REF ID:A72203 

summary report on 

MANAGE&1ENT IMPROVErv~Er1T PROGRAM 

fiscal year 1954 

management assistance branch 

office of the comptroller 

national security agency 

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Declassified and approved for release by NSA on 02-06-2014 pursuantto E.O. 1352a 
NSA Form 781-Clf 6 Jul S l 

NATIONAL SECURITY AGENCY 

SUMMARY REPORT ON MANAGEMENT IMPROVEMENT PROGRAM 

FISCAL TM 1954 

I Introduction 

II '!'rends in management improvement activity 

III Major examples of' management improvement in 

Fiscal Year 1954 

IV Projected management improvement ettorte in 

Fiscal Year 1955 

Prepared by 

Office of the Comptroller 

September 1954 

TOP SEC:RET 
NATIONAL Sl!X:URITI AGENCY 

SUMMARY REPORT ON MANAGEMENT IMPROVEMENT PROGRAM 

FISCAL YEAR 195~ 

I INTRODUCTION 

This report on the Management Improvement Program within the National " 

Security Agency during Fiscal Year 1954 is in accord with the policy, set forth 

in Title X, Public Law 429, 8lst Congress, and defined in Executive Order 10072 

and the Bureau of Budget Circular, A-9,' revised. It is based upon the reports 

required by NSA Regulation 112-1, dated 25 August 1953, under the revised 

reporting instructions contained in Disposition Form, "Management Improvement 

Data," from the Comptroller, NSA, dated 2 August 1954. 

Each Staff Division and Office was instructed to limit its report to 

significant examples of management improvement in representative functions 

within its area of responsibility. Therefore, the individual reports submitted 

did not represent a fUll documentation of all management improvement activities, 

but rather a selection of the improvements within the reporting area. This 

summary presents those which are autstanding and of general interest beyond the 

reporting organization. 

Reporting organizations were invited to include brief descriptive 

statements concerning projected management improvement efforts in Fiscal Year 

1955· In general, those included herein were selected because they covered 

definable areas of effort or distinctive types of effort. Broad general.izations 

are not included. 

Management improvement is defined as any action which results in 

improved effectiveness, efficiency and economy. The Management Improvement 

Program is defined as the organized effort to promote such actions throughout 

the Agency. Responsibility is fixed upon~each·employee to effect improvements 

in his own work, and on the Chiefs of Divisions and Offices for the promotion 

and development of the Management Imt>rovement Program within their respective 

organizations. 

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II TRENDS IN MANAGEMENT IMPROVEr.IEHT ACTIVITY 

During the review of the reports on management improvement activity in 

Fiscal Year 1954, similar reports for Fiscal Year 1953 were examined. There 

emerged several distinct impressions of the reporters' concepts of and reactions 

to the Management Improvement Program. Qualitative rather than quantitative, 

these impressions are indicative of the trends in management improvement in the 

Agency. At the same time, they sugBest areas and directions in which the 

Management Improvement Program may be most effectively promoted in Fiscal Year 

1955. 

l1any of the facts presented pertained to actions of management, but the 

actions themselves did not reveal management improvement. This inability to 

distinguish between management actions, per se, and efforts toward management 

improvement may be misleading. Good management means good decisions, and a 

good management may find it impossible to report improvements because none were 

needed. And, so in its report, it includes action. This is the most 

charitable interpretation. Reports for Fiscal Year 1954 reveal an improvement 

over the preceding year in this respect. 

The need for management improvement was generally admitted, but with 

significant variations in the understanding of what the need means, and in the 

appreciation of the responsibility imposed by the need. As a result, actions 

taken to meet the need ranged from an aggressive promotion of positive efforts 

at management improvement to a tranquil confidence in the adequacy of existing 

management practices. 

A significant feature was the increasing recognition of the importance of 

proper training for personnel at all levels of responsibility. Training for 

competence to perform current assignments and training for the assumption of 

greater responsibilities were both pushed intensively during Fiscal Year 1954. 

The long-range value of this activity in improving Agency management is 

incalculable • - -

In conclusion, it was apparent that at the end of Fiscal Year 195~ there 

was throughout the Agency a greater awareness of the necessity for management 

improvement than existed at the year's beginning. This report reveals the 

diversity of means employed in accomplishing the objectives of the Management 

Imp=-ovement Program. 

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. . III MAJOR EXAMPLES OF MANAGEMENT IMPROVEMENT IN FISCAL~ ,!22!!: 

The examples selected for inclusion in this report have been arranged 

under broad major fields of activity in which the action was taken. Although 

many of them could have been placed in more than one field of activity, 

no example is reported more than once. The organization reporting the action 

is shown in parentheses iI1Dnediately following the statement. 

MANPOWER UTILIZATION 

Full-time productive employment of personnel in the School waiting 

final clearance is being accomplished by assignment of unclassified work 

projects from PROD and other offices. (SCH) 

A psychological research program was initiated to provide NSA 

with valid instruments for use in the selection and placement of individuals 

in NBA specialties and for the development of yardsticks of efficiency. (PERS) 

The program for employee performance appraisal and in-service 

placement has been revised to promote the development of firm career service 

and to contribute to the general efficiency and morale of personnel. (PERS) 

The Personnel Newsletter was introduced to improve communications 

and the relationships between the individual and Agency management. (PERS) 

SPACE UTILIZATION 

A swing shi~, involving 1500 persons, was successfully introduced, 

thereby increasing the average operational space per person 2~. The many 

administrative problems created by this change have been solved. (PROD) 

The change in location of the School did not result in more space, 

but, scheduling of classess has become much more effective and efficient 

because of the greater number and smaller sizes of rooms. (SCH) 

The centralization of books, periodicals and technical documents 

in central libraries at NSS and AHS not only conserved space, but resulted in 

a marked increase in operating efficiency of the libraries and in convenience 

for library users. (TEC) 

MACHINE AND EQUIP~'.IENT UTILIZATION 

The new Perfector'Roll Fed Press produces a given amount of work 

with an indicated savings of 75% in man-hours, compared with the sheet fed 

press. There is an additional saving of 25~ in the cutting operation. (COMSEC) 

Replacement of XEROX processing with presensitized plates effects 

a saving of approximately $4,ooo per annum in labor and material, exclusive of 

salvage value of the plates. (COMSEC) 

Automatic equipment in the Bindery speeds up production and 

eli.minated a m':1.nual operation requiring six persons. Also, collating time has 

been reduced 60~ and trimming time, 6CY/a. (CO~~EC) iii F Pf"' o 'I 

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Centralization of instrument repair activities, formerly located in 

several D1v'1.sions, resulted in more efficient service to all, in reduced costs 

and in definite time savings. (R/D) 

An estimated saving of $60,000 to $70,000 annually resulted from 

installation of sprocket feed kits and use of fan fold paper on teletype equipment. (COM) 

Continued expansion of on-line operation (from 17.7/o in May, 1953, 

to 46.~ in May, 1954) resulted in a 13.5~ increase in daily average groupage. 

(COM) 

Mechanical stock accountinG replaces manual operation coincidentally . with the publication of each section of the NSA Interim Supply Catalog. Reports 

now available through mechanical accounting have become an effective tool in 

determining realistic stock levels, in effecting timely procurement and in 

controlling inventory. Cost accounting data as well as item accounting data 

will be available, thereby assuring better financial and logistical management 

and control. (LOG) 

Comprehensive and realistic training in R/T intercept a~'2'oceasing 

is made possible by special equipment, simulating actual field conditiOl)S. {SCH) 

The doc1ment control program employs 11c~ordinate indexing" in its 

cataloging. Mechanical (IBM) assistance for the postiP~; in this system has been 

introduced, with an annual saving of at least on~-ma.l'l year. (TEC) 

PAPER HANDLING 

A new Routing Slip eliminates multiple logging in and out at various 

levels and automatically provides internal routing by orgo.nization, thereby 

speeding up delivery of incoming and outgoing corre3pon:lence. (COHSEC) 

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Open-end contracts for new book pur~hases have been arranged at 

selected bookstores in Washington, New York and Chicago.· Orders placed with 

these dealers are filled promptly, and monthly billings submitted, thereby 

effectively reducing delivery time and significantly'1owering accounting time. 

(TEC) 

The Reports Coordination Program was ma.de fully effective. Measurable 

savings amounting to an annual accrual rate of $2,300 resulted from the disapproval, 

substitution, recission or revision of 55 reports. Collateral benefits (e.g., 

elimination of compilation of unnecessary data and improvement in data reported) 

are extensive. (COMP) 

Revision of Travel Ini'ormation and Itinerary Form (NSA 1975) red".lces 

typing time significantly. (COMP) 

Issuance of suballotments has been limited to "activity" alone, 

• instead of to "activity" plus specific amounts for individual sub-accounts. 

Number of issuances was reduced by at least 5Cf/o. (COMP) 

Awards 

Decentralization of the approving authority for awards in the Incentive 

Program has accelerated acti·ons significantly, with a corresponding 

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impro~ement"in employee appreciation of the Program. (COMP) 

The principle of Skip Echelon Administration was introduced generally 

throughout the Agency with noticeable effectiveness. (COMP) 

_____ WORK MEASUREMENT .;.....,;. 

The Work Measurement System was installed in five PROD Divisions 

and in one COMSEC Division. It was introduced in one COivlSEC Division and in 

two Staff Divisions, COHP and PERS. (COMP) 

The Work Measurement Progra;n within PROD was accelerated by the 

establishment of thirty positions to be manned by qualified personnel with 

operational experience. (PROD) 

The Operation Research Program was developed to aid in the analysis 

of manpower and facilities utilization. (PROD) 

MANAGEMENT TRAINING 

A program of supervisory development was established to be offered 

to all first line supervisors within PROD.· (PROD) 

An intensive training program for personnel at all levels was 

carried on in the field of management methods. More than 600 employees attended 

lectures and discussions. Selected key officials were sent to university a.nd 

professional society development courses in scientific management. (TNG) 

TECHNICAL TP.AINING 

The basic text on traffic analysis was completed to the point of 

publication and the first of six texts on cryptanalysis was nearly as complete. {TNG) 

Eight volumes, including textbooks, glossaries and readers, were 

completed in five languages. Courses uere given to analysts in languages 

formerly unknown in the Agency. ( TNG) ,.., . _, 

To provide guidance in a possible revision of career progra.I11s within 

the individual Services, thereby promoting bett.er training in the highly 

specialized skills in cryptologic work, a prototype plan was developed for 

further planning in this field. ('I'I'1G) 

Definite progress in reaching common understanding of training problems 

with all collaborating Agencies and Services was ma.de. Two cooperative training 

projects are being planned; the Navy and Air Force at Ma.rch AFB; and NSA at 

Washington for all Services. (TNG) 

EFFICIENCY AWARDS PROGRAM 

Entire program ~as promoted more intensively than before, by 

· introduction of competitive concepts between Agency organizations, and by participation in the Public· service Awards Contest. Suggestions in Fiscal Year 1954 ex~eeded 

those of Fiscal Year 1953 by 3.$%. Those submitted in the last half of FY-1954 

exceeded those in the first half by 106~.· Total accrued savings amounted to 

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$163,300, an increase of 14~ over the savings of FY-1953. (COMP) 

STANDARDIZATION 

The NSA Interim Supply Catalog provides a common identificatipn fQ~­

general expendable supply items. Before its publication, there was no common 

language upon which the base accounting, procurement and storage of identical 

items. (LOG) 

NSA Regulations and NSA Memoranda were consolidated into one 

publication. Also a subject classification was developed for both the new NSA 

Regulation Series and NSA Circulars. (AG) 

A standard method of classifying vital records to be deposited in 

the Alternate Records Depository at Crane, Indiana was initiated, thus making 

the material more readily available, if and when needed. (AG) 

The program :f'or standardizing job descriptions to :f'it both civilian 

and military personnel was initiated. It provides greater flexibility in 

rotation, and reassignments, as well as uniformity in grade structures. {PERS) 

An Agency-wide Locator System was installed to maintain accurate 

personnel location data on a current basis, and to provide an authoritative 

centra1ized source :f'or such purposes as preparation of Agency.phone book. (COMP) 

The Forms Management Program has been generally accepted throughout 

the Agency. There were about 1500 NSA Forms in current use at the end of' the 

F::f.scal Year, of' which 6CJ'/a have been standardized. Estimated total annual savings 

from this program are $120,000. (COMP) 

A standard format for transmission via Service teletype facilities 

was developed and adopted, with significant reductions in processing time. (COM) 

MATERIAL HANDLING 

Installation of the SOMAT {pa.per pulpiμg"'machine) has resulted in 

a definite saving in man-hours and in the elimination of numerous interruptions 

to productive activity. Large containers at strategic locations makes use of 

small paper burn bags unnecessary. (PROD) 

. The problems created by the monthly accumulation of some 5 ,000 

cubic feet of records have been effectively minimized by use of microfilming. 

(PROD) 

EQUIPMl!:NT ~~ 

Procedures have been established whereby HqC is advised of potential 

procurement of equipment whe11 such action is initiated. Constructive and: timely 

planning for power and other utilities# and accessory construction then precedes 

the delivery of the equipment. (HqC) 

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PLANNING 

The NSA Emergency War Plan was completely revised, establishing 

NBA support· requirements for guidance in planning by the Services and other 

government agencies. (P/P) , 

The NSA Midrange Plan - the first develop~d - established overall 

NSA objectives which are attainable within the midrange period. (P/P) 

An NSA Long-range Planning Group was established for development of 

plans for the long-range, ten years in the future. (P/P) 

· The NSA Organizational Manual, covering Head.quarters and Field 

Activities, was completed. It will be maintained on a current status. (P/P) 

OFGANIZATION 

A set of flow charts - two hundred eighty-one in all - was compiled 

showing for the first time a complete picture of the movement of material into, 

within and out of PROD. (PROD) 

Two Divisions have been reorganized and a new Division, Physical 

Research, has been established within R/D. These reflect more specifically the 

scope of missions assigned and to make more efi'ectj.ve all operations concerned 

therewith. (R/D) 

Functions and structure within TEC have been reorganized along ~rofess1ona1 library lines, with clearly defined areas of responsibility established. 

(TEC) 

Centralization of mail distribution functions has been effected 

by the transfer of these duties at AHS from PROD to AG. A more efficient service 

has resulted. (AG) 

DECENTRALIZATION 

The decentralization program was ei'fectively-initia~ed by actual 

assignment to the field of most of the priority problems which were scheduled 

for decentralization. Indicative of the nature of these steps was the establishment of minimum standards for intercept installation in the field. Another 

was the flexibility allowed local commanders on local assignments. (PROD) 

SCHEDULE CONTROL 

Great~r control over COMINT end produr.ts was developed in three areas: 

l. Consumers agencies nori submit their needs in writing, and, if 

the desired COMINT is available, it is published in regular series. 

2. Weekly informal sessions between consumers and NSA developed 

greater consumers participation in establishing goals and 

priorities with a corresponding improvement in services rendered 

to all. 

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3. Editorial policies and practices were brought under more ~f'fective control liy the COMINT Coordinating Board.· (PROD) 

FISCAL 

Issued schedule for installation of Financial Management Plan, 

which, when in full operation, will integrate such activities as financial 

inventory control, labor, material and overhead cost control, production and 

quality control, programming and budgeting, and collection and reimbursement 

accounting. (COMP) . 

Issued standard chart of indirect accounts for use in la.bor distribution reports and related operations. (COMP) 

Integrated fiscal accounts in Operating Offices with COMP accounts · with a corresponding elimination of duplication and an estimated savings in 

excess of $51 000 per year. (COMP) 

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IV PROJECTED MANAGEMENT IMPROVEMENT EFFORTS ,!!! FISCAI. ~ 1955 

The progra~ of conversion from off-line to on-line operations will be· 

continued. (COM) 

Plans will be formulated for the establishment of a Centralized COMINT 

Communications Center (CCCC) in all theaters of operation. (COM) 

A Production Control Section will be established in NSA-42 to perform 

production analysis, material control, routing, scheduling, dispatching and 

time study. A Process Engineering Section will be established to provide a 

central source for engineering data. (COMSEC) 

Special emphasis will be ~laced on the non-technical and managerial 

training of supervisors. (COMSEC) 

Specific plans are in process for the continued improvement of control 

over CO~IINT. These include a system for assessing the intelligence valu~ of 

PROD output, the employment of "project engineers" to work with PROD components 

in raising, the intelligence value of their output, the development of a method 

to report PROD-wide intelligence subjects, and the monitoring of PROD output to 

improve adherence to approved publication standards. (PROD) ·. 

Continuing emphasis will be placed on the further development of 

procedures to give more timely, effective and responsive COMIUT support t'o 

overseas commands. To do this, cross-servicing arranc,ements for direct 

distribution of CO~ITNT information to all theater commands from processing 

centers at all echelons will be increased; procedures.for channeling COMINT 

re~uirements from overseas units to NSA will be developed. (PROD) 

The necessity for a well-rounded Records VlB.nagement Program will be 

emphasized. Efforts will be ma.de to eliminate unnecessary records by preventing 

their creation. Methods of maintenance of necessary records will be improved. 

A uniform and orderly retirement and disposition program is planned. (AG) 

It is proposed to conform the NSA subject classification series of 

publications to the Department of Defense Directives.System Classification Numbers. 

(AG) 

The subject matter of courses in the Management Engineering Career 

Program will be expanded to include organization, methods and procedures, equipment and facilities. (COMP) 

An integrated accounting system, comparable to commercial double-entry 

accounting, will be designed and introduced to accumulate related costs in a 

consistent manner throughout the Agency. (COMP) 

Extension of labor cost control to cover all elements is scheduled. 

Regulations, procedures and manuals for material and overhead cost control will 

be prepared. (COMP) 

The current NSA Supply System will be 

if necessary, appropriate recommendations for 

studied and evaluated to develop, 

reorganization and realignr:i.ent of 

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the logistics activities, functions and procedures of the Agency. (LOG) 

The policy that NSA is not a depot for storage of cryptologic spare parts 

will be coordinated with the Services during the year. NSA may continue to 

act as a central procurement asency for unique parts, with delivery being 

directed to the ordering Service. (LOG) 

A Registry for consultants will be established to provide for a more 

effective utilization of co~sultants, experts and advisors by Agency organizations. (PERS) 

Valid psychometric selection instruments in the language and cryptologic 

fields are being developed to improve the selection and assignmE?nt of the best 

qualified personnel within the Agency. (PERS) 

Continued and increased emphasis will be placed on planning for decentralization of operations of COMSEC, R/D, and PROD, to securi~ greater 

-efficiency by: 

a. Bringing executive nearer to point o~ decision-making 

b. Improving quality of decisions made 

c. Reducing volume of paper work 

d. Reducing expenses of coordination (P/P) 

The Field Commanders Conference will be repeated in FY-1955· Cooperation 

and coordinations between Headquarters and Field Units were noticeably improved 

by the First Conference in FY-1954. (P/P) , 

The quality of instruction at the School will be improved by the 

establishment of an instructor rotation program between TNG, PROD and SCH. (SCH)" 

New courses will be introduced as needed and developed. For example, 

a course in electronics will be given in the Fall to provide highly specialized 

training for personnel in PROD, R/D, and COMSEC. (SCH) ---

A Security Education Program for Agency personne1 vi.11 be estab11shed 

and carried on during FY-1955· (SEC) 

NSA Library's Public Catalog will be reorganized and rearranged according 

to standard catalog format, as used by large reference libraries. (TEC) 

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