麦肯锡咨询报告




Secretary of Defense
Corporate Fellows Program







FINAL REPORT
MCKINSEY & COMPANY LLP









LTC Keith A Armstrong USA
May 2000
TABLE OF CONTENTS

Executive Summary ……………………………………………………… 3
McKinsey & Company ……………………………………………………4
Quotable Quotes ………………………………………………………… 6
The Paradox ……………………………………………………………… 7
The Private Sector – at War ……………………………………………… 9
The Military – the Uniformed War for Talent …………………………… 14
Personal Perspectives …………………………………………………… 21
FindingsRecommendations ……………………………………………… 24
Conclusion ……………………………………………………………… 26
Figures …………………………………………………………………… 29
Bibliography ……………………………………………………………… 49
EXECUTIVE SUMMARY

This report is an overview of the fellowship conducted at McKinsey & Company in Houston Texas from August 1999 to June 2000 as part of the Secretary of Defense Corporate Fellowship Program （SDCFP） The purpose and scope of the SDCFP is outlined in Department of Defense Directive 132223 This was the fifth year of the program
While assigned to McKinsey & Company I worked primarily as an associate performing consulting work as a member of a client support team based out of the Houston Office I did have occasion to observe the workings of the firm at a higher level and interviewed all of the Texas office partners during the course of the year but the majority of the work was at the consulting entry level
I chose to concentrate my focus for this year’s project on a subject that is of great concern to the Defense Department as well as private industry – the War for Talent the attraction recruitment and retention of top talent In times of national economic and defense success organizations are faced with a significant human resources crisis Unemployment rates are as low as they have been in decades Interest rates are down Inflation is under control Markets have been soaring So what is the crisis This paper will attempt to answer that question
The War for Talent exists in many different forms with no cookiecutter solutions to help solve the problem One thing is for sure – money or compensation is not the overarching solution to the problem Companies must establish value propositions attractive enough to draw top talent from new talent pools andor existing talent pools The challenge for the Defense Department is to identify the key levers to use in order to establish a viable proposition while at the same time solving public relations issues that have become impediments to recruiting and retention of key personnel Included in the paper is an analysis of the War for Talent from the private sector and Defense Department perspectives with some proposed actions to help resolve the problem
McKinsey was a gracious host and provided a work environment that was only bounded by my own initiative Despite the busy schedules of the partnership and support staff they went out of their way to make me feel at home and to accommodate my research I must admit I was most impressed by the expertise of the consulting staff they are truly some of the most talented young people I have ever had the opportunity to work with I thank McKinsey & Company for sending me to firm training at the MiniMBA and Basic Consulting Readiness without which I would have been totally lost This has been a rewarding year – new problems and new problem solving techniques new experiences and new memories new friends and new adventures
McKINSEY & COMPANY

McKinsey & Company describes itself in McKinsey & Company Inside and Out – An Introduction to the Firm as a managementconsulting firm Founded in the United States in 1926 it was not the first consultant on management but its approach was very different from the management engineers〞 and time in motion〞 experts of the day McKinsey’s strategy was built around two planks 1） Service serving senior management on problems important to them and their enterprises and 2） Professionalism putting the interests of clients first and maintaining the knowledge and skills necessary to serve these clients
James McKinsey and Marvin Bower the founding fathers of the firm describe the big idea〞 for the firm to provide advice on managing top executives and do it with the professional standards of a leading law firm〞 McKinsey always looked at where the firm was and what its outlook was before moving forward on any project The firm started with a forward looking management staff and 75 years later the founding fathers would be proud to know that the ideology has not changed
In the late 1930s a third strategic plank was added 3） People to make it a career〞 firm for young people rather than an endofcareer〞 firm for experts and semiretired executives The addition of this plank allowed the firm to move to the top of the consulting business People and the intangible capital they bring have become McKinsey’s greatest assets as evidenced by this statement from Business Week September 20 1993 What sets McKinsey apart even some rivals concede is that the firm continually assembles the very best people〞
McKinsey & Company established offices around the world and dealt with issues in all viable economic markets The nature of the problems McKinsey helps a client address changed over the years and reflected both differences in the relationships between large companies and their governments and the sophistication of management McKinsey consultants designed the initial organization of the National Aeronautics and Space Administration advised the Vatican on its banking system developed the Universal Product Code specified the systems supporting Frankfurt’s stock exchange and helped the Treuhandanstalt privatize East German companies
Given the breadth and depth of this work there is an intellectual tradition at McKinsey that is very different from what one finds in a university or in a consulting firm that concentrates on a single problem or industry It is a tradition that first celebrates the complexity and the differences of management challenges and then presses for practical answers based on both analysis and experience It is a tradition that recognizes the importance of being able to reach out to colleagues and clients wherever they are in the world











THE WAR FOR TALENT
Department of Defense and Private Sector
Battle for Survival

QUOTABLE QUOTES

The first priority was our people in uniform and their families US military superiority requires highquality people which necessitates that we provide them with the appropriate pay housing and medical benefits〞
William S Cohen Secretary of Defense

If we don’t get the people thing right we lose it is the most important thing in all our businesses〞
Jack Welch CEO General Electric

Three extra special things I see being crazy enough to follow an unorthodox vision being courageous enough to allow people to have fun and be real〞 people who love and care at work and being smart enough to recognize that their most valuable assets are their people and the culture they cultivate〞
Tom Peters describing Southwest Airlines

If you believe in building your business and you don’t believe in talent you have a screw loose〞
Susan Burnett HR Manager HewlettPackard

Our ability to effectively compete for talent is not an issue…it is a crisis〞
Pete Boucher Senior HR Officer Citigroup Global Technology

To lose the war for talent is to accept a secondrate military in which the most capable men and women in the United States do not choose to serve〞
David H McCormick McKinsey & Co
THE WAR FOR TALENT
Department of Defense and Private Sector
Battle for Survival

The Paradox While serving as Armor Branch Representative and as an Associate Professor of Military Science at the United States Military Academy West Point New York from 19881992 I had the privilege of teaching recruiting and preparing some of the best young people in the world for entry into the Combat Arm of Decision – the Armor Corps One of the classes I had the privilege of developing on Battlefield Operating Systems included a session on leadership and the conduct of combat operations I took the opportunity to present several videotapes of then Brigadier General Barry McCaffery Deputy Commandant of the Infantry School Fort Benning Georgia
The topic of the presentation was battlefield synchronization which is still and always will be an enigma but that was only one of the interesting topics from the presentation During his comments BG McCaffery spoke of a very intriguing paradox that exists within the conduct of war That paradox simply stated is that over time war has become much more deadly as a result of new technologically advanced weapon systems and methods of employing those systems battlefields have grown in size depth and dimension and at the same time casualty rates decreased comparatively speaking
From a time when conflicts were fought with clubs and rocks where you literally had to see the whites of your enemy’s eyes the world has seen drastic change – spears lances bow and arrow sword and saber longbow flint lock percussion cap cannons and mortars howitzers tanks airplanes and helicopters atomic energy weapons and smart weapons to categorize a few We can now surgically attack a target using specially skilled people with specially designed weapons in a threedimensional battle space （including space itself） for the sole purpose of maximizing target destruction while minimizing casualty rates and collateral damage
So what does this have to do with the War for Talent The conduct of a successful battle campaign or war takes people the best people in the world specially skilled people The same holds true as businesses battle for supremacy within their market space
Another paradox exists today that could be deadly not only to the Defense Department but private sectors as well the ability to man our ranks with top quality people As the United States experiences one of the greatest economic booms in its history many companies corporations organizations and even the Defense Department may be on the brink of a catastrophic event If the armed forces and the private sector are so successful what is it in the economy that is causing a shortage of highly qualified talent Why is there a problem with the search for the most talented player What could possibly cause a catastrophic event in such prosperous times
It is essential for the Defense Department to identify appropriate talent pools to attract recruit and retain the kind of men and women necessary to operate within the complexities of the modern battlefield and the battlefield of the future while at the same time engaging the most technologically advanced weapons and command and control systems mankind has ever known The armed forces of the United States have demonstrated their ability and resolve to close with and destroy the enemy if and when called upon to do so They have also demonstrated the resilience of a police force when tasked to eliminate fratricide and ethnic cleansing or a humanitarian relief force when tasked to prevent starvation or major health epidemics
If we have demonstrated our core competencies so well why does the Defense Department have a problem attracting and retaining talent Why are our ranks filled with vacancies Why are so many highperforming midgrade officers and noncommissioned officers leaving Are we fundamentally off base in our recruiting and retention goals and methods What motivates young men and women to join the military then stay or leave What does the economy have to do with these issues This paper will examine these pressing issues examine how private industry defines the issues and attempt to draw direct correlations to the Defense Department
In a recent study Workforce eServices Developing the Modern Workforce for Competitive Advantage February 2000 ICARION stated The underlying premise here is basic Human capital is now the most important asset Intellectual capital outweighs bricksandmortar and other tangible resources on the corporate balance sheet Corporations realize that only skilled knowledgeable people can help them do what they need to do amid relentless global competition shrinking product lifecycles and an everincreasing need for speed efficiency and innovation The major challenge today is to plan for hire deploy develop and retain the right people for the organization Tracking and developing employee skills has become an imperative particularly with the rush of advancing technology In fact all organizations of any size today need some technical talent all are competing for a limited supply of that resource〞
The following paragraphs from The New York Times Magazine also clearly identify the existing problem
You know it’s a tight labor market when a larger percentage of the American population is employed than at any previous time according to a report from the Council of Economic Advisers and the Department of Labor The national unemployment rate of 40 percent as of January is lower than it has been since 1970 – and it is far lower than that in some areas Mitch Potter of William M Mercer Inc a human resources consulting firm says the word in Silicon Valley is The only way to find an unemployment rate is if you count people in cars on their way from one job to another〞 The situation is so extreme that it is driving some understaffed employers to desperate measures in Plano Texas International House of Pancakes has had to offer a 4000 signing bonus to attract managers Lord & Taylor sent out parttimejob solicitations with its monthly charge card statements this past Christmas And a Chicagobased staffing agency the Harris Group has arranged 160 100000 signing （and retention） bonuses for Websavvy hires at one company alone
Karl Marx spent all those years dreaming about the worker’s paradise Yet he never got to sit in the conference room at Berbee Information Networks Corporation and listen to Jim Berbee rattle off all the luscious perks he offers his employees They get stock options of course but also Palm Pilots cell phones and a 1000 bonus to help with the down payment on their first homes If they want to work in their pajamas the company pays to install and maintain highspeed ISDN lines in their bedrooms Two years ago Berbee took everybody in the company and their families to Disney World Bagels and muffins are free on Fridays the sodas in the office machine are free all the time （consumption went up 400 percent after that change） and if employees want to use the office copiers for personal use no problem An autorepair service comes to the employee parking lot every other Wednesday to do oil changes and tire rotations There is dry cleaning delivery four days a week and pizza at least once a month
Marx would have looked at all the cushy benefits and figured that the dictatorship of the proletariat had finally come to pass But there’s a simpler explanation full employment Berbee is located in Madison Wisconsin which has a microscopic 12 percent unemployment rate second lowest in the country after another university town Columbia Missouri Jim Berbee is desperate to attract and retain workers He has 220 employees and an amazing 94 percent retention rate but his company is growing so fast he also has 110 job openings We’re losing ground every week〞 he cries
What we are faced with today is a problem of enormous proportions a WAR FOR TALENT Employment rates are down Population growth is down College enrollment is stagnant Talent pools are limited and the needs of today’s winnertakeall economy far exceed the requirements for the most highly talented workers As noted by Jim Collins in the Fast Company article Built to Flip〞 when Microsoft emerged in the 1980’s the neweconomy culture rested on three tenets freedom and selfdirection in your work purpose and contribution through your work and wealth creation by your work
The War for Talent does not result in death destruction or damage of the same type experienced by the Defense Department during times of conflict but will render many companies essentially ineffective When a company cannot identify attract recruit and retain the best talent in the industry whatever the industry the company will be prone to suffer dire consequences in today’s markets
The Private Sector – at War During the ten months of the fellowship I served with McKinsey I had the opportunity to see and do many new and interesting things things any normal Armor officer would never dream of seeing or doing I had the rare opportunity to look into the business world through the eyes of one of the best managementconsulting firms in the world Although my field of view has been very narrow in ten months it has been very rewarding Most rewarding has been the opportunity to work on the War for Talent In this section of the paper I will review some research findings and show that the War for Talent is not just any problem but a problem of potential severely damaging consequences
In 1997 McKinsey solicited seventyseven large USbased companies to participate in the War for Talent research Those companies came from a variety of industries having achieved differing levels of success Some were old some were new all were large and all were ranked in the top twofifth’s of their respective industries The chief executive officers （CEOs） and their direct reports some 359 total executives were questioned about the strengths of their companies’ talent pool and ways to improve it Personal interviews were done with many of the top executives of each company plus all senior human resources executives about the way their companies manage their top talent
Twenty companies were chosen to study in depth Some were chosen because of their reputation for superior talent （General Electric HewlettPackard Merck） while others were chosen for their meteoric growth and performance （Amgen Medtronic Baan The Home Depot） Still others were chosen because they deserve the most improved award or have perfected an approach such as talent building through an acquisitions strategy All were topquintile performers and all have a reputation for strong talent
A strange problem exists when analyzing War for Talent issues The bottom line is that talent matters but defining the set of criteria for successful mid to highlevel talent varies for each company and may even vary for companies within a given industry Talent andor the intangible asset that it creates is proving to be more critical than tangible assets such as financial capital or physical plants or even intangibles like brand and market position Companies are creating their own talent pools now based more on their ability to create a highly sought after culture
Today companies are slowly realizing that their value proposition is not always in its size or past reputation They are realizing that people make the company Kevin Sharer of Amgen stated The scarce resource is talent…I’m paranoid…if you don’t have the right talent you’re lost〞 Most companies are ill prepared to wage the necessary battles but they are coming to resolution with the fact that there is an escalating War for Talent Those companies willing to adopt new and innovative techniques will gain an advantage over those companies using past winning approaches The old way is no longer the best way
Research conducted by the United Nations indicated that there was a decreasing population of 3544 yearolds over the next 15 years The same holds true for 2534 yearolds In light of the fact that the economy is projected to grow at a minimum of 3 of Gross Domestic Product per year the resulting talent shortfall could be very substantial The laws of supply and demand take over very quickly especially in an unbalanced environment We can already see the war in some industries such as high technology and information technology
A survey released by the Information Technology Association of America reported that employers created demand for 16 million new hightech positions this year With demand far outstripping supply half of these positions about 843000 jobs will go unfilled That means one in every dozen of the 10 million jobs in the US informationtechnology industry will be vacant
Four factors will complicate the War for Talent First the traditional or old social contract （Figure 1） is being overcome by a new social contract （Figure 2） Talent used to be company loyal and geographically mobile but that trend has shifted to the more geographically loyal （with dual career families） and company mobile This really means talent will become more elusive to capture and retain （Figure 3） Also employees are passively seeking other employment opportunities Given the right set of circumstances an employee will change jobs without any concern for loyalty （Figure 4） Certain groups are looking for something different than corporate America traditionally offers independently wealthy executives professional mothers GenXers looking for a more balanced lifestyle andor a faster track
The second factor highlights the attraction of small companies These companies have taken advantage of their access to capital and the decreasing economies of scale to create companies capable of competing with big companies for critical talent These companies offer many of the things only the larger companies once offered with one exception With many of these small companies comes an increased level of risk Talent pools today are not risk averse They are willing to lay it on the line for an opportunity at the fast track and success at age 35 instead of age 55 （Figures 58）
The third factor complicating the War for Talent is demographics The work force is aging while at the same time decreasing in size Over the next 15 years 55 to 65 yearolds will increase by 40 percent Compare those figures to the ones mentioned above and you cannot help but ask Who is going to fill all the vacancies〞 It is not just a quantitative gap Companies are fishing for different talent profiles and there are not enough talented people in the pool
Global competition takes us to the fourth and final complicating factor Companies are thirsty for the best available talent to take their businesses global to grow and to deal with emerging technologies Those that fail to capitalize on these emerging markets will be left behind in the new economy There is a new value proposition in today’s markets （Figure 9） that is not only effecting technical talent but all talent pools as businesses strive to attract the best talent there is to offer
Mitigating factors in the job market can only marginally improve the situation The number of women entering the workforce has plateaued immigration is flat and will not change without a congressional mandate and retirement ages may increase No doubt there will be offsets as typically happens in times of significant economic imbalance but they aren’t obvious Companies will have to creatively and proactively seek solutions like never before It will be important for companies to totally reconfigure their organizations to gain the competitive advantage （Figure 10） The company must strive to move closer and closer to the Focus and lock up〞 quadrant While a company strives to reach that level they must also focus on those employees that are not fungible or provide high contributions They are too valuable to release or allow some other company to poach their talents
McKinsey believes there are four imperatives to win the War for Talent and build a competitive advantage 1） talent mindset 2） winning value proposition 3） robust sourcing strategy and 4） tactics to build the talent pool The talent mindset imperative is the most critical weapon in the War for Talent By a talent mindset it is meant that the leaders passionately believe talent wins the competitive game and they believe it is their job to build the talent pool Leaders instill the mindset It is their mission to establish the standard continuously redefine the standard and raise the standard when required With a talent mindset leaders infuse specific behavior patterns – candor differentiation and consequences management （accountability） They hold themselves and their line managers accountable for the strength of their talent pool
Talent is superordinate to strategy…a great strategy can go up in flames quickly…but talented people know how to respond〞 Dick Vague CEO First USA （BancOne）
People are the primary source of competitive advantage At the end of the day we bet on people not strategies〞 Larry Bossidy CEO AlliedSignal
The mindset will cause major changes in the use of the human resources’ departments of most major companies The HR divisions will no longer run the recruiting and retention programs but will act as the key lever that leadership will pull to build and maintain top talent pools （Figure 11 & 12）
It is the mindset and behavior that make the difference not the process Too many times companies rush off to implement a process without real buyin The Defense Department is all too quick to buy into an idea without investing in the mindset and behavior first yet we have a real and basic advantage over the private sector Our core values if taught and enforced properly lay the foundation for the military’s success in this area
The winning value proposition is the sum of the gives and gets〞 that make up the relationship an individual has with an organization It answers the question Why would a talented person choose to work here〞 Your company’s offering to top talent must be notably better than the alternative options they have for their careers
Most companies are not prepared for the war McKinsey questioned nearly 6000 managers at the top 200 companies as to whether they strongly agreed that their company recruited developed and retained talent while at the same time removed low performers
a 23 strongly agree their company brings in highly talented people
b 3 strongly agree their company develops people quickly and effectively
c 10 strongly agree their company retains almost all high performers
d 3 strongly agree their company removes low performers relatively quickly
Even more surprising was the fact that only 16 of those managers questioned stated that they knew who the high and low performers were These numbers speak for themselves If these questions were based on productivity or profitability the companies would be disappointed Most companies are going into the War for Talent with knives and pistols … not tanks and artillery
I get to save the world have a wonderfully challenging job and have the opportunity to make outstanding compensation〞 Monsanto
This is a great place for motivated individuals who relish a highenergy environment and who seek to become mind rich as well as financially rich〞 – Intel
This is my 50 million business I can double it or run it into the ground – where else could I get that independence and challenge at age 33〞 （a store manager） – The Home Depot
Each of the companies noted above generates an employee value proposition that attracts top talent Companies should manage the employee value proposition as carefully as they manage products brands and profit and loss statements The biggest gaps or shortfalls in delivering on the value proposition are development and compensation Top companies pay more differentiate more and break traditional compensation rules more but that is not what nearly 6000 executives told McKinsey was most important during interviews and surveys They were looking for a great company and a great job The two highest rated survey criteria were I like the values and culture〞 and freedom and autonomy to do my job〞 Top companies create a culture that attracts and retains top talent
The third imperative is the development of a robust sourcing strategy Know your workforce know what makes them tick and know where you want to take the workforce in the future Identify the high performers and the low performers and know what differentiates them Companies must choose a strategy or a combination of strategies 1） acquire – cherry pick the best talent from other sources 2） multiple channels – bring talent in at all levels with an intense development focus to augmentshape the company 3） outsource – let others provide the basics while you reap the dividends and 4） insource – home grow superior talent from entry level onward The best companies are recruiting earlier and later are seeking different talent profiles and are sourcing internationally
Anne Marie Squeo of the Wall Street Journal writes of an effort by Northrop Grumman Corporation to win the hearts of young engineers over to defense companies …Carl Hood assigns a task to a dozen eighthgraders…the challenge is to lash paper tape and straws into any kind of structure that can withstand a test in his makeshift earthquake simulator…his own challenge is to get these children interested in engineering and perhaps a job at his company some day〞
As the fourth imperative the tactics to build a talent pool are critical to becoming competitive Top performing companies use five aggressive development actions to build their talent pools 1） promote the best people into key jobs early and often 2） flood the joint with feedback and coaching 3） wake up to the real retention problem 4） break traditional compensation rules and 5） get rid of low performers Stretch jobs and feedbackmentoring drive development of the best employees Formal training is much less important than being put in the most challenging jobs and then given the necessary coaching to stretch your skill set The gold standard〞 companies promote early and often and they invest time and effort in top performers to insure their success Companies also pay to attract and retain top talent Be creative in compensating your top performers A Klynveld Peat Marwick and Goerdeler （KPMG） International poll of college seniors found that fully 74 percent of the students expect to become millionaires
Coaching and mentoring is the most important element in an employee’s success or failure Top performing companies invest resources to make this happen They must train managerssupervisors in coaching techniques and then measure their success through 360degree feedback Companies must value it expect it recognize it and measure it otherwise it will not happen Leaders and managers must be willing to get rid of low performing employees – the C〞 players Cplayers do not hire top performers Cplayers cannot develop top performers Cplayers block top performers and cause them to leave The bottom line is get rid of them which is much easier said than done in almost all cases that were reviewed by McKinsey
Retention development is the silent battleground the place where all companies are losing employees with 38 years into their careers It is one of the two greatest problems facing the military in regards to personnel issues Several human resources’ executives stated that retention of their best people in the midphase of their careers is their biggest people problem – this is a black hole
Why is this group at risk According to McKinsey research there are several reasons They have had their three years of basic training〞 the required work experience that forms the stepping stone to other job opportunities They are not in the limelight of senior ranks and often have no sense of belonging or loyalty This age group is more mobile and demanding of the market place personally and professionally The supply of 2534 yearolds is declining over the next 10 years as previously noted so other companies will be raiding or cherry picking more intensely The number of executives over 55 years of age will be increasing 40 percent in the next ten years which could reduce advancement opportunities for younger managers and executives Lastly today’s workforce is more gender blind than ever before and with this change more women have entered the workforce but those numbers are not expected to increase It becomes problematic when dual career families exist and there are few provisions designed to support family requirements
Some of the issues above are very similar to issues surrounding the military’s problem with recruiting and retention The Defense Department is failing to identify the client or target audience for our recruiting efforts while at the same time creating a selfdefeating environment in which to foster new leaders and servicemen and women No one will argue that the problem exists but what are the underlying causes
The Military – the Uniformed War for Talent A review of the reading files in preparation for writing the paper revealed a short piece prepared by the American Forces Press Service （AFPS） Washington April 12 2000 In a time where the military is struggling to meet recruiting and retention goals struggling to find dollars to fund basic programs struggling to house families in homes that exceed low income housing levels struggling to provide adequate health care for active duty family members and retirees and struggling with an administration that has less connection to the military than at any time in our history it is humorous to see as the AFPS reported the military was recognized by the House of Representatives by a vote of 3970 as the Person of the Century〞 Representative Robin Hayes of North Carolina stated I am continually impressed and made proud by their dedication commitment and patriotism We are just turning the corner on a period in which we ask the American GI to do more with less and less As I have gotten to know these brave men and women one statement continues to ring in my ears the statement made during a military personnel hearing at the Norfolk （VA） Naval Base was Sir whatever you give us we will get the job done〞 The willingness of the testament to get the job done is commendable but time may indicate that it is just not good enough to keep the best servicemen and women in uniform and to attract the GenXers to serve their country
Secretary of Defense William Cohen in the Annual Report to the President and the Congress 2000 stated
We ask much of our men and women in uniform They are on call 24hours a day and understand they will be regularly deployed relocated and restricted in their lifestyle because of the unique demands of military life They must be prepared to forge into deadly conflict and they must be trained to use lethal cuttingedge technology We call upon our armed forces to manage complex battlefields that include combatants and civilians using the skills of both warrior and diplomat
So where are these dedicated well rounded selfsacrificing people The past decade has been one of significant change The military has undergone a major downsizing effort （onethird the size of the preDesert Storm structure） and taken major budget cuts that have affected force structure modifications and equipment testing development and fielding It is important to point out several issues that are at the hub of the problem that is clawing at our ranks
Although the intent of this paper is to discuss talent issues it is appropriate at this point to discuss a very relevant issue During hours of discussion with corporate sponsors other fellows and senior officers and civilians representing all of the Services and Defense Department the conclusion was that the Defense Department is a generation behind the private sector as it pertains to business operations
What is interesting is that the private sector studies the military in an attempt to capture the clean precise timely and efficient method we use to conduct combat operations As the Defense Department emerged from the Vietnam era it was forced to model itself after private industry Efforts were designed to make the military more businesslike to look and operate like a General Electric a General Motors or a Ford Actions were taken to aggressively pursue models like the BrigadeBattalion Training Management System Total Quality Management Management by Objective and Capability Maturity Models in an effort to become more businesslike That is not to say that these efforts have not been rewarding but one must ask whether that is really at the heart of the military’s core competencies The ironic part of the whole issue is that private industry moved away from modeling to a more aggressive flexible method of doing business The business world studied the Defense Department’s execution during Desert Storm and took the lessons to heart – fast decisive overwhelming power Private industry is practicing what we preach so where does that leave us
An openended question is not the way to close a critical thought like the one above but that is an issue for another paper The point is that maybe we need to evaluate whether we want to lead or follow to be studied or to study Where is the focus What are the core competencies Where is the military going Are we really a business or something distinctly different Maybe the struggle to answer these questions is causing some of the Defense Department’s problem with its War for Talent
What is the value proposition that will attract top performing people into government service McKinsey performed some work with a large government department in 1999 in which four forces at work internal and external to the department may shift the historically favorable balance of the department’s value proposition by diminishing the potency of certain strengths （eg mission unique lifestyle） and increasing the significance of certain gaps （eg advancement autonomy dual career） （Figures 13 & 14） This value proposition is also applicable to the Defense Department If it is affecting one governmental department it makes sense that it could affect another In both cases the existing value proposition must be questioned
From the Annual Report noted above the Services must recruit more that 200000 young people each year for the active duty forces with another 150000 for the reserves An aggressive recruiting effort has sustained the force ensuring that capable and seasoned leaders are available to serve around the world But recruiting requirements are growing as the drawdown nears completion creating a demand to replace loses on a oneforone basis A robust job market coupled with an increased propensity among high school graduates to go to college however has created a tough recruiting environment
In The New Public Service〞 by Paul Light published in the January 2000 issue of Government Executive Mr Light states that the federal government is losing the talent war （Figure 15） Its personnel system is slow in hiring almost useless in firing overly permissive in promoting and penurious in training Gone are the days when the federal government could compete for talent by offering an entrylevel job or by giving a talented student the chance to serve for a decade or two before rising to the pinnacle of an associate deputy assistant secretary post Top graduates are not just saying show me the job〞 but show me the job now〞 Anyone who thinks this year’s 48 percent federal pay increase will turn the tide in drawing talent can forget about it All things being equal pay might pull the occasional student away from a private consulting job toward government But all things are not equal The federal government is usually so far behind the private and nonprofit sectors in offering challenging work and the chance to advance that pay rarely comes into play
Efforts undertaken by Congress and the Defense Department to improve quality of life for military personnel are commendable but may not lie at the crux of the problem There is no doubt that there is a recruiting and retention problem within the services but incremental pay increases that simply make up for the losses created over the previous decade may not be adequate Guaranteeing quality medical care for active duty families and retirees is great rhetoric but when you cannot get timely appointments collection agencies are after you because the health management organization has not paid the bill or the sponsor is deployed and cannot help one shouldn’t wonder why servicemen and women are bailing out
Career advancement and personal growth must be weighed against family and spousal needs In the military there are no provisions or consideration given to the dual career family that is so prevalent in today’s society The private sector does not have a corner on this market either Many of the spouses of military sponsors are professionals in their own right Maybe it is time to consider longterm assignment stabilization to allow high performing servicemen and women the opportunity to serve until retirement while providing job opportunities for spouses and dependents
CNN NewsStand recently aired a broadcast where the III Corps Commander and Commanding General Fort Hood Texas was questioned as to why so many of his troops lived on food stamps or visited food distribution centers for subsistence items His response was admirable as he appropriately answered that his community did everything it could to take care of its own The thing that is sickening about the situation is why the general would be put in that situation in the first place much less the soldiers who are asked to make such sacrifices as those noted by the Secretary of Defense above Over 60 percent of the servicemen and women in today’s military are married most with additional dependents According to an Army Times article April 17 2000 an estimated 6300 military members receive food stamps with approximately 60 percent of those living in government housing If they cannot live above the poverty level then why should they come into the military
Tom Brokaw’s book The Greatest Generation highlighted the number of great Americans that repeatedly noted that an opportunity to enlist in the military was an act of pride an opportunity to give back to the country something that it had given them But what had the country given them at that point in time When examining the situation a little closer you realized this generation had gone through some of the worst times this country has ever known – WW I the Depression the drought that created the dustbowl the highest unemployment rates ever known and then WW II Many of those people described in Mr Brokaw’s book noted that a new pair of boots two clean uniforms a bed under a roof that did not leak and three square meals a day was a step up in society Today’s generation certainly has different expectations
The Defense Science Board Task Force prepared a February 2000 report to the Under Secretary of Defense for Acquisition Technology and Logistics on the Human Resources Strategy The chairman of the task force Craig Fields identifies the human resource challenges that face DoD as issues deserving attention at the highest levels While the military enjoys a high level of respect by the American people this respect does not extend to a strong willingness to serve – in either military or civilian positions Doctor John Foster Jr and General Larry D Welch （ret） note that attracting young talented individuals into the Department’s civilian workforce is a difficult challenge There is a growing shortage of quality managers in place to fill the career positions that will become available as more than half of the civilian workforce becomes eligible to retire in the next five years The allure of public service has faded At the same time the Services are finding it increasingly difficult to meet their annual recruiting goals having fallen short of accession goals for the past two years A strong economy offers many alternatives to today’s youth – to include postsecondary education as well as lucrative employment options
Issues revolving around the War for Talent are not well kept secrets They are well published even inside the hallowed halls of our government and military Why then is there a problem of such magnitude First much is being made of the economic situation as an excuse for recruiting and retention problems Although it is a major contributing factor it is not at the center of the problem Second in an attempt not to oversimplify the problem by insinuating that it is purely public relations based it can be illustrated how the Defense Department is allowing the media and the American public to drive the military away from those values that are held in such esteem
Maxwell Thurman was once quoted as saying Today’s military may be called an allvolunteer force but it is in reality an allrecruited force〞 If this is true then what is the current strategy and how are resources being applied to resolve the ever increasing personnel problem This is not simply a numbers problem It is a problem that lies at the core of the War for Talent As noted previously it is the top talent that is sought after by all recruiters The government should not be left to strain the talent pools for leftovers The Defense Science Board Task Force study on Human Resources Strategy identified similar trends to the McKinsey research Recruiting success varies based on two principal factors the level of recruiting resources and environmental factors including economic conditions demographic trends public interest in the military and the government’s perceptions of military needs With unemployment at a 29year low and markets ultracompetitive there is less incentive for young people to join the military There is even a greater incentive for them to attend postsecondary education （Figure 16）
America’s youth are also less inclined to join the military their propensity to serve has declined over the last decade This is as a result of the downsizing effort and the picture that it painted for this generation and the political and societal environment in which this generation has been raised （Figure 17） The decline in propensity to enter the service simply means that recruiters must work harder and spend more to get the highquality recruit （Figure 18） The current strategy is not working too well and as addressed earlier it is time to create a new strategy
Having no legitimate competitor lies at the heart of the Defense Department’s problem There should not be any question in anyone’s mind at this point that a war of a different type is being waged on the streets and in the halls of our businesses and industries In private industry there is always a competitor someone nipping at your heels ready to take over your company or take away your competitive advantage Where is the competitor for the United States Defense Department Russia China Iraq Korea Or are the competitors small obscure countries or bands of semiorganized militia or terrorists There is no one on which to focus no enemy or competitor that is nipping at our heels ready to overcome our competitive advantage
In a recent presentation to one of the working groups of the Headquarters Air Force 2002 project the issue of a competitor arose One of the members of the working group stated something to the effect of sure we have a competitor we fight all the time with the Army and the Navy for resources’ There in lies one of the major problems – I have seen the enemy and it is us
It is time to engage the American public on new terms If this is a War – a War for Talent〞 then it is time for the experts in the conduct of war to enlist all available means and do what we do best – win wars
Young people view the military as a highly professional organization that has effectively dealt with difficult regional crises and conflicts as well as a number of important domestic problems particularly the elimination of drug use by military personnel and the integration of minorities and women into the military Yet despite these encouraging perceptions the propensity for America’s youth to join the military continues to decline The mission of today’s military and its importance to the nation is not as well understood by the American public A decline in the presence of military veterans among members of Congress and the executive branch in state and local government in the education systems and in the public at large means there are fewer role models with the knowledge of and support for military service Public perception of the military can be influenced by a belief that the commitment to military service is important to the individual and the country
Rear Admiral John G Morgan （USN） and Colonel James McGinty （USMC Reserve ret） wrote in The Allure of Service〞 that the services’ recruiting and retention efforts have reflected a marketplace philosophy focusing on education opportunities and redressing compensation shortfalls This is an effective start but now new tools must be identified for attracting and keeping the right people and most importantly expand the strategy beyond monetary inducements to articulate the real vibrant allure to service What they say is equally applicable to all the Services Money is important but it is not the most important element in a winning strategy Tailored to a new era recruiting initiatives must be expanded to include 1） get the right stimuli in the right format to the right people 2） localize our heritage through community recruiting 3） transform our work paradigms and 4） communicate that values add value Bruce Tulgan a researcher specializing in the working lives of the emerging generation concludes that the top nonmonetary rewards include control over work schedules training opportunities exposure to decision makers and credit for projects and increased responsibility From this profile we can begin formulating a new recruiting and retention strategy
ADM Morgan and COL McGinty go on to identify a terribly deficient area in the educational and recruiting systems Recruiting efforts are currently aimed at 1727 yearolds Why wait until they reach the age of 17 Remember earlier in the paper when it was noted that the engineer from Northrop Grumman Corporation was in a middle school in the hopes of generating interest in his profession and hopefully his company What is needed is an educational thrust along with civics and government classes that stresses the value of a life of consequence – an endeavor that enriches the human condition at the local regional or national level The primary themes of recruiting should be stressing national service encouraging volunteerism and achieving personal goals and ambitions
Military infotechies〞 share many of the same inclinations and desires as their counterparts in private industry so maybe it is time to embrace many of the perks that have appeal in the civilian businesses that compete with us for our talent Here are a few examples
a Telecommuting one day a week （think how that could help ease the problems on the home front getting children to medical or dental appointments）
b Collaborative organizations with greater access to decisionmakers and more creative problem solving （requires a rethinking of the hierarchical chain of command）
c Expanded education and training opportunities （civilian and military crossfertilization also include eligiblequalified spouses）
d Oneyear sabbatical at halfpay to get recharged or a fully funded sabbatical designed to improve a persons skill set （professional development）
Aside from the tangible perks the military might offer there are other factors that motivate service members to stay in the chance to lead at a young age accountability and responsibility tradition a sense of accomplishment and pride teamwork a sense of belonging equal opportunity growth adventure and FUN All of these motivating factors are the same factors that motivate top performing people in private industry
Look at what has actually happened to the military Why have so many great officers noncommissioned officers and enlisted personnel left the service or are talking about leaving the service Increased emphasis on better activereserve integration is providing benefit and sets the stage for future initiatives But with the reserves experiencing recruiting and retention problems at least as drastic as the active component one has to ask if increased reserve involvement is really the answer The Army Times highlighted this issue as a rising concern for the reserve component If extended active service obligations are so disruptive to the reservists’ civilian career goals how can it be an effective solution to the retention and manning problem
The Services need to consider varying enlistment tours and accessing personnel for different lengths of service based on the skill set each person brings to the table For example the Air Force and the Navy are experiencing difficulties maintaining sufficient numbers of pilots During the research of the Defense Science Board Task Force they learned that the average time a pilot was needed was 14 years Under a new strategy the service commitment for fighter pilots would be 1214 years no more and no less but adjustable between 12 and 14 based on the needs of the military
Here is a new proposal with a twist Throughout this year’s fellowship discussions have taken place which revolve around partnering with the private sector Here is an excellent opportunity Most of the military aviators are leaving to fly for the airlines A longterm partnership with the US flag carriers could be developed where both the airlines and the military recruit together for pilots The airlines offer each qualified individual the opportunity to go into the military receive flight training and serve the required obligation When the tour of duty is complete the individual is guaranteed a position with the airlines that initially recruited them While the individual is serving in the military the airlines’ pays the pilot incentive pay to legitimize the process and relieve the military of paying bonuses to pilots The military would still pay hazardous duty pay If the pilot chooses to remain in the military then the military repays the airlines for the investment to date This system as it is roughly portrayed above creates buyin from the two largest markets for trained pilots It would truly become a you scratch my back I scratch yours〞 scenario
The retention climate is a challenge for all of the services but it is not insurmountable The discipline associated with the military the level of responsibility placed on today’s members and the technical training they possess all serve to make the military experience a valuable commodity in the civilian labor market During the downsizing of 9798 General Electric hired over 650 officers That is only one of the major firms in this country The private sector is now looking at the military as a major talent pool Attractive salary and benefit packages coupled with greater geographic stability and a more predictable lifestyle are key influences in the pursuit of private sector jobs by service members Maybe it is time to make some appropriate adjustments to mirror some of these efforts
Personal Perspectives Now from a more personal perspective I discussed the War for Talent from the private sector perspective and from the perspective of the Defense Department as a whole I want to take the time to discuss it from the Army perspective because that is where my heart lies I grew up in the Army and chose it as my own profession so it holds a cherished spot in my heart and my life It is all I have ever known I was told by my father many years ago that I would experience successes and failures good times and bad times and resource rich and resource scarce times while I served in the military Those times often manifest themselves in a cyclic nature As history has revealed the last two decades have been no different than those that preceded them
I have seen the Army struggle with post Viet Nam issues and claw its way out of those troubled times I watched as my Army was modernized and built into the greatest fighting machine the world has ever known and I watched as it was downsized and reorganized As all of this happened over the last 20 years we continue to do more with less – go more places help more people and intervene in areas we never dreamed of primarily because our missions have changed I am not in any way saying that certain deployments or our involvement in certain areas was not warranted but I am trying to say that we cannot continue to execute beyond our capabilities It becomes an issue of trust
Robert Maginnis of the Washington Times reports that in a recent Pentagonsanctioned survey of Army and Marine Corps personnel only 35 percent believe what their service leaders are telling them and only 44 percent thought their leaders would make tough unpopular decisions The trust problem goes beyond social experiments and an ailing medical system It goes to the bone Most surveyed personnel 62 percent believe their units lack the necessary equipment to accomplish assigned missions and 66 percent say they are stressed out from high deployment rates – up 300 percent over the last decade Job satisfaction has plummeted along with retention Trust is stretched thin by the Clinton administration’s use of the military for peacemaking peacekeeping and humanitarian relief operations Today US service members are stationed in approximately 140 countries where many serve as policemen keeping rogue nations like Iraq in check and ethnic groups like those in Somalia Bosnia and Kosovo from killing one another Soldiers complain that this is not what they volunteered to do and for that reason many leave discouraged
Maginnis goes on to state that the much touted pay raise was a step in the right direction but Congress does not recognize that in many cases the increase was actually offset by reductions in housing allowances In fact for many soldiers who live off post they suffered a pay loss not an increase Given these trustbusting problems our military is hemorrhaging quality personnel and cannot recruit enough to fill its ranks The crisis will not be easily overcome Veterans this country’s best recruiters are not encouraging their sons and daughters grandsons and granddaughters to enlist
The Army Research Institute conducted a study at Fort Benning Georgia which asked the basic question Why are Captains leaving the Army〞 The results were not a revelation but are revealing if you take the time to review them Of the population tested 52 percent were inclined to leave the Army 71 percent of those were United States Military Academy （USMA） graduates and 29 percent were Reserve Officer Training Corps （ROTC） graduates Those inclined to stay consisted of 13 percent USMA graduates 69 percent ROTC graduates and 18 percent Officer Candidate School graduates It is also interesting to note that only 29 percent of those choosing to leave intended on making the Army a career at the time of commissioning compared to 50 percent of those choosing to stay in the Army At the time of the survey even those choosing to stay at the time indicated a significant inclination to depart before reaching 20 years 69 percent plan to stay 20+ years and 39 are undecided or plan to separate
These numbers are very troublesome and reflect an Army wide feeling of discontent with the Army and its leadership They are also troublesome because they indicate we are also losing the wrong people The survey indicated the primary reasons for leaving （the push〞 factors）
a Dissatisfaction with Army jobmissionlife （35 percent）
Operations tempo excessive micromanagement lack of say in assignments ubiquity of the PowerPoint Army〞 dissatisfaction with peacekeeping missions insufficient support for training
b Perceived incompatibility of Army and family life （35 percent）
Operations tempo spouse’s career opportunities
c Civilian career opportunities seen as better than Army opportunities （29 percent）
Opportunities for promotion and advancement overall job satisfaction importance and meaningfulness of work
d Pay was seldom mentioned as a reason to leave （for officers）
Poor paybenefits for enlisted soldiers
The family remains one of the top push〞 factors for all those choosing to leave 100 percent of those Captains choosing to leave voiced family issues as one of the top reasons for their choice – Raising a family in the Army is bad due to OPTEMPO and PERSTEMPO Too much separation from the family〞 The summary of findings from the Benning study strike at the very heart of the War for Talent
1 The decision to leave is a lengthy one
2 The decision to leave is based on multiple reasons
3 Family issues and dissatisfaction with Army joblife are most frequently given as primary reasons for leaving
4 By the time paperwork is dropped little can be done to change the person’s decision （mentoringcoaching）
5 Pay is not a major factor in career intent
6 A strong civilian economy enables career change but does not cause it
These findings along with those from the Defense Science Board Task Force study of Human Resources Strategy and those points made by ADM Morgan and Col McGinty should be used to build the personnel strategy of the future
Everyone wants to survey the troops about how they feel about the military The problem with surveys is that although they may provide a wealth of information what it all means is not clear And so it was with yet another survey conducted for Congress last fall by the General Accounting Office （GAO） The Army Times 27 March 2000 reported in No 1 Retention Tool〞 that lawmakers were anxious to hear what service members had to say What they got back from the 32000 people who responded was a mixed message Pay or lack of it was the number one reason people leave the service but it was also the number one reason people decided to stay Housing and health care were among the benefits most important to military members but apparently had little to do with their decisions about whether to remain in uniform Service members working really long hours were not happy with their lot in life but neither were those working the bare minimum So what does it all mean The key appears to be this service members will stay as long as they find value in what they do and as long as they think others value that as well
What this should also tell us is that there is no clear answer to this problem Survey results conflict with each other identifying varying levers that may be key in solving the problem But the bottom line remains the same – there is talent problem and it could easily turn into a fullscale war
In the GAO study participants listed dissatisfaction with the quality of military leaders as one of the top three reasons for leaving That should be a siren call to leaders everywhere from noncommissioned officers and officers to the CommanderinChief himself If military leaders want to improve retention maybe they should start by looking in the mirror And that is exactly what the Army is trying to do under the leadership of the Army Chief of Staff General Eric Shinseki
He recently commissioned a survey of 760 officers attending the Army Command and General Staff College at Fort Leavenworth Kansas The results of those surveys have shaken the Army to its core Although grumbling in the ranks is as old as the military itself recent studies surveys and focus groups are documenting a growing culture of discontent among military officers and enlisted The recent steps taken at Leavenworth identified rising dissatisfaction among junior officers Since they are the foundation of the future Army leadership this growing culture threatens to destabilize the service from within The Army has seen a 58 percent increase in the numbers of captains who leave the service voluntarily each year up from 67 percent in 1989 to 106 percent last year While this trend continues to increase there is also a trend indicating that fewer and fewer officers have the intention of staying until retirement （Figure 19）
Key findings from the current Leavenworth research indicate a lack of trust in senior leaders too much micromanagement a zerodefects〞 Army poor quality of life and benefits topdown loyalty does not exist falsified readiness reporting and a generally poor leadership environment with little or no mentoring taking place Military analyst Ralph Peters a former Army officer says many young officers envy innovationdriven dotcom peers and see no point in sticking around until they are middleaged to make a difference He states Our military establishment is still stuck in industrialage thinking where GM and IBM were in the 70s They want conformists If you’re a lieutenant with a great idea you will be told to wait 25 years until you’re a general to put your ideas into practice〞 A combat arms colonel in the Pentagon summed it all up when he said They asked the same questions in the Army Research Institute study five years ago and got the same answers〞 It makes you wonder how many times this has to be published or broadcast before anyone reads it or listens to it It is time to act before we lose this war
FindingsRecommendations Over the course of this year I have had an opportunity to study and review a problem that exists in both the public and private sectors of our economy In my opinion it is rare that such a problem exists in both sectors simultaneously but that is indicative of the magnitude of the talent problem At the core of the problem are three primary factors 1） the pool of talent from which to draw 2） the competitor and competitive market in which you operate and 3） the value proposition created to attract top talent
Talent pools are decreasing in size and nothing is being done to increase them in the short term Most markets are growing thereby increasing the demand for top talent There is nothing you can do about the demographics of the work force but identify the target audience and go after it as if it were a life and death situation For many companies it may be just that Use a competitive advantage to create niche markets or carve out market segments that will create attractive value propositions for the company and the interested employee Hire the best no matter what the cost and create positions for top talent in your company
The Defense Department must attack this problem just as if were competing in the private sector as noted above We have a value proposition based on over 200 years of history and success It is time to use it War for Talent is a farreaching problem that is attacking the very heart of what we are It is time to be creative and aggressive with the employment of scarce resources not just to fight the problem but attack the problem Here are a few suggestions
Return to the basics of officer and noncommissioned officer training – LEADERSHIP We consistently migrate farther and farther away from handson oriented interaction The causes are many – email internetintranet OPTEMPO We are not spending enough time with our subordinates and we are not teaching leadership skills designed to motivate and stimulate our subordinates It is time to get back to the basics Do not get focused on the opportunities that technology provides at the cost of facetoface leadership and personal interaction
Create a new public relations campaign aimed at raising this country’s awareness of what we do Most people do not even know that we still have forces in Bosnia and Kosovo We allow the media to drive public interest in a way that is more often than not detrimental to what we do and what we stand for Unless we are executing a major operation that is news worthy we are spending time fending off 60 Minutes〞 or some other news magazine Publish our success stories and push to get them aired
It is time we partnered more with private industry Not become a mirror of private industry but use them to leverage opportunities and viceversa Opportunities exist to work with private industry instead of simply being a talent pool from which they draw their top talent
We must educate our younger generations on the Profession of Arms We exist to deter war and preserve peace Fighting our nation’s wars is an act of last resort yet the school systems do nothing to educate our youth of the need purpose and uses of the military It is time we step up and be heard in the classrooms around America
Value creation is essential to success in people markets We must return to the core values on which the Services were built not only for educational purposes but also more importantly for the pride and integrity that they develop These values what they represent and how our service members demonstrate them are what make the military the most highly respected profession in the United States
Create a competitor even if it a cybercompetitor on which to focus We must stop focusing on each other the interservice rivalry as competitors It is time to partner with the fellow services and put aside petty differences It is time to realize that we are now paying the price of a smaller force with restricted resources Our decisionmakers grew up during the Reagan administration and postViet Nam build up It was a great time to serve but times change and changing times require changing strategies General Fred Franks wrote in Into the Storm that his proudest moment was when his troops thanked him for doing what he and so many others had done – recover from Vietnam with pride and a purpose and build a worldclass military
Pick the low hanging fruit〞 Efforts are under way to fix Tricare and repair or replace substandard housing But what picture does it paint for all of those serving in the military or those interested in joining the military if the largest company in the world （DoD） cannot even get a partial problem to the housing issue in place until 2021 What incentive is there to stay or join I have to ask if General Electric General Motors or Ford would put up with health care coverage like the Defense Department and more importantly the service members and their families have been asked to put up with Retirees who built this nation and our military into what it is today are not even covered under current medical programs There should be no doubt why young people want out or why they do not want in It is time to leverage the size and significance of the Defense Department to get these issues put to rest
Get our servicemen and women and their families off of food stamps We are the most prosperous nation on the face of the earth with a military force that is consistently being asked to create a better way of life for nations and peoples around the world but we have difficulty creating a better life for our own people This must come to an end or we will never overcome the War for Talent
Quit using the United States military as a social test bed The men and women who chose to come into serve their country do so with the clear understanding that they may be called upon to pay the ultimate price There have been very few cases throughout our history where servicemen and women have turned away from the challenges thrown down before them But the requirement to be social white rats is too much to ask We are prepared to fight and win this nations wars if called upon to do so but do not ask us to test sensitive social issues Issues that are part of someone’s political agenda do not belong in the policies procedures and guidance of the armed forces They undermine good order and discipline A perfect example is the molding of basic training to fit soldiers not soldiers to fit basic training
It is time to consider a major overhaul of the personnel system – promotion and assignment selection schooling and tour stabilization Consideration should be given to the member and dependents I am not suggesting elimination of the needs of the military〞 philosophy but a greater consideration needs to be given to service members trying to stabilize for the family’s educational benefits medical requirements or dual career family situations It builds trust and confidence in a system that is designed to take care of its own It fosters generations of young people willing to serve a nation that is willing to serve them
We should consider outsourcing the Defense Finance and Accounting functions to a fullservice financial institution capable of handling all financial investment and insurance requirements of the active reserve and retired communities It sometimes takes the Defense Finance and Accounting System over two months to settle vouchers when credit card billing cycles are less than 21 days This creates out of pocket expenses for the service member and the family Actions are underway to institute an investment program for the military the only public entity not currently covered by a program At first Congress was asking for 480 million to cover a projected loss of tax income as a result of initiating the proposed program What incentive is there to start a necessary program if the upfront costs are prohibitive This is just another example similar to increasing pay and reducing housing allowances Maybe it is time to partner with private industry and outsource these functions to a firm offering these services as their core competency
Conclusion The War for Talent exists and the Defense Department is on the brink of losing the war Bruce Roberson of McKinsey & Company describes the War for Talent problem as rather simple and straightforward Somehow we allow people issues to remain murky unclear fuzzy and intractable It should not be that way and does not have to be that way The idea is that you have a product called a job that you are selling into the talent market Every new employee that joins you is a brand new customer The solution lies in applying the same clearheaded thinking and management intensity that makes you successful in your product markets to the people markets In the military we too have jobs to market and expertise in our core competencies We are simply not applying the same level of intensity to the people problem
So whom should we be looking for to fill the rank and file of the Armed Forces Try this one on for size General Fred Franks was asked once why he wanted to be a soldier After a few moments of thought he responded
If you like what our country stands for and are willing to fight to protect those ideals you ought to be a soldier If the sound of the national anthem and the sight of the flag stir something inside of you then you ought to be a soldier If you want to be around a lot of other people who feel the same way about all that as you do you ought to be a soldier If you like a challenge are not afraid of hard work and think you are tough enough to meet the standards on the battlefield you ought to be a soldier If you and your family are strong enough to endure the many separations often on a moment’s notice and can live that kind of life then you ought to be a soldier If the thought that at the end of your life you can say – or have said about you – that you served your country if that appeals to you and you need no other reward than that then you ought to be a soldier
It is time we returned to our roots and the core values that make us great Leaders have to establish the way ahead not driven by the lure of new emerging technologies but by the idea that we need the best this country has to offer to take new technologies and new challenges to the next level
I would like to use Bruce Roberson’s thought experiment〞 to close this paper by describing a company or large organization Close your eyes and imagine just for a moment that Fortune Magazine The New York Times or any of the military papers Army Times Navy Times Air Force Times or Marine Corps Gazette wrote to you about the company or organization I am about to describe Ask yourself How did it get that way How could they have been so blind What would you do if you were hired or assigned to turn it around〞
I The company is steadily losing market share or being downsized at an equal pace They are losing share of the most profitable customers （employees） at an even faster rate The disturbing thing here is that the company does not seem to know who those customers are or where they have gone
II Digging deeper you find the churning customer base at a high and accelerating rate Churn rates have doubled and your company replaces 40 percent of the customer base every two years and 80 percent every five Management seems surprised by this Recruiting becomes more and more difficult External perception is poor
III The product this company offers is widely viewed as increasingly uncompetitive Aggressive new competitors have a product with far superior features and theirs is priced better to boot or there possibly appears to no longer be a need for the product on the whole By way of contrast our company’s product is still attractive to an entrenched legacy customer base that is slowly dying off
IV When pressed it is apparent that management is concerned but largely not doing much to respond Leaders will say it is a top concern but admit it is not among their top few priorities Besides the human resourcespersonnel folks are going to fix it
Does this sound absurd It is the Defense Department We are struggling with this problem and companies are out there capturing our employees current and future because they have developed a talent mindset designed on winning THE WAR FOR TALENT












FIGURES
The Recruiting Challenge
Propensity for Military Service Recruiting Resources and HighQuality Accessions
Dissatisfaction Among Young Army Officers












BIBLIOGRAPHY
BIBLIOGRAPHY

Bryan Lowell Jane Fraser Jeremy Oppenheim and Wilhelm Rall Race for the
World Boston Harvard Business School Press 1999
Brooks David 0* Unemployment〞 The New York Times Magazine （online）
March 5 2000
Cain Gordon Everybody Wins A Life in Free Enterprise Philadelphia
ChemicalHeritage Press 1997
Cappelli Peter A MarketDriven Approach to Retaining Talent〞 Harvard
Business Review JanuaryFebruary 2000
Clancy Tom and General Fred Franks Jr （Ret） Into the Storm New York Berkley
Books June 1998
Clifford Donald K Jr and Richard E Cavanagh The Winning Performance –
How America’s HighGrowth Midsize Companies Succeed New York Bantam
Books 1985
Cohen William S Secretary of Defense Annual Report to the President and
the Congress〞 Department of Defense 2000 pp 105120
Curtis Bill William E Hefley and Sally Miller Overview of the Capability
Maturity Model〞 Software Engineering Institute Carnegie Mellon University
Pittsburgh Pennsylvania September 1995
Fishman Charles The War for Talent〞 Fast Company August 1998
Freiberg Kevin and Jackie Freiberg Nuts Southwest Airlines’ Crazy Recipe for
Business and Personal Success Austin Bard Press 1996
Fried John Help Wanted Really Badly〞 The New York Times Magazine （online）
March 5 2000
Ghoshal Sumantra and Christopher A Bartlett The Individualized Corporation
New York HarperCollins 1997
Grove Andrew S Only the Paranoid Survive New York Currency Doubleday
1999
Hamel Gary Bringing Silicon Valley Inside〞 Harvard Business Review
SeptemberOctober 1999
Hymowitz Carol The Best Defense to Hold on to Talent is a Preemptive
Strike〞 The Wall Street Journal （online） March 14 2000
Johnson W Brad Jennifer M Howe Anne M Fallow Lieutenant Commander
Rakesh Lall （USN） Captain Elizabeth K Holmes （USN） and William Hall
Does Mentoring Foster Success〞 Proceedings December 1999
Katzenbach Jon R and Douglas K Smith The Wisdom of Teams Boston Harvard
Business School Press 1993
Leonhardt David Meet Mr and Mrs Median Income〞 The New York Times
Magazine （online） March 29 2000
Light Paul The New Public Service〞 Government Executive January 2000
Maginnis Robert Distrust Corroding the Military〞 The Washington Times
（online） March 2 2000
Matthews Mike Dr Why are Captains Leaving the Army Captain
Attrition at Fort Benning〞 Army Research Institute Fort Benning Georgia
October 1999
McCormick David H The US Military is Losing the War for Talent 〞 The
McKinsey Quarterly 1999 Number 3 pp 135136
McKinsey & Company The War for Talent Report to participating companies
Atlanta March 1998
McKinsey & Company The War for Talent Atlanta December 1998
McKinsey & Company Understanding the Government Specialist Talent Pool and
Their Expectations Washington DC March 1999
McKinsey & Company Winning the War for Technical Talent Discussion
Document HoustonDallas January 2000
McKinsey & Company Marietta Baba Klien & Associates and Hagberg
Consulting Group War for Technical Talent HoustonDallas January 2000
McKinsey & Company War for Talent 2000 Discussion Document Preliminary
Results Atlanta February 2000
McKinsey & Company Technical Talent Snapshots〞 San FranciscoPacific
Northwest April 2000
McKinsey & Company Best Practices for Technical Talent – Summary of Patrick
Porter Deep Research Interviews San FranciscoPacific Northwest April 2000
Morgan John G RADM and Colonel James McGinty USMC Reserve （Retired）
The Allure of Service〞 Proceedings January 2000
Murphy James D Business is Combat New York HarperCollins 2000
Naylor Sean D Two new panels to study officer morale problems〞 The Army
Times April 24 2000
Office of the Under Secretary of Defense for Acquisition Technology and
Logistics The Defense Science Board Task Force on Human Resources
Strategy Office of the Secretary of Defense Washington DC February 2000
Pasternack Bruce A and Albert J Viscio The Centerless Corporation New York
Simon & Schuster 1998
Peters Thomas J and Robert H Waterman Jr In Search of Excellence New York
Warner Books 1982
Raisel Ethan M The McKinsey Way New York McGrawHill 1999
Ricks Thomas E Younger Officers Quit the Army at Fast Clip〞 The
Washington Post （online） April 17 2000
Roberson Bruce The Battle Royale A speech made to Fortune 500 Executives
McKinsey & Co April 2000
Slater Robert Jack Welch and the GE Way New York McGrawHill 1999
Squeo Anne Marie Defense Companies Are Mobilizing to Win the Hearts of
Young Engineers〞 The Wall Street Journal （online） April 18 2000
Stone Andrea Army sees leaders of the future leaving today〞 USA Today
April 18 2000
Wilson Jason A Big Piece of the Rock〞 Continental February 2000 pp 3537




文档香网(httpswwwxiangdangnet)户传

《香当网》用户分享的内容，不代表《香当网》观点或立场，请自行判断内容的真实性和可靠性！
该内容是文档的文本内容，更好的格式请下载文档