©2006 McManis & Monsalve Associates Managing Intelligence Functions Effectively: Challenges & Issues February 13 th, 2006

©2006 McManis & Monsalve Associates

Managing Intelligence Functions Effectively:

Challenges & Issues

February 13th, 2006


Today’s Discussion:

•Setting the Stage

•Preliminary Survey Results

•Applying a Management Framework to your organization

•World Bank Group Case Study

•British American Tobacco Case Study

•Conclusion


Learning Objectives To 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.


Setting The Stage In 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.


Mirroring Mr. Sawka’s findings was a Feburary 2005, Mirroring Mr. Sawka’s findings was a Feburary 2005, Ostiches and Eagles, Competitive Intelligence Usage and Ostiches and Eagles, Competitive Intelligence Usage and Understanding in U.S. CompaniesUnderstanding in U.S. Companies survey that revealed that survey that revealed that while a majority of companies surveyed claimed to have an while a majority of companies surveyed claimed to have an organized competitive intelligence function, most admitted organized competitive intelligence function, most admitted they did not have the means, interest, or understanding to they did not have the means, interest, or understanding to use it properly. In addition, 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.

Setting The Stage (Continued)Setting The Stage (Continued)


The question that must be answered therefore, The question that must be answered therefore, is “ How have successful Security/Intelligence is “ How have successful Security/Intelligence Managers overcome these perceived Managers overcome these perceived prejudices?”prejudices?”

Setting The Stage (Continued)Setting The Stage (Continued)


McManis & 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?


Preliminary Survey FindingsPreliminary Survey Findings A sea change is underway in the world of corporate A sea change is underway in the world of corporate

security requiring practitioners to add value to an security requiring practitioners to add value to an organization by proactively identifying and quantifying organization by proactively identifying and quantifying risk across all aspects of the business. risk across all aspects of the business.

Multinational corporations want professional subject Multinational corporations want professional subject matter experts capable of understanding and matter experts capable of understanding and participating in today’s global business environment and participating in today’s global business environment and making security decisions utilizing the calculus and making security decisions utilizing the calculus and language of business.language of business.


Corporations are also seeking individuals who, Corporations are also seeking individuals who, not only possess the traditional skills of the not only possess the traditional skills of the security profession but, posses knowledge and security profession but, posses knowledge and expertise in the intelligence profession and as a expertise in the intelligence profession and as a result, understand the value, and limitations of result, understand the value, and limitations of exploiting information.exploiting information.

Preliminary Survey FindingsPreliminary Survey Findings


Subject Areas Identified by Corporate Security/Intelligence Managers

•Investigations

•Network Security

•Risk Management

•Business Continuity

•Emergency Preparedness

•Access Control

•International Marketing

•Physical Security

•Compliance Issues

•Sarbanes Oxley

•Crisis Communications

•Reputation Management

•Competitive Intelligence

•Foreign Languages & Culture


Preliminary Finding - Intelligence

To be effective, intelligence must be forward-looking and To be effective, intelligence must be forward-looking and decision relevant. This can only be accomplished with decision relevant. This can only be accomplished with

an organizational framework that establishes the an organizational framework that establishes the intelligence function as an integrated and valued intelligence function as an integrated and valued

consultant to management for policy formulation and consultant to management for policy formulation and resource allocation.resource allocation.


Why is Management Important?

•Allows organizations and individuals to achieve established goals.

•Establishes a mission and vision needed to achieve commitment from employees

•Provides direction for organizational efforts.

•Provides goals that allow for the measure of success.

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.


Creating a Framework for Success

Conducting an Environmental Assessment

•What 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?

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:


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?

Defining 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 3: Effective Organizational Structure

•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.

Once the mission & vision have been identified, the operational framework must also be defined.

The two most frequently used by the survey respondents were:•Stovepipe •Matrix


Key 4: Establishing Functions and Processes

•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.

An examination of how to operate with your available resources. This usually involves human capital and includes activities such as:


Intelligence 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.

Applying the Framework to an Intelligence Unit

Defined Mission & Vision

Organizational Structure

Functions & Processes

Intelligence Unit

“Solving Problems?”

External Environment

Organization


Function # 1Function # 1 Function #2Function #2

CustomerCustomer

Intelligence Intelligence Model UsedModel Used

Data Sources Data Sources UtilizedUtilized

Analytical Tools Analytical Tools UsedUsed

Staff RequiredStaff Required

RelationshipsRelationships

Product/OutputProduct/Output

Feedback Feedback MechanismMechanism

Function Matrix (Napkin Approach)


Threat MonitoringThreat Monitoring Container Container InterdictionInterdiction

CustomerCustomer Regional Sec. ManagersRegional Sec. Managers Legal Team, Law Legal Team, Law Enforcement RespondersEnforcement Responders

Intelligence Intelligence Model UsedModel Used

Watch & WarningWatch & Warning Effects Based OperationsEffects Based Operations

Data Sources Data Sources UtilizedUtilized

IJET, Social SoftwareIJET, Social Software Cargo manifests, HUMINTCargo manifests, HUMINT

Analytical Tools Analytical Tools UsedUsed

Threat Matrix ZebraThreat Matrix Zebra Network Analysis, Network Analysis, Commodity Flow AnalysisCommodity Flow Analysis

Staff RequiredStaff Required 22 3 staff, S.A. 123 staff, S.A. 12

RelationshipsRelationships ?? Port Official, Inland Port Official, Inland RevenueRevenue

Product/OutputProduct/Output Daily Brief, AlertsDaily Brief, Alerts Prosecution of casesProsecution of cases

Feedback Feedback MechanismMechanism

InsuranceInsurance ?, Market Pricing?, Market Pricing

Function Matrix (Napkin Approach)


The World Bank Group

Security Management Function Case Study


World Bank Group

Overview:

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.

WBG, Washington D.C.


World Bank Group

Step 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.


Step 2: Identified the Organizational Structure

•Established of a worldwide regional security officer platform•Created a personal protection unit•Created a 24/7 intelligence support capacity – The Watch Officers Group

Step 3: Established Functions & Processes

•Established 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.

World Bank Group


Step 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.

World Bank Group


World Bank Group

Results

• The 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.


Security Function Management Case Study


British 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 million

• Generates over £ 22 billion a year in taxes including excise tax for countries.


Security Challenge: Protecting Brand Identity Through Effective Use of Intelligence

Differences in excise tax cause two main illicit trade issues for BAT:Counterfeit CigarettesContraband

Demand:

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.



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.



Routes

In

Europe

0.1$

10$

0.6$

1.5$4 $

6 $


Great Britain, Nov. 2002


Great Britain, 2002Great Britain, 2002


Designing a Successful Management Solution

On 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)?




Step 1 & 2: Defined the Mission and Organizational Structure

•Counterfeit 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 organization

•Need for intelligence required that the Brand Enforcement Group report to the security director


Step 3: Functions & Processes

• Began to implement a centralized management process for all BAT security functions, bringing all regional security directors directly under the new Global Security Directorate

• Began to standardize operational and procedural security standards• Refocused 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 company

• Produce intelligence to contribute to the business evaluation of the political and security risks in the end market

• Established working relationships with competitor (JT, PM) analytical groups

• Enhanced working relationships with applicable international police and intelligence forces.




Global Security Director

Regional Security Office





Local Security Managers





BAT Senior Leadership

Other BAT FunctionsLaw Enforcement/ Competitors

ReportingCommunication

Brand Enforcement Group


Step 4: Managing the Brand Enforcement Group (BEG) Intelligence Function (Internal)

• 5 Individuals: 1 Chief, 2 Investigators, 2 Analysts• Roles & Responsibilities

• Developing conceptual models for intelligence functions (Effects Based Approach, Target modeling)

•Timeframes for intelligence short term (tactical) vs. forecasting (operational support)

•Use of Vendors

•Developing support networks (law enforcement, Overseas Advisory Council, Competitors)



Sweden, Oct. 2003


Sweden, Oct. 2003


Lessons 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.


Contact Us:

Burley P. Fuselier, Jr.

Email: [email protected]

Todd DeBruin

Email: [email protected]

Documents

©2006 McManis & Monsalve Associates Managing Intelligence Functions Effectively: Challenges & Issues February 13 th, 2006