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First, the present structure of the Department of Defense

was established under President Eisenhower in 1958.

His

legislative and administrative proposals had one overriding purpose: to improve the efficiency and unity of our defense establishment. We have studied President Eisenhower 1958 reforms, as well as the Department's performance since his time. Our recommendations are aimed at better achieving what Ike

intended.

ond, our findings and recommendations emphasize the

critical role of Congress.

We have looked at the budget process

and congressional oversight not only because we were specifically directed to do so by the President, but also because we are convinced that any substantial improvement of defense management will require Congress itself to perform

better in both these critical areas.

Third, as I noted in my covering letter to the President, the Commission recognized from the outset of its work that substantial progress has been made in the last five years to improve the nation's defense. The Department already has

introduced a number of the management improvements we're

recommending to the President.

Its success

to date convinces us

that our ideas are sound.

Finally, the Interim Report has the unanimous support of the

Commission.

It represents a lot of hard work, and an honest

effort to take into account the wide diversity of opinion on these important subjects. I want to thank all members of the Commission for their outstanding efforts.

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With deep respect, we dedicate this report to the late Ernest C. Arbuckle, a distinguished teacher and practitioner of business management. On Dean Arbuckle's extraordinary dedication and gentle spirit has depended much of our work.

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Mr. Frank C Carlucci

Mr. William P. Clark

I have the honor to present the Interim Report of the Blue Ribbon Commission on Defense Management.

Mr. Barber B. Conable. Ir.

Gen. Paul F. Gorman

USA (Ret)

Mrs Carla A, Hills

Adm. James L. Holloway

USN (Ret)

Dr. William J. Perry

Mr Charles J. Pilliod. Je

Lt Gen Brent Scowaroh

USAF (Ret)

At the outset of our work, we recognized the substantial progress made in the last five years to improve the nation's defense. The morale and fighting ability of our Armed Forces are higher than at any time in recent memory.

Over the years, many dedicated people have wrestled with the large, complex and critically important task of managing the Department of Defense. Nagging structural problems have long limited their

Our recommendations, a blueprint for further progress, are intended to provide the Administration and the Congress a better overall framework for defense management.

Dr Herbert Stein

Mr. R James Woolsey

success.

Director

Mr. Rhet! B. Dawson

Secretary of Defense Weinberger has already undertaken a number of the management improvements we suggest. His considerable accomplishments give us great confidence that our recommendations are sound and can produce substantially greater efficiency and savings.

We hope that you will accept them, that they will receive the full and enthusiastic support of the Congress, and that they will be implemented as soon as possible.

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Introduction

n

to study of important dimension, encompassing current defense management and organization in its entirety, including:

“the budget process, the procurement system, legislative oversight, and
the organizational and operational arrangements, both formal and infor-
mal, among the Office of the Secretary of Defense, the Organization of
the Joint Chiefs of Staff, the Unified and Specified Command system,
the Military Departments, and the Congress.”

We have tried to take a broad and searching look at defense issues, and to address the root causes of defense problems. The blueprint for change provided in this, our Interim Report, flows from certain enduring propositions of sound national security policy, effective government, and basic management.

The Armed Forces of the United States are now and for the foreseeable future an essential bulwark against the advance of tyranny. The purpose set forth two centuries ago by the drafters of the Constitution—to “provide for the common defense"—is one that we can meet today only with Armed Forces of the utmost strength and readiness. Maintaining peace and freedom requires nothing less.

To achieve this military capability, a sense of shared purpose must prevail in relations between the Executive Branch and the Congress, and between government and defense industry. Public and private institutions must cooperate well, to serve the national good rather than mere partisanship or special interest. The spirit of cooperation needed to promote the common defense is today in jeopardy. This vital spirit must be preserved. Like the effectiveness of our forces, it cannot simply be taken for granted.

The United States' defense effort is an enormous and complex enterprise. It poses unique challenges—to plan sensibly for an uncertain future, to answer new and unexpected threats to our security, to husband our technological and

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