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Tim Kane Chief Economist Hudson Institute Book published by Palgrave MacMillan December 2012

In this book published by Palgrave MacMillan, Tim Kane, Chief Economist at the Hudson Institute, explores why the American military, which produces innovative and entrepreneurial leaders, often wastes their talent in a risk-averse bureaucracy. He examines the values at stake, the need for coercion, and the concept of a professional military. Drawing on a survey of 250 West Point grads, he addresses the issue of the military's best officers leaving early and its impact on national security. Kane proposes radical reforms, including a Total Volunteer Force model.

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Tim Kane Chief Economist Hudson Institute Book published by Palgrave MacMillan December 2012

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  1. Tim Kane Chief Economist Hudson Institute Book published by Palgrave MacMillan December 2012

  2. Pentagon Paradox • Why does the American military produce the most innovative and entrepreneurial leaders in the country, then waste that talent in a risk-averse bureaucracy? • Why Coercion? What values are at stake? • A Professional Military? • What is Entrepreneurial Leadership?

  3. Survey of 250 West Point Grads “93 percent believed that half or more of ‘the best officers leave the military early rather than serving a full career.’ Among active-duty respondents, 82 percent believed that half or more of the best are leaving.”

  4. Survey of 250 West Point Grads Does the current exit rate of the military's best young officers harm national security? “How can the Army break up the institutional concrete, its bureaucratic rigidity in its assignments and promotion processes, in order to retain, challenge, and inspire its best, brightest, and most-battled tested young officers to lead the service in the future?” - Robert M Gates, Secretary of Defense

  5. Survey of 250 West Point Grads The current military personnel system ...

  6. Entrepreneurs in Uniform George Washington Civilian Robert E. Lee Engineer Alfred Thayer Mahan Intellectual Bill Mitchell Innovator James Gavin Young Gun Dwight Eisenhower Old Staffer

  7. Total Volunteer Force • The military is its own role model for radical reform. We did it in 1973: ended the draft and instituted the radical All Volunteer Force. • Key pieces: performance evaluations, thicken labor supply, end year groups, pay, all issues orbit the central piece of job-matching

  8. What’swrongwith leadership management in the Army? (and Navy, and Air Force, and …) • Job-matching is a disaster. It is centrally planned, and consequently suffers from Hayekian knowledge problem. Inefficient and morale crushing. • Careers based on seniority & box checking, not merit. System is rigid – not adaptive to changing technology. • Performance evaluationis inflated beyond parody. Not useful for feedback, job-matching, promotion. • Promotions are strictly gated: one narrow path. • Up or out framework discourages entrepreneurship, talent development. No lateral entry.

  9. Total Volunteer Force(an economist’s framework) Each commander is responsible for hiring personnel in his unit. Use volunteerism, not coercion. Boards meet to authorize, not award, promotions. Each commander has an HR officer.

  10. Total Volunteer Force • Efficiency means getting the MOST out of your people. • Real evaluations with relative rating and peer assessments will lead to better talent matching and career development. • Flexible pay and time on station will lead to great satisfaction, productivity, and talent matching.

  11. Tim Kane Chief Economist Hudson Institute tim@hudson.org

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