DRMIPremiere Edition | 2015 Newsletter

SIDMC SPECIAL EDiTION Senior International Defense Management Course

WHAT’S INSIDE DRMI CELEBRATES 50 YEARS OF EXCELLENCE Natalie’s Nuggets IN RESOURCES MANAGEMENT EDUCATION A Word from DRMI’s Executive Director By Kenneth A. Stewart (Reprinted with permission.) Natalie welcomes you in reading this, DRMI’s first issue of the “SIDMC Special” newsletter edition. … pg. 3 46th SIDMC Course Review SIDMC Empowers Participants from Around the World with Knowledge, Tools, and Stronger Relationships Distinguished Guest Speakers address course participants. … pg. 4 Building Relationships Additional Insights and Summaries from the 46th SIDMC DRMI faculty gather for a group photo in front of the Institute’s spaces in Halligan Hall. (U.S. Navy photo) The importance of providing opportunities for participants from around the world to … pg. 6 forge relationships. he Defense Resources Manage- Since its first course in 1965, DRMI has ment Institute (DRMI) at the educated 34,841 U.S. students and 20,258 SIDMC/DRMI Photo Galleries TNaval Postgraduate School (NPS) international students from 171 different Team Building, Anniversary, and Graduation in Monterey, Calif., is celebrating 50 years nations. DRMI graduates include promi- of educating defense leaders with an eye nent world leaders like His Majesty King … pg. 7 toward creating sound fiscal policy and Abdullah II of Jordan, ministers of defense, the efficient allocation of precious defense ambassadors, and other dignitaries from resources. around the globe.

DRMI’s mission can perhaps be best “Our goal is to develop a broad-based summed up in the words of former British analytical framework for defense decision Prime Minister Winston Churchill who makers emphasizing the economic and said, “Gentlemen, we have run out of efficient allocation of defense resources, money. Now we have to think.” and to provide an environment for the DRMI Celebrates 50 Years of Excellence

economic analysis, because the main prob- In 1970, NPS offered its first Senior lem in defense economics is the allocation International Defense Management Course, of scarce resources among many competing or SIDMC. SIDMCs are comprised of senior interests under conditions of uncertainty,” defense leaders from around the world who explained NPS Professor Emeritus, Dr. gather to listen to a variety of subject matter James Blandin. experts, NPS faculty, and each other for four weeks at NPS. SIDMC students also Blandin, whose father was one of DRMI’s participate in an exercise designed to test founders, taught at NPS for 34 years. He their ability to allocate resources amongst The Honorable Mike McCord addresses attendees notes that McNamara’s push to imple- competing interests. during DRMI’s 50th anniversary celebration. ment the PPBS system was frustrated by a (U.S. Navy photo by MC1 Lewis Hunsaker) lack of people qualified to use it. As a result, “If we’re successful, the participants will McNamara directed the founding of a center think about their national security at a comparative exchange of ideas related to that could be used to develop people with strategic level, and gain a new perspective the management of national security,” said the skills necessary to realize his vision. and additional tools for managing their DRMI Executive Director Dr. Natalie Webb. The decision to stand up that center at organization’s resources to respond to NPS was driven by recognition of the NPS contemporary security challenges,” Under Secretary of Defense (Comptroller) faculty’s experience in defense-focused said Associate Professor Eva Regnier. and Chief Financial Officer, the Honor- graduate education. able Mike McCord, recently weighed in on Assistant Minister for Plans, Policy DRMI’s continued contributions toward Later, during President Lyndon Johnson’s and Operations Victoria K. Sawyer, with the education of DoD policy makers administration, a PPBS system similar to the Liberian Ministry of Defense, is a during a celebration honoring DRMI’s the one used by the DoD was enacted SIDMC graduate. 50th anniversary. throughout the federal government, and civilians began to join DoD professionals “This sort of international cooperation helps “Many things have changed over the last 50 at NPS to receive the education necessary to change minds and creates greater under- years, from the cold war to a man walking to ensure its success. standing,” said Sawyer. “Strategic planning, on the moon and the fall of the Berlin Wall. value for cost thinking, decision making, For DRMI to stay relevant over this period DRMI rose to McNamara’s challenge and most importantly, accountability and of incredible change is a remarkable and remains true to its core mission. transparency… That is what my country testament,” he said. needs most.” Like the university itself, however, DRMI The Navy Management Systems Center, has also extended its faculty expertise to our SIDMC successes at DRMI led to the which eventually became DRMI, was estab- international partners by providing resource creation of the International Defense lished in 1963 by then Secretary of Defense management courses to allied defense pro- Management Course (IDMC) in 1971. Like Robert McNamara. Before he became the fessionals from around the world. the SIDMC, the IDMC aims to arm students from allied nations with resource manage- ment and other fiscal planning tools, but it “Many things have changed over the last 50 years, from is geared toward mid-level officers and defense civilians. the cold war to a man walking on the moon and the fall of the Berlin Wall. For DRMI to stay relevant over this When the Soviet Union fell in 1991, demand for DRMI expertise increased further. period of incredible change is a remarkable testament,” Former Soviet republics began to turn to the -The Honorable Mike McCord U.S. for assistance as they developed new economic policies within their respective defense ministries and departments. leader of DoD, McNamara was the CEO of “[DRMI’s] international participation has the Ford Motor Company, and he attempted been invaluable to the U.S. It creates a link- “Countries that had previously been in to apply some of the private sector economic age between the U.S. and other nations, the orbit of the Soviet Union became new principles that led to his successes at Ford to and we have had some illustrious people democratic states. When countries in the the DoD. come through and go on to do some pretty Balkans, Poland, Hungary and Slovakia amazing things… Over the years, we have gained independence they looked to the U.S. “McNamara installed the Planning, Pro- received a tremendous value for the dollar to help them with their educational pro- gramming and Budgeting System [PPBS], that we spend [at DRMI],” said McCord. grams, and DRMI was called upon,” which is still in use today. It requires good said Blandin.

Page: 2 DRMI Celebrates 50 Years / Natalie's Nuggets / 46th Annual SIDMC

And while DRMI has been offering courses to international students from Natalie Webb nearly day one, on the heels of its suc- Executive Director, cesses among the former Soviet Republics, DRMI it increased its mobile course offerings bringing DRMI and NPS expertise to more than 70 different nations worldwide. NATALIE’S NUGGETS DRMI International Programs Coordina- A WORD FROM THE EXECUTIVE DIRECTOR tor Al Polley believes there are several benefits to bringing DRMI courses to allied nations. f you’re a regular reader of DRMI’s celebrated its 46th year, provides defense newsletter, this issue should come leaders with a wealth of information and “Teaching abroad is efficient. We can Ias a surprise to you. For the first an opportunity to build relationships on teach 30-40 people for what it would cost time, DRMI has developed a publica- a global scale. We hope that you find our to teach only three people attending a tion to exclusively highlight the annual emphasis on the SIDMC as worthwhile as resident course at NPS. When teaching Senior International Defense Manage- we do. overseas, we also benefit from our abil- ment Course (SIDMC). With this publica- ity to use local interpreters to overcome tion, DRMI now has the space to provide DRMI is also giving our regular newsletter language barriers and are able to tailor greater insight into what our organization a facelift, which we will now publish bian- our courses to issues relevant to our host offers to flag and general rank military of- nually. Please keep an eye out for future nation,” said Polley. ficers and equivalent-level civilian officials issues. As always, we welcome constructive from around the globe. The efficient and feedback and your suggestions so that we As McCord, and other defense leaders effective management of scarce defense may continue to improve our organization. spanning five decades, can attest, DRMI resources is more important now than Please feel free to contact me at has made a lasting contribution to the ever before—budgets are decreasing and [email protected]. n DoD’s ability to allocate and manage complex demands on defense leaders are defense resources and has helped to shape increasing. Defense managers must learn to the defense departments and ministries of plan strategically for an uncertain security allied nations around the world. n environment. DRMI’s SIDMC, which just

DRMI’S SIDMC EMPOWERS PARTICIPANTS FROM AROUND THE WORLD WITH KNOWLEDGE, TOOLS, AND STRONGER RELATIONSHIPS REVIEW OF 46TH ANNUAL SIDMC

RMI’s 46th annual Senior Inter- DRMI faculty specifically developed the GAINING VALUABLE KNOWLEDGE AND TOOLS national Defense Management SIDMC for flag and general rank military OVER THE COURSE OF FOUR WEEKS DCourse (SIDMC) began on 3 officers and equivalent-level civilian of- August 2015 with an opening reception in ficials from around the world. Throughout During the SIDMC, participants gained DRMI’s lecture hall. The SIDMC had 38 the course, participants gained beneficial valuable knowledge and tools to improve participants from the following 28 countries: information and the tools for strategic-level the link between strategic goals and finan- Bahrain, Bangladesh, Bosnia and Herze- decision making and management in order cial and resources management. The SIDMC govina, Bulgaria, Canada, Egypt, Germany, to address contemporary security challeng- also afforded participants with the time and Hungary, Indonesia, Jordan, Lebanon, Libe- es. Participants also left with an enhanced space for deep thinking, exchanging ideas, ria, Mongolia, Morocco, Namibia, Nige- ability to budget resource requirements and and building relationships. Each of the SID- ria, Poland, Qatar, Romania, Saudi Arabia, to evaluate and manage relationships among MC’s four weeks had a central theme and Slovak Republic, South Africa, South Korea, national security objectives, defense strate- DRMI invited distinguished guest speakers Swaziland, Sweden, Switzerland, Ukraine, gies, program alternatives, and capabilities. to offer their insights and expertise on topics and the United States. The course concluded Additionally, as part of the course, partici- relevant to that theme. with a graduation ceremony on 27 August pants built long-lasting, global relationships in the NPS Barbara McNitt Ballroom in the that will enhance security cooperation for historic Herrmann Hall. years to come.

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DISTINGUISHED GUEST SPEAKERS OFFER INSIGHTS EACH THEMED WEEK WEEK ONE: THE EXTERNAL ENVIRONMENT WEEK TWO: THE FRAMEWORK

Week one of the SIDMC emphasized the external environment. The second week of the SIDMC constructed a framework for Participants discussed the global environment, comprised of nation- understanding strategy, planning, and resources management. As al security, economic, and political dimensions. SIDMC participants part of this framework, it covered topics on risk assessment and also had the opportunity to play the TEMPO military planning management, analytical processes, and planning under uncer- game, which DRMI faculty use as a resource allocation exercise. tainty. Three distinguished guest speakers addressed participants Additionally, DRMI faculty were pleased to welcome distinguished on U.S. national security and policy, the scientific environment of guest speakers, who spoke on strategy and resources management. defense management, and public sector risk.

Major General Timothy G. Fay Director of Strategic Plans, Office of the Dr. Alan G. Stolberg, Colonel (ret.) Deputy Chief of Staff for Strategic Plans U.S. Army and Department of Defense (DoD) and Requirements, Headquarters Coordinator for the Defense Education U.S. Air Force, Washington, D.C. Enhancement Program (DEEP)

Major General (sel) Fay, a 2014 SIDMC graduate, introduced the Dr. Stolberg discussed how national security policy is developed senior course, describing defense strategy and the relevance of in the United States. the SIDMC. He discussed how he applied what he learned in the SIDMC to his new job, and how the personal relationships he made have given him insight and opportunities to discuss the best out- comes of defense actions. Dr. Richard A. Muller Emeritus Professor of Physics, UC Berkeley; Guest Faculty, Physics Division, Lawrence Berkeley National Laboratory; author of “Energy for Future Presidents: The Science Behind the Headlines” The Honorable Mike McCord Under Secretary of Defense (Comptroller) Dr. Muller discussed the challenges of pollution and climate change and Chief Financial Officer and the implications for defense policy.

Mr. McCord discussed how the Department of Defense forms budgets and how resource decisions underlie our ability to provide capabilities in multiple scenarios around the world.

Dr. Warner North Principal Scientist, Northworks

Dr. North lectured on his past work applying decision analysis to two public policy decisions of international significance: valuing in- Dr. Charles J. (C.J.) LaCivita formation in the context of a presidential decision to deploy weather Former Executive Director, DRMI modification technology, and assessing the probability of contami- nating Mars with terrestrial microbes from the 1976 Viking Lander. He also described past theoretical work for the Defense Intelligence Dr. LaCivita talked about the global economic environment and Agency leading to influence diagrams (now often called Bayesian monetary and fiscal policy. He discussed building a model for networks) as a computationally tractable method for representing addressing economic activity, relating it to world events such as complex probabilistic scenarios for sequences of events, such as Grexit, Greece’s potential exit from the Eurozone. events leading to the outbreak of war.

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WEEK THREE: DEVELOPING THE TOOLKIT WEEK FOUR: CAPSTONE AND CONCLUSION

DRMI faculty framed the third week of the SIDMC around the In the fourth and final week of the SIDMC, DRMI faculty concept of developing a toolkit. Participants learned to do the concentrated on knitting together all of the concepts they had following: identify and structure objectives; generate alterna- previously discussed and on wrapping up the course. Faculty tives; use economic tools; plan, program, and budget; structure discussed program budgeting, programming at the defense and a program; plan for cost risks and budget with uncertainty; and national level, and measuring performance. DRMI was very understand strategic cost issues. DRMI was fortunate to have a happy to have two distinguished guest speakers address the class. guest lecturer speak to the class.

Captain (ret.) Jeff Kline Mr. Gene Aloise U.S. Navy, and Professor of Practice, Deputy Inspector General, Operations Research Department, Office of the Special Inspector General for Naval Postgraduate School (NPS) Afghanistan Reconstruction (SIGAR)

Captain (ret.) Kline highlighted the fact that preparation can deter Mr. Aloise, overviewed the U.S. effort to build infrastructure in Af- threats, and therefore almost by definition, the conflicts we encoun- ghanistan and the challenges associated with auditing this effort. ter will be surprising in some dimensions. In addition, the Planning, Programming, and Budgeting process can lead to efficient but frag- ile forces. He offered some suggestions on approaches to building a more robust force. Dr. Jamie M. Morin Director of Cost Assessment and Program Evaluation (CAPE) for the Department of Defense (DoD)

Dr. Morin discussed the role of CAPE in DoD decision making and how scarce resources require analytical approaches.

DRMI WOULD LIKE TO THANK YOU! TO ALL OF OUR GUEST SPEAKERS

DRMI faculty would once again like to thank our guest speakers for taking the time out of their busy schedules to address SIDMC participants. Guest speakers are an integral

The Honorable Mike McCord engages with SIDMC part of the SIDMC course as they both participants following a guest lecture in the 46th expand participants’ knowledge and help annual SIDMC. them to strengthen and build relationships.

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FUTURE COURSES BUILDING RELATIONSHIPS FY2016 ■■ 11-22 Jan 2016 lthough DRMI faculty recognize Additionally, the FSP and DRMI held two Human Capital Resources that the learning and analytical cross-cultural dinner receptions at the Hil- Management (HCRM) A objectives are a very important ton Garden Inn. In the first reception, fifty- part of the SIDMC, the faculty also realize five Foreign Area Officers (FAOs) and their ■■ 25 Jan – 5 Feb 2016 the importance of providing opportunities equivalents who volunteer with DRMI’s Risk Management Course for participants from around the world to FAO-Cultural Ambassador Program (FAO- forge relationships with one another. CAP) interacted with SIDMC participants, ■■ 8 Feb – 14 Apr 2016 making this the most well-attended FAO- International Defense Management DRMI Field Studies Program (FSP) CAP security cooperation event to date. The Course (IDMC) Manager Ms. Charlie Orsburn created FAO-CAP aims to connect FAO students multiple events to encourage relationship- ■■ 14-18 Mar 2016 building. These activities are an integral part Performance Management and of all DRMI courses with international par- Budgeting (PMB) ticipants. DRMI faculty intend these events to foster relationships between participants ■■ 18 Apr – 12 May 2016 and to give participants an awareness and an Defense Resources Management understanding of American culture. Course (DRMC) SIDMC participants’ first FSP activity was SIDMC participants enjoying Monterey Peninsula tour ■■ 16 May – 10 Jun 2016 a reception and security cooperation event Defense Resources Management with NPS President Vice Admiral (ret.) at NPS and the Defense Language Institute, Course (DRMC) Ronald Route, held at the Hilton Garden Presidio of Monterey with international Inn on the course’s second day. At the event, participants to increase cross-cultural com- ■■ 13 Jun – 8 Jul 2016 SIDMC participants had the opportunity to munication and cultural understanding. Defense Resources Management share in DRMI’s 50th anniversary celebra- Course (DRMC) tion (see the article by Kenneth A. Stewart, At the final FSP dinner reception DRMI reprinted on page 1 of this newsletter issue). faculty members joined participants for a ■■ 11-22 Jul 2016 The Honorable Mike McCord, Under Secre- pleasant evening of dining and dialogue. Multiple Criteria Decision Making tary of Defense (Comptroller) and Chief DRMI was pleased to have Dr. Jamie Morin, Course (MCDM) Financial Officer was among the distin- Director, Cost Assessment and Program guished guests attending the anniversary Evaluation, Office of the Under Secretary ■■ 1-25 Aug 2016 47th Senior International Defense Management Course (SIDMC) In the first reception, fifty-five Foreign Area Officers (FAOs) ■■ 29 Aug – 23 Sep 2016 and their equivalents who volunteer with DRMI’s FAO- Defense Resources Management Cultural Ambassador Program (FAO-CAP) interacted Course (DRMC) with SIDMC participants, making this the most well- FY2017 attended FAO-CAP security cooperation event to date. ■■ 10 Oct - 16 Dec 2016 International Defense Management Course (IDMC) dinner, in addition to Drs. James Blandin of Defense, attend the reception, where and Charles J. LaCivita, former DRMI he spent time at several participant tables ■■ 9-18 Nov 2016 Executive Directors. swapping stories and answering participant Introduction to Budgeting questions. Concepts Course The FSP also provided SIDMC participants with other occasions for team building and DRMI faculty very much look forward to View the complete list of cultural learning. These gatherings included welcoming SIDMC 2016 participants next future course dates here: the following: bowling with DRMI faculty August. We hope that our participants enjoy nps.edu/Academics/Centers/DRMI/ and staff, a Monterey Peninsula tour that being in the course as much as our faculty included elements of historical significance, enjoy interacting with and teaching our and a three-day trip to San Francisco. participants. n

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BUILDING RELATIONSHIPS (CONT.)

SIDMC participants with DRMI Lecturer Joel Frey SIDMC participants enjoying SIDMC participants explore the USS Hornet (LCDR, U.S. Navy) on the Monterey Peninsula tour the Monterey Peninsula tour Museum on a San Francisco trip

DRMI faculty planned multiple events to facilitate and encourage relationship-building among SIDMC participants—an integral part of all DRMI programs with international participants.

ANNIVERSARY AND GRADUATION EVENT GALLERIES 50TH ANNIVERSARY CELEBRATION

NPS President Ronald Route speaks at DRMI's 50th anniversary celebration

RMI faculty and staff were privileged to welcome the D Honorable Mike McCord, Under Secretary of Defense (Comptrol- ler) and NPS President Vice Admiral (ret.) Ronald Route to DRMI’s 50th anniversary celebration. SIDMC participants and for- mer DRMI faculty and staff, among them Attendees enjoying DRMI’s Field Studies Program Manager Ms. Charlie Orsburn th former DRMI Executive Directors, Drs. 50 anniversary celebration speaks to attendees at DRMI’s anniversary event C.J. LaCivita, and James Blandin, also hon- ored DRMI with their attendance. DRMI is looking forward to the next 50 years of educating defense leaders.

DRMI Executive Director Dr. Natalie Webb speaks Former DRMI Executive Director Dr. James Blandin to attendees at DRMI’s 50th anniversary event discusses DRMI history at the celebration

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46TH SIDMC GRADUATING CLASS

SIDMC 2015 graduation photo

Participant-elected SIDMC class leader, Mr. Jeffrey NPS leaders enjoy conversation at SIDMC participants share photos Harker, U.S. Air Force (center), at graduation DRMI's anniversary event at their graduation

RMI once again would like to extend its congratulations to the D46th annual SIDMC participants. We certainly enjoyed welcoming you to Monterey and we have appreciated your hard work in the classroom. We do hope that you will remain in touch. As we always say at DRMI, until we meet again.

NEWSLETTER CREDITS Executive Director: Dr. Natalie Webb Editor: Ms. Kathleen Bailey Desktop Publishing: Center for Educational Design, Development, and Distribution (CED3)

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