NATIONAL ACADEMY OF PUBLIC ADMINISTRATION (NAPA) PROJECT GROUP RECOMMENDATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP10M01788R000400050001-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 31
• Document Creation Date: December 22, 2016
• Document Release Date: October 19, 2012
• Sequence Number: 1
• Publication Date: February 28, 1979
• Content Type: MEMO

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I~~'fORANDtINi FOR: Deputy Director for Administration
Deputy Director for National Foreign Assessment
? Deputy Director for Operations
Deputy Director for Science and Technology
~. General Counsel
Legislative Counsel
Inspector General
Comptroller
Director, Equal Employment Opportunity
Director of Public Affairs
FROM Harry E. Fitzwater
Director of Personnel
Policy, Planning, and Management
SUBJECT NAPA Project Group Recommendations
Following deliberations by the Executive Committee, the Deputy
Director of Central Intelligence approved the attached two sets of
actions on recommendations made by the NAPA Project Group in their
report of Z November 1979. I am forwarding these to you for infor-
mation only; specific actions to be taken will be the subject of
separate correspondence. In addition, all employees will be noti-
fied of any personnel management changes..
~~~; ~ ~iizwater
Harry E. Fitzwater
C9MP~
RECt19A
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Next 11 Page(s) In Document Denied
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~ NOV 1979
MEMORANDUM FOR: Director of Personnel
FROM: Maurice Lipton
Comptroller
SUBJECT: NAPA Project Group Report (U)
REFERENCE: 'Memo for Multiple Addressees from DDCI dtd 5 November 1979,
Same Subject (U)
1. As requested by the DDCI, I have reviewed the NAPA Project Group
Report. It also has been reviewed by members of my staff. The consensus
is that the NAPA Project Group has prepared an objective report of high
quality, and has made sound defensible recommendations on the issues
involved. (U) -
2. I have no substantive comments or suggestions to offer on the
Report. Also, I have no major disagreement with the conclusions reached
on the issues, and am prepared to support approval of most of the recom-
mendations- without reservation. In a few instances, particularly those
dealing with panel activities, I would like to have the benefit of the
views of other Executive Committee members before committing myself.
(A/IUO)
3. I agree with-the NAPA Project Group that certain of the issues
(enumerated in paragraph 3 of the Group's 2 November 1979 transmittal
memorandum) are likely to be of greater interest and concern to Agency
.management than others. I look forward to the planned Executive Com-
Maurice Lipton
.Distribution:
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~- Compt Subj w/att.
1 - Compt w/o-att.
1 - D/Compt w/o att...
1 - Compt Reading w/o att.
1 - AG Chrono w/o att.
0/Compt/AG (15Nov79}
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15 November 1979
MEMORANDUM FOR: Comptroller
SUBJECT: NAPA Project Group Report (U)
1. As you requested, I have reviewed the NAPA Project Group Report. I
paid particular attention to the discussion and the recommendations presented
,for consideration by the Executive Committee .and subsequent approval/dis-
approval by the DCI/DDCI. I also again reviewed the NAPA Report and the.
.discussion leading to the~NAPA recommendations. (U)
2. In my-view, the Project Group has. done a good job and has presented
recommendations which, for the most part, we will .be hard pressed to dis-
approve. Most are of the so-called "motherhood" variety, and all seem
intended to correct real or perceived deficiencies in the Agency's personnel
management system, to improve personnel procedures, or to state or clarify
policy. In several instances, the Group d~,sagreed with the NAPA Team and
in my view rightfully so (e.g., see recommendation(s) in Tabs B, F, G,
.and R to illustrate areas of disagreement). Since I basically agree with
the recommendation(s) presented by the Group, I saw no purpose to be served
in commenting to you on each of the issues. However, I will be glad to
do so if you wish. (U)
3. The NAPA Project Group transmittal memo highlights in paragraph 2
those issues which it considers most important. I agree with the Group's
appraisal and would only add that those issues and accompanying recom-
mendations dealing with evaluation panels are likely to be the most
controversial. Here again, in my view, the Group seems to have done. its
homework and recommends changes in-the existing system which I believe
should be approved. (U)
4. I somehow feel that my generalizations are not very helpful in
preparing you for the Executive Committee Meeting on the Report. Howe"ver,
short of commenting (my pros and cons-mostly pros) on each issue, I am
not sure what else I can .offer. (U)
S. I suggest that you focus briefly on the recommendation(s)
relating to each issue (generally found on the, last page under each Tab)
and flag those that you feel are worth pursuing. Then we might discuss
those with which you disagree or feel additional background might be
useful. I also suggest you send the attached memo to the D/Pers in
response to the DDCI request for comments on the report. (U)
STAT
Chief, Administration Group
0/Comptroller
Attachment:
As Stated
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1 - Comet Reading w/o att.
1 - AG Chrono w o att.
0/Comet/AG (15Nov79)
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THE CIA PERSONNEL MANAGEMENT SYSTEM
Prepared by ~ .
THE NATIONAL ACADEMY OF PUBLIC ADMINISTRATION
March 15, 1979
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_ OF PUBLIC ADDII:~rISTIZATIO~r
122 Ginnertleut t1~~emic, \.\C: 1~'asliingtou, D.C. 20036
202/fi59-91 fia
March 15, 1979
Admiral Stansfield Turner
Director
Central Intelligence Agency
.Washington, D. C.,20505
Dear Admiral Turner:
The National Academy of Public Administration
Team charged with reviewing the CiA personnel manage-
ment system is pleased to present its final report to
you. The basic thrust of the report is to provide
a personnel management system for the Agency that will
meet its present and future needs.
The Team appreciates the opportunity it has .had
to be of service. The challenges involved have been
unique, and the cooperation the Team received was
. outstanding.
It is .our .hope that the report will serve as a
useful basis for long-term adjustments that .will
enable the Agency and its people to better fulfill
the-vital CIA mission.
a
Enclosure
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THE CIA PERSONNEL MANAGEMENT SYSTEM
-TABLE .OF CONTENTS
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Executive Summary:
Introduction .~
The Present System ,
Conclusions and Recommendations
Introduction:
The NAPA ,Team's Assignment .
The Focus of .the Study
The Approach Taken -- Methodology
Part I -- The Present System:
Personnel Management in CIA .
The Career Services
Specific Personnel Management Activities .
The Relationship of Executive Leadership
and Personnel Management to Mission
Accomplishment ..
Part II -- Conclusions and Recommendations:
Conclusions Concerning the Effectiveness
of the Present System
Considerations Upon Which Revisions Should
be Based
Proposals Relative to Various Aspects of the
Personnel Management System . .
Roles and Relationships in Personnel
Management
Cast of Administering?the Personnel System ..
Implementation of This Report ..
Pages
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Appendices: (Listed Separately)
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The review of the CIA Personnel-Management system
undertaken by the National Academy of Public Administration
isvset forth in~the accompanying report. The report contains
three major sections: (1) an Introduction; (2) a description
of the Present System, highlighting problem areas; and (3)
Conclusions and Recommendations. This summary attempts to
capsulize the contents of the report.
Introduction
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Reviews the original assignment given the NAPA Team,
the Team's composition, its methodology and the considerations
which guided its study.
The Team concludes that the current CIA personnel
system, characterized by rank-in-the-person and decentralized
management to Directorates, has served the Agency well.
NAPA believes that, with some adjustments, the existing
arrangements are the best available for the organization
and sufficiently flexible to accommodate to environmental
changes most likely to affect the Agency's future.
The Present System
1. Personnel Mana ement in the CIA
Reviews the statutory base upon which the present system
is founded; examines personnel policy development,. implementation
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and evaluation within the Agency; comments on the roles and
relationships of the various participants in personnel
management; and attempts to summarize the costs involved
in CIA-personnel management.
A major finding in this section is that. the CIA statutory
base grants an extraordinarily flexible authority on which
to develop personnel policy. This flexibility, however,
generates problems. Specifically:
? The Agency has been able to pick and choose
parts of other personnel systems; however, decisions
to accept or reject various aspects of the prevailing
Federal system have not been based on clearly stated
criteria nor fully explained to Agency employees.
? General Counsel's decisions on CIA statutory
latitude in personnel matters appear rather con-
servative; the extent of the Agency's authority or
restrictions upon it need to be firmly agreed upon.
Other findings include:
? The history of the Agency makes clear that
policy can be developed and implemented only with-
senior line management involvement and top management
interest and support.
? The system-for issuance.. of Regulations
governing Agency personnel management does not provide
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proper mechanisms for policy decision-making by
the DCI/DDCI.
? The Annual Personnel Plan (APP) and the
Personnel Development Program (PDP), although
basically useful .personnel management tools, have
become grossly overburdened with detail-and are
in need of major overhaul.
? Internal reporting systems do not satisfy
data needs at various levels of the Agency.
? 'The Office of Personnel has a weak enforce-
ment posture in all of its activities.
? There does not appear to be a comprehensive
system-for evaluating personnel operations, tracking
performance or enforcing compliance with policy.
? Coordination between the Office of Personnel
and the Office of Training is deficient, and hinders
the full utilization of training resources in the Agency..
? The role ofpersonnel staffs assigned to
Directorates and Career Management staffs have not
been clearly defined.
? The staff costs of administering personnel
management in the CIA, are high compared to other
.Federal agencies. .These costs arise, iri part, from
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the number of personnel careerists and non-careerists
performing personnel functions in the components and
the number of man years devoted to panel operation.
2. The Career Services
Describes the concepts and coverage of the CIA's five
career services and addresses the problem inherent in a
system which follows organizational lines while the interests
of some employees are more associated with occupational
categories. ,
-Findings resulting from our review of the five career
services disclose:
? The occupational categories for which there
is the greatest Agency-wide utilization are Clerical
and Secretarial, Data Processing, `Intelligence Pro-
cessing and Production. Other categories are largely
concentrated in a single Directorate.
? The existence, side by side, of two different
bases for assignment and promotion raises the question:
should the Agency consider abandoning Personal Rank
Authority (PRA). for all but DDO;`or for all but DDO
and those portions of~other Directorates which have
significant overseas billets or continue the present
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? On balance the majority (67$) of Agency
employees are assigned to positions of the same
grade as held by the individual. DDO is the ex- '
ception with only 54$ assigned at an equivalent grade.
? Agency-wide (and within all Directorates)
substantially more employees (27$) are assigned to
positions above their personal grade than to lower
graded positions (6 $).
3. Specific Personnel Management Activities
Discusses a broad spectrum of personnel functions
and activities, including: Performance Evaluation, Panels,.
Promotions, Assignments, Separation, Recruitment, Placement,
Vacancy Notices, Training and Equal Employment Opportunity.
The major findings set forth in this .section are:
? The present Fitness Report is deficient
but is in the process of revision.
? There is confusion between "performance"
and "potential" in the use of .the CIA "descriptors" --
"High Potential," "May Develop High Potential,"
"Valuable Contribution," etc.
? Some comparative .evaluations of employees are
excessively definitive in that they purport to rank
every employee in specific relationship to every other
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employee. (That is, every individual in a group
of ,.10.0 is assigned.a position between land 1OO.j
There are a variety of differences in panel
composition and method of operation.
? The recent directive requiring supervisory
compliance with panel recommendations for promotion
:has caused concern-among many line managers.
? "Flow-through" is not a workable concept for
many Agency managers. These ,managers accrue that a
"young and vigorous" work force is not~a necessity in
many parts of the Agency and that, even in those com-
ponents_where it is highly desirable, there are cir-
cumstances which require'exceptions.
? The "low three percent out" concept has not
resulted directly in eliminating the least desirable
personnel and is inadequate for use as a reduction-
in-force mechanism.
? Agency recruiting activities are less than
effective because of the lack of uniform .and realistic
qualification standards,-the discontinuity and number
of steps in the recruiting process and the failure
of the system to resurface applicants who have desirable
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qualifications but were not selected initially.. .
? Recruitment of Career Trainees (CTs) from
within and without the Agency does not appear to
have been pursued as effectively as it might and
criteria should be established for use of CTs in
Directorates other than DDO.
? Placement of employee spouses returning
from LWOP during an overseas assignment has not
been afforded a sufficiently high-priority.
~' ? The Agency "Vacancy Notice" program is
uncoordinated and ill-defined. It is operated
differently by the various Directorates and has some
mechanical problems in the actual distribution of
notices.
? Use of the PDP in selection of employees
for supervisory and management training programs is
causing a dysfunction in the system. It is question-.
able whether enough of the right people are receiving
this training.
? Agency hiring policy has emphasized both
qualifications and potential in the selection of
applicants. The minority community in the Agency
believes this policy to be discriminatory and that
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the major concern should be related to the qualifications
for the position to be filled. ~
? Minority employees and women are significantly
underrepresented in the higher grade levels. "
? There are no clear criteria for the-use of
PAT-B and it is viewed by minority employees as
having a cultural bias.' It has not .received a credible
analysis by outside experts..
? Minority employees are concerned about their
lack of representation on the Personnel Evaluation.
Review-Board and the Applicant Review Panel. ,
? The EEO Advisory Group opposes the
categorization of all `Agency positions as professional,
technical or clerical .and the requirement of a
college degree for all "professional" positions.
4. The Relationship of Personnel Management to Mission
.Accomplishment
Discusses the programs for executive identification
and development; indoctrinating new employees, supervisors
and managers; efforts to improve and reward teamwork; rewards
.for breadth of experience; and rotational assignments. _
Findings include:
? There is a lack of a comprehensive system
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for the identification of executive potential and
the development of that potential.
The Agency has not assigned staff responsi-
bility for assisting line managers in .team building
efforts.
?. .The system does not reward teamwork nor
penalize those who disregard it.
~ The attitude of top management toward the value
of rotational .assignments is clear but the concept and
implementation of the "thirty position" program leave
something to be desired. Directorate.. publications
do not stress rotation.
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Conclusions and Recommendations
This part of the report restates and expands on the
Team's judgment regarding the overall effectiveness of the
CIA personnel system; sets forth-the general considerations
which should guide the Agency in making adjustments on cur-
rent practices; makes specific suggestions for improvement;
and -sets -forth guidelines for implementation of the report's
recommendations.
1. Conclusions-Concerning Effectiveness !of the Present System
While again emphasizing that the Present System does not
require radical surgery; the report concludes that:
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? The most effective system for the Agency
involves policy guidance, goal-setting and evaluation
of results centralized to top management, with
implementation decentralized to operating components.
? In many areas of personnel management,, Agency-
wide standards have not been established and where
they have been, there is no adequate mechanism for
assuring compliance.
? The centralization of personnel management
at the Directorate level is sufficient to assure
relatively uniform treatment of Directorate employees.
? The CIA system involves a large variety of
people and organizations in personnel management --
line managers, Career Management staffs, Panels,
Offices of Personnel and Training. The roles and
relationships of these participants are not entirely
clear and the costs of operating in this mode must be
given appropriate attention.
2. Considerations-Upon Which Revisions Should be Based
Suggests that: -
? The DCI/DDCI should assert leadership in the
formation of Agency personnel policy, planning for
future personnel needs, the development of Executive/
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Managers, and the evaluation of program accomplishments.
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? The scope and limitations of statutory
personnel authority should be analyzed and clearly
defined.
? Flexibility to meet the diverse needs of
components should be retained within the broad frame-
work of an Agency-wide system.
? Revisions in the present system should be
made only after careful consideration of the impact
throughout the system.
? There should be maximum line management
involvement.
? Roles and relationships of all involved in
personnel management should be clarified.
? The goal of maximum efficiency and equity
must be sought in the light of reasonable restraints
on costs.
? The Agency employee population must not
only be highly qualified but it must also represent
American society more than it now does.
? Implementation of our recommendations should
proceed thoughtfully and with due regard for minimizing
disruptions within the work force.
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3. Suggestions for Revising Various Aspects of the Present
Personnel Management System
Discusses the fact that .the CIA,, in, theory has a single
system but in practice,. operates under two personnel concepts:
(1) a rank-in-the-person system; and (2) the classical Civil
Service arrangement in which the position occupied .determines
the employee's grade level. Considers .the possibility of
.openly adopting separate systems for the domestic and over-
seas components, but rejects that option for the following
.reasons:
? It would establish "class" distinctions wi-thin
the Agency which would be psychologically counter-
.productive.
? It would hamper the reassignment across
:Directorate lines of ..returning overseas personnel.
? It would be at cross purposes with the recently`
enacted-Civil Service Reform Act insofar as executives
are concerned.
? It would eliminate -- for domestic components --
the present flexibility which allows the "testing" of
employees in higher graded jobs before deciding to
actually promote the individual.
Concludes, therefore, that the Agency is best served by
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~I retaining rank-in-the-person authority for both overseas
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and domestic components even though Agency needs will result
in applications amounting to a dual system.
In. addition, makes general and specific ,comments and
recommendations for improvement irithe areas of: career
planning; executive selection and development; employee
evaluation, promotion, assignment and retention; the function
of panels; recruitment; equal employment; work force planning;
and personnel policy development, implementation and evalu-
The major recommendations contained in this section
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are:
? Establish a new Executive Selection and
Development program which recognizes the distinctions
between general managers,. program managers and pro-
fessionals. Provide Directorate systems which feed
outstanding employees into the executive ranks.
? Enhance career opportunities for employees
by: (1) establishing some career lines which cut
across the present career services; (2) improving
.the use of vacancy notices, (3) adopting better
mechanisms for dealing with. employees returning from
overseas and LWOP and those involved in reductions
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in personnel ceilings;.=and (4) by clarifying the
intent and implications of the "flow-through" policy.
? Clearly distinguish between performance
and potential in employee evaluation.
~~.
? Adopt a number of .specific suggestions for
improving and standardizing the function of promotion:
panels.
? Ease the current restrictions on supervisory
modification of ,promotion-panel judgments. Monitor
the incidence of such actions.
? StY~engthen and streamline the recruiting-
process. in general and make adjustments in Career
Trainee recruitment in particular.
? Retain definitive grade level goals-for
minorities and women and provide for at least annual
review by the EAG/DCI/DDCI on component accomplishment.
? Validate, and examine possible racial bias,
PAT-B by use of credible outside expertise. Prescribe
positions or classes. of positions for which it is
to be utilized.
? Add-the Director of EE0 to the Personnel
Evaluation Board and-the Applicant Review Panel.
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? Charge the EAG with the role of advising the DCI
on all Agency personnel management policies.
? Revise the preparation, and presentation of
Agency personnel regulations to the end, that op licy
is clearly differentiated from procedure and that
only the DCI/DDCI can approve the former.
? Take advantage of every opportunity to involve
line managers in personnel policy implementation and
evaluation.
? Improve the utility of the Annual Personnel
Plan as a manpower planning device by restructuring
to eliminate unnecessary detail and using it .as a
DCI/DDCI tool to monitor the accomplishment of Agency
manpower goals.
? .EAG and DCI/DDCI should establish a program
for coordination and review of all evaluation of
Agency personnel activities.
4. Roles and Relationships in Personnel Management
This section deals with a number of roles and relation-
ships involved in Agency personnel management. Specifically:
? The DDCI serve as chairman of the EAG on
personnel management issues.
? The DCI should reinforce his verbal orders
with a written directive designating the DDCI as the
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prime Agency decision-maker on personnel issues.
? Deputy Directors and Heads of Office and
Divisions should be assigned specific roles in person-
nel policy development, planning-and evaluation.
? The plans and evaluation staffs in the
Office of Personnel should be utilized more fully
and in a more timely fashion.
? The DCI/DDCI should give greater support to
the Office of Personnel in the enforcement of the OP
control functions. -
? Review and better define relationships between
Office of Personnel, personnel officers in components,
Career Management staffs and line officials. ~
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? Personnel .analysts should have easier access
"to top management in personnel policy development and
decision-making.
? Improve coordination between Personnel aa~d
Training and assign responsibility to the latter
organization to give staff assistance to line managers
in "team-building" efforts.
? Establish a Management Staff to support the
EAG/DCI/DDCI, on organization, manpower utilization
and planning.
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? Reconsider "the viability of the "E" Career
Service.
5. Implementation of This Report
Suggests that the cumulative effect of the changes
recommended could have a disruptive effect on the organization
if not carefully evaluated and adopted in a phased fashion.
We recommend the following steps:
? Widest feasible distribution of the major
-portions of this report in order to avoid employee
mistrust of management motives and to detect valid
reactions of a negative nature.
? In-depth appraisal by the EAG with approprate-
staff support. from the Office of Personnel.
? Development, by the EAG/DDCI, of an imple-.
mentation schedule which establishes priorities and
target dates.
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INTRODUCTION
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1. The NAPA Team's.A~signment
. The National Academy of Public Administration was
requested to undertake a major and thorough examination of
the CIA's personnel management system. .The Academy Team
assigned to conduct this study was requested to include in
its report:
- basic findings concerning the effectiveness
of the present system,
' - .principles upon-which revisions,. if necessary,
should be based,
- basic concepts for revising various aspects
of the present personnel, management system and'-options,
if and where 'appropriate,
organizational concepts for. any .proposed
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changes and suggestions for implementing any changes.
The National Academy of Public Administration Team
included
STAT
The-study started on November 20, 1978
and concluded on March 15, 1979.
2. The Focus of the Study
The present personnel-management system has served the
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Agency well. The calibre of employees in the organization is
considered by Agency managers and NAPA Team members to be
extremely high and this is tangible proof of the effectiveness
of the system in the past. In every discussion the Team .
members have had with Agency managers, managers have evidenced
their interest in the personnel management system and rec-
ognize their responsibilities for administering the system.
They also are acutely aware of the importance of balancing the
needs of the Agency and the needs of employees.
There are a variety of factors which we believe will
affect the Agency in the immediate future: These in-
clude: (1) the present attempts to define the Agency's role
;and methods of operation, i.e., charter legislation; (2) the
limitations on personnel and dollar resources that is af-
fecting all government agencies; (3) continuing publicity
about CIA and Freedom of Information demands; (4) changes
` in .methods of collecting intelligence, and (3) the changing
leadership due to the large number of persons retiring who
entered the Agency service in the late forties and early
fifties.
In the light of what we see forthcoming in the Agency's
future, .the central issue we sought to address was whether
the personnel structure and management system as it has
evolved in the Agency is conceptually sound and flexible
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enough to meet both the changing needs of a highly important
and unique national security agency as well as to adjust
to societal changes and a shrinking resource base.
Other foreign affairs agencies have, in general, tried
to solve the complex task of organizing and managing a world-
wide component and a domestic component through dual person-
nel system -- Foreign Service and Civil Service -- centrally
managed. The CIA, unlike the other agencies, has had the
latitude, by virtue of being designated an excepted
service, to adapt the Civil Service system to accommodate
the distinctly different requirements of a disciplined mobile.
worldwide service and .a stable domestic system. At the same
time, the personnel management function has been largely de-
centralized to line managers with the prime responsibility
residing, since the 1973 reforms, with the heads of the
Directorates. The Office of Personnel is assigned an almost
entirely servicing role, some monitoring, and administration
of the classification system.
Keeping in mind top management'-s desire to achieve
greater coherence in the system as a whole, to strengthen
its own personnel management role, and to improve executive
development, the Team took a hard-look at possible
alternative systems.- We have concluded that the basic
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concepts on which the CIA ersonnel svstem is built are
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both sound and capable of adaptation to changing needs.
The goals which top management seeks can be accomplished
.within this framework.
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