
detailed operations of agencies which it studied: 1
"This points to the need for continuous attention in
each Agency to the problems of internal management by study-
ing work-flow, organization, procedures and employee utilization.
To fill this need we recommend that responsibility for management
research become a definite and continuing task of top management
in every executive Agency."
b. A comparatively small management analysis staff at the Agency level
is provided to:
(1) Foster the use of management techniques within CIA.
(2) Coordinate management activity extending across organi-
zational lines.
(3) Advise and assist operating officials in developing and
installing management improvements.
(4+) Examine Agency practices and stimulate corrective action
on management deficiencies noted.
(5) Initiate ideas for over-all Agency adm' ' ratio-e._imnrovement.
1 Document f".0.
(6) Perform certain central management ser ;Rua In Mass.
^ DDec4assillad
Class. Changed to: TS S
Next Review Date: -----------
Auth.: HR 70-3
jDate: -_ /-~--- BY: -
1 Commission on Organization of the Executive Branch of the Governme , -
Concluding Report, (Washington: U. S. GPO, May, 191+9) p. 36.
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2. THIS IS WHAT WE HAVE DONE
a. In Increasing Management-Mindedness of the Agency:
(1) Collaborated in getting and training management personnel for
the larger operating segments.
(2) Prompted the preparation of statement of functions through
Branch level of Agency organization for most of the Agency operating
offices.
(3) Stimulated management planning in CIA.
b. In Conducting Major Management Studies:
(1) Office of Current Intelligence - Developed, in conjunction
with OCI officials, intelligence method to be employed, organization
and functions, and operational procedures.
(2) Inspection and Security Office - Developed and installed
procedures for more efficient operations.
(3) Medical Office - Effected procedural simplifications.
(4) Training Office - Consolidated administrative staffs.
(5) Covert Personnel Division - Simplified control and
processing procedures.
(6) Foreign Documents Division, Office of Operations - Simplified
procedures and indicated need for NSCID for exploitation activity.
(7) Procurement Office - Simplified control procedures.
(8) Agency Document Control and Routing - Effected direct
dissemination of intelligence documents to desk level.
(9) Travel Procedures - Established Central Processing Branch and
delegation of issuing authority to Office head.
(10) Communications Office - Established organization and procedures
for administrative support.
(11) Intelligence Publications - Compiled list of existing publi-
cations and proposed plan for approval and control.
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c./Participated in Development of New Agency Programs:
-(1) Establishment of unclassified translation service.
(2) Vital Records Program.
(3) Establishment of the
(4) Decentralization of inter-Agency operational liaison.
(5) Improvements in Agency system for handling intelligence
requirements.
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(6) Covert book procurement program.
(7) Establishment of index of employees in III) of SO.
(8) Elimination of backlog in name check procedures in IID, SO.
(9) Establishment of the -Program.
(10) Institution of Agency Safety Program.
(11) Improvements in budget analysis system.
(12) Consolidation of reproduction facilities into one building.
(13) Establishment of policy on evaluation of CIA information reports.
Participated in Development of Machine Techniques and Equipment:
(1) Stock record accounting.
(2) Unvouchered payroll, payroll checks and payroll accounting
procedures.
(3) Personnel locator files for emergency planning.
(4+) Agency telephone directory.
(5) Personnel recruitment requirements and control.
(6) Personnel statistical records.
(7) Security clearance requests and reports.
(8) Applicant and employee qualification records.
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(9) Scientific and technical data index through newly-developed
Luhn Machine.
(10) Examination and adoption of "Justowriter" Machine.
(11) Preparation of_rTorld Radio Broadcasting Index. STATSPEC
e. In Provision of Certain Centralized Management Services:
(1) Prepared and issued Agency organization and functions.
(2) Processed numerous requests for Agency forms and table of
organization actions. Consolidated Form 57 and PHS to provide one
Agency application form.
(3) Consolidated Agency administrative instructions and reissued
such as a ,manual of CIA Regulations. Assumed responsibility for
integration of Covert Regulations (Confidential Funds Regulations)
within Agency issuance system. Have in preparation a manual of
procedures governing Agency-wide activity.
(1.) Maintained continuing liaison with the Finance Office,
Personnel Office and Office of Intelligence Coordination, providing
advice and assistance as required.
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MIS IS WIIY WE HAVE DONE IT
a. The successful operation of an intelligence agency, particularly
during a period of rapid expansion, requires an intensive management
program in order to realign organization and procedures continually and
thereby insure the achievement of desired goals.
b. Approximately seventy-five per cent of the management analysis
workload originates through requests from operating officials. Why these
problems are referred to the Management Analysis Office can be explained as
follows:
(1) Certain problems transcend organizational lines and logically
should not be assigned to anyone other than a generalist.
(2) Officials concerned with daily operations do not have the
time or the background to solve many complex problems of a management
character.
(3) There are many instances wherein objective recommendations
by an organizational element not involved in an immediate problem
are desired.
(4) Certain policy, program and functional problems require
definition and resolution by top management of the Agency.
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a. Continuing Management Services - With objectivity and by accurate
full knowledge of all Agency segments continuing management services are
performed on a daily basis. Responsibility for these services are assigned
to specific individuals based upon the assumption that maximum utilization
will be made of all Agency talent in taking a given action.
b. Major Management Studies - Specific goals and terms of reference
for the study are initially defined. A reconaissance survey is next
undertaken after which the particular areas requiring intensive investigation
and specific problems to be resolved are defined. During the course of the
study, the ideas and cooperation of all employees are solicited. Recom-
mendations are made and, if approved, assistance is rendered in their
implementation.
c. Management Advice - Each staff member of the Advisor for Management
is readily accessible to officials of the Agency on any management problem
which may arise.
d. Machine Techniques - The needs of operating offices for machine
techniques are continually analyzed, and assistance is given in the
development of procedures to be employed. Also, Agency projects involving
the development of new office equipment are frequently initiated by analysts
specializing in this field.
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5. THIS IS WHERE WE ONCE STOOD
CONEID__E ~~'
a. The management function of the Agency was initiated at its inception
and has grown up with it. However, during the first three years of Agency
operation, it did not operate in the covert areas. Only just prior to
the term of General Smith's administration management analysis was extended
to the covert offices.
b. A considerable degree of autonomy existed within the organizational
segments of the Agency during the first three to four years of its existence.
Recent growth and additional responsibility has borne out the need for
increased management emphasis.
c. The ever changing world political situation requires frequent
.changes in emphasis of CIA activities. Thus, there is an increasing need
for management analysis.
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6. THIS IS WHERE WE NOW STAND
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a. Extension of management analysis to the covert segments of the
Agency has greatly increased the Management Analysis Office workload.
The complexity of covert operations has likewise added to the difficulty
of the management job.
b. The considerable expansion of the Agency, the creation of new
organizational segments and the problems posed by the Korean conflict
have increased the tempo of Agency operations. This has required
expenditure of considerably more management staff effort. Nearly every
action now entering this Office must be coordinated with two or more other
offices.
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7. THIS IS WHAT YET REMAINS TO. BE DONE
CONFIDEN~IP1~
a. In terms of management analysis activity, the most critical problems
are in the covert offices. Several man-years of management analysis work
would be required to bring the administration, organization and procedures
of the covert offices to a comparable level of management effectiveness now
achieved by the overt offices. Particular problems requiring attention in
the covert offices are:
(1) Merger of OSO and OPC organizations with particular
management emphasis on common services.
(2) Simplified document control and routing procedures.
(3) Standardized procedures for obtaining administrative
support.
(fit-) Examinations of field organizational relationships
and staffing patterns.
b. Another management problem requiring attention is the development
of standardized coordination patterns which will protect the interest of
all elements and still permit reasonably speedy action.
c. Major management studies apparently needed include:
(1) Definition of responsibilities of Senior Representatives.
(2) Clarification of the relationships of Training vis-a-vis
Personnel.
(3) Standardized procedures for routing, handling, filing and
disposition of administrative papers.
(4) Clarification and standards regarding the use, handling,
processing and procedures of vouchered vis-a-vis unvouchered funds
and personnel.
(5) Establishment of Agency work simplification program.
(6) Installation of an Agency progress reporting and evaluation
system.
(7) Organization of and assignment of responsibility for
developing and coordinating Agency-wide planning activity.
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(8) Development of Covert Regulations and procedures.
(9) Development of more effective controls over CIA organization.
(10) Further utilization of machine methods.
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