MATERIAL FOR PRESENTATION AT THE WINTER CONFERENCE OF DEPUTY DIRECTORS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00809R000100010002-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 14, 2016
• Document Release Date: February 19, 2003
• Sequence Number: 2
• Publication Date: December 6, 1974
• Content Type: MF

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MEMORANDUM FOR: Chief, Personnel and Training StaFf, OL
Chief, Procurement Management Staff, OL
Chief, Security Staff, OL
Chief, Logistics Services Division, OL
Chief, Printing Services Division, OL
Chief, Procurement Division, OL
Chief, Real Estate and Construction Division, OL-
Chief, Supply Division, OL
SUBJECT : Material for Presentation At the minter Conference
of Deputy Directors
REFERENCE Multiple Adse Memo dtd 4 Nov 74 fr DD/A, subject:
Reduction of Daily Operating Costs
1. The Deputy Director for Administration (D:V/A) has, requested
that we provide him with information which he wishes to present at
the winter DCI conference with Deputy Directors. flach of you has
already been involved in, or at least been aware of, our efforts in
the areas of cost reductions, anti-inflation measures, and the
development of costs of services which we perform for other com-
ponents. These are three of the topics which the DD/A will address
at the conference.
2. Costing information has been received from. some of you as
a result of your reporting on that management objective, and we
shall have further and separate discussions regarding those costing
systems. Others have contributed data, on an ad hoc basis, in
connection with our cost reduction and anti-inflation programs.
The referent memorandum suggests some of the ways that costs can
be reduced. There are probably additional things being dce,
planned, or suggested by your branches and sections which Lave
not been reported formally but which are directed toward the
reduction of operating costs and the conservation of inflated and
scarce commodities. For that reason, and to facilitate tho
collection of information for the PD/A, you are requested to pre-
pare, in the following format, an up-to-date summary of your
successes or failures in implementing not only those suggested
methods but any which you have developed yourselves.
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SUBJECT: Material for Presentation At the Winter Conference
of Deputy Directors
Anti-inflation Measures
Paper conservation
(reuse of file folders,
envelopes, etc.).
Problems and/or Suggsted
Improvements
Not observed or accepted
Agency-wide. Needs discipline
from top management-on down.
Cost Reduction Measures
Non-replacement of certain
stock items for which there
are similar styles and/or a
wide selection of colors.
Reduction in distribution
of copies of correspondence.
Customer resistance Mt-sub-
stitutions. Hold the line
and enforce discipline.
Carefully select distribution
to those with a knos4n interest
or need to know.
The sample measures and remarks above are illustrative only. You
are encouraged to list and comment on all of the measures-you are
taking in the areas of cost reduction and conservation--even those
which you might not consider to be of great significance. In
addition, and where it is possible to do so, quantify the savings
realized through your implementation of the suggested savings
measures listed in paragraph 3 of the referent memorandum.
3. Your summaries should be submitted to the Plans and Pro-
grams Staff, OL, by close of business on 13 December 1974.
4cc: EOL
Distri%i ion:
Each Addressee
(]~ OL/P&PS Official
1 > OL Files
1 - D/L Chr,
Michael J. Malanick
Director of Logistics
(2 Dec 74)
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0JQ01.0,0J0r2-7
4 NOV 1:i/4
l~~i -f .~, k:)4JM FOR: ~~._ ec:tc7;. o C.,c. 'aunications
Director of Fin,ice
t'c.. LCcr o.i
D .t C',C or Of Logistics
D _ t:x:' for of i+,ed lcal :'-t'L'7 ces
D i.rector of Personnel
D?_rector o- sec'-lri ty
D_i. t ec.: for of ;'raining
SUBJECT P.. c'ur't i on of Daily Operating Costs
,
1. In the Di rec`.:or's i ugust Fin uciial Guidance >~?orandum
r
this Directorate was given :I~e task or nstittiting a n:Iilti-faceted
program to help fight infla-rion mid reduce daily operating costs
within the PD/A and also on an A+ ency +;;ide basis. while the "dcible
di it" inflation r_ ~ ate has us this year is e. c Ctod to
slow some in 1975, prices a still expected to rise at a rate
we will continue to pay more, just to maintain the status quo.
2. In the last. year have tacen several steps to reduce costs
while at the s inie time Blainnainia'1o a~'cept bl ~_evels of service :iI:i the
Agency. Some of these rGC1u t:! ons have coin e about as a result of GS`,
campaigns; others we have instituted on oar own. They include a re-
duction of resource related items (less heat and air
encouraging carpools) , a mi paigrl to conserve p~ (1 ,
displays and posters identifying supply item costs, and elie Ll ation
of items of sup ply, which had sloly-moving volume, had chew er suhsti :ut s,
or could be limited in colors and style to r. edu ce usage unlined
pads at $1.17 ea ve rs;. s },:h' to unlined pads at '0'.2_5 en'. , f .r e;catrp `; .
Future plans include testini OF a plastic envelope vlt?_ch can 1-3 -_U_-
15 - 2 5 tulles and 'stab1 _sh ~. at of .stn icLer cr i t e r is for approval of
kcopyin!g machines.
3. Vihat is ne't1'ud no'v is a Te-ex%?mi.nation of cur efforts to
deter;"I:ne if ive h v~ 3' ;r . c>> ~~. zs ~s . ei ~ ~ rc
i the potent a for real ai,iit tonal s i.!.. ' n`fs, r'ti ?1_~ s I
and foremost is enceu ragemeet and pa r t is pa * on on the 1] each
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1 S) Lt Li
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a ad every manager. I ow else are employees supposed to get the
message that we are involved in more than paying lip service to
this task? As a beginning, I an suggesting that we e re-examine
our management practices to encourage, by direction and example,
changes in day-to-day activity which will lead to operating savings.
Some items which come to mind immediately are:
a. use speed letters for intra-office correspondence;
b. encourage and accept pen and ink changes for minor
errors on correspondence;
c. limit attachments on multi-addressee correspondence
to only those who need the attachment;
d. identify and take steps to stop receipt of excess
copies of correspondence and reports;
e. substitute cross reference log sheets in subject
files in lieu of creating and filing extra copies
of correspondence and reports;
f. require more quantitative comments about cost
consciousness on fitness reports to emphasize
management concern;
g. arrange for per ;.odic V r 0,94- - S at l of meet ng J
by members of ISAS and the Office of Logistics on
high-cost supplies and services and. alternatives
available.
ally ?Ln.erea.fter.
.-?--~---
01-L ectiveness of our efforts, each Office should be prepared to
rc;port on its program the Jcim ary _C.Lnaiic.Lal meetin.;, and p?ri.odi--Pt
4. If we are to reduce oneati-ne it is essential that
it be dealt with as a command respons-i hi 1 -i ty. I belt=eve that there
are many areas of potential day-to-day savings other. than those I
have suggested above. Each component should develop an operating
cost savings program and monitor the. results. To evaluate the
John F. Blake
Deputy Director
fo:~
Administration
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MEMORANDUM FOR: Chief, Personnel and Training Staff, OL
Chief, Procurement Management Staff, OL
Chief, Security Staff, OL
Chief, Logistics Services Division, OL
Chief, Printing and Photography Division, OL
Chief, Procurement Division, OL
Chief. Real Estate and Construction Division, OL
Chief, Supply Division, OL
SUBJECT : Fighting Inflation and Reducing Daily Operating Costs
REFERENCES (a) Multiple Adse Memo dtd 6 Dec 74 fr D/L, subj:
"Material for Presentation at the Winter Conference
of Deputy Directors
(b) Multiple Adse Memo dtd 28 Feb 75 fr DCI, same subi
1. Reference (a) requested you to list and comment on all of the
measures you are taking in the areas of cost reduction and inflation fighting.
Mr. Colby, in reference (b), requested that he be advised quarterly off` the
results of our efforts in this program so that he can prepare a quantified
report to the President.
2. By close of business 30 June, please forward your April through
June quarterly report to Plans and Programs Staff in the format suggested in
reference (a). The key word. of course, is "quantified." Wherever it is
possible to do so, dollar savings resulting from your anti-inflation and
cost-reduction measures should be stated so that we can make a meaningful
contribution to Mr. Colby's report to the President. Items included in
your previous submissions. as well as any new measures which you have adopted,
should be reported upon.
rtiwlm!
Michael J. Malanick
Director of Logistics
Distribution:
0 - C/P&TS/OL
1 - Ea Other Adse
OL/P&PS (Official)
- OL Files
1 - D/L Chrono
OL/P&PS: (11 Jun 75)
roved For Rel a @MEN : Cl 0
A 0 M I - ur s
FQ 00010002=T 5 2828
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