Former DoD Official Cautions Against Running the Pentagon Like a Business

A former official from the Department of Defense era under Biden has raised concerns about treating the Pentagon as if it were a business entity.

Mara Karlin, who once held the position of Assistant Secretary of Defense for Strategy, Plans, and Capabilities, expressed in Foreign Affairs that overlooking the distinct nature of military risk could result in serious repercussions.

Defense Secretary Pete Hegseth has publicly hoped that the Department of Government Efficiency, led by Elon Musk of Tesla, might apply 'authentic business efficiency' to the workings of government.

Karlin acknowledged that there is an undeniable necessity for reform within the DoD. The Pentagon is infamous for inefficiency and has consecutively failed several audits. Despite a broad consensus on the need for transformation, Karlin argues that modeling the Pentagon after a corporation is misguided.

"The Pentagon fundamentally differs from any business," she asserted.

The workforce of the DoD, comprising a volunteer force alongside a multitude of career government employees, significantly surpasses the size of the largest American company and often depends on accumulated institutional wisdom due to its complexity.

Unlike the private sector, the DoD lacks a singular CEO or board to enforce swift transformation.

The 'board' of the U.S. military consists of numerous congressional members who have persistently neglected to address the continuation resolution process, thereby impacting contract funding for essential resources like munitions and maintenance.

Congress also holds the reins over the extensive DoD budget, a staggering $850 billion, with the power to determine this budget's allocation.

Furthermore, the Pentagon cannot independently revise its organizational framework or initiate widespread promotions within its ranks without congressional consent.

This structural complexity is one reason Karlin describes the Pentagon as both 'enormous' and 'cumbersome.' Another is its intrinsic tie to national defense.

According to Karlin, the concept of risk within the DoD varies significantly from that in the private sector, where the consequences of a startup's failure are financial losses and layoffs. Conversely, military failure could cost lives.

She elucidates that 'risk-taking in defense' carries distinctively greater stakes and must be approached with profound care compared to corporate risks.

The fundamental differences between the DoD and corporate entities suggest that any push to operate the Pentagon like a business is destined to misfire, potentially undermining U.S. military efforts, said Karlin.

"Reform is essential, but it demands respect for the Pentagon's unique characteristics, and the current indicators are discouraging," she remarked.

Karlin also highlighted that a similar approach to the Department of Energy showed disastrous effects when critical nuclear handling jobs were nearly eliminated before being reinstated.

Presently, Pentagon leadership is concentrating on curtailing unnecessary expenditures, with Hegseth announcing a recent cut of $5.1 billion deemed as wasteful.