----~~~~~--------------............. . 

REF- ID:-A-72432 

lf thia ubi'bi't. ia t.O &CCQlllP&tJ1 th9 1:9»1.1' to (Jemra]. !r1Jd.ne, 1 atrg]¥ 

ireeoiald rerlaiw ot S.ctioml I and. II u indicated ~low. 

hetia X 1• w1o UDbeem1na~ Jbrued• It aplic1t~ ~ the 

:PHV!OUI a«•inietration (.r A1BA) &D4 4eli'be:rate:cy pata ti1ie pn•eut binctar (Ybo 1a mpeak1ag 1n the tir•t peraon) Gil the back. While 

'b •tat.e•nta liq' be ;uite 'tru9, I f"l. that t1w 0011'kuta ~tween 

.,_,a1atratioDI ahould at worn be illlJlid rather than. pointed out, 

.ot •t be•t aboul.4 be 1ntern4 frcD tbe atrai&ht tact1, With m 

lictlleattona. 

Section. n .. currentl.7 written doe• DOt tNP»ott the polic7 Itta~ ecntaU.4 1a au~h 38. or tbe .sratt letttt. It 

e(IUl4 wll be replaced by a •illl'le lJ..ri" r4 the tour cbarta C·l 

through c-4. 

,.. 

J:AIWsu RJ: .1 

Declassified and approved for release by NSA on 10-08-2013 pursuantto E .0. 1352a 
1· w-u3 

-
REF ID:A72432 

•1ei..w tba 41"ctonw lav9l, MD!or P01itionl ahoul4 'ht tUl.-4 b1' tn41Yi4 ... 

\W.111 wb9tblr otticer • e.irtl.1ua, vbo ban• aaner f.atere•t ta the t'S..14. ol 

...,mteattou ta'91.l.1pDoa. We 4o BO\ beli ..... ~t tm•• poettiona •boUld 

\e Uld.W to cS:riliau, 'becaue w an illVftued by tile w1\:lJ1c:a:17 gift». 'b7 ..., ¥1UIHM• .. te the 1.lifartuce ot tud.ltari.11118 the lentce Gl'p.Di• 

u.tt ... tn the tiel4 1'1"11 A1SA Oll'IUll&&tion and o,.ra.tiaaa by rotating catticw• 

h'oa APSA tnto fielA 'f091t1ou aJl4 tbeD 'back •pin. AlJao, \be lQllC eiqMtrience 

.t teftr&l •TJ orttcera :ta one ot tht &N&t .... u of the activit)r todq. On 

- othft M.nA, i~ wul4 'be a -.1or a1AaD t.o ltal" ti. Hn1or »oaitioaa to 

ottt.r•, 'Mcauae tt u ot the ...-te•i illlpoJ1;aDce to encounp o1nlialMI to -... oareer• !a the OOMift tiel4 'b7 al.ear .._,.,.tra"ion tha\ •llior 

JllOlitiou rill lMt P&Ualala to tila 1t \heir tal.ota mrl'\ }tl'Ollaticma. n 

I· l§ 

,. Ve en nore ccmcvaad OYer tM tan tm.t the :tre"~ top leftl control 

tit AMA u 1n a three·hMAe4 group, each .-er ot which often baa 1n Jl1.Dd. 

•he i.nt.eftata ot hu OVD S.rrlce, ibt.11 by ~- taat that the 11"01.IP u m:f.litaey. Althou&h it i• our opinion that. the 1949 expertmnt vh9reb:y .A!'8A. vaa pi..c.4 u:o4e1' \he 3o:S.nt Chieh r4 Sta.ft aboul« be teninated.. ,.. would. not ad.apt the 

Jlan UJ"le4 on U9 'b7 aome vitne•••• that, toUovUtc ti. ltritish precedent, it 

lhoul4 'be placed. 41reot'.17 UDder a c1Tiliu apney, a\lCh u the Central. IateU1· 11~• ~. We reach thie ecmclua1on DOt. ao 9.181' on the theory 1;b&t the 

CDNI1'r :pro4uat ia more 1slportant ~the S.rYic•• ~ '\o the o1vtliu ageucie• 

Q ~-,_. (1) ,_. Serrtc•• an JJl'&Cti-1.17 '\b9 •ole aollectar• aDd tftu .. 

.S.ttert ol ti. rav izrterc..,W •terial, u4 (2) tte »roduct i• uae4 w N 

~'\an at.at ta emt.t aotinti•• ta ~1- ot wr u "° 41otaw tile 4-au .. DUitf' el 1"1MrY1ac lim• ot ocmmt4 \hroueh ••W.bl1-be4 a.teue obarmele. 

V. -. ... "cei•ed. no cCD'liaeiJll evi4anc• "11&~ tt u •ceaarr to put A7SA outtt4tt \ha MOM Htablltlhlllnt in cm1ar to ••ure t!w.t the De94# ot ob1.llau ... Mt.• an ~r]T tab11 ea.... ot. n 

I 

. 

I 

-~~~----
REF IO-: A 7 2 43-2 

(Subl'\1tu'tioa.I :tn the ~111-1 ariiol.e inticated b1' cancellation ot W'ia1-l word(•), 

'U4ft,linba ot wrcl{•) aubatituted) 

Tm tuD!e•llt&l Jtrinei»le•,, which ll.Ul't ll• Unts.tt.d aid &fP"C:lated beton 

&111' •ta:rt can._,. -.eta on tbt orpnisation .;hut, ue1 

(l) ftril:lu JUl;i!!!l aan.trol _,. 1- ot tvo ld.D!.a .... active or PM•ift .... 

&nA 4l&Ch kiD1 nq,uina a enttnli' 41t'terellt t,ne ot orpnbatioaal structure. 

(2) llili'tilq 4eciai.a camao\ 'be ..,anted troa oiviliu 4-laS..lonti· 

••• 

tm4tt tba JU•ive eon<:ept., vtdle •i'riliad IQ.lwz otticer• 4o hold the 

hisbt•t poaitiou an4 "1Dtl.Wtnce," the lllll'->' ciTtltua reall¥ con\rol. 

A tn •i'riliua of'ticw1 at the to.P ha.ft ~ powr to 4eci4eJ tha7 outraU aU 

.Utu7....U'41n• elyf!-!H• u4 cu, U they 10 4.et1", tab cQ'8M.Dd. But it A 

11 4ePed inel.naa~ vbnbu' t'be7 aot~ 4o 4eci4e aa lo1t& aa the ••••Uu. 

liUJ.1im atpm.ture ta the tlM.l VOJ'4. s~ t1-•• •l1'iU... !litt'lY'X o:e:t1eua I 

.. .,,. ;lnt.Qw1te4 to bow what bu been 4eci4ed. tbaD. to ..... the aata need9d 

to .U 4-ciiticma, the tact that .ii tha :f.Dtcma"ion tbq neei..,. C0111• thrQU&h 

a tialgle ailiW, tirl~ ehanael akM DO 41.tternce. 

Suoh a mtea ~ work w1thou1i a Jdl~ ciYUiu. cbi•:t ~o ait in the 

••»:ter ot the w'b .... t.ma.diate~ belov the •'•'U.. 111,tt,,!m 'but a'bcmt all the 

otbere • 'l'bJ'ough 1ihia •1xrcle Jlili~-- I ! •ft• C!"fi.~ ~ all iDf'cmation 

,UM• \qt ti4 all atkra ,.._. 4cnnl. !be ldU~ c&TQiy chief -.t &tl4 

0.ot1 "rua" tb1 ~-1fl!E. 'l'b9 ••Y6llu-h'"11e1t"'• WR m!ll!!U ott15!£! 

an ~bl,le..,. Ulm • bOllZ'Cl flt 41.neton ~top executive•· 

... *. 

Oo. the etnu h&Dd, tb9 active eo.acQt ta th&~, U '\bt7 real.q willh to 

e~l, -'••a.tau ,- !!l!!e7 &18't pe.riictp.te active]¥ bl tbe Uil1' buaille•• 

ot the ..,_-. .. ta&. '1!»7 -...t ba-.. not. ODl¥ ti. »onr to ct.cide 'bll.t ai.o 

* HARV.ARD BUSINESS REVIEW - January-February 1954, Vol. 32, No. 1 
REF ID:A72432 

tbe abU!ty \o 4eett. ~D4elltlr u4 htel.Upntl.1' ••that la,. on the ba#ia 

of thol'Olll~ tat~ 3udCJM11-t. 'l'Mre 1a llO place utl4a Wt c011Cept tor & 

•1nal• _.,,~_.. • .... r:1•Uian cMet vi th pwiax to •run" the ~·• yencz. 

'!'he •'-.iJi&u-lene'Uliy .Uitan t>irector 4.oe• the "ruD1ng1 " and any .aiu~ 

~ laee.4 b onl.7 one or ••veral top fdv19•1'• -. C)OD11ultant11. 

*** 

lt ta :rea411T ~nt Yl'q" a -~~.at be -.de betften the•o two eoncepta or 

tit •''riliu .S.11!&!7 ccmtrol. 'by are Illil.e• 8f6r1; in »hilosopb¥, principle,, a.nd. 

111>1-antation. 'ftlq demand quite 4Jtte:rent. tn•• or perffti.Qel in \be key 

JOl'it1oua. " •• AD4 Ju.at .. •iviliaa el1tuz eontrol cannot 'be Jllrt act1ve and 

~ pu11ve, org&nisa.t1ona muat toll.ow enll pattern Ol" tbe other· 

* .... * 

••• thlln ttill nnnaine a tOl'cetul bo~ t4 thought :ln favor ot the paa•iv• 

•oaeett· tt' ta a lfO!'Jrable approach .... ar at le"'t tt bu .wud in tbe pUt • 

.. I' attn• aa ut14ote tor the wa'.k-•iv&:liaa-h•••\u)r !:!!3lJert-•~e4 m1l1"!e!rl 

Rk!!M· t't &190 otters IQJDa cure t• the lack ot eontinult)" 111 ott!ce ot 

the •'•'l'w atlitag. It baa contiduable ap»eal to aey 1n th• caeer Jdll'617 

Grtl ••nice. 

*** 

lot oal1' 1a there weh more to -. ti. ~io 'b!fle .. '\ball UV- atngJ.e 

.,.a.taltet •klUJ '°' f.• al.lo •1-r t!at all tbe •c••IUJ' '"c1al11e4 Jmcnr]Al4p 

ao4 apniace ._....'be l)lan4e4 into & •lJ:lcle 4ac191ou 'bT n•DU'&U•t•" ratbtr 

~ -.7 "Qeeialiaw." A:a4 the apftHioalt ot apecialiet apt:aiOll mua-t tlotr to 

'\be p~ um1..,-4ed bJ' utr -li~ eivilian or at~ QeCi&liat. f1lt.n. 

Tbs taTO:t1te juftiti•tiou tor haviJaa a 11peoial.itt u toe exec=utiTe 1a 

'Iba &al\lq)tion '11at 1 uni... ht b&(I & "per•om.l ve<h of Jdl'~ C!'YJrf;O!MiC 

~1ence• and "or:mt1n.uitJ ot ottice/' a ,.raon vill DOt. be capable ot interJZ"*'tina ~- ~ aituatiou ar of ma.king the proper decisions. Yet 

2 
REF ID:A72432 

e~1&1 an4 iZJd.ult.ri&l ~ienc• bu 1D4ie&tod. tbe.t it u tar la'9 •'hiltactoi'f 

to:r the top eacutiw to be a pmra.Uet • 

.. .. . 

Mn v1th • 8pereoml wealth ot lliltrte.r;, ~015_!; exper:t.exico" are 1n .... 

the •ia t_peaiali•t•. 'While tbero N'• u:(:egt10lUI, .,ec1allirta 4o iaot DOtJllLll.T 

...._lop bato pDltl'&l.iltl. 'l'hie comment ie not -pointed 101.94' at alrli~ ..... 

liRJ.HB Kll!tol@Jic technic~. Account.ants and lavrera are alao epecialiat• 

'fho aa a tu1e m.ke poor top executives, tbe exceptlona bebla ao t•w that they prove 

the 1'Ulo. furtbtQ:more, af:UtiaJ7-ma eivili!J! i,ceeic.i!D! an ••l4Qtii dew:loped 

-tQr over-all execiltive directiou; n.ther, promotion to top .U•~·l'Uk civil 

IKX!S-9 ~ otteu d.ependa Oll prot1c1ency 1n & vellwdetined special tield. 

'1btft :l• 1UOh • .»rof•••ioml u an "execut1ft pDft"al.1et." 'l'b.18 t1PO ot 

a.ti. u tar more ettective 111 th. wp executive :poeition than ie the •pec1al1tt 

• 

l>eaaUM b8 not Qal,y Uv"elop1 .n-e obJectiva qualiiiea ofllind but also las DON 

aUl iD .. f.Mng divene factors alJd. comiJJa to a. COllCluaion Oil the 'basi• or tbe 

•v6t"a.l. 1p1e1ali11' po1.ut• of view. 'l'lw pnera.11.et CAD and ahoul.4 be appointed 

to the tQR uacutive poaition. He rill uauall)'" 'be tound in ei•iliu.-.*~ lili?!lti 

aiuau: ;u.- 9fttm:t· 

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