Testimony of Robert S. Mueller, III, Director, FBI
Before the House
of Representatives Committee on Appropriations
Subcommittee on the Departments of Commerce, Justice, and
State, the Judiciary and Related Agencies
June 18, 2003
"Progress Report on
the Reorganization and Refocus of the FBI"
Good afternoon, Mr. Chairman,
Chairman Young, Congressman Obey, Congressman Serrano, and
the Members of the Subcommittee.
I appreciate this opportunity
to be here and provide you with a progress report on our ongoing
efforts to reorganize and refocus the FBI. The hearing you
convened last June helped set a positive tone for our refocusing
efforts. Continuation of this oversight speaks well of your
commitment and interest in ensuring the success of the FBI
and I congratulate you for doing so.
At the outset, I want to express
my appreciation to David Walker and Dick Thornburgh for the
efforts of their staffs in preparing the assessments and recommendations
of the General Accounting Office and the National Academy
of Public Administration that you will hear later this afternoon.
The GAO and NAPA assessments
depict a fair characterization of our efforts over the past
year to refocus the FBI. Both GAO and NAPA present valid,
constructive criticisms of our performance - acknowledging
where we have been successful and identifying where we have
not progressed as far as we could have. It is my intent to
follow up on those areas where GAO and NAPA believe our efforts
need to be strengthened, particularly with respect to strategic
planning, human resources, technology, management and performance
metrics.
I also look forward to hearing
the perspectives on the FBI that will be offered by Special
Agent Nancy Savage, President of the FBI Agents Association.
Changes Over the Past Year
When I appeared before the Committee
last June, I characterized our proposal for reorganizing and
refocusing the FBI "an evolving road map" and stated
that we would need to make adjustments along the way to meet
changes in the world in which we must operate. Indeed, Mr.
Chairman, the world in which the FBI operates remains uncertain
and unpredictable. Just in the last year, we have:
- Continued to wage a world-wide
war against terrorism and have taken that fight to our adversaries'
own sanctuaries in the far corners of the world - Afghanistan,
Pakistan, the Philippines, Europe, and Africa;
- Worked to uncover terrorist
sleeper cells and supporters within the United States and
disrupt terrorist financial, communications, and operational
lifelines at home and abroad;
- Worked with our federal,
state and local partners to stop a series of senseless shootings
of innocent bystanders - including an FBI employee - that
caused fear and tension throughout the Maryland, Virginia,
and Washington, D.C. areas; and
- Investigated acts of corporate
fraud that resulted in the bankruptcies of major U.S. corporations
and the losses of thousands of jobs, and which threatened
to undermine public confidence in the economy and business
world.
The FBI in June 2003 is a changed
organization from what it was a year ago when you convened
that first oversight hearing on our revised strategic focus
and reorganization proposal. Underlying that strategic focus
were five inter-related elements that provided the framework
for developing our proposed organizational changes: (1) refocusing
FBI mission and priorities; (2) realigning the FBI workforce
to address these priorities; (3) shifting FBI management and
operational environment to enhance flexibility, agility, effectiveness,
and accountability; (4) restructuring FBI Headquarters; and
(5) re-engineering internal business practices and processes.
I would like to highlight the activities and progress we have
made in each of these areas.
Refocusing Mission and
Priorities. Many
aspects of the FBI reorganization proposal were based upon
the announcement of revised priorities. These priorities recognized
the need to refocus the FBI in light of the terrorist attacks
of September 11, 2001, and the changing national security
threats and crime problems facing the Nation.
I think I can state - and I
believe GAO and NAPA can confirm this view - that these priorities
have been embraced and adopted throughout the FBI, that our
employees are aware of them, and that we are acting according
to these priorities.
Realigning the Workforce
to Address Priorities.
Over the past year, the FBI has taken concrete steps to realign
its workforce to address its new priorities.
First, in recognition of the
continuing terrorist threat facing the United States from
international terrorist networks and of the urgent need to
continue building the FBI's capacity to prevent future terrorist
acts, we permanently shifted over 500 field agents from criminal
investigations to augment counterterrorism investigations
and activities, implement critical security improvements,
and support the training of new Special Agents at the FBI
Academy.
Second, during 2002 we also
permanently shifted another 167 agents from criminal investigations
to counterintelligence to begin implementation of a comprehensive
strategy to address the FBI's second priority.
Shifting FBI Management
and Operating Environment to Enhance Flexibility, Agility,
and Accountability.
Implementing the revised FBI priorities and redirecting the
FBI workforce toward these priorities required a concurrent
shift in how the FBI manages certain of its cases from a national
perspective.
Beginning in 2002, a series
of changes was initiated to strengthen the FBI's national
management and oversight of counterterrorism, counterintelligence,
and cyber-crime investigations and programs. These cases and
investigations are critical to the very foundation of the
FBI's ability to protect national security. These cases often
involve parallel efforts in multiple locations within the
United States and foreign countries, and require extensive
coordination and collaboration with other Intelligence Community,
state, municipal and international partners. These cases also
are complex in terms of inter-relationships among groups and
individuals, a complexity that requires continuity and specialized
expertise and skills. Most importantly, these cases require
an organizational capacity to quickly respond and deploy personnel
and technology to emerging and developing situations.
These changes are allowing us
to create a centralized body of subject matter experts and
historical case knowledge that, in the past, had been largely
resident in a few FBI field offices and which is now more
easily shared among FBI Field Offices and with our partners.
Of the many changes instituted
over the past year, I believe this was one of the most significant
in terms of changing the managerial environment within the
FBI. This change moved the FBI away from its traditional "office
of origin" case management concept. At this point, I
think we have enjoyed considerable progress in demonstrating
the benefits for this shift for nation-level operations and
investigations. I think our Special Agents in Charge deserve
credit for embracing this change, even though it may have
diminished the roles of individual field offices in some cases.
Restructuring FBI Headquarters. Among the first steps taken toward refocusing
the FBI was a review and restructuring of FBI Headquarters
divisions and offices. The old FBI Headquarters structure
was found ineffective by outside management consultants and
oversight groups. All Headquarters divisions and offices,
along with all field offices, reported through a single Deputy
Director position. This situation resulted in an unwieldy
span of control.
In December 2001, the first
phase of the Headquarters restructuring was proposed. To mitigate
management span of control issues within the Director's office,
four new Executive Assistant Director positions were created
to oversee counterterrorism and counterintelligence matters,
criminal and cyber matters, law enforcement services, and
administration. Additionally, under the first phase, five
new divisions and offices were created: Cyber, Security, Records
Management, Office of Intelligence, and Office of Law Enforcement
Coordination. The first phase also realigned the reporting
structure of other existing offices and dissolved the Investigative
Services Division.
The second phase of the Headquarters
restructuring, announced in May 2002, created a new Investigative
Technologies Division and transferred various field technical
investigative functions from the Laboratory Division to the
new entity.
Most recently, I proposed the
creation of a new Executive Assistant Director for Intelligence
and the elevation of intelligence within the FBI to a program
status comparable with that afforded national security and
criminal investigative programs.
In terms of the new offices
and divisions proposed, I believe NAPA and GAO will report
that we have made substantial progress. In some areas, such
as the Security and Investigative Technology Divisions, we
have encountered some difficulties in terms of filling vacancies.
We will, however, take steps to ensure these critical areas
are staffed as soon as possible. The President's 2004 budget
includes requests to continue the staffing of our Counterterrorism
and Security Divisions and I am hopeful the Committee will
be able to support those requests.
At the same time, I am continuing
to examine our headquarters structure and will propose changes
when such actions improve efficiency, better align common
functions and activities, and result in better services to
field offices.
Re-engineering Internal
Business Practices and Processes. The new expectations facing the FBI in terms of its mission
and priorities made it clear that the FBI must not only rethink
its organizational structure, but also its basic business
practices and processes. The Reengineering initiative that
we began in 2002 is part of our commitment to creating an
environment for change. Admittedly, change does not always
come easily or quickly to large organizations and the FBI
is no exception.
The Reengineering initiative
began with 38 projects. This initial group of projects focused
on a number of investigative, infrastructure, and management
problems and situations that required near-term "triage"
so that we could make improvements and address immediate gaps
in our organizational capacity.
These initial projects fall into five major categories of
emphasis: (1) building a workforce for the future; (2) modernizing
FBI technology; (3) changing business processes; (4) restructuring
the organization; and (5) refocusing operational priorities.
Building a workforce for
the future includes
initiatives aimed at such areas as: expanding the FBI applicant
base for critical skills and diversity; streamlining the applicant
process; reducing the amount of time needed to complete a
background investigation without compromising standards; updating
new agent training to reflect the new priorities of counterterrorism,
counterintelligence, and cyber; establishing new career paths
for counterterrorism, counterintelligence, cyber, security,
and analysts; improving management and leadership development;
and revitalizing succession planning.
Modernizing FBI technology encompasses the implementation of Trilogy and other
information technology initiatives, such as data warehousing,
future FBI information technology architecture, and strengthening
in-house information technology competencies.
Changing business practices includes revitalizing the FBI strategic planning
process and strategic plan; optimizing internal business processes;
and empowering employees and executives by delegating decision-making
authority and eliminating unnecessary layers of review.
Restructuring the organization includes ongoing efforts to examine the Headquarters
structure for further improvements and changes to field office
organizational structures to better deploy our workforce in
light of the new priorities of the FBI.
Refocusing operational
priorities is
linked to ongoing efforts to build national management capacities
for counterterrorism, counterintelligence, and cyber, improving
analytical capabilities, shifting resources to priorities,
information sharing, and focusing criminal investigations
on the most significant crime problems and situations.
With respect to reengineering,
we still have a ways to go but I believe we are on the right
path. While our initial focus was, out of necessity, on achieving
some immediate fixes, my intent is to build upon the groundwork
of the past year and to better align and integrate our re-engineering
focus with that of our forthcoming strategic plan.
Of these initial projects, I
am proud of the progress we have achieved in modernizing the
FBI's information technology infrastructure and in bringing
new technology to bear in support of terrorism analysis, terrorist
document and communications exploitation, and records management.
Additional improvements that will be coming on line, such
as the Virtual Case File segment of Trilogy, will continue
the progress already realized.
I am also encouraged by the
plans and ideas generated and being put in place with respect
to training, succession planning, and specialized career paths.
These are important first steps toward insuring the FBI's
workforce is prepared to meet the challenges that face us
today and tomorrow. As these efforts mature over the next
several years, the changes will be profound and positive.
Part of the FBI's legacy of
success has been its ability to adapt to changes in the world
in which it operates. That ability is now being tested under
extreme circumstances. Change is needed in many areas and
needed quickly. The reengineering initiative serves as a platform
for an evolving management strategy that will set a path for
what needs to be done, puts a focused effort on these issues,
and gets results.
Looking Forward - Next Steps
Before concluding my comments
and taking your questions, I would like to spend a few minutes
sharing some thoughts on the challenges that lie ahead and
how I intend to continue moving the FBI forward and transforming
the Bureau.
Operational challenges. The operational challenges facing the FBI over
the next 5 to 10 years will be defined, in large part, by
the threats posed to the national security of the United States.
As the dominant world political, military, economic and technological
power, the U.S. will continue to be targeted by terrorists
seeking to diminish the United States in the world arena.
As foreign countries seek to establish themselves as regional
powers, the potential for the proliferation of weapons of
mass destruction looms as a threat to all nations. Additionally,
foreign intelligence agencies will continue to target U.S.
defense and commercial industry in an effort to steal our
secrets and diminish the technological and military advantage
the United States enjoys over its adversaries. Foreign intelligence
activity within the United States is at levels equal to, or
in some instances above, that which occurred during the Cold
War. Left unchecked, such a situation could greatly undermine
U.S. national security and U.S. military and economic advantage.
Another trend that will define
the future operational environment for the FBI will be continuing
globalization and the expansion of the global economy. Globalization
and the growing networked global economy will present new
opportunities, targets, and environments for a full range
of illicit activities. A global networked economy will present
criminals in foreign countries with opportunities to commit
crimes against U.S. companies and individuals without ever
leaving their home countries. Increased reliance on global
networks for commerce and business will make that environment
a more attractive target for terrorists, foreign intelligence
agents, criminals, and others. Terrorists and criminal enterprises
will likely continue to look for and promote the destabilization
of third-world governments in an effort to secure refuge and
provide a haven for operations. Both terrorists and criminal
organizations may foster alliances of convenience in such
endeavors.
Globalization and networking
of criminal enterprises, especially in activities considered
threats to our homeland security, mandate greater collaboration
between the FBI, the Intelligence Community and law enforcement.
Among the significant law enforcement-related threats to our
national security are the including:
- terrorism;
- illicit arms transactions,
including trafficking in weapons of mass destruction;
- drug trafficking;
- human trafficking;
- increased collaboration among
organized crime and the emergence of smaller, more powerful
criminal entities;
- increased influence of international
organized crime groups in world politics;
- money laundering;
- cyber crime/cyber warfare/information
warfare; and
- economic espionage/intellectual
property rights violations.
The international-nexus of these
threats requires that the FBI continue to strengthen and build
international partnerships with our foreign law enforcement
counterparts. Such partnerships have proven their value time
after time in the war against terrorism. Our success in preventing
terrorism and other crimes depends upon having a presence
in those foreign countries that are most likely to be viewed
by terrorists and criminals as potential staging areas for
their activities. Investments in improving foreign law enforcement
capabilities through training and outreach will, in the long
term, improve the quality and degree of cooperation we receive
on matters of common interest.
Intelligence-driven operations. Given these challenges - both security and criminal
-- to the Nation, I would like to suggest that the future
success of the FBI depends our strengthening two key capacities.
First, we must strengthen our ability to recognize and understand
current and future national security and criminal threats.
The FBI is recognized for its excellence in collecting information.
Now, the FBI must achieve that same recognition for excellence
in our ability to produce intelligence. We are taking the
first step toward strengthening this capability by elevating
intelligence collection, analysis, production, and dissemination
to a level equal to that of our traditional investigative
programs.
A robust FBI National Intelligence
Program can help ensure that all critical information is identified,
collected, evaluated, analyzed and disseminated to the widest
extent possible. And, we must be able to do this collection
and dissemination of information in a manner that is consistent
with the preservation of the civil liberties and civil rights
of all we serve.
In many respects, collecting
and acting on intelligence in a time-sensitive timeframe is
not a new challenge for the FBI. FBI Agents excel at working
with criminal intelligence in very time-compressed situations
at the case-level. What we have not done in a structured,
consistent manner across all FBI programs is exploit case-specific
information by placing it into a larger context an overall
threat or crime problem assessment.
Transforming the FBI's intelligence
effort from tactical to strategic is critical if the FBI is
to be successful in preventing terrorism and more proactive
in countering foreign intelligence adversaries and disrupting
and dismantling significant criminal activity.
Within our Counterterrorism
Program, we are starting to see the benefits of such an approach.
Under the new Counterterrorism Division, our Watch Center,
National Joint Terrorism Task Force, and expanded analytic
staffs are assessing information constantly, looking tactically,
first and foremost, for the indications and warnings of a
terrorist attack, but also strategically at how that particular
piece of information fits into the larger intelligence mosaic
that we are building of our terrorist adversaries. We use
that information to assess and rank the threat posed by various
terrorist groups and to adjust and drive our operations accordingly.
We must achieve a similar capacity
to understand the full range of threats that fall under the
jurisdiction of the FBI. Achieving such a capacity depends
upon the FBI expanding its intelligence field of vision -
from tactical to strategic -- in our Counterintelligence,
Cyber, and Criminal Investigative programs, just as we are
doing in Counterterrorism.
And, second, the FBI must use
its understanding of the threats and adversaries to develop,
prioritize and carry out integrated intelligence-driven, operational
strategies to eliminate or counter the most significant terrorist,
foreign intelligence and criminal threats facing our country.
These strategies, in turn, should drive how the FBI allocates
and deploys its resources, identifies its future skill needs
and recruitment and hiring plans, and plans its information
technology investments.
Given the breadth of our jurisdiction,
and recognizing that the FBI is a national law enforcement
organization, we must become smarter in allocating and deploying
our resources. As I stated earlier, addressing the most significant
threats currently facing the country and within our jurisdiction
- terrorism, foreign intelligence activities, and cyber crime
- affects the levels of resources available for criminal investigations
in virtually every FBI field office. Consequently, we must
become better at targeting the most significant crime problems
with threat-based, intelligence-driven operations. Such an
approach will ensure that available FBI criminal investigative
resources are being used most effectively and at the most
significant targets.
The President's 2004 budget
request recognizes the need for flexibility in dealing with
our national security and criminal investigative missions
by reducing the number of budget decision units from 10 to
4. The four proposed decision units reflect the FBI's core
business functions of Counterterrorism, National Security,
Criminal Enterprises and Federal Crime, and Criminal Justice
Services. The proposed creation of a single criminal decision
unit would provide me with the flexibility needed to refocus
our criminal investigative efforts using the threat-based,
intelligence-driven focus I have described as being critical
for meeting the challenges facing the FBI. I am hopeful that
the Congress will adopt this new structure when you mark up
the FY 2004 appropriations bills.
Each Assistant Director of the
FBI's four operational divisions at Headquarters - Counterterrorism,
Counterintelligence, Cyber, and Criminal Investigative - have
developed program plans based on our new priorities and focus
and have briefed them to me and our Executive Assistant Directors.
Additionally, our Office of Intelligence is undertaking an
intensive effort that will result in the issuance of a comprehensive
organization-wide intelligence concept of operations and an
intelligence program plan. These various plans will serve
as the basis for updating our FBI Strategic Plan.
The integration of intelligence
and operations, along with improved analytical and case management
capabilities resulting from investments in information technology,
will enable the FBI to better deal with the threats and crime
problems of today and in the future. The integration of intelligence
and operations could very well impact the organizational structures
and processes of our operational divisions at headquarters
and in field offices. We have greatly changed the relationship
between headquarters and field offices in the area of counterterrorism.
Some of the Counterterrorism Division successes could also
be applied to our other headquarters divisions.
The standup of the Office of
Intelligence injects yet another variable since that office
will share management responsibility for Intelligence Analysts,
Reports Officers, and Operations Specialists with the divisions
and field offices to which they are assigned. This relationship
will require a more cross organization - or matrix - management
approach than the traditional hierarchical approach within
operational divisions.
Conclusion
In closing, Mr. Chairman, I
would like to acknowledge the leadership and support that
you and the Committee have provided to the FBI. The recognition
by the Congress for the need to fund critical investments
in people and technology are making a difference every day
in FBI field offices around the country and at headquarters.
I welcome your comments, suggestions,
and questions.
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