| Introduction: Private Military Contractors are in | | | | the industry's annual trade shows. While most see |
| demand all over the world by governments | | | | these extravaganzas as a time to show new |
| seeking to augment their military and maintain an | | | | wares to potential customers, the wise CEO sees |
| edge over their adversaries. Contractors take | | | | an intelligence opportunity and, concurrently, an |
| care of high tech missiles and free up fighting | | | | intelligence nightmare. Senior management, |
| soldiers by managing mess halls. But another facet | | | | presenters, salesmen, and booth personnel all |
| of this PMC business is the corporate sector. | | | | need to be briefed on how to elicit information |
| These jobs are never advertized, but contractors | | | | from customers and competitors, who to report |
| play a part in the strategic decision making and | | | | to, and how to keep from giving away important |
| vital running of a large multinational. | | | | information. Senior management is briefed on |
| In Part One we discussed how corporations use | | | | other senior management, including personal and |
| Private Military Contractors to boost their security | | | | family data, plus who to seek out and who to |
| mechanisms, especially in troubled areas. This | | | | avoid. |
| article will deal with the corporate need for: | | | | The temporary personnel may also be used to |
| Intelligence | | | | man the command center, usually a room in the |
| This has been called the Information Age, but we | | | | convention hotel. Key corporate officers will |
| have moved past that and into the Intelligence | | | | report for a morning brief and a daily debrief. |
| Age. Information is only a collection of facts. While | | | | Some may even be wired for sound and video. |
| valuable, the number of facts in the world has | | | | The number of temps hired could be as low as |
| multiplied to the point that one can drown in the | | | | one for a plumbers' convention, or as high as |
| deluge of new information pouring out every day. | | | | twenty-five for the Paris Air Show, the Mother of |
| No executive can keep up with the reading | | | | All Trade Shows. |
| required, much less think through the implications | | | | Collection |
| of that mass of information. | | | | Established intelligence units often hire free lance |
| Intelligence, on the other hand is information that | | | | PMC's to assist in collection efforts. When one |
| has been analyzed by a human brain. Irrelevant | | | | company is familiar with another's intelligence |
| facts are thrown out. Significant tidbits are | | | | personnel, a fresh face might just be the ticket. |
| emphasized. Then patterns, intersections, | | | | Collection can be drinking beer in a dive known to |
| coincidences, and inferences are mixed with | | | | be a hangout of company scientists to flying an |
| human judgment and intuition to bring out a | | | | aircraft over the competitor's offices and tracking |
| report about the subject at hand. This report will | | | | the movements of the CEO and CFO. |
| include a recommendation for action. | | | | The most sophisticated collection operations take |
| Governments have used intelligence collection, | | | | place in war zones where a company may hire a |
| analysis, and reporting for centuries. Sun Tzu | | | | professional to run a string of agents reporting on |
| wrote of the need for intelligence. One of the | | | | a guerrilla group, drug cartels, or a hostile warlord. |
| greatest spymasters in history was a general | | | | These corporate field agents are careful not to |
| named George Washington. Only in the last two | | | | go against US policy, and most share any |
| hundred years have corporations started to use | | | | intelligence gathered with the US intelligence |
| these tools to protect and grow their businesses. | | | | community. |
| The Japanese trading companies were some of | | | | My one experience with this type of operation |
| the first to use a codified and formal intelligence | | | | included a weekly CD-ROM dropped off to a |
| system. The first recorded use of a corporate | | | | senior US agent. The encrypted CD contained |
| intelligence department in the USA is John D. | | | | both raw reports and our analysis of information |
| Rockefeller of Standard Oil in 1878. His intelligence | | | | from our agents. The host nation knew of our |
| department used a massive card file with | | | | operations. In fact, several times I took their |
| information on his competitors, customers, | | | | intelligence chief out on missions. Sometimes we |
| suppliers, and financiers. It took several highly | | | | shared our finds with the host nation, and |
| publicized corporate espionage cases such as the | | | | sometimes they were company confidential. But |
| one where Boeing lost a huge amount of | | | | we always shared with US intelligence. |
| Research and Development data to Airbus to | | | | Counter-Intelligence |
| change the American mindset. Since then, almost | | | | Often a corporation is so busy trying to find out |
| every corporation in the Fortune 500 has started | | | | about their competitors, foreign governments, and |
| a competitive intelligence department. | | | | criminals in their area of operations that they |
| A disclaimer goes here. Intelligence is legal. | | | | forget that there are folks trying to get their |
| Espionage is not. The Society of Competitive | | | | secrets. Smart corporations hire contractors to |
| Intelligence Professionals abides by a strict code | | | | survey their operations and identify weaknesses |
| of conduct. You can read the Code of Conduct | | | | where R&D, marketing plans, proprietary |
| on their website. | | | | processes, and pricing structures could be in |
| In this environment, American companies are | | | | danger of being snagged by a competing |
| hiring Private Military Contractors both as | | | | intelligence professional. |
| permanent employees and on a project by | | | | The first place that a contractor will look is at the |
| project basis. These men and women have a set | | | | key personnel. Scientists have been known to |
| of skills that easily transfer into the civilian world | | | | give out precious R&D data during a phone |
| such as foreign language, elicitation, agent | | | | interview to a person posing as a student |
| recruitment and development, and analysis. Their | | | | researching a graduate dissertation. Others tend |
| corporate clients usually task them with | | | | to brag at the bar. |
| organization, collection, and counter-intelligence. | | | | So, the consultant gives classes to senior |
| Organization | | | | management, executive assistants, scientists, |
| When a corporation realizes that they need a | | | | accountants, and technical writers. These classes |
| Competitive Intelligence Department, they often | | | | zero in on how to tell when one is being pumped |
| look to the PMC community to find a person or | | | | for confidential data, how to handle sensitive |
| team to organize the unit. Often these groups are | | | | documents, and what the signs are that one is |
| hidden within the Security Department. Other | | | | being surveilled. |
| times they are an office reporting directly to the | | | | Some corporations even hire a consultant to |
| CEO and listed on the Organizational Chart as the | | | | probe their defenses. In one test like this, a |
| "Special Studies Task Force" or other such | | | | well-known consultant showed up at the CEO's |
| nonsense. | | | | office after just a few days with an almost |
| Most often the companies look to retired officers | | | | complete picture of the company's balance sheet, |
| from Military Intelligence, Special Forces, or the | | | | pricing structure, and master marketing plan. It |
| CIA. Occasionally, persons are chosen from the | | | | only took a couple of nights at a bar talking with |
| law enforcement field such as the FBI or | | | | some accountants and a few hours diving in the |
| Customs. I have seen an East Texas Sheriff hired | | | | dumpster where he recovered imperfect copies |
| to run a large unit in West Africa. These men and | | | | that had not been shredded. |
| women are tasked with "standing up" an | | | | In order to make strategic decisions, corporate |
| intelligence unit from scratch. | | | | officers and boards must have current intelligence. |
| This means: | | | | More organizations are relying upon a formal |
| Hiring collection agents, analysts, researchers, | | | | intelligence unit. As the unit matures, PMC's |
| and writers | | | | provide the flex needed to fill in for big trade |
| Developing written policies and procedures | | | | shows and for expansion to dangerous overseas |
| Teaching unit personnel how to fit into the | | | | bases. Finally, the wise company understands |
| intelligence cycle | | | | counter-intelligence and their own vulnerability. |
| Teaching senior corporate officers the uses | | | | They hire skilled men and women to plug the |
| and limitations of the Unit | | | | gaps in their own backyard. Private Military |
| Developing a team that includes senior | | | | Contractors are often the only ones with the skill |
| management, agents, and analysts. | | | | sets needed to stand up an intelligence |
| Temporary personnel are often hired to organize | | | | department, oversee a collection effort, and |
| for big events. The biggest of these events are | | | | institute a counter-intelligence program. |