PRESIDENT NIXON IS UNFOLDING A PROGRAM WHICH ULTIMATELY WILL BRING ABOUT A MORE EFFECTIVE WORKING RELATIONSHIP BETWEEN BUSINESS AND GOVERNMENT - - - - AND TODAY MEANS BETTER MANAGEMENT IN THE BUREAUCRACY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-01114R000100020072-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 14
• Document Creation Date: December 12, 2016
• Document Release Date: February 21, 2002
• Sequence Number: 72
• Publication Date: December 2, 1971
• Content Type: PREL

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ADVISORY TO NEWS CORRESPONDENTS December 2, 1971
PRESIDENT NIXON IS UNFOLDING A PROGRAM WHICH ULTIMATELY WILL
BRING ABOUT A MORE EFFECTIVE WORKING RELATIONSHIP
BETWEEN BUSINESS AND GOVERNMENT - - - - AND TODAY
MEANS BETTER MANAGEMENT IN THE BUREAUCRACY
The caption above does not refer to "Phase II" or the Office of Manage-
ment and Budget. It is about the President's Commission on Personnel
Interchange. Among the many beliefs that President Nixon brought to
office in 1969 was that business and Government should work more effec-
tively together for the good of the Nation. He knew, too, that getting
programs planned and implemented did not require a larger bureaucracy.
He intended to upgrade management in Government.
One of his actions has gone virtually unnoticed during its concept test-
ing stage. In September 1969, he appointed a group of well-known busi-
nessmen including Willard F. Rockwell of North American Rockwell, Robert
Anderson of Atlantic Richfield, Herman Weiss, I of General Electric, W. P.
Gullander of NAM, and David Mahoney of Norton Simon, Inc., and several
of his high-level appointees such as David Packard, William Rehnquist
and Robert Hampton to a Commission to develop a management exchange pro-
gram between business and the Federal government.
In 1970, a handful of company Presidents were invited to nominate one of
their young very high-potential managers for a challenging one year to
eighteen months work assignment in Federal government. Cabinet Secre-
taries were asked to nominate a very high-potential career Government
manager who would go into industry for the same amount of time.
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In August 1970., nineteen future business leaders and eleven of their
counterparts in Government took leaves from their organizations and
assumed tough work assignments in the opposite sector. The company men
were from organizations known for their modern management techniques and
executive development planning. They included General Electric, IBM,
Mobil Oil, AT&T, American Airlines, Owens-Illinois, TRW, Cummins Engine,
Motorola, Humble Oil and McKinsey and Company. The young executives
took assignments in various departments - with the greatest number going
into arenas which interested them - working on domestic programs in HUD,
EPA, Transportation, and Commerce.
Most of these executives have recently returned to their sponsoring orga-
nizations. There are numerous examples of those from industry bringing
to the Government their drive, management know-how, and objectivity.
Many made outstanding contributions to Government and proved themselves
so capable that they undoubtedly will be called upon later in their
careers for high appointive posts and advisory boards. The high-potential
Government managers also performed well in business in such diverse areas
as operations research, purchasing, social responsibility accounting, and
even new product planning.
During the course of the year, the Presidential Interchange Executives
met privately and in groups with Government leaders for off-the-record
briefings. They learned and they contributed.
Without exception the young managers (average age 33) believe they now
possess a better understanding of how business and Government can plan,
cooperate and work together in the future. They bring these ideas and
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experiences back to their organizations. As they assume larger leadership
roles, effective dialogue and action between their organization and Gov-
ernment will also grow. They return as more fully developed executives
better able to cope with demands that face our nation.
Several weeks ago, a second group of 24 future Corporate officials arrived
in Washington for their assignments and eight joined the business world
from Government.
President Nixon has shown that the Management Interchange concept can work.
He plans more executive interchange. The '!Pilot Phase" is over. The
White House recently appointed 36-year old Joseph T. McCullen, Jr., a part-
ner in a leading New York-based consulting firm and an expert in the fields
of organization planning and manager development, as Executive Director of
the Commission. The Commission will at least double the number of execu-
tive participants in 1972, bringing the three-year total to about 130.
The days of business and Government working separately are over. What
this as yet little-known Commission has done is a drop in the ocean. But
who knows, if the interchange process had started years ago, perhaps we
would not have had to have a "Phase II".
For further information contact:
Mr. Joseph T. McCullen, Jr.
Executive Director
President's Commission on Personnel Interchange
1900 E Street, N. W.
Washington, D. C. 20415
[phone]
3
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(1971)
- Nominated by their Company President, or if a Federal Govern-
ment employee, nominated by a Cabinet Officer.
- All rated as very high-potential executives.
- Average age 33.
- 80% possess graduate degrees.
- Average base compensation, those from Industry:
$28,000.
- Average base compensation, those from Government:
$25,300.
- Functional experience Executives from Industry:
- General Management
- Product Management
- International Operations
- Finance
- Corporate Planning
- Operations Research
- Public Relations and Affairs
- Personnel
- Project Management
- Engineering Management
- Functional experience - Executives from Government:
- Operations Research
- Purchasing Management
- Program Management
- Industry Analysis
- Urban Development Planning
- Economic Planning
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- Some of the Government Jobs Taken for 1 Year by Industry Executives
Comptroller
Bureau of International Commerce
Associate Director of Marketing
U. S. Postal Service
Project Officer
Urban Mass Transit Administration
Department of Transportation
Program Manager
Environmental Protection Agency
General Attorney
Department of Transportation
Project Manager
Civil Aviation Research and
Development Policy Study
Department of Transportation
Special Assistant to the
Assistant Secretary
Department of the Treasury
Management Systems Officer
Department of Housing and
Urban Development
Special Assistant
Domestic Programs
Office of Management and Budget
Audit Manager
General Accounting Office
Management Analyst
Department of State
Special Assistant to the Director
of Evaluation
Department of Housing and Urban
Development
Executive Assistant to the Assistant
Secretary
Department of Commerce
Special Assistant
Space Council
Executive Office of the President
- Some of the Industry Jobs Taken For 1 Year by Government Executives
Planning Manager
Westinghouse: Electric
Management Systems Advisor
IBM World Trade
Senior Planner
American Airlines
Executive Advisor to the Vice
President, Systems Engineering
North American Rockwell
New Products Manager
Mobil Oil Corporation
Staff Assistant to the Vice
President, Operations
Norton.Simon, Inc.
Senior Advisor, Computer Sciences
Standard Oil of California
Plans Advisor
Cummins Engine Company
Executive Assistant to the Vice
President of Purchasing
Consolidated Edison Company
Senior Economic Specialist
Humble Oil and Refining Company
Manager, Management Sciences Research
American Telephone and Telegraph
Company
Special Assistant to the Vice
President, Operations
Atchison, Topeka and Santa Fe Railway
2
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Companies Participating in the President's Exchange _Program during
1970 and 1971
American Airlines, Inc. IBM
American Standard Inc. Lockheed Aircraft Corporation
American Telephone & Telegraph Company Ling Temco Vought Inc.
Atchison, Topeka & Santa Fe Railway
Atlantic Richfield Company
AVCO Corporation
Bank of America National Trust &
Savings Association
Bendix Corporation
Computer Congenerics
Consolidated Edison Company of
New York, Inc.
Cummins Engine Company, Inc.
General Electric Company
General Telephone and Electronics
Corporation
McDonnell Douglas Corporation
McKinsey & Company
Mead Corporation
Mobil Oil Corporation
Motorola, Inc.
North American Rockwell Corporation
Norton Simon, Inc.
Owens-Illinois, Inc.
Standard Oil Company of California
Standard Oil Company (New Jersey)
State Street Bank and Trust Company
Syntex Corporation
TRW Inc.
Westinghouse Electric Corporation
- Government Agencies Participating in the President's Exchange Program
during 1970 and 1971
Civil Service Commission
Commerce, Department of
Defense, Department of
Environmental Protection Agency
General Accounting Office
General Services Administration
Housing and Urban Development,
Department of
Information Agency, U. S.
Interior, Department of
Labor, Department of
National Aeronautics and Space
Administration
National Aeronautics and Space
Council
Office of Economic Opportunity
Office of Management and Budget
Postal Service, U. S.
State, Department of
Transportation, Department of
Treasury, Department of
Veterans Administration
NOMINATIONS OF HIGH POTENTIAL EXECUTIVES AND/OR JOB ASSIGNMENTS
WILL-BE ACCEPTED BETWEEN JANUARY AND MARCH 1972, FOR THE PROGRAM
BEGINNING IN THE SUMMER-OF 1972.
FOR FURTHER INFORMATION CONTACT: Executive Director, President's
Commission on Personnel Interchange, 1900 E Street, N. W.,
Washington, D. C. 20415 - or - Telephone [phone].
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 Mid die managers
swap jobs
Bureaucrats and businessmen
don each other's hats to
learn how the other half works
Thomas J. O'Brien, a noise abatement
program manager for the Federal
Aviation Administration in Washing-
ton, D. C., made a temporary career
change last year. For 12 months he
worked for Mobil Oil Corp. in New
York as a product line manager, han-
dling everything from research to mar-
keting of synthetic turbine oils, fire-re-
sistant hydraulic fluids, and aviation
piston oil. Now O'Brien, who is 39, is
back with the FAA on a new job in sys-
tems and research development.
O'Brien was one of a handful of par-
ticipants in the Executive Interchange
program, a federal experiment that
taps promising executives from gov-
ernment and business for one- to two-
year assignments in the opposite sec-
tor. The program, now moving quietly
into its second year, represents the
Nixon Administration's effort to build
better understanding by bureaucrats
and businessmen of each other's man-
agerial problems. Because it "hits an
area where most programs like this
have not hit-management positions,"
says Brian W. Rapp, a McKinsey & Co.
consultant who went to a State Dept,
post in the pilot project, "the inter-
change has tremendous value."
Slow start. Despite such endorsements,
the program, which is supervised by
the President's Commission on Person-
nel Interchange, a panel of business
and government officials, remains
small and virtually unknown. The mod-
est size-30 participants last year and
43 this year-reflects the difl,culty of
recruiting management talent from
companies squeezed by the recession,
and, more recently, from a federal bu-
reaucracy limited by the President's
economic freeze. These factors worry
Commission Executive Director Joseph
T. McCullen, Jr., a 36-year-old consul-
tant on leave from Spencer Stuart &
Associates, a New York-based execu-
tive recruiting firm. "If the program
stays at the same level it is now,"
McCullen broods, "it's doomed."
The Administration clearly would
like to see the program flourish. Says
White House Aide Frederic V. Malek,
f
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cities program coordinater from the
Housing & Urban Development Dept.
is developing criteria for Norton Si-
mon, Inc. on social responsibility and
the impact on corporate decisions,
The men who take part in the pro-
gram, according to McCullen, are
"high-talent, high-potential people,"
usually executives from 25 to 40 who
are earning $15,000 to $30,000 a year.
They are put on the payroll of their
temporary employer during their tours
of duty. But relocation costs are borne
by the man's permanent employer.
Eye-opener. Most veterans of the 1970
project say that the switch is well
worth the trouble, despite the disloca-
tion caused by the temporary move.
O'Brien, for example, says: "It was
worthwhile from a standpoint of per-
sonal development. As far as my career
goes, it's too early to tell. I think the
payoff will come."
"I had some stereotyped impressions
of government employees," confesses
Michael L. Frankel, 34, a senior engi-
neer for TRW, Inc., who has extended
his assignment with the Environmen-
tal Protection Agency another year.
"You know, the eight-to-five, lunch-pail
type. But when I came here I found
myself working late into the night
with my fellow employees." Frankel, a
water and air pollution expert, now
plans EPA environmental activities. "I
had never considered a government ca-
reer," he says, "but if you asked me
now, I'd say yes. Government is doing
most of the exciting work in my field."
Reentry problems. The class of 1970 has
some advice for the new crop of inter-
change executives: Keep in touch with
your company. Some of the program's
early participants did not, and after a
year found that the corporate seas did
not part upon their return. "We came
into this program thinking our parent
corporations were going to follow our
progress for a year," recalls TRW's
Frankel. "Corporations just aren't that
paternal. You've got to sell them on
your skills when you come back-or to
another company."
The reentry problem is not limited to
the business side. A government par..
ticipant in last year's group notes that
"one fellow went back and was placed
in exactly the same job he held when he
left, and he was working for a guy who
formerly worked under him."
McCullen is aware that the problem
exists, and the current interchange
group is keeping much closer touch
with home base as a result. But despite
this problem and the project's low pro-
file, McCullen is determined to expand
the effort. "We will double participa-
tion next year," he says, promising a
stiffer screening process as well. "We
should get more government people
into industry. I'd like to see some of
these super-grades in the program." a
executive branch liaison to the project:
"This really fits very well with the
President's philosophy. He believes
that the spirit of business can make a
greater contribution to government."
It is also hoped that interchange
alumni will provide government per-
sonnel headhunters with a talent pool
that can be tapped for government
service in later years. "These are fu-
ture company presidents," says
McCullen, "and, we hope, future Cabi-
net secretaries too."
How It works. A group of 31 companies,
including American Airlines, Atlantic
Richfield, AT&T, Mobil Oil, Motorola,
Bendix, Owens-Illinois, and Consoli-
dated Edison are participating. The
companies nominate promising execu-
tives for an interchange slot and, in
turn, agree to make jobs available for
incoming government officials.
Under the personnel swapping pro-
gram, a North American Rockwell ex-
ecutive who had helped prepare the B-1
bomber proposal was assigned to the
Office of Management & Budget where
he developed a performance measure-
ment system to assess various govern-
ment social programs. A Bendix Aero-
space Systems engineer worked in the
Transportation Dept. on a tracked, air-
cushion vehicle for mass transit.
On the government side, the Postal
Service's director of systems analysis is
working for AT&T as manager of man-
agement science research. A model
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 "Aop a f W"2602/04/04 CI 4-R?dl i 9-f +'11 +~Ob b072-5
EXECUTIVES - Joseph McCullen Personnel Interchange. With him is
(seated), a consultant from a New Yanyes i' one"of"i~~" "commission's
York-based fiirn1.,is, executive director executives at the Dept" of Labor. (UPI
of the,, P'resident's Commissiotl off;;.? Telephoto)
By JUDY FRIE
WASHINGTON (UPI) -A
group of hand-picked executives
from government and industry
is promoting the idea that
better cooperation between
businessmen and bureaucrats
can be helpful to both.
They're part' of a program
that puts talented, high-poten-
tial people from one camp to
work in the other to give them
a knowledge of the problems
and managerial techniques on
the other side of the fence.
They come from 19 par-
ticipating government agencies
and 30 participating business
organizations ranging from the
State Department to American'
Airlines.
An aerospace engineer, for
example, is working as a
special Labor Department as-
sistant charged with helping
unemployed aerospace workers.
A consultant from the govern-
ment's model cities program is
working on a "social audit" for
a consumer products company
trying to improve its contribu.
tion to society.
Those taking part in the
program range in age from 25
to 40 and earn from $20,000 to
$30,000 a year. The hope is that
they will be the nation's future
cabinet members and corpora-
tion board chairmen.
Joseph McCullen, a consult.
ant, on leave from the New
York-based firm. of Spencer &
Stuart Associates, is their den
mother.
"We're looking for a caliber of
people who could be called
back for a high post in the
government," he explained.
"On the industry side nominees
must be seen as future
corporate officers."
The "we" referred to the
Presidential commission that
appointed McCullen Executive
Director of the Interchange
Program.
The law setting up the
program was signed by Lyndon
B. Johnson on his last day in
the presidency and its members
were appointed by President
Nixon soon after he became
Chief Executive. Known offi-
cially as the President's Com-
missionon Per sonne I
Interchange, its members come
from both business and govern-
ment.
Among its 13 members are
Assistant Attorney General
(and Supreme Court nominee)
William Rehnquist; David
Packard, deputy secretary of
defense; Robert Hampton,
chairman of the Civil Service
Commission; W.P. Gullander,
president of the National
Association of Manufacturers,
and W.F. Rockwell, board
chairman of North American
Rockwell Corp. The chairman
is David Mahoney, president of
Norton Simon, Inc.
Their chief duty is to screen
the nominees, who are tapped
by their company president or
federal agency head.
Once the choices are made,
McCullen goes to work. He
monitors the successes and
failures of his charges and
doesn't hesitate to "yank"
someone who doesn't work out.
Most do. "The program has
about an 85 per cent batting
average right now,' the 36-year-
old McCullen said.
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McCullen, naturally, is shoot-
ing for 100 per cent. He hopes
executive participation can be
doubled. He likewise wants
more minority representation
(two blacks are participating)
and thinks women (none is
Involved) should and will be
included,
He encourages participants to
be candid about what's good
and bad about the program and
listens closely to the reactions
of men such as James Kelly
and Ronald Stegall.
Kelly, 33, is intense and
articulate. He dots his sent-
ences with questions: "Do you
follow what I'm saying?" and
"Am I making myself clear?"
He came to the Labor
_Department from the Rocket-
dyne Division of North Ameri-
can Rockwell Corp., where he
was manager of the Engine-
Vehicle integration segment of
the space shuttle main engine
program.
He is now a special assistant
counseling labor's manpower
administration on programs for
assisting unemployed aeropsace
engineers, scientists and tech-
nicians.
Kelly said his exposure to the
federal bureaucracy has "brok-
en down the image of poorly
managed government opera-
tions ... people here (at labor)
are highly motivated and highly
talented and they face the same
problems industry faces."
Kelly sees his present respon-
sibilities as "both different and
the same" as those at North
American Rockewell.
"You're still managing people
... the problems here are more
complex. In the government the
problem is something that cuts
across several industries and
often industry and government
are at odds."
He also found that measuring
progress is more difficult in
Washington than in private
industry where endeavors show
up as profit or loss.
"In the government goals are
generally larger than making a
profit," Kelly said. "You're
attempting to satisfy a public
need. There is nothing in front
of you that says you're half-way
there or a third of the way
there."
While Kelly admires "the
dedication and capability" of
top bureaucrats in finding
solutions to socio-economic
problems, he thinks he's found
some weak spots.
He feels the Civil Service
system, because of it size, has
spawned a "built-in protection"
system that leads to a lack of
incentive and "allows mediocri-
ty to creep in."
He also thinks the govern-
ment suffers from the lack of a
"hard-driving informational
campaign" about what it does
for society.
"The government tendency,"
he observed, "is to hold a news
conference, distribute press
releases and assume everyone-
got the word." Stegall, also 33, is reserved
and thinks hard before replying
to questions.
He spent "most of my
working life" overseas until
three years ago. He worked for
the Agency for 'International
Development in Afghanistan ;
Care, Inc., in Turkey and
several feeding programs in
India. He came to the model
cities administration of the
department of housing and
urban development as a consul-
tant.
His assignment sent him to
Norton Simon, Inc., a New
York-based consumer products
company where he created his
own position.
"I came back to this country
with the belief that one of the
most effective ways to meet its
needs was to combine the
capabilities of the public and
private sectors," he said. "If
America is going to solve her
problems it's because of the
things that government and
business do together to each
other's best interests ..."
When he got to Norton Simon,
the company bosses asked him
what he wanted to do.
"I told them I wanted to do a
social audit on the company"
The firm's president told me to
go ahead and see what the
company could do to upgrade
its corporate responsibility.
As the months passed, Stegall
said he found that industry "is
foundering in a lack of social
understanding" although he
.-found !'n great deal of.concern
in the business community about
social issues." As a result, he
said, the public would not
"discount the desire or capabil-
ity of business" in helping cure
social ills.
Stegall disagrees with the
business attitude that it is ac-
countable and government is
not. He said:
"I . submit that business is
reasonably accountable in the
economic picture, but business
also decides what to make,
where to make it and who to
hire. Like government, it
operates as an education
institution. It teaches values to
workers and society-but it has
never been as accountable as
government."
Stegall lauded the inter-
change program because it
"institutionalizes the concept
.-that. this kind- _of exchange in
both 'sectors is important.
Without it people 'become
isolated and insulated against
the real world.
"We need to get another
perspective."
Carried by major
newspapers across
the nation.
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From
~usanessman
to Civil
Servant-and
Vice Versa
The government is
borrowing executives
from companies, and
companies are
borrowing executives
from the government-
and both sides seem
to be profiting
Sometimes, in his rather austere
quarters at the Department of Com-
merce, Timothy O'Shea must think
back to London.
His office there was at No. 1 Regent
St., a posh location in the generally
fashionable West End.
It was a short train ride from his
home in Sunningdale to Waterloo
Station. From there, a 15-minute
walk brought him to his office, across
the Thames, a little before 9 a.m.
"The British," he explains, "get
off to a more leisurely start."
Now he rises earlier, hops in the
car, heads for Highway 70-S and
battles traffic in a 20-mile drive from
his Gaithersburg, Md., home to
downtown Washington. His responsi-
bilities are comparable, he feels, but
not the office accommodations.
He arrives in his office about 8:05
a.m. and will be there, except for
lunch, until close to 7 p.m.
In London, he was European
marketing director for a group of
Westinghouse Electric Co. products.
He agonized over problems like how
to sell more U. S. picture tubes to
West German makers of TVV wets
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Commerce Department's Office of
Progrtun Analysis, We chief eonee*n.
 ... ,....... .
0100039PR; r
executive director of
the President's Commission on
Personnel Interchange, Joseph
McMullen Jr. (center). Result:
Bright young executives from
business and government get a
at the moment, is how to get more
mileage out of the Department's 42
field offices.
Mr. O'Shea is one of 43 business-
men who have left their jobs for 12 to
18 months to work in the federal
bureaucracy.
They're taking part in the Execu-
tive Interchange Program. Its goal
is to bring two worlds that are often
poles apart-business and govern-
ment-closer together.
The program, which got under way
less than two years ago, is a two-way
street.
The other guy's troubles
It gives promising young business
executives a taste of what life's like
in the world of civil service. And it
permits up-and-coming federal em-
ployees to sample the tribulations and
triumphs of life in the corporate
to 16 for the government employees,
and the $25,000 to $35,000 pay
bracket for the business executives.
Both groups have found the 12-to-
18-month stint an eye-opener.
Ronald Stegall, a coordinator in
the Model Cities Administration,
Department of Housing and Urban
Development, now is in the Man-
hattan GHQ of Norton Simon, Inc.
"I've gained a fuller understand-
ing," he says, "of the kind of con-
straints business has to face. And an
awareness of the fact that it is not a
monolith.
"There's a great diversity of atti-
tudes in business, as in any other
community."
Thomas O'Brien, a program man-
ager at the Federal Aviation Adminis-
tration, recently spent a year as a
new products manager with Mobil
Oil Corp.
executive suite. So far, 16 government "It gave me it bettor insight," he
the payrolls 1 1 }rfK@grff&rp ease I~Q ~f :i~ ~j9p' ~ ~ ~OQa~QQaiQ+O `le than any decision
Most of those in the program are to certain demands. we make in business."
in middle m alfta emei tgradea 14 "Fur oxamplo, tike mi @ciic.t W atop AswithMr.O'Shea, Mr. Flanagan'a
pollution. This might take two years,
cost hundreds of millions of dollars
and pose some tough problems on
where to get the money."
Similarly, bright young men from
the corporate aeries of Manhattan
learned lots in the federal labyrinths.
One man's meat ...
"It's quite difficult to get a big
department or agency to move or
make a decision," says John F. Flana-
gan, director of corporate plans,
American Airlines, who spent a year
with the Department of 'T'ransporta-
tion.
"It takes a lot of discussion, con-
sultation and concurrences.
"From a business viewpoint, that's
bad. We like to move faster.
"But from the government's point
of view, that's good. Deliberation
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 %. raid's. At rimot,* r9/fl For ease 2002/04/01 : CIA-E R~ = qj 141 01-04020072-P
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Westinghouse marketing man on
loan to the Commerce Department.
At right: HUD's Ronald Stegall,
now at the headquarters of
Norton Simon, Inc., in New York.
tour of duty in Washington meant a
lot of adjustments in his personal
life and work habits.
"Before I came to the Department
of Transportation," he says, "I was
manager, operations planning, at
American Airlines' headquarters in
New York City.
"We were planning how to intro-
duce the new 747's into service. That
meant we had to look at everything.
Passenger terminal facilities, ground
equipment, food service, caterers,
stewardesses, training pilots-the
whole package.
"About 10 of us worked full-time
on the project. We got help, of course,
from others in the company whom we
called on when their expert knowledge
was needed.
"We had just wrapped this up
when I went to the Department of
Transportation for a year, under
the Executive Interchange Program.
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Mt. Vernon in Westchester County.
Every day, I rode a commuter train
to Grand Central Station, two blocks
from our offices.
"When I was assigned to DOT, I
was interested in seeing how the
government approached the prob-
lem."
A variety of companies
More than 30 American business
firms, big and small, are already
taking part in the Interchange Pro-
gram-lending some of their own
promising executives to federal agen-
cies and making room for federal
managers in company executive slots.
The firms include, in addition to
those already mentioned:
American Standard, Inc.; Ameri-
can Telephone & Telegraph Co.;
Atchison, Topeka & Santa Fe Rail-
way Co.; Atlantic Richfield Co.;
Avco Corp.; Bank of America; Ben-
Telephone & Electronics Corp.; In-
ternational Business Machines Corp.;
Lockheed Aircraft Corp.; Lirig-Tem-
co-Vought, Inc.; McDonnell Douglas
Corp.; McKinsey & Co.; Mead Corp.;
Motorola, Inc.; North American
Rockwell Corp.; Owens-Illinois, Inc.;
Standard Oil Co. of California;
Standard Oil Co. (New Jersey); State
Street Bank & Trust Co.; Syntex
Corp; Teledyne, Inc.; and TRW, Inc.
"The goal of the program was
summed up well by President Nixon,"
says Joseph T. McCullen Jr., recent-
ly named executive director, Presi-
dent's Commission on Personnel In-
terchange.
"He said that constructive coopera-
tion between government and busi-
ness can result in more imaginative
and effective measures to achieve our
goals. That's what it's all about."
Here are some of the solid achieve-
ments the program can boast of
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 Approved Forlease 2002/04/01 : CIA-RDP89-011149M0100020072-5
has a practical plan to cut costs by
replacing the old DC-3's and T-29's
it uses with half as many smaller,
executive jets.
Annual savings are estimated at
$7.7 million a year. The plan was
prepared under direction of an airline
executive whom FAA acquired
through the Interchange Program.
? More than 6,000 U. S. business
firms have asked how they could
help improve our balance of payments
by joining the ranks of exporters.
"Tell us more," they said in effect,
"about how we can sell abroad."
The queries resulted from an
aggressive domestic information pro-
gram launched by the Commerce
Department's Bureau of Interna-
tional Commerce. It was the brain-
child of a marketing executive who
came to the Department under the
Interchange Program.
? Four of the nation's largest airports
are so swamped with traffic that
Washington has had to clamp a
ceiling on landings and takeoffs. By
1980, unless the crisis is solved, all
30 of the airports that handle 80 per
cent of our air traffic will be in the
same boat.
But a study, prepared for the
Department of Transportation and
the National Aeronautics and Space
Administration, has a solution. It
took a task force of DOT and NASA
staffers, plus outside experts, nearly
five months to prepare the blueprint
for expansion and changes in tech-
niques.
If it is implemented, by legislation
and executive action, the nightmare
of 1980 will be averted.
Once more, a business executive
brought into government through
the Interchange Program played the
key role in the rescue operation. Says
David A. Lehman, then on loan to
DOT from IBM:
"I was brought in to look at the
problem of civil aviation to the year
2000 A.D. It involved a lot of factors.
Like what kind of research and
development might have to be done
to bring us out of the transportation
crisis. What kind of legislation do we
need? What can industry do? What
benefits would accrue to the nation?
"The result was the CARD study.
CARD standing for Civil Aviation
been approved by DOT and NASA
and looks like it is on the tracks."
Mr. Lehman, who is executive
assistant to one of IBM's top man-
agers, has decided that the over-all
long-range value of the Interchange
Program may far exceed that of the
help it has given in solving specific
problems.
The most lasting benefit, he feels,
may come from improving the rela-
tions between those two sometime
antagonists-business and govern-
ment. Other Interchange Program
executives share that view.
They agree that the two chief
differences between the world of
government and the world of business
involve the pace at which things
happen and the way performance is
measured.
Faster footwork
Business has faster footwork, says
the FAA's Mr. O'Brien. "Industry
seems to be leaner in staff," he adds,
"and less encumbered with paper
work. It also tends to be a little more
flexible in funding. Business can
move money more quickly to areas or
activities that promise a better
return."
As for gauging success or the lack
of it, Mr. O'Brien says:
"One of the main fallouts to
government is that we will have to
develop standards to measure per-
formance or efficiency, and techniques
to improve performance."
Business, executives point out, has
one handy yardstick that is not
available to government-the profit
and loss statement.
"However," says HUD's Mr. Ste-
gall, "I don't think business has as
clear and simple a goal as the bottom
line on the profit and loss statement.
"For example, the company has
long-range goals that a year's profit
and loss statement won't reflect.
Also, the P/L statement doesn't
reflect profit that could have been
made--but wasn't. Management may
have made a lot of mistakes that
don't show up in the profit and loss
figures.
"So they're not a true measure of
performance.
"If the figures are good over a long
span, say 50 years, then they would
short run, they may or may not be an
accurate index."
Business executives tend to take a
somewhat different tack than the
government executives do on per-
formance measurement.
Unknown quantities
Says Westinghouse's Mr. O'Shea:
"It's not so much that a company
looks just at dollar signs. The main
difference is that most companies
can quantify their performance. The
plant can count how many widgets it
produced, or how many cars it made.
"The government has a lot of
trouble quantifying what it does,
except for some agencies like Internal
Revenue, which can count the amount
of money it took in, or the number
of income tax returns it handled.
"But I don't think the big problem
is that government and business are
entirely different. Government is a
service industry and a growing seg-
ment of private business is, too.
"However, government can do user
analyses, or user studies, to find
out if it's making people happier or
more productive --or whatever the
bureau's goal is.
"There has to be a measurement.
There should be accountability in
government----as well as in industry.
And in many instances, there is, from
what I can see.
"Congress certainly makes itself--
and its wishes--known.
"So government faces some of the
disciplines that we do in industry,
though not all. Certainly, there are
two yardsticks that should be applied
to a government bureau:
"One, is it doing something that's
necessary?
"Two is it doing it effectively?"
What, interchange executives were
asked, did they miss most when they
went from business to government?
Mostly, they replied, the lack of
easy access to higher authority, and
the inability to act quickly on their
own.
What was most attractive about
stepping into the shoes of a govern-
ment manager?
"Being part of Washington, being
where it's at," says Ameri an Air-
lines' Mr. Flanagan. "Make no
mistake, there's where the action is."
END
Apptoved-For Release 2002/04101 : CIA-RDP89-01114R000100020072-5
 Approved For ease 2002/04/01 : CIA-RDP89-01114Rp00100020072-5
PRESIDENT'S COMMISSION ON PERSONNEL INTERCHANGE
Matching Man to Position
The nature of this program requires care-
ful matching of executive and position.
Within the limitations of suitable assign-
ments, nominees will be placed in the most
appropriate positions. It is possible
that some of the nominated candidates will
not be participants. The lack of a suit-
able assignment for nominated candidates
should not be interpreted adversely by the
nominee or nominating organization.
Purpose and ;goals
The Executive Interchange Program is an
effort to:
o Foster.a better understanding, relation-
ship and cooperative action between
business and Government by exchanging
high-talented/high-potential executives
for one-to two-year periods.
o Bring innovative and effective manage-
ment practices from one sector to the
other.
o Open both sectors to a broader perspec-
tive and fresh thinking on problems and
programs.
o Develop a cadre of business executives
with Government experience who could be
called upon for high appointive service
in future years.
Eligibility Requirements
,,Men and women from mid-career levels of
private business or Federal Service are
eligible for this program provided they
are nominated by their company chief exec-
utive or Federal agency head.
The program is open to executives who:
o Have a record of proven management
abilities--on the job accomplishments
and a history of increased responsi-
bility and salary.
o Have high intellectual capacity and
superior educational achievement.
**' Are recognized as potential top execu-
tives and have a broad capacity for
leadersii`.
o Are in their late twenties to middle
thirties.
o Receive annual cash compensation in
the range of $25,000 to $35,000 a
year.
o Are citizens of the United States.
Nomination
Nominations should be directed to the:
Executive Office
President's Commission on
Personnel Interchange
1900 E Street, N. W.
Washington, D. C. 20415
Selection Procedures
February-March
April
May-June
Formal invitation by
the Commission call-
ing for nominations
for positions and
candidates.
Review of nominations,
interviews and tenta-
tive selection of
applicants by compa-
nies or agencies.
Final designation of
Interchange Executives.
July-August
Beginning of Inter-
change Assignment.
Approved For Release 2002/04/01 : CIA-RDP89-01114R000100020072-5