Leadership Report

BUSINESS EXECUTIVES FOR NATIONAL SECURITY

National Office Regional Offices Business Executives for National Security Kansas City 1030 15th Street, NW [email protected] Suite 200 East Metro New York Washington, DC 20005 [email protected] [email protected] 2011 Metro Washington, DC [email protected] California [email protected] Southeast [email protected] Texas [email protected]

December 2011 1

Contents Business Executives 2011 Leadership for Report National Security

Message from the President...... 2

Introduction...... 3

Conversations...... 4

Experiences...... 8

Impact...... 12

Continuing Influence...... 16

Special Events and Awards...... 18

Our Members...... 20

Financial Stewardship...... 21

Board of Directors...... 22

Business leaders in action. Results for America. Message from the President

2 I am pleased to share our Leadership Report for 2010 and 2011, two exciting, busy years. I am most appreciative of the critical time invested, talents, and support of our most important asset – our members. We continue BENS’ work in those areas where we have established a strong reputation, and seek new opportunities to engage you all in the national security arena.

This report contains just a handful of our contacts and conversations with government partners, some of which start in the regions, others from the national level. For instance, we currently have twelve members showing commanders in the Army’s worldwide Installation Management Command how to apply business practice to Montgomery C. Meigs reshape their organizations to operate at least cost. This project, which began as President & CEO a regional effort but then expanded nationally, has been so successful that we intend to expand it even further in the coming year. Also, when asked by the FBI and U.S. Secret Service to help them raise the awareness of senior business leaders to the threat cyber poses to our national infrastructure and intellectual property, we sponsored briefings across the country and suggested members for the FBI’s Information Technology Study Group. We are now working with government partners to develop a more focused effort to assist them with the cyber challenge and to bring the important business perspective to the table.

Our domestic and international trips with senior government officials have taken us across the country and around the world, from the Naval Special Warfare Training Center in California to Baghdad and Hillah, Iraq, to the Israeli- Lebanese border. This summer a small team of members accompanied Admiral Mike Mullen to China, on his last international trip as Chairman of the Joint Chiefs, and subsequently briefed a number of senior Defense leaders on their observations on the Chinese economy and financial stability in which our members predicted a slowing of their economy. After visiting the Baltics last year, BENS members helped Latvia upgrade its cyber security capability and reviewed and recommended changes to European Command on Lithuania’s energy strategy.

Two of our projects currently underway with the Department of Defense (DoD) have great potential for long-term impact. The first involves our study on the use of microgrid technology to ensure the operation of critical military

Business Executives for National Security National Report for Leadership 2011 Business Executives installations in a crisis. When the member-led working group concludes its evaluations next year, it will recommend business models that the Department can apply to installation architectures as pilots for the reengineering of our national grid system. And, building on lessons learned from the BENS “Tail-to-Tooth” study a decade ago, we have launched a new effort focusing on applying efficiencies to infrastructure, logistics and administration across the Department to prevent deep cuts into operational capabilities.

As testament to the long term influence of BENS’ work, we are very proud that some of the twenty-five recommendations produced by our 2009 Acquisition Task Force, like ensuring a robust Systems Engineering capability across DoD, have now been written into law. BENS continues to be a “go-to” organization on this issue and we will continue to make the case for the implementation of the remaining recommendations going forward.

We look forward to celebrating our 30th anniversary next year and hope that you will continue to be an active partner in our work to expand BENS’ reach and impact. Please use this report with friends and colleagues who share your commitment to our nation’s security and encourage them to join us. We are always looking to expand the deep and varied expertise of our membership and offer even more resources to our government partners. It is clear 2012 will be another exciting year of opportunities for BENS members to contribute to our national security.

Montgomery C. Meigs President & CEO Introduction

Founded in 1982, by business executive and entrepreneur Stanley A. Weiss, nonpartisan and non-profit

Business Executives for National Security (BENS) supports the U.S. Business Executives 2011 Leadership for Report National Security government by applying pro bono, best business practice solutions to its most difficult national security problems.

For almost thirty years, BENS has served as the primary channel through which senior American business leaders contribute special experience and talent to help build a more secure nation. With regional offices across the country and from our headquarters in Washington, D.C., our membership has earned the trust and respect of leaders in government.

BENS’ early work focused extensively on U.S.-Soviet threat reduction initiatives and on widespread inefficiencies in support functions in the Department of Defense (DoD). These activities ultimately saved DoD billions of dollars. After championing base realignment and closure, BENS worked to find and develop opportunities at the affected bases. We have widened our focus over the last decade to encompass a range of new threats that challenge American security. In recent years we also have broadened our government partnerships to include: the Departments of State, Treasury, Home- land Security, including FEMA and the Secret Service, Office of the Director of National Intelligence, and the CIA. BENS does work with all of the combatant commands.

BENS believes that the defining strengths of the American private sector – ingenuity, innovation, and efficiency – should be applied to our nation’s security, by working with government partners to develop creative, new approaches to deal with the challenges we face today.

BENS members engage with government partners in a myriad of ways, including CONVERSATIONS with national security leaders; first-hand national and international EXPERIENCES with key military and civilian personnel on the ground; work with government partners to IMPACT policy solutions to select national security challenges; and continuing INFLUENCE by pressing for implementation of BENS policy solutions over the long-term.

Heading into our fourth decade, the BENS membership continues to represent a broad range of industry sectors and political views. We remain united by a commitment to thoughtfully apply best business practices to find solutions to government’s most challenging problems.

For more information, please visit: www.bens.org. Conversations

4 hrough a speaker series of more than 100 regional and national events annually, BENS members have many Topportunities to engage with top national security leaders to learn about their missions and areas of re- sponsibility, as well as to hear about the challenges they are facing. Below are highlights of conversations BENS members had in 2010 and 2011, with leaders from the Departments of Defense, State and Homeland Security; the Intelligence Community; and the Combatant Commands; on a wide variety of issues ranging from exploring better buying power in defense to strengthening U.S. economic security to strategic priorities in Africa, among many others. “BENS brings an important and credible voice of experience to the task of demonstrating how citizens too can contribute to keeping America safe and secure...So I thank all of you at BENS for your talents, your drive, and your passion to give back to the country in such profound ways.” Admiral Mike Mullen, USN, Chairman of the Joint Chiefs of Staff.

“I’ve known about BENS and been with different BENS groups for many years and it is an incredible organization. We benefit immensely, in the Armed Forces,

Business Executives for National Security National Report for Leadership 2011 Business Executives from your existence. Thank you very

General Carter Ham, USA, Commander, U.S. Africa Command, much for what you do for the Armed visited BENS headquarters for a discussion on security challenges across the continent. Forces of the United States.” Lieutenant General William Caldwell, USA, Commanding General, Combined Security Transition Command (Afghanistan)

Lieutenant General William Caldwell, spoke to BENS members in Washington D.C. about the operational challenges in Afghanistan. Atlanta BENS members at a luncheon in Atlanta where Admiral Mike McConnell, USN (Ret.), and former Director of National Intelligence, addressed cyber threats to national security. 5 Business Executives 2011 Leadership for Report National Security

Janice Fedarcyk, Assistant Director in Charge of the NY Field Office of the Federal Bureau of Investigation, briefed BENS members on her top security priorities for 2011 at a New York luncheon in March. Ash Carter, then Undersecretary of Defense for Acquisition, Technology, and Logistics, asked BENS members to offer insight into DoD energy savings at the 2010 May Forum.

“Every time I ask BENS for help, it makes a difference.” General David Petraeus, Director of the CIA and former Commander of the International Security Assistance Force in Afghanistan

Catherine Herridge, FOX News National Correspondent, spoke about her recent book on homegrown terrorism in the United States to BENS members in Atlanta, and at the BENS Annual Washington Forum in May 2011.

General David Petraeus,USA, discussed security challenges in Afghanistan, Iraq, and Pakistan with members in New York, Kansas BENS members G.S. Beckwith Gilbert and Ramon Marks with City, and Atlanta. Ambassador Vicki Huddleston (center), Deputy Assistant Secretary for Africa in the Office of the Secretary of Defense, after Huddleston spoke to BENS members about security challenges and priorities in Africa. Conversations

6 22nd Annual Washington Forum Cyber security, strategic threats to the U.S., returning veterans and defense strategy and spending took center stage May 19, 2010 at the Annual BENS Forum in Washington, D.C., with over 175 BENS members and guests in attendance. Over the course of the Forum, BENS hosted panels and lectures featuring leaders from the Department of Defense, White House, and multiple branches of the military.

The discussions and panels featured a number of national security experts, including: The Honorable Ellen O. Tauscher, Under Secretary of State for Arms Control and International Security; Lieutenant General David Fridovich, USA, Deputy Commander of U.S. Special Operations Command; Howard Schmidt, White House Cyber Security Chief; James N. Miller Jr., Principal Deputy Under Secretary of Defense for Policy; Gordon Adams, former Office of Management and Budget Associate The Honorable Ellen O. Tauscher at the BENS Forum, 2010 Director for National Security and International Affairs; and Dr. Ashton B. Carter, then Under Secretary of Defense for Acquisition, Technology and Logistics.

23rd Annual Washington Forum The 2011 Forum tackled issues ranging from changing trends in global security, cyber security, and homegrown terrorist threats, to U.S. development policy. Panels and lectures featured expert insight from the De- partments of Homeland Security and State, and multiple branches of the military.

Business Executives for National Security National Report for Leadership 2011 Business Executives The discussions and panels featured a number of national security experts, General James Cartwright including: General James Cartwright, USMC, then Vice Chairman of the Joint Chiefs of Staff; Rand Beers, Under Secretary of the National Protection and Programs Directorate at the Department of Homeland Security; Ambassador Robert Loftis, State Department Acting Coordina- tor for Reconstruction and Stabilization; Catherine Herridge, FOX News National Correspondent; Ben Riley, Principal Deputy Assistant Secretary of Defense for Rapid Fielding; Captain Wayne Porter, USN, and Colonel Mark Mykleby, USMC, and Dr. Ruth David, President and CEO of ANSER Corporation. 7 Business Executives 2011 Leadership for Report National Security

Jeff Staubach, Admiral Pat Walsh, USN, Commander, U.S. Pacific Tom Nides, Deputy Secretary of State for Management and Fleet, and member Roger Staubach at an April breakfast in Texas Resources, spoke to BENS members on the budget challenges where Admiral Walsh shared his experiences leading the effort to facing the State Department. support Japan in the aftermath of their massive earthquake.

BENS launched the Women in National Security series, chaired by member Kristi Clemens Rogers (right). Each event in the series features Chris Shays, Chairman of the congressionally mandated women leaders in national security from government and business. Commission on Wartime Contracting, and former Congressman, sought BENS members’ views on the commission’s findings and recommendations.

Board member Spike Wahlen with David Walker (right) , founder and CEO of the Comeback America Initiative and former General Ray Odierno, USA, then Commander, U.S. Joint Forces U.S. Comptroller General, in Atlanta. Over the past year Walker Command, discussed the world’s geopolitical state and the future met with BENS members across the country to discuss our nation’s of the Army at a luncheon in Dallas, Texas. fiscal crisis. Experiences

8 ield visits give BENS members the ability to personally interact with our men and women in uniform, as well Fas with key military and civilian personnel on the ground, to observe the tools of their craft in operation and to learn first-hand how each of their missions are accomplished. BENS members participated in 30 national and international visits over the past two years, aboard aircraft carriers, on historic battlefields, and in foreign defense ministries, to name a few.

BENS members in Baghdad with a group of leading business women in Iraq.

In January 2011, a BENS delegation traveled to Iraq to look at the important and emerging role of women in Iraqi businesses, and how to promote further stability and economic development. Discussions took place over three days with a number of parties including: Iraqi women business owners, financial institutions, Iraqi government officials, and senior U.S. leaders.

At the invitation of Admiral Mike Mullen, USN, then Chairman of the Joint Chiefs of Staff, seven BENS members spent three days in China in July 2011, Business Executives for National Security National Report for Leadership 2011 Business Executives and participated in meetings focused on economic and financial policies and relations between the U.S. and China. BENS members met with key financial and economic leaders, senior academics, educators and government officials, and the Foreign Minister of China.

In China, BENS members met with leaders from China’s finance sector and government.

In April 2011, BENS Vice Chairman Raphael Benaroya, led a BENS delegation for five days in Israel to discuss the factors contributing to instability spreading through the Middle East and U.S. public perception of these challenges. The delegation covered these and other A visit to the West Bank entry sites in East Jerusalem, Israel, al- lowed members to see first hand the security challenges in the topics with a range of top Israeli officials. disputed territory. 9 International Visits BENS in the Baltics: At the request of U.S. European Commander Admiral

James Stavridis, USN, a BENS delegation Business Executives 2011 Leadership for Report National Security traveled to the Baltic states of Lithuania, Latvia, and Estonia in October 2010. Members met with top leaders to discuss their challenges and later conducted an assessment of the Lithuanian Energy Independence Strategy that Admiral Stavridis called: “superb,” “pragmatic, incisive, and well-written.” BENS returned BENS members discuss regional security issues with the Lithuanian Minister of in 2011 to assess and provide solutions Defense during the EUCOM trip. to Latvia’s cyber vulnerabilities.

BENS in Ukraine and Moldova: A small group of BENS members also traveled to Ukraine and Moldova at the request of Admiral Stavridis in mid-October 2011. The BENS group focused on increasing awareness and understanding of illicit networks that traffic humans, drugs, and elements of weapons of mass destruction. Our group met with U.S. ambassadors, country teams as well as host country officials from ministries of interior and foreign affairs, intelligence and security, and border patrol agencies. BENS produced a report on their findings from the trip and are currently offering recommendations for next steps. In Ukraine, BENS members got an inside look at the technology used by Customs and Border officials.

“[The BENS trip to Latvia] is among the best examples of useful and practical, public- private collaboration I have ever seen.” Admiral James Stavridis, USN, Supreme Allied Commander, Europe and Commander, U.S. European Command (EUCOM).

BENS members met with top government and military officials in Ukraine and Moldova. Experiences

10 National Visits

At Nellis Air Force Base, in Nevada, BENS members learned about the F-22 Raptor and how the U.S. trains pilots to fight enemy systems.

BENS Texas members visited Brooke Army Medical Center (BAMC) and the Center for Terrorism Law at St. Mary’s University School of Law. At BAMC, they received a command brief from the Marine Wounded Warrior Detachment, a tour of the Center for the Intrepid and enjoyed lunch with wounded Marines. Business Executives for National Security National Report for Leadership 2011 Business Executives

At Eglin Air Force Base, FL, BENS members observed training at the Naval School of Explosive Ordnance Disposal.

At the Antietam battlefield in Maryland, BENS members learned On a tour of the Naval Special Warfare Training Center in about the art of operational command and control. California, BENS members tried a few obstacles themselves! 11 Business Executives 2011 Leadership for Report National Security

BENS members visited the 75th Ranger Regiment headquarters BENS members aboard the USS Stennis, off the coast of at Fort Benning, GA, to learn about special operations forces, and California, gained an understanding of carrier operations. observe a mass tactical airborne assault demonstration.

BENS members participated in an F-22 simulation in Marietta, Georgia.

BENS members toured the Calvert Cliffs Power Plant in Maryland. BENS members have visited numerous nuclear power plants across the country, including Georgia, Texas, and New York to learn more about nuclear power’s potential. New York members travelled to Picatinny Arsenal, NY, to see firsthand how armaments are developed and delivered to soldiers in real time. Impact

12 ince its early work in the 1980s on the Base Closure and Realignment Commission, BENS has carefully selected Sits policy projects to focus on issues where business executives can provide unique, valuable expertise to assist leaders in the defense and intelligence communities in overcoming national security challenges. Whether initiated at the request of a government partner, at the suggestion of a BENS member, or through insight gathered from BENS policy staff research, BENS policy work does not end at recommendations; it strives for change and impact.

Energy Key U.S. installations must continue to operate in a crisis. That is why Ash Carter, then Under Secretary of Defense for Acquisition, Technology and Logistics, sought BENS’ views on the risks and benefits of investing in microgrid technology. A 40-member task force was formed with the expectation of presenting its findings and recommendations in the spring of 2012. It will recommend criteria that determine when a microgrid should be established and present business models to help the Department of Dr. Dorothy Robyn, the Deputy Undersecre- Defense (DoD) establish these grids efficiently. The task force will conduct tary for Installations and Environment, ad- on-site analysis of several of the nation’s most critical military installations, dresses the BENS task force in September 2011. including Fort Carson and the Navy facilities in Norfolk, Virginia. The recommendations will not only promote energy security and efficiency in our military infrastructure, they will also serve as a possible blueprint for developing microgrids on a national scale. Defense Savings and Efficiencies The nation’s fiscal crisis all but ensures that the Department of Defense will be resource constrained for the foreseeable future. Budget cuts will be steep, resulting in a real need by DoD officials for advice from senior executives on managing in an era of declining resources. BENS has taken on this challenge before and expects senior DoD leadership and Congress to seek our views going forward on how to cut costs and squeeze efficiencies out of the infrastructure and overhead categories in the defense budget. Business Executives for National Security National Report for Leadership 2011 Business Executives A decade ago, we released the recommendations of the original BENS Tail-to- Leon Panetta, U.S. Secretary of Defense Tooth Commission. Its approach, still relevant today, is based on two simple but compelling ideas: the areas most in need of reform are amenable to best business practice solutions, and those business models that have served America’s world-class companies should be adopted by the Department of Defense–saving money that can be reinvested in modernization and other programs.

In launching our current project on “Defense Savings and Efficiencies,” BENS will seek to promote uncompleted work from its earlier Commission, including adopting biennial budgeting, securing legislation for a new round of base closures, privatizing energy infrastructure, and instituting Activity Based Costing across DoD. Going forward, we are initiating member-led efforts across a broad range of best private sector practices. These include: • Helping DoD achieve excellence in contracting for services. Service contracts consumed nearly half of the procurement budget of $202 billion in FY2010. • Reviewing the effort to establish a Chief Management Officer (CMO) position in the Department to ensure that the “business” of defense has dedicated, full-time managerial attention independent of any political or private interest. • Reviving the public-private competition process, which is analogous to the commercial “make/buy” decision process. Having this management capability is essential as the DoD decides how to allocate its maintenance, repair and overhaul work in its organic depots and in the commercial sector.

These and other critical actions will help the Department of Defense cut the cost of its infrastructure before cutting its operational capabilities. Cybersecurity 13 Cyber attack and exploitation pose a lethal threat to the U.S. In 2011, BENS members undertook an effort to raise awareness of the severity of the cyber threat, and help government partners with their cyber challenges. Business Executives 2011 Leadership for Report National Security The BENS Cybersecurity Steering Committee, led by Director Bill Coleman, helps drive the strategic direction of BENS’ cyber work.

• Heightening awareness of “C-Suite executives” of the severity of the cybersecurity threat, and promoting the integration of cybersecurity into corporate governance. BENS members across the country met with top experts such as: General Keith Alexander, USA, Commander, U.S. Cyber Command, Admiral Mike McConnell, USN (Ret.), former Director of National Intelligence, and Robert “Bear” Bryant, the National Counterintelligence Executive. • Assisting Government Partners with tough cyber challenges: Federal Bureau of Investigation (FBI): In 2011, BENS met with FBI officials to discuss the investigative and prosecutorial challenges created by ever-changing communications technology. As a result BENS members participate in the FBI’s Information Technology Study Group.

European Command: At the request of Admiral Stavridis, USN, Commander, U.S. European Command, BENS formed a team led by Bob Cohn in May 2011 to assess cyber vulnerabilities in Latvia’s government networks, financial systems, and technology networks. From the week-long assessment in Latvia, team members generated a list of pro-active steps the Latvians can take to protect themselves from a major cyber attack, and provided solutions Latvia could implement quickly.

BENS provides an important forum for government and business to come together to confront and defeat cyber challenges, and we are currently shaping a major cyber project with a government partner to launch in early 2012. Interacting with Intelligence Community Leaders Enhanced collaboration and information-sharing between the private sector and Intelligence Community leaders and analysts is a priority in protecting our homeland. The following examples show how BENS is helping to address this priority.

Using Economic Information in Private Sector Decision Making: In May 2011, Robert Cardillo, Deputy Director for National Intelligence and Integration, collaborated with BENS members in New York about how BENS could help the intelligence community address strategic challenges. He discussed how the private sector might provide insight on how to use economic information in their decision making. He also explored potential collaborations between the Office of the Director of National Intelligence (ODNI) and BENS to explore country specific issues as the needs arise. Impact

14 Interacting with Intelligence Community Leaders (continued) Information Sharing across the Intelligence Community: The tragic events of 9/11 highlighted the failure of the government’s ability to share information across its stovepiped, bureaucratic, and federalized system. More than ten years later, government entities responsible for providing information still struggle with ensuring that useful, accurate information is provided to other organizations and the public in a timely manner. A small group of BENS New York Metro members, including Stephen Shapiro, Jonathan Lewis, Alan Silberstein, and Tom Barron, are examining these issues. After a decade of work in the 1990’s focusing on the role for private industry in Former DHS secretary, Michael Chertoff, and General Michael Hayden, USAF (Ret.), preparing for and responding to attack, this group has reactivated to apply discuss future national security challenges their knowledge to a project on information sharing and reform within the with members in November 2011. intelligence community. Exploratory meetings with Intelligence Community officials focused the dialogue on: • Reviewing successes and failures of post-9/11 efforts to increase information sharing between the federal government and state and local agencies. • Examining the communication throughout the intelligence community, including the Department of Homeland Security, state and local fusion centers, and the National Counter Terrorism Center. • Evaluating the current status of state and local fusion centers, and their critical role in the mission to integrate international, national, and local intelligence in a context-specific manner.

Countering Domestic Radicalization and Violent Extremism: In 2011, Lieutenant General Frank Kearny III, Deputy Director of the National Counterterrorism Center, and his staff collaborated with BENS members in San Francisco and New York about leveraging the private sector in countering this threat. BENS is also supporting similar efforts to assist the State Department.

Implementing the National Intelligence Strategy: The ODNI—responsible for coordinating all U.S. Intel- ligence efforts—wants to explore the best ways the intelligence community can achieve its goals and looks to

Business Executives for National Security National Report for Leadership 2011 Business Executives the private sector for help. Below are two areas where BENS members have assisted: • In 2010, six BENS members advised intelligence officials, including then DNIAdmiral Dennis Blair, USN (Ret.), and his successor Lieutenant General James Clapper, USAF (Ret.), in 2010 on how to use private- sector budgeting and resourcing methods to effectively implement the National Intelligence Strategy. • Over the course of six months, staff representing BENS members Alex Karp and William Flynn participated in a program to establish collaborative partnerships among subject matter experts in the private sector and Intelligence Community analysts. In October 2011 they presented their findings on trends in government and industry threats to the ODNI Deputy for Intelligence and Integration and the Department of Homeland Secu- rity Under Secretary for Intelligence and Analysis. A new program will begin in 2012 to continue this effort.

Bridging the divide between the historically secretive and opaque intelligence community and the private sector is a distinctive BENS capability, allowing members and our government partners to discreetly come together to resolve challenging homeland security issues. “Business Executives for National Security has been - and remains - at the forefront of the debates and direction of our national security policy. And, from where I sit today, I am glad that it is.” Ellen Tauscher, Under Secretary for Arms Control and International Security, May 2010 Mentoring Developing leaders is a priority for the future of national security. In 2010 and 2011 BENS members contributed their knowledge and experience to help develop the leadership and abilities of rising military and civilian defense officials. These efforts to mentor current and future leaders took shape in the following engagements: 15 Mentoring (continued) • Strategy Development: In 2010 and 2011, BENS members served on a panel with multiple current senior military and government officials to critique proposed national

security strategies written by students at the National Defense Business Executives 2011 Leadership for Report National Security University’s Industrial College of the Armed Forces at Ft. McNair in Washington, D.C., our members offered feedback from an industry perspective on how the students’ strategies would need to be resourced and how to leverage private-sector capabilities for successful implementation. We look forward to being invited to participate again in 2012. General Meigs honored three Rangers from • Management Mentoring: Under the leadership of BENS member Army Special Operations Command in May Dan Reardon, BENS members met with Lieutenant General Rick 2011. Lynch, USA, then Commanding General of Army Installation Management Command (IMCOM) early in 2011. General Lynch requested that BENS expand its mentoring initiative—first employed in the Command’s Southeast region—to all IMCOM organizations. Over 20 BENS members and prospective members have been individually matched with the Command’s senior leadership team with the goal of helping the Army improve efficiency and drive down costs while maintaining quality of service. Facilitating the exchange of ideas and best practices between senior military officials and business -ex ecutives has and will continue to have a positive and measurable impact on our national security. Transnational Organized Crime The expanding size, scope and influence of transnational organized crime poses significant new and growing threats to U.S. and international security and governance, as expressed in the July 2011 White House strategy to combat transnational crime. BENS members have been addressing this issue for almost a decade and continue to support the U.S. Government in combating transnational crime. • Piracy Financing: U.S. Africa Command was interested in shipping and insurance companies’ views about identifying and disrupting pirate access to revenue in Somalia. BENS members ana- lyzed the piracy funding cycle of ransom payments and laundering of illicit proceeds and produced a report which General Carter Ham, USA, said, “will significantly contribute to [their] ongoing work”. • Illicit Trafficking Networks: Illicit trafficking of narcotics, persons, arms and proliferation of weapons of mass destruction is a vast Author Gretchen Peters addressed a BENS audience in 2011 on illicit networks and ways the business that increasingly lives in the licit business world and private sector could be helpful in thwarting them. affects the global economy, security and governance. BENS team is working with the U.S. Southern Command and the U.S. European Command to develop a new public- private collaboration model to identify, assess, disrupt and interdict illicit networks. • Threat Finance: BENS subject matter experts enhance the government’s understanding of advancing technology in the financial market by providing both the business perspectives on licit activities, and identifying potential challenges and threats resulting from new technologies. During the past eighteen months, BENS has maintained a robust relationship with U.S. Special Operations Command’s Threat Finance Cell by holding small roundtable discussions on specific topics, such as stored value cards, mobile wallets, mobile value transfers, and the potential role of cellular technology in banking. Because organized crime strikes at both the political and economic freedoms that we seek to establish in the global commons and infrastructure, it is essential for BENS members, as leaders in the business community, to collaborate with and support the work being done by the U.S. combatant commands and interagency government community to counter these growing threats. Continuing Influence

16 Warrior Gateway Earlier this year, the BENS Board of Directors initiated the process of transitioning Warrior Gateway into its own independent 501(c)3 non-profit organization, a process which is expected to be finalized in mid-2012. Founded in 2009, and officially launched in March 2010, Warrior Gateway’s mission is to connect members of the military community with organizations and programs in their neighborhoods which provide education, employment, health and wellness services.

Warrior Gateway harnesses state-of-the-art technology and on-line collaboration to assist today’s veterans in making better decisions about what service providers they can go to for help, and creating a public forum to share their experiences about the quality and effectiveness of those services. This innovation was recognized with a Federal Computer Week Fed-100 award for significant contributions to the Federal IT community in 2011.

Thanks to generous financial and pro-bono support provided to the project by corporate, foundation and individual sponsors over the last two years, nearly 45,000 service providers have been registered to date in the Warrior Gateway service provider directory, and that number will grow fivefold with the public launch of the G.I. Network in January 2012.

A new initiative of Warrior Gateway, the G.I. Network, has been piloted over the last year with several non-profit and government partners with the goal of greatly expanding the number of web portals through which the service provider directory can be accessed. Once launched, the G.I. Network will connect over 220,000 support organizations and programs, and millions of veterans, under the largest free network available for today’s military community to find support.

“Many veterans either can’t find the services they need or are overwhelmed by the maze of options. Reducing the information barrier, as Warrior Gateway does so well… can help put our veterans and their families on the right path”. Admiral Mike Mullen, USN, Chairman of the Joint Chiefs of Staff, November 1, 2010. Business Executives for National Security National Report for Leadership 2011 Business Executives BENS Impact on Acquisition Reform BENS continues to pursue implementation of its 2009 Task Force on Defense Acquisition Law & Oversight. Chaired by BENS member Norm Augustine, its purpose was to recommend to the Congress and U.S. Government steps to systematically reform the governance and oversight of the defense acquisition process. Like Tail-to-Tooth before it, the methodology was to analyze findings from past studies to recommend reforms that will improve the focus upon the warfighter as customer. The report made 25 recommendations in three areas: • Improving linkages between the requirements determination, Norm Augustine testifies before the House Armed Services Committee. budgeting and acquisition processes. • Removing constraints to defense acquisition workforce excellence. • Requiring adherence to program execution processes aimed at satisfying the needs of the warfighter.

Recent congressional legislation, “The IMPROVE Acquisition Act,” made part of the Fiscal year 2011 Defense Authorization Act, contained provisions that tied back directly to the BENS Task Force Report—some reform is already in progress. However, the Department recently reopened the issue of reforming the requirements process providing further opportunities for BENS to pursue the unimplemented recommendations in our acquisition reform report. 17 Improving Public/Private Disaster Response Coordination Business Executives 2011 Leadership for Report National Security

In response to the new BENS report and the efforts in Joplin, membersWilliam J. Brunkhardt and Ern Blackwelder were featured in an article by Congressional Quarterly.

Well before the tragic events of September 11, 2001, or Hurricane Katrina in 2005, BENS conceptualized public-private partnerships as key structures that can strengthen a region’s capacity to prepare for and respond to catastrophic events. In early 2002, BENS began building and facilitating public-private partnerships in eight regions across the nation.

In June 2006, BENS formed a Task Force to recommend steps to systematically integrate the capabilities of the private sector into a comprehensive national disaster response mechanism. Their report, “Getting Down to Business: An Action Plan for Public-Private Disaster Response Coordination,” was released in January 2007.

BENS reviewed the Task Force recommendations in 2011. The review concluded that in the intervening years since BENS’ first assessment, many earlier shortcomings have been or are now being addressed. BENS discussed its findings, including additional actions needed, with DHS officials.

BENS Kansas City has been deeply involved with plan- ning and exercising for disasters, linking federal, state and private sector resources and personnel. Just 48 hours after participating in a major multi-state exercise in May 2011, a devastating tornado hit Joplin, MO. BENS plans and operations were immediately put into action. According to a FEMA official, the coordination was “a model we want to duplicate.” Special Events and Awards

18 2010 May Eisenhower Award Dinner 2010, Washington, D.C.: Emcee Tom Brokaw, Special Correspondent for NBC News and former anchor and managing editor of NBC Nightly News, praised former BENS President & CEO General Chuck Boyd, USAF (Ret.), for decades of service to the Nation, including as Deputy Commander of U.S. European Command and Executive Director of the U.S. Commission on National Security in the 21st Century. Keynote speaker General David Petraeus, USA, also honored Gen. Boyd and took questions from the audience about developments in Afghanistan and Pakistan.

General Chuck Boyd, USAF (Ret.)

November Eisenhower Award Dinner 2010, New York City: Mary and David Boies were honored for their work and contributions to BENS and our national security. Author and Wall Street Journal Columnist Peggy Noonan served as emcee for the third time and, in his keynote address, Admiral Michael G. Mullen, USN (Ret.), former Chairman of the Joint Chiefs of Staff, focused on the need for continued awareness of the needs of veterans returning from overseas, now and in the future, and highlighted Warrior Gateway. General Meigs recognized three exceptional U.S. Navy Explosive Ordinance Disposal technicians.

Business Executives for National Security National Report for Leadership 2011 Business Executives BENS Eisenhower Award Honorees Mary and David Boies 2011 19 November Eisenhower Award May Eisenhower Award Dinner Dinner 2011, New York City: 2011, Washington, D.C.: Special The night started with a note of

Assistant to the Presdent for nostalgia when emcee and CBS Business Executives 2011 Leadership for Report National Security National Security Affairs General Correspondent Lesley Stahl James L. Jones, USMC (Ret.) took reminisced about the first BENS the stage as the keynote speaker. dinner in 1986, at which she was He discussed pressing national also the master of ceremonies. security issues, and praised General Meigs then commended honoree Joseph E. Robert Jr. the service of three representatives Mary Boies and Joseph E. Robert Jr. from the Joint Special Operations for his work to advance national Command and their wives. BENS security. The evening also featured remarks interim Chairman Bruce Mosler from Susan Eisenhower, who helped honored the two award recipients, commemorate the 50th anniversary of Admiral Eric T. Olson, USN (Ret.), President Eisenhower’s famous “Farewell former commander U.S. Special Address,” alongside Jennifer Griffin, the Operations Command, and Dr. evening’s emcee and FOX News Pentagon Dana G. Mead, Ph.D., retired Correspondent. General Meigs also Chairman and CEO, Tenneco, Inc., and the evening concluded with honored three exceptional Army Rangers their remarks. from the 75th Ranger Regiment.

Susan Eisenhower

Dr. Dana G. Mead, Ph.D.

Landon Rowland, Honorable William Webster and General Monty Meigs

Kansas City Security Awards BENS Kansas City hosted its Third Annual National Security Award Dinner in April 2010 honoring William H. Webster, the only person to have served as the Director of both the CIA and FBI. Adm. Eric T. Olson, USN (Ret.) The 2011 dinner honored Senator Pat Roberts, the senior senator from Kansas who has chaired numerous Congressional committees, including the Senate Select Committee on Intelligence. Senator Pat Roberts Our Members

20 Since our founding, BENS has looked to our members to shape our agenda, to guide our projects and to seek new opportunities where business expertise can help build a more secure America. The BENS model is not for the casual observer; it requires talented, driven executives and entrepreneurs with a strong interest in national security and a passion to serve and give back to their country. When faced with a challenge, BENS members do not sit on the sidelines – they roll up their sleeves and get to work.

More than 400 strong nationwide, BENS members believe, quite simply, that many of the security concerns facing our nation are simply too large and complex for our government to solve on its own. More importantly, they contend that it shouldn’t have to. Thus – whether their background is in finance, technology, manufacturing, venture capital, or real estate – they volunteer their time, experience and expertise in collaboration with government and military leaders to help develop innovative and pragmatic solutions to our country’s most pressing security problems. And, the sharing of lessons-learned is not just a one-way street. BENS members believe strongly that government and the military, in particular, have much to teach the private sector about leadership, training and service.

In addition to working closely with national level leaders in Washington, D.C., BENS also provides many opportunities for our members to engage in national security locally via six regional offices located around the country. These offices play an important role by taking decision makers “outside the beltway” to work with BENS members via a robust schedule of briefings, meetings, roundtable discussions, and organizing visits to military bases and other defense and homeland security organizations. BENS currently has active regions in Metro New York (New York, New Jersey and southern Connecticut); Metro Washington, D.C. (District of Columbia, Maryland and Virginia); the Southeast (based in Atlanta, GA); California (based in the San Francisco/Bay Area); Texas (Dallas, Houston, Austin and San Antonio); and Kansas City. In 2012, BENS is looking forward to building a strong

Business Executives for National Security National Report for Leadership 2011 Business Executives membership presence in the Chicago area.

As a member-driven organization, BENS’ policy work and programmatic activities are developed with direct input from the membership. The Policy Committee—led by members—determines the organization’s direction at the national level, and regional offices explore subject matter defined by the members within each community and develop activities focused on those BENS’ policy initiatives and topics of national security that both utilize members’ business knowledge and engage their areas of interest. In the spirit of true citizen service, the members of BENS bring their natural talents to contribute to productive change in the national security arena through their individual national and regional involvement.

The founding leaders of BENS recognized that our greatest strength was, and always will be, our members. We continue to harness and capitalize on their collective expertise, energy and patriotism through increased member engagement. We rely upon our members to have a voice in all aspects of the organization, from project initiation, facilitation and management, to recruiting the next generation of BENS leaders. BENS members are directly responsible for ensuring that the organization continues to thrive and have a positive impact on national security for all Americans. Financial Stewardship

21 Business Executives 2011 Leadership for Report National Security

2010 – BENS generated revenue of about $7.7 million and incurred expenses of about $7.5 million in 2010 and had net assets of about $4.9 million at year-end. In 2009, revenue was $7.1 million and expenses were $6.9 million with net assets of $4.7 million. We continued our long string of unqualified audit opinions. BENS’ expenses for 2010 are depicted in the chart below which emphasizes our strong focus on policy projects and programs.

BENS Functional Expenses

Admin 10% 19% Fundraising 19%

Policy Projects and Programs 71% Board of Directors

22 Chairman of the Board (Interim) Michael P. Galvin John H. Streicker Bruce E. Mosler* President, Harrison Street Real Chairman, Sentinel Real Estate Chairman of Global Brokerage, Estate Capital, LLC Corporation Cushman & Wakefield Mark J. Gerencser* Edwin A. Wahlen, Jr.* Founding Chairman Executive Vice President, Booz Allen Managing Partner, CGW Southeast Stanley A. Weiss* Hamilton Partners Executive Committee Chair Ronald J. Gidwitz General Charles F. Wald (Interim) Partner, GCG Partners USAF (Ret.), Director and Senior Mary M. Boies* Advisor, Aerospace and Defense, President & CEO, Boies & McInnis LLP G. S. Beckwith Gilbert Deloitte President and CEO, Field Point Vice Chairmen Capital Management Company Josh S. Weston Raphael Benaroya* Honorary Chairman, Managing Director, Biltmore Capital Maurice R. Greenberg Automatic Data Processing, Inc. Group, LLC Chairman & CEO, C.V. Starr & Co., Inc. Bruce N. Whitman Denis A. Bovin* Thomas H. Holcom, Jr. President and CEO, FlightSafety Co-Chairman and Co-CEO, Stone President, Military Banking Division, International, Inc. Key Partners LLC MidCountry Bank BENS Advisory Council Landon H. Rowland* General James L. Jones, USMC, (Ret.) Chairman and CEO, Jones Group Admiral Vernon E. Clark, USN (Ret.) Chairman Emeritus, Janus Capital Former Chief of Naval Operations Group International Admiral William J. Fallon, USN (Ret.) President & CEO Earle W. Kazis President, Earle W. Kazis Associates, Former Commander, United States General Montgomery C. Meigs* Central Command USA (Ret.) (ex officio) Inc. General Michael V. Hayden, USAF (Ret.) Directors Peter N. Larson Chairman and CEO (Ret.), Brunswick Former Director of Central Intel- Herbert A. Allen, III* ligence President and CEO, Allen & Company Corporation The Honorable Henry A. Kissinger J. Kyle Bass Ramon P. Marks* Partner, Arnold & Porter LLP Former Secretary of State Business Executives for National Security National Report for Leadership 2011 Business Executives Managing Member, Hayman Capital Management, L.P. Christopher C. Melton, Sr.* General Peter Pace, USMC (Ret.) Chairman and CEO, The White Oak Former Chairman, Joint Chiefs of Alfred R. Berkeley Staff Chairman, Pipeline Financial Group Group, Inc. The Honorable Thomas A. Pickering General Charles G. Boyd, USAF (Ret.) John P. Morgridge Chairman of the Board (Ret.), Cisco Former United States Ambassador Former Deputy Commander, United to the United Nations States European Command Systems, Inc. General Joseph E. Ralston, USAF (Ret.) Norman C. Chambers William F. Murdy* Chairman and CEO, Comfort Systems Former Vice Chairman, Joint Chiefs Chairman, President and CEO, NCI of Staff Building Systems USA, Inc. Mark S. Newman General Dennis J. Reimer, USA (Ret.) Raymond G. Chambers Former Chief of Staff, United States Chairman, Amelior Foundation Chairman and CEO, DRS Technologies, Inc. Army William T. Coleman, III The Honorable Robert E. Rubin Partner, Alsop Louie Partners, LLC Frank V. Sica Managing Partner, Tailwind Capital Former Secretary of the Treasury Cristobal I. Conde Partners The Honorable William H. Webster Former President and CEO, SunGard Donald V. Smith Former Director, Central Intelligence Howard E. Cox, Jr., Advisory Partner, Senior Managing Director, Houlihan Agency/Former Director, Federal Greylock Lokey Howard & Zukin Bureau of Investigations

Joseph M. DePinto Paul G. Stern* *Executive Committee President and CEO, 7-Eleven, Inc. Chairman, Claris Capital, LLC As of 11/17/2011 23 Business Executives 2011 Leadership for Report National Security 24 In Memoriam: 2011

Joseph E. Robert, Jr. Dr. Sidney Harman David G. Beaham

We are deeply saddened by the passing of three members of the BENS family this year. Their commitment to improving national security, as well as their patriotism and character will be missed tremendously.

In December, our Chairman Emeritus, Joseph E. Robert, Jr., passed away at age 59. “Joe served as the BENS Chairman for over three years and was honored in May for exemplifying President Eisenhower’s charge to the Nation for ‘an alert and knowledgeable citizenry,’” said BENS President and CEO, General Montgomery C. Meigs, USA (Ret.). “He was more than a successful entrepreneur, champion for children, dynamic diplomat, and caring father – he was a true patriot.”

We remember long-time BENS member and Director Dr. Sidney Harman, who passed away in April at the Business Executives for National Security National Report for Leadership 2011 Business Executives young age of 92. For many years, he was the Master of Ceremonies at the Eisenhower Award Dinner. In the words of his dear friend and our Founding Chairman, Stanley A. Weiss, “You haven’t lived until you have been introduced by Sidney Harman.”

BENS also paid tribute to BENS member and Director David G. Beaham, an active contributor to BENS Kansas City, who passed away suddenly in October at age 47. He was a fifth-generation small business owner and his father, Gordon T. Beaham III, is a long-standing BENS member and former member of the Board of Directors. “David was a major force in the Midwestern activities of BENS. He was a great spokesman for our projects and an even better spokesman for our commitments to the larger issues of national security. His example was a model for the rest of us,” said BENS Director Landon Rowland.

BUSINESS EXECUTIVES FOR NATIONAL SECURITY