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® 
The Failure of 20th Century 
Intelligence 
Hackers on Planet Earth (HOPE) 6 
Robert David Steele 
Updated 20 July 2006
® 
Elements of Intelligence 
Collection 
• Human 
• Technical 
Analysis 
• Current 
• Estimative 
Covert Action 
• Black Ops 
• Mind Ops 
Counter-intelligence 
• Defensive 
• Offensive 
Leadership 
• Mindset 
• Courage
® 
Brief History of Intelligence 
• Secret War 
– For centuries, this has been the primary focus on 
national-level intelligence. It remains valid. 
• Strategic Analysis 
– Sherman Kent introduced this as the focal point, 
but he was not successful. It remains valid. 
• Smart Nation 
– This is where I think we need to go. More later.
® 
Global Collection Failure I 
Ignored Open Source Information 
• 80% of what we need 
to do intelligence is 
not secret, not digital, 
not in your language, 
and not owned by the 
government. 
• We failed to treat open 
sources with respect. 
We need OSINT! 
AC L A NT 
Open Sources 
BBrruusssseellss $$11550000 
AAnnaallyysstt -- 55 ddaayyss 
11 OOSSIINNTT TTeerrmmiinnaall 
33 mmoonntthhss sseerrvviiccee 
1100 ccooppiieess ooff OORRBBAATTSS 
1100 ccooppiieess ooff pprroolliiffeerraattiioonn 
ddaattaabbaasseess 
11 yyeeaarr ooff eelleeccttrroonniicc 
ssuubbssccrriippttiioonn 
33 ffrraammeess ooff 
EEOO IImmaaggeerryy 
55 ffrraammeess ooff 
RRaaddaarr IImmaaggeerryy 
5500 ccoouunnttrryy 
rreeppoorrttss 
5500 bbooookkss
® 
Global Collection Failure II 
Very Limited Non-Official Cover 
• 80% of the bad boys 
and girls that we need 
to recruit/monitor for 
clandestine operations 
do not attend Embassy 
cocktail parties. 
• We have been lazy and 
cheap about non-official 
cover (in USA).
® 
Global Collection Failure III 
Almost no Technical Processing 
• If we do not process 
what we have 
collected (generally at 
great expense), we 
might as well not 
collect it at all--we can 
save the money. 
• CN + PN = IntelNN 
• Processing Matters!
® 
Global Processing Failure I 
No Data Standards 
• Data standards (for 
instance, XML) are vital 
if we are to be able to 
exploit modern 
information technology. 
• Microsoft is the enemy 
of the state! Open 
source software, and 
data standards, add 
value to your work.
® 
Global Processing Failure II 
No Geospatial Attributes 
• Automated “all-source 
fusion” is not possible 
unless every datum, in 
every medium, has both 
a time and a geospatial 
attribute. 
• XML Geo needs to be 
an international 
standard--you can lead.
® 
Global Processing Failure III 
No Interoperability or All-Source Mixing 
• Security is the opposite 
of intelligence. 
• Compartmentation is 
the enemy of 
knowledge. 
• There must be one 
single processing 
agency where 
everything can be 
mixed and evaluated.
® 
Global Analysis Failure I 
Emphasis on Security Instead of Answers 
• Intelligence is about 
decision-support--about 
answering the question! 
• Must not confuse 
expertise, foreign 
languages, and security 
clearances nor should 
we require that the 
same person have them 
all! Mix and match...
® 
Global Analysis Failure II 
Focused on Threats Instead of Opportunities 
• Threats that are here and 
now represent a strategic 
warning failure. 
• Intelligence is at its best 
when it makes the case 
for preventive 
investments-- 
anticipatory policy-- 
opportunities for 
advantage.
® 
Global Analysis Failure III 
Emphasis on Local Now Vice Global Future 
• Greatest intelligence 
value comes from 
strategic estimative 
analysis about big 
issues--global issues 
• Politicians already 
know the local 
nuances--must teach 
them--and the public-- 
the global tradeoffs
® 
Global Policy Failure I 
Failure to Impact on Budget 
• National intelligence 
has virtually no impact 
on how the citizen’s 
taxes are allocated 
across various national 
priorities. 
• We spend too much on 
hard power and almost 
0 500 nothing on soft power. 
Others 
Russia 
Europe 
USA 
Health 
Culture 
Education 
Assistance 
Intelligence 
Diplomacy 
Military
® 
Global Policy Failure II 
Failure to Impact on Policymaker Wisdom 
• Policymakers are 
loosely-educated and 
often dismiss the value 
of global knowledge. 
• Intelligence is most 
valuable to the public 
interest when it 
constantly educates 
policymakers in a 
compelling manner.
® 
Global Policy Failure III 
Failure to Win Public Support for Intelligence 
• Intelligence is not 
taught in schools and 
there is no public 
appreciation for its 
vital contributions. 
• We must establish a 
public discipline of 
intelligence across the 
seven tribes and in the 
public eye.
® 
Global Acquisitions Failure I 
Failure to Impact on What We Buy 
• US military buys what 
contractors want to sell, 
not what we need. 
• Strategic generalizations 
about the real world 
have no impact on 
procurement. 
• US ignores allied 
interoperability and 
affordability needs. 
Examples 
• Aviation temperatures 
• Cross-country mobility 
• Line of sight distances 
• Bridge loading limits 
• Ports (-), Airheads (+) 
• C4I anti-Internet/open 
• OOTW assets (MP etc.)
® 
Global Acquisitions Failure II 
Failure to Impact on Private Sector IT 
• Failed to legislate stable 
transparent Application 
Program Interfaces 
(API). 
• Failed to define generic 
functionalities for joint 
development. 
• Failed to define an agile 
security architecture. 
Microsoft Systran 
Finished Intelligence and Reporting 
Revision Tracking 
and Realtime Group 
Review 
Publishing and 
Word Proce ssing 
Collaborative 
Work 
Interactive Search 
and Retr ieval of 
Data 
Cluster ing and 
Linking of 
Related Data 
Conver sion of 
Paper Documents 
to Digital Form 
Production of 
Graphics, Videos and 
Online Brief ings 
Structured 
Argument 
Analysis 
Modeling and 
Simulations 
Detection of Alert 
Situations 
Notetaking and 
Organizing Ideas 
Desktop 
Graphic and Map- 
Based Visualization 
Detection of 
Changing Trends 
Automated Extraction 
of Data Elements From 
Text and Images 
Standardizing 
and Converting 
Dat a Formats 
of Data 
Statistical Analysis 
to Reveal 
Anomalies 
Processing Images, 
Video, Audio, 
Signal Data 
Automated 
For eign Language 
Translation 
Open Literature Non-Text Data Restricted Information 
A 
B 
C
® 
Global Acquisitions Failure III 
Failure to Provide for Intelligence 
• US mobility, weapons, 
and C4I systems do not 
program funds for the 
acquisition and delivery 
of necessary data. 
• Intelligence is treated as 
a “free” good. 
• Commanders “assume” 
intelligence will be 
provided when needed.
® 
Global Operations Failure I 
Cannot Do Wide Area Surveillance 
• US satellites 
optimized for finding 
Soviet missile silos 
• Air-breather options 
never had the 
processing system 
created to do near real 
time change detection. 
• Still a labor intensive 
“hit or miss” activity.
® 
Global Operations Failure II 
Cannot Do Last Mile 
• Can’t see under jungle 
canopy or into city 
streets 
• Can’t find single 
individuals with 
technology--still a 
clandestine human 
endeavor and 
generally can’t do it
® 
Global Operations Failure III 
Cannot Do Real-Time Change Detection 
• Air Operations Plans 
now require 24+ hours 
to prepare (US/NATO) 
• Sensor to shooter 
processing is terrible-- 
and mostly manual 
• Have lost ability to do 
quick reaction strikes-- 
when the lawyers let us.
® 
Philosophical Failure I 
National Tribe instead of Global Tribes 
• National intelligence 
tribe has monopolized 
the money/attention. 
• Failed to create generic 
intelligence discipline 
with seven tribes. 
• Failed to develop 
regional or global 
intelligence networks.
® 
Philosophical Failure II 
Government Secrecy Over Public Sharing 
• The new paradigm 
rewards sharing more 
than secrecy. 
• Secrets are primarily 
valuable in the context 
of a rich open source 
knowledge foundation. 
• Cannot have smart spies 
within dumb nation.
® 
Philosophical Failure III 
Letting Americans Lead is Wasteful 
• American dominance of 
NATO intelligence is 
wasteful & dangerous. 
• We need a European 
alternative emphasizing 
commercial security, 
web-based sharing, 
multi-cultural 
approaches, global 
burden-sharing.
® 
Conclusion I 
...spies only know secrets 
• Intelligence is about 
discovering, discriminating, 
distilling, and delivering 
ANSWERS. 
• The problem with spies is 
they only know secrets. 
• So, we still need secrets, but 
we need to be smarter about 
the context for our secrets.
® 
Conclusion II 
Spies & schoolboys 
• We do not get extra 
points for collecting 
information in the 
hardest or most 
expensive way. 
• Do not send a spy where 
a schoolboy can go. 
• Find, Get, Buy, Steal--in 
that order.
® 
Conclusion III 
Make sense or add value 
• If you cannot make 
sense of the raw data, or 
add value, you are not 
creating intelligence. 
• It’s about actionable 
answers, not about 
secrets, or spies, or toys. 
• Intelligence saves time, 
lives, money, and honor.
® 
Secret Intelligence Misses 80% of the Relevant Information! 
ALL-SOURCE ANALYSIS 
HUMINT SIGINT IMINT MASINT 
95% of cost 20% of value 
5% of cost 80% of value 
OPEN SOURCE INTELLIGENCE 
OPEN SOURCE INFORMATION
® 
Policy/ 
Threats 
Poverty 
Disease 
Ecology 
State War 
Civil War 
Genocide 
Oth. Atroc. 
Proliferation 
Terrorism 
Trans. Crime 
Education 
Debt 
Economy 
Energy 
Diplomacy 
Immigration 
Family 
Justice 
Revenue 
Soc. Sec. 
Security 
Water 
Big Dogs 
Brazil 
China 
India 
Indonesia 
Iran 
Russia 
Venezuela 
Wild Cards

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2006 failure of 20th century intelligence

  • 1. ® The Failure of 20th Century Intelligence Hackers on Planet Earth (HOPE) 6 Robert David Steele Updated 20 July 2006
  • 2. ® Elements of Intelligence Collection • Human • Technical Analysis • Current • Estimative Covert Action • Black Ops • Mind Ops Counter-intelligence • Defensive • Offensive Leadership • Mindset • Courage
  • 3. ® Brief History of Intelligence • Secret War – For centuries, this has been the primary focus on national-level intelligence. It remains valid. • Strategic Analysis – Sherman Kent introduced this as the focal point, but he was not successful. It remains valid. • Smart Nation – This is where I think we need to go. More later.
  • 4. ® Global Collection Failure I Ignored Open Source Information • 80% of what we need to do intelligence is not secret, not digital, not in your language, and not owned by the government. • We failed to treat open sources with respect. We need OSINT! AC L A NT Open Sources BBrruusssseellss $$11550000 AAnnaallyysstt -- 55 ddaayyss 11 OOSSIINNTT TTeerrmmiinnaall 33 mmoonntthhss sseerrvviiccee 1100 ccooppiieess ooff OORRBBAATTSS 1100 ccooppiieess ooff pprroolliiffeerraattiioonn ddaattaabbaasseess 11 yyeeaarr ooff eelleeccttrroonniicc ssuubbssccrriippttiioonn 33 ffrraammeess ooff EEOO IImmaaggeerryy 55 ffrraammeess ooff RRaaddaarr IImmaaggeerryy 5500 ccoouunnttrryy rreeppoorrttss 5500 bbooookkss
  • 5. ® Global Collection Failure II Very Limited Non-Official Cover • 80% of the bad boys and girls that we need to recruit/monitor for clandestine operations do not attend Embassy cocktail parties. • We have been lazy and cheap about non-official cover (in USA).
  • 6. ® Global Collection Failure III Almost no Technical Processing • If we do not process what we have collected (generally at great expense), we might as well not collect it at all--we can save the money. • CN + PN = IntelNN • Processing Matters!
  • 7. ® Global Processing Failure I No Data Standards • Data standards (for instance, XML) are vital if we are to be able to exploit modern information technology. • Microsoft is the enemy of the state! Open source software, and data standards, add value to your work.
  • 8. ® Global Processing Failure II No Geospatial Attributes • Automated “all-source fusion” is not possible unless every datum, in every medium, has both a time and a geospatial attribute. • XML Geo needs to be an international standard--you can lead.
  • 9. ® Global Processing Failure III No Interoperability or All-Source Mixing • Security is the opposite of intelligence. • Compartmentation is the enemy of knowledge. • There must be one single processing agency where everything can be mixed and evaluated.
  • 10. ® Global Analysis Failure I Emphasis on Security Instead of Answers • Intelligence is about decision-support--about answering the question! • Must not confuse expertise, foreign languages, and security clearances nor should we require that the same person have them all! Mix and match...
  • 11. ® Global Analysis Failure II Focused on Threats Instead of Opportunities • Threats that are here and now represent a strategic warning failure. • Intelligence is at its best when it makes the case for preventive investments-- anticipatory policy-- opportunities for advantage.
  • 12. ® Global Analysis Failure III Emphasis on Local Now Vice Global Future • Greatest intelligence value comes from strategic estimative analysis about big issues--global issues • Politicians already know the local nuances--must teach them--and the public-- the global tradeoffs
  • 13. ® Global Policy Failure I Failure to Impact on Budget • National intelligence has virtually no impact on how the citizen’s taxes are allocated across various national priorities. • We spend too much on hard power and almost 0 500 nothing on soft power. Others Russia Europe USA Health Culture Education Assistance Intelligence Diplomacy Military
  • 14. ® Global Policy Failure II Failure to Impact on Policymaker Wisdom • Policymakers are loosely-educated and often dismiss the value of global knowledge. • Intelligence is most valuable to the public interest when it constantly educates policymakers in a compelling manner.
  • 15. ® Global Policy Failure III Failure to Win Public Support for Intelligence • Intelligence is not taught in schools and there is no public appreciation for its vital contributions. • We must establish a public discipline of intelligence across the seven tribes and in the public eye.
  • 16. ® Global Acquisitions Failure I Failure to Impact on What We Buy • US military buys what contractors want to sell, not what we need. • Strategic generalizations about the real world have no impact on procurement. • US ignores allied interoperability and affordability needs. Examples • Aviation temperatures • Cross-country mobility • Line of sight distances • Bridge loading limits • Ports (-), Airheads (+) • C4I anti-Internet/open • OOTW assets (MP etc.)
  • 17. ® Global Acquisitions Failure II Failure to Impact on Private Sector IT • Failed to legislate stable transparent Application Program Interfaces (API). • Failed to define generic functionalities for joint development. • Failed to define an agile security architecture. Microsoft Systran Finished Intelligence and Reporting Revision Tracking and Realtime Group Review Publishing and Word Proce ssing Collaborative Work Interactive Search and Retr ieval of Data Cluster ing and Linking of Related Data Conver sion of Paper Documents to Digital Form Production of Graphics, Videos and Online Brief ings Structured Argument Analysis Modeling and Simulations Detection of Alert Situations Notetaking and Organizing Ideas Desktop Graphic and Map- Based Visualization Detection of Changing Trends Automated Extraction of Data Elements From Text and Images Standardizing and Converting Dat a Formats of Data Statistical Analysis to Reveal Anomalies Processing Images, Video, Audio, Signal Data Automated For eign Language Translation Open Literature Non-Text Data Restricted Information A B C
  • 18. ® Global Acquisitions Failure III Failure to Provide for Intelligence • US mobility, weapons, and C4I systems do not program funds for the acquisition and delivery of necessary data. • Intelligence is treated as a “free” good. • Commanders “assume” intelligence will be provided when needed.
  • 19. ® Global Operations Failure I Cannot Do Wide Area Surveillance • US satellites optimized for finding Soviet missile silos • Air-breather options never had the processing system created to do near real time change detection. • Still a labor intensive “hit or miss” activity.
  • 20. ® Global Operations Failure II Cannot Do Last Mile • Can’t see under jungle canopy or into city streets • Can’t find single individuals with technology--still a clandestine human endeavor and generally can’t do it
  • 21. ® Global Operations Failure III Cannot Do Real-Time Change Detection • Air Operations Plans now require 24+ hours to prepare (US/NATO) • Sensor to shooter processing is terrible-- and mostly manual • Have lost ability to do quick reaction strikes-- when the lawyers let us.
  • 22. ® Philosophical Failure I National Tribe instead of Global Tribes • National intelligence tribe has monopolized the money/attention. • Failed to create generic intelligence discipline with seven tribes. • Failed to develop regional or global intelligence networks.
  • 23. ® Philosophical Failure II Government Secrecy Over Public Sharing • The new paradigm rewards sharing more than secrecy. • Secrets are primarily valuable in the context of a rich open source knowledge foundation. • Cannot have smart spies within dumb nation.
  • 24. ® Philosophical Failure III Letting Americans Lead is Wasteful • American dominance of NATO intelligence is wasteful & dangerous. • We need a European alternative emphasizing commercial security, web-based sharing, multi-cultural approaches, global burden-sharing.
  • 25. ® Conclusion I ...spies only know secrets • Intelligence is about discovering, discriminating, distilling, and delivering ANSWERS. • The problem with spies is they only know secrets. • So, we still need secrets, but we need to be smarter about the context for our secrets.
  • 26. ® Conclusion II Spies & schoolboys • We do not get extra points for collecting information in the hardest or most expensive way. • Do not send a spy where a schoolboy can go. • Find, Get, Buy, Steal--in that order.
  • 27. ® Conclusion III Make sense or add value • If you cannot make sense of the raw data, or add value, you are not creating intelligence. • It’s about actionable answers, not about secrets, or spies, or toys. • Intelligence saves time, lives, money, and honor.
  • 28. ® Secret Intelligence Misses 80% of the Relevant Information! ALL-SOURCE ANALYSIS HUMINT SIGINT IMINT MASINT 95% of cost 20% of value 5% of cost 80% of value OPEN SOURCE INTELLIGENCE OPEN SOURCE INFORMATION
  • 29. ® Policy/ Threats Poverty Disease Ecology State War Civil War Genocide Oth. Atroc. Proliferation Terrorism Trans. Crime Education Debt Economy Energy Diplomacy Immigration Family Justice Revenue Soc. Sec. Security Water Big Dogs Brazil China India Indonesia Iran Russia Venezuela Wild Cards

Editor's Notes

  1. To set the stage for considering how intelligence has failed at the national level, it is helpful to first emphasize that intelligence is about much more than simply secret collection or general analysis. Especially important in this illustration is the co-equal importance of counterintelligence--including operational security which most commanders and policymakers refuse to respect--and covert action, the “third way” between diplomacy and warfare. Finally, leadership is essential. The mindset and moral courage of intelligence leaders is the sine qua non for successful intelligence. Bureaucrats will fail.
  2. There are many excellent books on the history of intelligence so here I just wish to offer a very general summary of the three major eras in our history. Secret Wars have been the primary focus for centuries. This remains valid. Strategic Analysis is a well-intentioned idea from America that failed because of opposition from the U.S. military, and an obsession with secret collection. Smart Nation is how I describe my own contributions that emphasize the lessons of history, global burden sharing, harnessing the private sector, and using spies in context. More on this as we go on.
  3. My awakening to open sources came when I spent $20 million U.S. dollars in creating the Marine Corps Intelligence Command, only to discover that 80% of what I needed to do good intelligence for my generals was not secret, not online, not in English, and not available from anyone in the U.S. Government. If 80% of what we need--including geospatial information--is openly available, then we must treat this source with respect, and devise conccepts, doctrine, budgets, and organizations competent in this core disciplinary area.
  4. It is a huge honor to be a clandestine case officer. These are t he Jesuit priests of the holy world of intelligence. They take great risks and rarely receive proper recognition. However, to ask clandestine case officers to do what they do using only official cover, working out of official installations that are easily monitored by both hostile governments as well as hostile non-state actor groups including terrorists, is irresponsible. In America we have been lazy and cheap about this. We have also failed to properly explore multilateral clandestine operations in which our allies provide better clandestine case officers than we can grow.
  5. We will talk about Processing in the next three slides,so for now I will simply observe that it is foolish to spend money or take risks to collect information that is not processed. We can double or triple the value of collection if we add open sources in 31+ languages to our inputs, and we can double or triple the value of what we collect if we process it using modern technology to digitize, visualize, and store what we know. Sense-making matters. We do not do it—Able Danger was a good start, but destroyed for the wrong reasons.
  6. The Administration is not stupid. The bureaucracy is not stupid. The American people are not stupid. What is stupid is “the system” that President and General Ike Eisenhower warned us of in the 1950’s. The system, notably the Pentagon and its military-industrial-congressional complex, has taken on a life of its own, and good people are swept along in the fast strong current of this out of control monolith. More on that as we go on.