Report - Government Executive

CHAPTER 2
THE HISTORICAL CONTEXT FOR A PERFORMANCE-BASED
COMPENSATION SYSTEM IN THE DOD INTELLIGENGE
COMPONENTS
INTRODUCTION
The terrorist attacks of September 11, 2001 introduced fundamental changes to the IC, including
pressure to change the way its agencies manage their human resources. Studies conducted in the
wake of the attacks noted that U.S. intelligence agencies missed or misinterpreted signals
pointing to a major terrorist attack and that they failed to “connect the dots” linking the actions
of the 9/11 terrorists to the plot.
The consensus emerging from these studies was that the historical challenge for IC agencies,
both civilian and military—to share information and work collaboratively—contributed
significantly to this failure. The studies suggested that closer working relationships among the
agencies would strengthen national intelligence operations and, by extension, assist in protecting
national security. The studies also concluded that a common human capital framework was an
important mechanism for bringing about closer IC working relationships and collaboration. 7
During the same period, performance-based compensation systems were being introduced in the
federal government as a replacement for the decades-old GS pay system. Advocates view these
systems, widely used in the private sector, as an important tool for driving change. The premise
is that rewarding employees with salary increases and bonus payments for results, rather than for
longevity on the job, improves organizational results. As former OPM Director Linda Springer
noted in 2005, the federal government “is not doing anything that’s new, that hasn’t been done
by millions and millions of people for decades” by adopting performance-based compensation. 8
The intersection of these two forces—the need to strengthen collaboration among intelligence
agencies and increased use of performance-based compensation systems—coupled with ODNI
efforts to respond to Congressional direction to adopt a common human resources framework,
laid the foundation for DCIPS. The effort to implement it across the DoD intelligence
components began in 2008 and 2009.
THE EVOLUTION OF DCIPS
The Secretary of Defense was given authority to establish common personnel policies for
Department of Defense (DoD) intelligence components in 1996. 9 In 1997, the Office of the
Undersecretary of Defense for Personnel and Readiness (OUSD (P&R)) and the Assistant
7 Report of the National Commission on Terrorist Attacks Upon the United States (9/11 Commission), 2004, p. 414
8 Government Executive. Aug. 4, 2005. http://www.govexec.com/story_page.cfmarticleid=31908
9 Public Law 104-201. National Defense Authorization Act for Fiscal Year 1997.
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