2Today’s Discussion:Setting the StagePreliminary Survey ResultsApplying a Management Framework to your organizationWorld Bank Group Case StudyBritish American Tobacco Case StudyConclusion
3Learning ObjectivesTo illustrate why management concepts should be included in intelligence education curriculums.Provide a framework of management concepts that can be applied to intelligence organizations.Provide case studies illustrating successful use of the management framework to help intelligence functions adapt to change.
4Setting The StageIn a survey conducted by Kenneth Al Sawka titled “If You Can’t Live Without Me, Why Aren’t You Dead Yet?” 64% of all respondents reported that intelligence users in their organizations were not fully aware of the intelligence unit functions or its outputs.
5Setting The Stage (Continued) Mirroring Mr. Sawka’s findings was a Feburary 2005, Ostiches and Eagles, Competitive Intelligence Usage and Understanding in U.S. Companies survey that revealed that while a majority of companies surveyed claimed to have an organized competitive intelligence function, most admitted they did not have the means, interest, or understanding to use it properly. In addition, half of the respondents claim that a lack of trained analysts is a key reason why intelligence is not more highly valued inside their companies.
6Setting The Stage (Continued) The question that must be answered therefore, is “ How have successful Security/Intelligence Managers overcome these perceived prejudices?”Is your organization valued?Does your organization have effective impact on policy and decision-making?Does your organization adapt to change quickly?
7McManis & Monsalve Ongoing Study Utilizing a Delphi survey approach we have approached corporate security units that utilize intelligence. Essentially the study asked:What are the greatest challenges you face in managing a CIU and your security program overall?How do you establish your priorities?What methodologies/processes did you use to gain recognition and success?Why did we choose the corporate world? The mandate for intelligence already exists in the government, while the corporate world must create the need through demonstrated capabilities and value to business operations.Delphi approach was chose since it is an interactive survey approach that works well in building dialog with your focus group and provides interactive active approach for drilling down. Particularly good when you don’t necessarily want to focus on quantitative subject matter.In an effort to identify critical success factors for effective Corporate Intelligence Units (CIU), MMA designed and submitted an informal Delphi survey to select Corporations with known successful CIUs. Essentially the study asked:What are the greatest challenges you face in managing a CIU and your security program overall?How do you establish your priorities?What methodologies/processes did you use to gain recognition and success?
8Preliminary Survey Findings A sea change is underway in the world of corporate security requiring practitioners to add value to an organization by proactively identifying and quantifying risk across all aspects of the business.Multinational corporations want professional subject matter experts capable of understanding and participating in today’s global business environment and making security decisions utilizing the calculus and language of business.A sea change is underway in the world of corporate security requiring practitioners to add value to an organization by proactively identifying and quantifying risk across all aspects of the business. through the development of programs/services that minimize and/or mitigate the impact of risk upon the business, at any level. There are two main drivers for requiring security/intelligence functions be managed more effectively:Senior Leadership is requiring that security/intelligence functions become more integrated with business operations.Corporations and corporate security is increasingly needing and using intelligence.
9Preliminary Survey Findings Corporations are also seeking individuals who, not only possess the traditional skills of the security profession but, posses knowledge and expertise in the intelligence profession and as a result, understand the value, and limitations of exploiting information.
10Subject Areas Identified by Corporate Security/Intelligence Managers InvestigationsNetwork SecurityRisk ManagementBusiness ContinuityEmergency PreparednessAccess ControlInternational MarketingPhysical SecurityCompliance IssuesSarbanes OxleyCrisis CommunicationsReputation ManagementCompetitive IntelligenceForeign Languages & CultureWe asked Security Managers what skills they needed By the time you learn all of these things you will be ready for retirement.One of the challenges for managers who were SME is to move into a world that is more ambiguous.Increased trending towards contracting and managing contracts. Contracts.
11Preliminary Finding - Intelligence To be effective, intelligence must be forward-looking and decision relevant. This can only be accomplished with an organizational framework that establishes the intelligence function as an integrated and valued consultant to management for policy formulation and resource allocation.Key factor is also that management can support intelligence. Effective management is needed for more effective intelligence.Management creates the overall value for an organization.
12Why is Management Important? Management is the mechanism that turns people’s efforts into practical achievements. It takes people, processes and resources, knowledge and transforms it into something the organization values.Allows organizations and individuals to achieve established goals.Establishes a mission and vision needed to achieve commitment from employeesProvides direction for organizational efforts.Provides goals that allow for the measure of success.Environmental Assessment – continued.Who are my clients? Who perceives that my function is adding value to their operations?Strengths/WeaknessesPersonnel- Capability/TrainingResources (Fiscal and Human)
13Creating a Framework for Success Respondents based their success on their ability to design and implement a strong management plan. Each plan centered on objectives that aid their organizations meet stated goals. Terms describing plan components varied, but the function descriptions remained almost universal and included:Conducting an Environmental AssessmentWhat is our declared mission?Where does my function fit in the organization’s hierarchy?Who is in my chain of command and where do they fit in the organizational hierarchy – what is their agenda vis-vis the stated goals of the organization?All successful respondents based their success on their ability to design and implement a strong management plan centered around objectives that would aid their organizations meet their stated goals. Although the terms utilized to describe the individuals components varied, the function descriptions remained almost universal and included:Often people come into an organization and start doing things that are not their ways of doing things.Need a systematic approach to approaching tasks or tackling problems that emergeNobody has a job that is to make their bosses job harder.Environmental Assessment – continued.Who are my clients? Who perceives that my function is adding value to their operations?Strengths/WeaknessesPersonnel- Capability/TrainingResources (Fiscal and Human)
14Defining Keys for Framework Key 1: Defining A Mission Statement:A brief statement indicating who the group is, what it does, and how it serves. It is oriented to the present reality.Key 2: Defining A Vision Statement:Usually oriented towards the future by addressing questions such as:What does the organization wish to achieve?What does the organization wish to become in the future?A properly crafted vision gives employees the parameters for action.
15The two most frequently used by the survey respondents were: Key 3: Effective Organizational StructureOnce the mission & vision have been identified, the operational framework must also be defined.Does present organizational structure makes sense for the environment?Reorganizing for the sake of reorganizing usually does not provide benefits.Structural changes don’t easily change behavioral patterns.Sometimes the world doesn’t fit onto a sheet of 8.5 * 11 paper.Ask if the present organizational structure makes sense for the environment, if not what might work better. Should not reorganize for the sake of reorganizing as structural changes don’t easily change behavioral patterns The two most frequently used by the survey respondents wereStovepipe – where functions are clearly defined, each unit representing a unique capability, with tightly defined roles and responsibilities.Matrix – where resources are combined and utilized in common to achieve several objectives. Responsibilities are broad and shared.The two most frequently used by the survey respondents were:StovepipeMatrix
16Key 4: Establishing Functions and Processes An examination of how to operate with your available resources. This usually involves human capital and includes activities such as:Defining roles & responsibilities, operating procedures.Defining the knowledge and skill capabilities needed.Providing necessary training to develop skill and knowledge levels.Educating staff on performance expectations.
17Applying the Framework to an Intelligence Unit OrganizationIntelligence managers create a framework for looking at their roles internally .The framework also provides a rational method for looking how a unit applies intelligence to different issues.Defined Mission & VisionOrganizational StructureFunctions & ProcessesIntelligence Unit“Solving Problems?”“Solving Problems” Interesting talking point since in corporate sector intelligence usually has the role of making a stronger rational for determining what course of action to take.External Environment
18Function Matrix (Napkin Approach) CustomerIntelligence Model UsedData Sources UtilizedAnalytical Tools UsedStaff RequiredRelationshipsProduct/OutputFeedback MechanismLeft hand column is program elements. Top column looks at the issues the intelligence analyst is being asked to support.
19Function Matrix (Napkin Approach) Container Interdiction Threat MonitoringContainer InterdictionCustomerRegional Sec. ManagersLegal Team, Law Enforcement RespondersIntelligence Model UsedWatch & WarningEffects Based OperationsData Sources UtilizedIJET, Social SoftwareCargo manifests, HUMINTAnalytical Tools UsedThreat Matrix ZebraNetwork Analysis, Commodity Flow AnalysisStaff Required23 staff, S.A. 12Relationships?Port Official, Inland RevenueProduct/OutputDaily Brief, AlertsProsecution of casesFeedback MechanismInsurance?, Market PricingCollection services
20Security Management Function Case Study The World Bank GroupSecurity Management Function Case StudyNow introduce case studies. Case studies were chosen to have organizations that had to deal with transnational security issues, and used intelligence. Similar to issues governmental organizations have had to deal with, we tried to shy away from competitive intelligence.
21Management Challenge: World Bank GroupOverview:The World Bank Group (WBG) provides financial and technical assistance to developing countries around the world.Management Challenge:A new Security Director was brought on to build a global security program capable of protecting WBG’s personnel, facilities and operations worldwide.The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the common sense. We are made up of two unique development institutions owned by 184 member countries—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Each institution plays a different but supportive role in our mission of global poverty reduction and the improvement of living standards. The IBRD focuses on middle income and creditworthy poor countries, while IDA focuses on the poorest countries in the world. Together we provide low-interest loans, interest-free credit and grants to developing countries for education, health, infrastructure, communications and many other purposes.WBG is made up of two unique development institutions owned by 184 member countries—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).How do orgaizations respond to changing requirements to stay relevant and effective?WBG, Washington D.C.
22Step 1 – Defined the Mission World Bank GroupStep 1 – Defined the MissionNew director met with senior WBG representatives and clarified and redefined performance goals and expectations for the new WBG global security force:Need for in-house forecasting and analytical capability.Need for a global security standards policy to protect WBG personnel, facilities, and business processes.Need for the establishment of executive protection capability.Need for the establishment of continuity of operations capabilities and programs.Need for in-house forecasting and analytical capability to support WBG’s global operations and daily threat reporting capability.Need for a global security standards policy to protect WBG personnel, facilities, and business processes.Need for the establishment of executive protection capability to provide personal protection to the leadership of WBGNeed for the establishment of continuity of operations capabilities and programs
23Step 2: Identified the Organizational Structure World Bank GroupStep 2: Identified the Organizational StructureEstablished of a worldwide regional security officer platformCreated a personal protection unitCreated a 24/7 intelligence support capacity – The Watch Officers GroupStep 3: Established Functions & ProcessesEstablished a risk management/mitigation program based on recognized standards and procedures.Established knowledge of and expectation levels for all security provided services among WBG clientele.Built cooperative relationships with governmental and non-governmental information providers.Support business continuity but determine where a hand-off goes to the IT group. Security for black building. Step 2: Identifying the Operational FrameworkEstablishment of a worldwide regional security officer platformCreate a personal protection unitCreate a 24/7 intelligence support capacity – The Watch Officers GroupStep 3: ProcessEstablish a risk management/mitigation program based on recognized standards and procedures.Establish knowledge of and expectation levels for all security provided services among WBG clientele.Build cooperative relationships with governmental and non-governmental information providers, (FBI, Intelligence Agencies, private vendors, Overseas Security Advisory Council (OSAD) Where permitted seed these organizations with WBG analytical personnel.
24Developed conceptual models for each intelligence function. World Bank GroupStep 4: Established the WOG (Watch Officers Group) Intelligence Processes:Developed conceptual models for each intelligence function.Defined the manpower requirement by defining work product (15 analysts).Defined potential clients and support (product) requirements.Defined time frame for each support service – forecasting vs. same day tactical.Identified critical internal and external support networks. Performed training needs assessment for analysts corps.Instituted formal training program for WOG.Conceptual models defined were watch and monitor approach which caused them to devote watch officers to action officer role and analyst roles. Identified critical internal and external support networks. (WBG offices, governmental and non-governmental information providers)
25World Bank GroupResultsThe WOG products is now considered an essential element in the decision process for WBG global operations. Both daily and for future investments.WOG personnel are now embedded in both Federal and non-governmental intelligence advisory groups.
27British American Tobacco Overview:British American Tobacco is the world’s second largest tobacco firm.It sells 855 billion cigarettes in more than 190 countries. Brands include Dunhill, Kent, Pall Mall.If has an operating profit of £ 2,830 millionGenerates over £ 22 billion a year in taxes including excise tax for countries.
28British American Tobacco Security Challenge: Protecting Brand Identity Through Effective Use of IntelligenceDifferences in excise tax cause two main illicit trade issues for BAT:Counterfeit CigarettesContrabandDemand:Counterfeiting is driven by market demand, particularly, in those markets with high excise duties. Illegal profits approaching those of drug dealing, but with at lesser risk and with far weaker penalties.The potential profit margin on a standard container (42,000 cartons) of counterfeit cigarettes sold in Western Europe is about US$2million.New manager – effective management to reorient the focus of an existing org. from regional to global. To increase overall effectriveness. Use existing capability in more effective manner and better align with overal corporate goals and objectives.
29British American Tobacco Perceived Future Trends:Organized Crime will be more focused on cigarettes because of low punishment.EU Governments will continue to focus efforts on stopping drugs and human smuggling.Existence of “old factories”, expertise and unemployment will lead to an increase of illicit production of counterfeit, based on demand.Organised crime groups of different nationalities are coming together due to profitability and low chance of being caught.This is his rationale for change. Why we have to change, within these parameters, to meet these requirements.
30R o u t e s I n E u r o p e 0.1$ 0.6$ 10$ 1.5$ 4 $ 6 $ Dealing with transnational issue – need transnational corporate capability and approach to effectively address this isssue. Better management can help you reorient existing capabilities to meet evolving demands. Good management is a way of dealing with complexity. Good management maximizes capability.6 $
33British American Tobacco Designing a Successful Management SolutionOn assuming his new role as Global Security Director for BAT the new director asked the following questions:What is the mission of the security/intelligence function?Does the current organization structure make sense?What are the core functions the group needs to perform?How will the intelligence function support the mission (People, Products, Processes)?
34British American Tobacco Step 1 & 2: Defined the Mission and Organizational StructureCounterfeit and Contraband activities violate BAT intellectual property and trademark rights.BAT wishes to act in good will in cooperating with governments to help collect the excise tax.Director decided to replicate the European Security Unit that had been highly engaged and successful in illicit counterfeit and contraband interdiction throughout the BAT security organizationNeed for intelligence required that the Brand Enforcement Group report to the security directorMissions do not happen in a vacuum.
35British American Tobacco Step 3: Functions & ProcessesBegan to implement a centralized management process for all BAT security functions, bringing all regional security directors directly under the new Global Security DirectorateBegan to standardize operational and procedural security standardsRefocused efforts of Brand Enforcement Group to provide:Risk Management Intelligence – assess the likelihood of actions that can harm the financial, physical and human assets of the companyProduce intelligence to contribute to the business evaluation of the political and security risks in the end marketEstablished working relationships with competitor (JT, PM) analytical groupsEnhanced working relationships with applicable international police and intelligence forces.
36British American Tobacco ReportingBAT Senior LeadershipCommunicationLaw Enforcement/ CompetitorsGlobal Security DirectorOther BAT FunctionsBrand Enforcement GroupRegional Security OfficeRegional Security OfficeRegional Security OfficeRegional Security OfficeRegional Security OfficeLook at the roles and responsibilitiesSolid lines are the reporting structure.Behaviors do not change instantly so a conLocal Security ManagersLocal Security ManagersLocal Security ManagersLocal Security ManagersLocal Security Managers
37British American Tobacco Step 4: Managing the Brand Enforcement Group (BEG) Intelligence Function (Internal)5 Individuals: 1 Chief, 2 Investigators, 2 AnalystsRoles & ResponsibilitiesDeveloping conceptual models for intelligence functions (Effects Based Approach, Target modeling)Timeframes for intelligence short term (tactical) vs. forecasting (operational support)Use of VendorsDeveloping support networks (law enforcement, Overseas Advisory Council, Competitors)
40Lessons Learned:Intelligence organizations must integrate themselves into their organization.Effective management creates the bridge between technical competency and operational efficiency.Management concepts should be included in intelligence education curriculums.Remember to add that in sort of a brief time we were providing a generic overview. We would like to provide our more detailed report to interested parties. Ask for our s.