Leadership Report: Celebrating 30 Years of BENS2012

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National Office Business Executives for National Security 1030 15th Street, NW Suite 200 East Washington, DC 20005 [email protected] Regional Offices Kansas City [email protected] Metro New York [email protected] Metro Washington, DC [email protected] California [email protected] Leadership Report: Southeast [email protected] Texas Celebrating 30 Years of BENS [email protected] 2012

Leadership Report 2012

Table of Contents

Letter from the Chairman and President 2

Introduction: 30 Years of BENS 3

Celebrating 30 Years of BENS: An Interview with Our Founding Chairman, Stanley A. Weiss 4

Celebrating 30 Years of BENS: BENS in the 80’s-A look at the era’s defining projects 6

Present Challenges - Evolving Threats 7 - Efficiences 9 - Operational Effectiveness 10

Celebrating 30 Years of BENS: BENS in the 90’s-A look at the era’s defining projects 12

Learning on the Scene 13

Celebrating 30 Years of BENS: BENS in the 2000’s-A look at the era’s defining projects 17

Special Events/Awards 18

Financial Stewardship Managing Our Resources Wisely 20

Board of Directors 21

Advisory Council 22

1 Business Executives for National Security Letter from the Chairman and President

As 2012 draws to a close, we are pleased to share with you our annual Leadership Report providing highlights from another very busy and successful year for BENS. The initiatives and activities detailed in the following pages have only been made possible through the investment of time, energy and resources by our members, for which we are most grateful.

Celebrating BENS’ 30th Anniversary has given us the opportunity to reflect on past accomplishments, as well as look ahead to future priorities and challenges. BENS’ strong record of achievement since our founding by Stanley Weiss in 1982 continues to serve as the solid foundation upon which we rely as we move forward. Our organization and its reputation are strong -- a fact evidenced by the depth and breadth of existing partnerships and projects and the ever-increasing number of new requests for help from our BENS membership that we continue to receive. With the leadership and guidance of a deeply committed Board of Directors, BENS is poised for even greater successes in the months and years to come.

BENS members have been, and continue to, drive work in a number of important areas. At the request of Dr. Dorothy Robyn, Deputy Under Secretary of Defense for Installations and Environment, more than 40 BENS members and energy security experts worked for nearly a year on analyzing, evaluating and improving energy security on domestic military installations. Their seminal report, released earlier this Fall, is already guiding leaders within the Pentagon toward cost-effective development of smart microgrid technology. Additionally, the House Permanent Select Committee on Intelligence asked BENS to review the Office of the Director of National Intelligence’s plans to implement information technology efficiencies and cloud computing, and later included many of BENS’ recommendations into mark-ups of the House Intelligence Bill.

In looking ahead and considering the national security challenges that will define the work of the coming decade, the need for BENS is clear. With the Department of Defense facing major downsizing and budget cuts over the next ten years, BENS has begun work at the request of Deputy Secretary of Defense Dr. Ash Carter to convene a group of business executives who can share with the country’s top military leaders their companies’ experiences with changing culture and re-orienting business when faced with similar economic realities.

With these and other demands on the horizon, the BENS Policy Committee has reorganized and refocused how our organization selects and develops our policy work to ensure that BENS is working in the areas where it can make the greatest impact. We have renewed our Advisory Council, and begun to cultivate guidance from this seasoned and powerful group of national security professionals.

We are proud to be leading BENS into its fourth decade, and hope that you will continue to be an active partner in BENS’ work. Please share this report with friends and colleagues who share your commitment to our nation’s security and encourage them to join us. In 2013 we look forward to a robust agenda for BENS members to continue to make an impact on our national security.

Bruce E. Mosler Montgomery C. Meigs Chairman President & CEO 2 Leadership Report 2012 Introduction: 30 Years of BENS

Members across the nation come together under BENS to engage, to learn, to build a better America. Metro New York [email protected]

Metro Washington, DC [email protected]

Southeast (Atlanta) California [email protected] [email protected]

Kansas City (Mid-America) [email protected] Texas [email protected]

Since its founding in 1982, BENS has been driven by previously unknown threats to national security. In one principle – a stronger and more secure nation can response to Present Challenges our policy work be built through the application of best business prac- focused on three distinct areas of concern: operational tices to our nation’s most challenging national security effectiveness, efficiencies, and evolving threats. concerns. A not for profit, non-partisan organization, the secret of BENS’ success over the last 30 years lies in BENS’ membership thrives on a commitment to the driving force of its membership. Drawing from six Learning on the Scene – at home, across the country, regions across the country, BENS is proud of its robust and abroad. Over the course of the year our mem- and diverse membership committed to identifying bers heard from leaders in defense, government, and potential solutions to the most challenging national military on the most pressing issues, learning how the security issues facing America. business community’s expertise could be most useful.

2012- BENS 30th anniversary year - marked the beginning of a new era; an era defined by new and

3 BusinessBusiness Executives Executives for for National National SecuritySecurity Celebrating 30 Years of BENS:

An Interview with Founding Chairman, Stanley A. Weiss

Founded in 1982, by business executive and entrepreneur Stanley A. Weiss, non- partisan and non-profit Business Executives for National Security (BENS) sup- ports the U.S. government by applying best business practice solutions to its most difficult national security problems.

Q: What was the genesis of BENS? sold them. So I put in a bid at a fraction of the A: Part of it came out of my experience mining, price I had sold it to them, and they accepted! when I was buying and selling manganese to the They had turned Adam Smith on his head, buy- government. At one point they put out a solicita- ing dear and selling cheap. tion to buy manganese for the nation’s strategic Then I was a fellow for a year at Harvard’s Center stockpile. I entered a bid to sell at a very high for International Affairs (77-78). I was the only price and they bought it. Naturally I was pleased. international businessman in a classroom full of Sometime later, I saw a solicitation saying they diplomats. During that year, I began to wonder were selling manganese – including some I had 44 whether the entire Pentagon was as misman- Leadership Report Report 2012 2012

aged as this strategic stockpile. I came to the that no one else is doing? 4) If someone else is conclusion that it was. At the same time, much doing it, can we partner with them effectively? 5) of the conversation that year was about who was Is it a project within BENS’ reach, or is it a project winning or losing a nuclear arms race consisting like let’s go boil the ocean? of thousands of nukes. It sounded insane to me. So I started BENS with two basic agenda items: Q: What has kept you committed and engaged 1) How can the Pentagon be more business like? for 30 years? 2) How can we help prevent the use of even one A: It has a great deal to do with my nature. Once nuclear weapon? I started BENS, I wasn’t going to stop until we either succeeded or failed. But I hadn’t thought Why did you form business executives for na- Q: about failing until the Soviet empire collapsed tional security? Why not Corporations for national and practically everyone said, well, you did a security? good job. Now what will you do? I’m not an A: My experience in dealing with large cor- historian, but I didn’t think world peace would porations is that the bureaucracy is not all that break out all of a sudden. I thought having a different from the bureaucracy that you find at strong, national security was still a good idea. As the Pentagon. I felt that building an organization things turned out, with conservative Republicans around individuals with successful, pragmatic joining and the liberal Democrats who were truly business experience would be more effective. dedicated to a strong national defense staying, I We didn’t want “organization men.” We wanted got the best of all worlds. people like Jeff Bezos of Amazon or Fred Smith of Federal Express. People who were entrepreneurs Q: What do you envision for the future of BENS? at heart. A: The challenges that our country faces today are not the same as they used to be. Cybersecurity When did you first feel that your dream of Q: is at the top of our agenda. Almost every BENS bringing business expertise to national defense was member is involved in an area that is highly perti- becoming realized? nent to understanding what would happen if our A: It was when Secretary Bill Cohen embraced national security systems were hacked into. I also everything that BENS was trying to do in its hope that BENS will take on the issue of nuclear Tail-to-Tooth project. This was our strategy for proliferation in the 21st century and see what reducing the resources required to support com- business people can contribute to stemming this bat fighters in order to increase the resources they very dangerous development. had at their disposal in the field. Secretary Cohen made it a major initiative. Q: What was your proudest BENS moment? A: One concern I had almost every year when How did you decide to shape BENS as a Q: I was Chairman was the danger of BENS losing member-driven organization? focus. So my proudest moment was sitting in A: We decided that since all of us shared one on the Board meeting last month, after stepping thing in common – we were successful busi- down the previous year. I listened to the conversa- ness executives – it would be healthier and more tion and I saw that – almost without exception productive for the members themselves to decide – the members were adhering to the 5 criteria and which issues to pursue. Consequently members following the outline we had laid out over a period suggest all of our initiatives, which are evaluated of 30 years. I felt as if the 30 years of my life I had against five criteria: 1) is it a problem with which given to BENS had real meaning. business executives have standing? 2) Is it an issue on which they have expertise? 3) Is it something 55 Business Executives for National Security

BENS in the 80s: A look at the era’s most defining projects BENS plays a significant role in developing the closure process of obsolete military bases, creating billions of dollars in savings and allowing local communities to put unneeded military facilities to more productive use.

The Base Closure and Realignment Commission (BRAC), based on a concept proposed by BENS member BENS participates in the MX Bill Tremayne, is established to remove missile debate setting the pace political considerations from the base and tone of the BENS approach closure process. BRAC, in coordination BENS is founded by business by presenting a business per- with the Secretary of Defense, submits executive and entrepreneur spective on the role of research, a list of suggested closures and realign- Stanley A. Weiss recommendations, and their ments for Presidential and Congressional relationship to strategy in the approval. nuclear missile national security debate.

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989

BENS engages members of Con- BENS works to create U.S. Soviet gress to make them sensitive to Nuclear Risk Reduction Centers the suggestions of a non-partisan in Washington and Moscow. business approach to streamline These centers are intended to defense costs through a focus ease residual Cold War ten- on costs and mismanagement of sions, reducing the danger of resources. nuclear miscalculation between the rival superpowers.

BENS pursues further projects in the field of non-proliferation. Thanks in part to these BENS establishes itself as an or- efforts the former Soviet Union’s nuclear ganization capable of identifying arsenal never falls into terrorist hands. and tackling the most pressing national security challenges.

66 Leadership Report 2012 Present Challenges BENS members work hard to keep America secure. Each activity - whether it originates at the request of a government official, the suggestion of a BENS member, or insight gleamed from Policy staff research - is carefully selected by the BENS Policy Committee and developed to create sustainable change and impact. In 2012, BENS gave new definition to its Policy work processes and structure by identifying three critical areas of National Security to focus BENS’ efforts in: Evolving Threats, Efficiencies, and Operational Effectiveness. Evolving Threats BENS develops the knowledge, tools, and proven practices that guard against ever changing threats that undermine our national security through economic damage in the globally competitive marketplace. The fundamental aim of fostering a strong and sustainable economy is the bedrock assumption for a robust security environment. Using the expertise and experience of our members, BENS provides a different and necessary perspective of emerging and evolving threats.

Strengthening the Nation’s Cyber Security: In 2012, BENS members worked to raise awareness of the sever- ity of the cyber threat to our nation’s economic security by encouraging better management of cyber risk at the executive and board level. Led by BENS Director Bill Coleman, BENS members set the goal of supplying executive audiences with an entry point and roadmap to ascertain the cyber risk to their own companies, and de- vise a plan to mitigate and better manage cyber risk. The aim of BENS’ efforts is the inclusion of cyber security in enterprise risk management at the Board and CEO level, thus strengthening cyber security in the private sector and protecting the nation’s economic future.

Information Sharing Across the Intelligence Community: Recognizing the evolving nature of the counter-terrorism threat including a domestic component, BENS is once again asking whether “the intelligence community is appropriately organized to share information across government and private sectors to meet these challenges?” In the late 1990s BENS sought to highlight the changing nature of threats as well as the need to rethink existing organizational alignments through its program “New Tool, New Teams for New Threats,” which identified the limitations of the federal intelligence community. With many of those changes implemented after 9/11 now more than ten years old, BENS again is seeking to ensure we are positioning ourselves to manage effectively in an era of declining budgets. Among the questions our BENS working group is investigating are: have the changes been made to increase information sharing among the federal government’s agencies and relevant state and local agencies in order to successfully identify and connect the signs of a threat before the threat can be realized? Has the dramatic increase in federal intelligence agencies, DHS, state and local fusion centers, JTTF’s, NCTC and the private sector enhanced our understanding of threats and enabled better means to effect mitigation strategies? The ultimate goal of this effort is to ensure a more secure United States. 7 Business Executives for National Security

WINS: Engaging Business In Economic Stabilization Under the leadership of member Kristi M. Rogers, BENS launched the Women in National Security (WINS) initiative which brings together leading women in the private sector and government interested in national security. What began as a group designed to share experiences and to create a community of support has grown into an undertaking focused on the critical issues of stabilization and economic development in high risk environments. Understanding that women are equal partners in preventing conflict and building peace in countries threatened by insecurity, WINS is working with government and non-government stakeholders, to explore how the Government could better leverage the private sector and, specifically, the expertise of women business leaders to achieve economic empowerment in conflict affected areas.

Threat Networks: Threat networks today are loose groupings of criminals, terrorists, insurgents, their support- ers and facilitators, who blend together to present an array of security risks. The motivations and infrastructure of these organizations differ, but fundamental similarities exist. They are flexible, agile, and ever-evolving; they blend illicit activity with legitimate business and, in many cases, violence; they transcend borders. These networks rely on a global web of transportation, logistics, social media and finance networks to sustain and expand their operations and prevent government efforts to stop them. Since many of these groups operate as businesses, BENS has begun a series of meetings with various government partners to identify the business practices critical to a threat network’s successin order to help our government partners develop alternative counter-network strategies. This work is just beginning and we plan to expand in the next year.

Portugal & Our Strategic Partnerships: Over the years BENS has often collaborated with military leadership in support of our frontline commands as they strive fulfill their missions. These activities have fostered a robust relationship between BENS and United States European Command. The relationship led BENS to assist the Commander of European Command, the Secretary of State, and the Secretary of Defense by of- fering guidance to Portuguese leaders as they navigate serious economic reform. A long standing supporter is currently implementing IMF-led economic reforms of U.S. policy, Portugal has been a valuable partner and the country is facing strict austerity measures. with whom we have maintained excellent, long-term Committed to supporting the interests of government relations. Portugal has been supportive of a wide range partners, BENS hosted a series of roundtables with the of U.S. and NATO missions, including counter-terror- Portuguese Ambassador and his staff to identify - from ism and humanitarian efforts, as well as operations in a business perspective - potential creative solutions for 8 Afghanistan and Iraq. Portugal’s coalition government long term economic growth. Leadership Report 2012 Efficiencies

The organizations and institutions that guard the nation’s security operate by the same principles and processes that power American business. BENS has harnessed that assertion to focus on seeking savings and efficiencies in national security infrastructure and overhead functions.

Auditability of Pentagon Accounts: Congress, impatient with Department of Defense’s tardi- ness in filing auditable financial statements, passed legislation stipulating that the Department must produce a clean audit opinion by 2017. In order to meet the new requirements, the military departments are implementing a series of Enterprise Resource Planning (ERP) tools that enable them to capture and manipulate the data necessary to complete the audits. Secretary of Defense Leon Panetta ordered that one set of financial records—the Statement of Budget- ary Resources—meet the audit target by 2014. Because the ERP solutions will not be ready in time for the Financial Improvement and Audit Readiness (FIAR) 2014 deadline, BENS helped United States Air Forces-Europe (USAFE) assess its various budget categories to determine materiality—or what must be counted—to satisfy the conditions of the Statement of Budgetary Resources. Additionally, BENS’ work with USAF officials looks ahead to when the ERPs will be available, providing guidance on how to organize the implementation of ERPs using best industry practices.

Reducing Military Fuel Finding Efficiencies in the Business of Defense:Mod - Costs: With a goal of reduc- ernizing Military Retirement Benefits: ing $5 billion from their Military retirement costs are spiraling upward and overall fuel budget in five in the current budget environments, it is incumbent years, the Defense Logis- that the Department of Defense closely examines tics Agency (DLA), the reforms that rein-in such expenses. Military pensions primary supplier of fuel to have tripled since 2000 and are now larger than the the United States military, entire military payroll. Compounding the problem is has turned to BENS to look that the current retirement system only serves a small at military fuel costs and fraction of those who have served and encourages the to help streamline their supply network. DLA oversees military’s most experienced personnel to pursue other an annual fuel budget of $20 billion and a supply chain careers when they could be at their greatest value to that, while serving admirably over the last several the Services. decades, will need to become more efficient to meet The Department must modernize its retirement benefits Congressional and Department of Defense require- to meet the expectations and changing demands of ments and changing warfighting capabilites. military service, and that is why BENS is developing a TheDirector of DLA, Vice Admiral Mark Har- series of recommendations that design holistic reforms nitchek, USN, has specifically asked BENS to analyze to military retirement structure. The suggestions from possible reforms to DLA’s fuel procurement business the eight-member task force will provide a distinctly model and highlight strategies that provide the highest private sector perspective to the abundant proposals on value for the Agency. BENS members are also working reforming current practices in the retired pay system. to create a private-sector business plan for fuel pro- Sharing the task force’s conclusions with policy makers curement using DLA’s structural and demand charac- in 2013, BENS will seek new laws that allow for effective teristics. At a time when all government budgets are DoD compensation programs that curb the unsustain- strained and fuel costs remain high, this analysis is not able trajectory of retirement costs that are detrimental only appropriate, it is necessary. to maintaining the best military force in the world. 9 Business Executives for National Security

Operational Effectiveness

The government, including the military, must be structured and strengthened to ensure that it is capable of responding quickly and decisively to the challenges of the 21st century. BENS helps secure these capabilities by improving management principles, building public-private collaboration, and increasing understanding between the government and private sector.

Management Mentoring: As the Army ensures that it continues to take care of families in this downsizing environment it has turned to BENS for assis- tance. Army installations worldwide provide services commonly found in the private sector—gyms, child care centers, clothing and grocery stores, gas stations, and recreational grounds and facilities—and their ability to deliver these services effectively impacts the quality of life of service members. Delivering excellent service and improving organizational performance requires strong leadership, management expertise, and setting clear goals and objectives in government as well as in private industry. BENS quickly identified issues that were most aptly discussed in a corporate setting, where using business experience and practice would likely yield solutions. As a result, a planned series of workshops and roundtables is taking place where Army leadership and business professionals will together find solutions that can be implemented command wide, or, where necessary, referred to higher headquarters for resolution.

Improving Installation Energy Security: After a year of analysis and on-the-ground assessment, BENS has produced, “Power the Fight: Cap- turing Smart Microgrid Potential for DoD Installa- tion Energy Security,” a seminal report on improving energy security on domestic military installations. Written at the request of the Deputy Under Secretary of Defense for Installations and Environment, the report guides the Department toward cost-effective development of smart microgrid technology and other energy security strategies that ensure electircal Fall 2012 power critical to military operations is available at all insight into the appropriate size and scope of times – particularly in times of crisis. installation microgrids, and recommends steps for More than 40 BENS members and energy security efficient and effective energy security development. experts contributed to the report which specifi- As the Department and other stakeholders pursue cally examines various business models for own- new energy security measures over the next decade, ing, operating, and financing smart microgrids. It with investments projected in the billions, the BENS also assesses the major non-technical impediments report provides the direction needed for proficient, to broad smart microgrid development, provides economic, and secure energy strategy. 10 Leadership Report 2012

Operational Effectiveness(cont’d)

Representative Mike Rogers Representative “Dutch” Ruppersbeger Increasing Success of IT Efficiencies for the Intelligence Community: The House Permanent Select Committee on Intelligence (HPSCI) asked BENS to review the Office of the Director of National Intelligence’s (ODNI) plan to implement information technology (IT) efficiencies and cloud computing. The Chief Information Officer of the ODNI briefed a team of BENS members from companies that have implemented IT efficiencies on the ODNI’s IT Efficiencies Plan.

The BENS team, which included William Brunkhardt, Tom Dolan, BENS Director Alfred Berkeley, and Josh Morton (on behalf of Dan Hesse) provided HPSCI members with an assessment of ODNI’s IT Ef- ficiencies Plan, including its strengths and weaknesses, and suggestions to increase success. BENS members then met with HPSCI members, including Chairman Mike Rogers and Ranking Member “Dutch” Rup- persberger to share their observations and suggestions for improving the plan. The BENS findings and recommendations informed the House Intelligence Authorization Bill, and Representative Ruppersberger noted that “it’s great to see business working with government to improve security.”

BENS Energy Council: Formed to provide thoughtful leadership around energy security, the BENS Energy Council is a dedicated group of BENS Members who identify and execute BENS’ energy-related initiatives while also serving as an unofficial advisory board for senior government officials who are addressing America’s energy challenges. Ensuring sustainable and reliable access to economical electrical power and transportation fuel remains one of our country’s top national security priorities, and business leaders provide needed perspective and insight that improve how policy makers develop and implement federal energy security policy.

The Council, which is open to all BENS Members with expertise or interest in federal energy policy, particularly focuses on federal department issues related to improving energy procurement, consumption, expenditure, production, and reliability. The Council is chaired by BENS Members Tom White and Ed Blessing, with Ryan Rogers serving as Executive Direc- tor. Collectively, they provide over a half-century’s worth of experience in energy. The Council currently includes members from the Texas, D.C. Metro, and Southeast regions.

11 Business Executives for National Security

BENS in the 90s: A look at the era’s most defining projects

BENS forms the Tail to Tooth Commission to seek new efficiencies in infrastructure and BENS acts as the private sec- overhead of the Department of Defense (the tor force behind Secretary of tail) and to use these cost savings to prevent Defense Bill Cohen’s Defense reductions in operational expenditures (the Reform Initiative, launching tooth). a “revolution” in military affairs. The work has lasting The Commission, comprised of business ex- impact on the Defense ecutives, former government officials, and re- Department’s manage- tired military leaders, offers recommendations ment of infrastructure and in four salient spending areas: Acquisition overhead. Reform, BRAC, Private Sector Partnering and Planning, and Programming and Budgeting System Reform. As the international climate changes Privatization of military housing and national security threats shift, remains a top BENS issue with the the need for military bases to adjust publication of case studies dem- accordingly grows. onstrating the cost of savings and increased efficiencies to the Depart- ment of Defense.

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Early work in nuclear non-proliferation results in the seminal report “Atomic BENS forms an advisory group to Anarchy: The Nuclear Non-Proliferation create the first private sector model for Treaty on Trial” business-government cooperation on emerging threats. The advisory group releases “New Tools, New Teams for New Threats,” a report that pioneers the Developments in BENS’ work on base closure, methodology and intergovernmental beginning in the 80s, precipitates the Presi- relationships that will grow increasingly dent’s announcement of a five point program important in the post-9/11 era. to revitalize base closure communities.

BENS’ work plays an instrumental role in the ratification of the Chemical Weapons Convention using BENS members to educate current and new members of the U.S. Senate.

1212 Leadership Report 2012 Learning on the Scene Opportunities to learn and to affect change took members across the country visiting key government and military sites and speaking with leaders in national security and defense; and across the globe to international diplomatic and military sites, as well as nations with vested interest in the future of America’s security. These engagements offer unique opportunities for members to gain in- depth insight to the infrastructure of national security. The discussions initiated by these visits spark interest and inspire future BENS endeavors.

2 1: In D.C. BENS members met with Lieutenant Gen- eral Michael Barbero, Director, Joint Improvised Ex- plosive Device Defeat Organization (JIEDDO), as part of an ongoing effort to assist in ending the networks supporting the creation and distribution of IEDs. 2: General Jack Keane, Former Vice Chief of Staff of the United States Army, (right) with BENS member Chris Rouland, joined members in the southeast to discuss Iranian nuclear ambitions and other major national security challenges facing our nation. 3: Members Jeff Weiss and Jeff Stone discuss smart grid energy technology with Marine Corps Base- Hawaii’s Chief of Staff during their visit to Joint Base Pearl Harbor-Hickam, Camp Smith and Marine Corps Base-Hawaii. 4: At the Marine Corps Combat Development Center, BENS members get an inside look at Marine 3 helicopters. 13 Business Executives for National Security Learning on the Scene (cont’d)

1: In California members Chris Mumford, Tom Ste- phenson, Lester Boeh, Doug Carlisle, Skip Flesh- man, and Pitch Johnson took an in depth look at the 3 operations and responsibilities at the Naval Strike and Air Warfare Center (NSAWC), NAS Fallon. 2: In an effort to increase public private collaboration for disaster relief, BENS Mid America in Kansas City is facilitating the development of the Missouri Business Emergency Operations Center (BEOC) in conjunction with the State Emergency Management Agency to enhance the quality and effectiveness of the state’s response capabilities. 3: Colonel Nikoloz Janjgava of the Republic of Georgia presented BENS Texas member Tom White a plaque of appreciation at the Industrial College of the Armed Forces Energy Day. 4 4: BENS New York members met with Director of National Intelligence General James R. Clapper, Jr. to discuss a wide range of issues including post-9/11 progress to improve collaboration on intelligence collection; the impact of impending budget cuts on the intelligence community; and the challenges of an increasingly complex national and global security environment. 5: Early this year BENS members engaged with Captain Steven Simon the Director for the Naval Academy’s new Center for Cyber Security Studies, to offer advice regarding strategy, curriculum, and the 14 future of the center. 56 Leadership Report 2012 Learning on the Scene (cont’d)

A BENS delegation led by General Meigs including BENS Vice Chairman Mary Boies, Reg Brack, Jamie McCourt, Earl Stafford, and BENS Director John Streicker visited Burma to learn firsthand about the challenges facing the country, its potential, and geostrategic significance. BENS members were particularly interested in the recent political reforms, the country’s relationship with China, and the impact of U.S. sanctions. Following the trip, the delegation briefed U.S. Ambassador Derek Mitchell, special representative and policy coordinator for Burma, as well as other U.S. government officials.

1: BENS members toured various boat and aircraft platforms at Coast Guard Base Miami Beach and Coast Guard Air Station Miami, May 2012. 2: BENS members toured the torpedo weapons training facility and the deep water rescue training tank at the Submarine Base in Groton, Connecti- cut, April 2012. 3: June 2012, BENS members and guests traveled to France to take part in a “staff ride” exploration of the Battle of Normandy fought in the summer of 1944. 3 15 Business Executives for National Security Learning on the Scene (cont’d)

Every year BENS hosts its Annual Washington Forum, bringing together leading minds from the private and public sector to engage with national security leaders on the most pressing security challenges facing our nation. In 2012, the Forum focused on “Sustaining our Nation’s Economic Future,” featuring remarks and panels on topics including defense intelligence, the future of the Department of Defense and military in light of impending budget cuts, cyber security, and economic security in relationships with growing Asia-Pacific economies.

Over the course of the day attendees heard from Lieutenant 1 General Michael Flynn, USA, Director of the Defense Intelligence Agency; Dr. Ashton B. Carter, Deputy Secretary of Defense; General Ray Odierno, USA, Chief of Staff of the U.S. Army; Jeffery Hunker, Principal, Jeffery Hunker Associates; Stewart Baker, former Assistant Secre- tary for Policy at the U.S. Department of Homeland Security, and current Partner at Steptoe and Johnson, LLP; Anthony Jones, Vice President of Guy Carpenter & Company; Alfred R. Berkley, III, former Vice Chairman and President, NASDAQ, and former Chairman of the President’s National Infrastructure Advisory Committee; Lieutenant General Wallace “Chip” Gregson, USMC (Ret.), Senior Advisor, Avascent International and former Assistant Secretary of Defense Asian and Pacific Security Affairs; Derek Scissors, Ph.D., Senior Research Fellow, Asian Studies Center, The Heritage Foundation; and John Bussey, Managing Editor and Executive Business Edi- tor of the Wall Street Journal.

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1: Dr. Ash Carter with Bruce Mosler 2: Lieutenant General Michael Flynn 3: Jeffery Hunker 5: Derek Scissors 6: Stewart Baker 7: John Bussey 8: Lt General Wallace “Chip” Gregson 9: Al Berkley, III 10: General Ray Odierno 11: Jennifer Griffin, FOX News, and Greg Myre, NPR 16 10 11 Leadership Report 2012

BENS in the 2000s: A look at the era’s most defining projects

BENS forms the Task Force on De- fense Acquisition Law & Oversight to study the defense acquisition process. The Task Force concludes The first decade that bureaucratic procedure, not of the 2000s sees actual warfighter product, has be- dramatic changes come the system’s primary focus. in the threats to our In partnership with the Center of Strategic The Task Force publishes a report, national secu- and International Studies, BENS pro- “Getting to Best: Reforming the rity, a historically duces “Tackling the Web,” a white paper Defense Acquisition Enterprise,” expensive decade outlining specific recommendations on making 25 recommendations of defense opera- necessary changes to the Congressional in three key areas: improving tions in the midst of oversight structure. linkages between requirements immense economic determination, streamlining the down turn. budgeting and acquisition process, and removing constraints to work- The Tail to Tooth Commission releases force excellence, and additional “Call to Action” detailed analysis and emphasis on satisfying specific recommendations on Defense reform. warfighter needs.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Alongside a coalition BENS is the sole non-government of non-governmental, agency asked by the Pentagon to offer non-partisan organiza- suggestions on how to maximize the tions, BENS works with base closure process set for fiscal year Amid lingering echoes of Hur- Senate leaders to secure 2005. ricane Katrina’s devastation, the re-authorization of BENS releases “Getting Down BRAC legislation for a to Business: An Action Plan single round in 2005. for Public-Private Disaster Response Coordination.” This Attention turns to the need detailed report suggests steps for public-private disater to integrate private sector response coordination. capabilities into a compre- BENS advances this effort hensive national disaster by assisting in the building response mechanism. of public-private emergency response partnerships in eight regions across the country.

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Special Events/Awards

BENS bestows the Eisenhower Award twice yearly. The award recognizes those Americans whose contributions to our country best reflect President Eisenhower’s definition of security as “...the total product of our economic, intellectual, moral and military strength.” Each year BENS strives to select re- cipients from both the public and private sector for their impressive work to advance national security.

May Eisenhower Award Dinner 2012 Washington, D.C.: On May 22, following the annual BENS Washington Forum, more than 500 BENS members and distinguished guests gathered for the Eisenhower Award Dinner in Washington, D.C.. Master of Ceremonies Mike Emanuel presided over the evening, which celebrated co-honorees Admiral James Stavridis, USN, and Major General Josue Robles, USA (Ret.). In presenting the Award to Admiral Stavridis, Commander of U.S. European Command and Supreme Allied Commander of NATO Forces Europe, BENS Chairman Bruce Mosler commended his character, leadership and more than 35 years in service to our country. BENS Director Tosh Barron presented the Award to General Robles, the President and CEO of USAA, citing his stellar military ca- reer and the savvy and wisdom with which he leads USAA in support of the military community. The evening’s program also included special recognition of three active-duty members of the Marine Special Operations Com- mand by BENS CEO General Monty Meigs.

1: Admiral James Stavridis, USN, Commander, U.S. European Command 2: Josue Robles, President and CEO of USAA 3: Mike Emanuel, Chief Congressional Correspon- dent, FOX News 4: Tosh Barron, BENS Member 5: Honored soldiers from the Marine Special Opera- tions Command

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18 2 5 Leadership Report 2012 Special Events/Awards (cont’d) October Eisenhower Award Dinner 2012 New York City: On October 11, nearly 700 BENS members and guests assembled for the fall Eisenhower Award Dinner aboard the Intrepid Sea, Air & Space Museum in New York City. BENS Director Fran Townsend, former Homeland Security Advisory to the President, served as emcee for the evening, which paid tribute to the outstanding accomplishments of co-honorees Secretary of Defense Leon Panetta and Frank J. Bisignano. After accepting the Award for his lifetime of service to our country from BENS Chairman Bruce Mosler, Secretary Panetta used the occasion to deliver his first substantive policy address on the growing national security threat of cyber attacks. The Secretary’s remarks received significant coverage by television and print media, and reinforced the need for BENS’ work in cyber security. In presenting the Award to Mr. Bisignano, Co-Chief Operations Officer of JP Morgan Chase and Mortgage Banking CEO of Chase, BENS DirectorTom Higgins praised his leadership of the 100,000 Jobs Mission to create jobs for returning veterans within the business community. As part of the evening’s program, BENS CEO General Monty Meigs also recognized four active-duty members of the Army’s 82nd Airborne Division for their outstanding service in Iraq and Afghanistan.

1: Secretary of Defense, Leon Panetta. 2: Frank Bisignano, Co-Chief Operations Officer and CEO Mortgage Banking, JPMorgan Chase. 3: Soldiers from the 82nd Airborne Division received special recognition.

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“The fact is that the private sector is better poised today than government to make significant contributions to our national “presence” abroad, and organizations like BENS are destined to play a pivotal role in Kansas City National Security Awards this exciting mission.” BENS Kansas City hosted its Fifth Annual National Security Award Dinner honoring General General Jones Jim Jones, USMC (Ret.), former Security Advisor to the President, in recognition of his contributions to national security through a lifetime of public service. 19 Business Executives for National Security Financial Stewardship Managing Our Resources Wisely

BENS generated revenue of about $6.9 million and incurred expenses of about $6.8 million in 2011 and had net assets of just over $5.0 million at year-end. In 2010, revenue was $7.7 million and expenses were $7.5 million with net assets about $4.9 million. We continued our long string of unqualified audit opinions. BENS’ expenses for 2011 are depicted in the chart below which emphasizes our strong focus on program activity.

BENS Functional Expenses

Admin Policy Projects and Programs 12% 69% Fundraising 19%

20 Leadership Report 2012 Board of Directors

Chairman William F. Murdy* Bruce E. Mosler* Joseph M. DePinto Chairman of the Board Chairman of Global Brokerage President and CEO Comfort Systems USA, Inc. Cushman & Wakefield, Inc. 7-Eleven, Inc Mark S. Newman Vice Chairmen William D. Flynn Chairman and CEO (Ret.) Raphael Benaroya* President and CEO DRS Technologies, Inc. Atlas Air Worldwide Holdings, Inc. Managing Partner American Licensing Group L.P. Charles H. Robbins Michael P. Galvin Senior Vice President, The Americas Denis A. Bovin* President Cisco Systems, Inc. Co-Chairman and Co-CEO Harrison Street Real Estate Stone Key Partners LLC Capital, LLC Frank V. Sica Managing Partner Landon H. Rowland* Mark J. Gerencser* Tailwind Capital Partners Chairman Emeritus Executive Vice President Janus Capital Group Booz Allen Hamilton Donald V. Smith Senior Managing Director (Ret.) Executive Committee Chairman Ronald J. Gidwitz Houlihan Lokey Howard & Zukin Mary M. Boies* Partner President & CEO GCG Partners Paul G. Stern* Boies & McInnis, LLP Chairman G. S. Beckwith Gilbert Claris Capital, LLC President & CEO President and CEO General Montgomery C. Meigs* Field Point Capital Management John H. Streicker General, USA (Ret.) (ex officio) Company Chairman Sentinel Real Estate Corporation Directors Maurice R. Greenberg Herbert A. Allen, III* Chairman & CEO Frances F. Townsend President and CEO C.V. Starr & Co., Inc. Senior Vice President MacAndrews & Forbes Holdings, Inc. Allen & Company Thomas J. Higgins Patricia C. Barron Managing Director, Head of George J. Tsunis Corporate Director Operational Control Chairman and CEO Quaker Chemical Corporation JP Morgan Chase & Co. Chartwell Hotels Alfred R. Berkeley Thomas H. Holcom, Jr. Edwin A. Wahlen, Jr.* Vice Chairman President, Military Banking Managing Partner Gentag, Inc. Division CGW Southeast Partners MidCountry Bank Charles G. Boyd Charles F. Wald General, USAF (Ret.) Earle W. Kazis General, USAF (Ret.) President Director & Senior Advisor, Norman C. Chambers Earle W. Kazis Associates, Inc. Aerospace & Defense Chairman, President and CEO Deloitte Services, LP NCI Building Systems Ramon P. Marks* Partner Bruce N. Whitman Raymond G. Chambers Arnold & Porter LLP Chairman, President and CEO Chairman FlightSafety International, Inc. Amelior Foundation Christopher C. Melton, Sr.* Chairman and CEO William T. Coleman, III The White Oak Group, Inc. Partner Alsop Louie Partners, LLC John P. Morgridge Chairman of the Board (Ret.) Howard E. Cox, Jr. Cisco Systems, Inc. Advisory Partner Greylock

21 Business Executives for National Security Advisory Council

Michael J. Bayer, Chairman Former Chairman of the Defense Business Board President & CEO Dumbarton Strategies LLC

The Honorable Gordon R. England Former Deputy Secretary of Defense President E6 Partners LLC

William J. Fallon Admiral, U.S. Navy (Ret) Former Commander, U.S. Central Command and U.S. Pacific Command Chairman CounterTack Inc.

Edmund P. Giambastiani, Jr. Admiral, U.S. Navy (Ret) Former Vice Chairman of the Joint Chiefs of Staff Giambastiani Group LLC

John M. B. O’Connor CEO J.H. Whitney Investment Management Company

Peter Pace General, U.S. Marine Corps (Ret) Former Chairman of the Joint Chiefs of Staff Operating Partner Behrman Capital

Jim Rosenbluth Managing Director Crisis Management Global Business Consulting Cushman & Wakefield, Inc.

The Honorable William H. Webster Former Director, Central Intelligence Agency/Former Director, Federal Bureau of Investigation Retired Partner Milback, Tweed, Hadley & McCloy LLP

22 Leadership Report 2012

23 Business Executives for National Security

24 Printed December 2012 www.bens.org