Building Civilian Leader Talent in a Leaner DoD: Fewer hands, greater demands and why the answer is smarter investments in our People.

By LtGen Mark Faulkner, USMC (Ret), President, Institute for Defense and Business

Recent memoranda issued by Department of Defense (DoD) leadership signals a pivotal shift in the approach to its civilian workforce. The directives outline a clear intention to streamline the structure, placing an emphasis on leaner, more agile, and mission-aligned positions. These changes are driven, in large part, by the need to enhance military readiness and lethality, with every civilian role now being evaluated for its direct contribution to core defense department priorities.

But it is not just about cutting jobs. Secretary of Defense Hegseth has stated that he wants defense leaders to search for ways to reform out-of-date processes, to collapse layers of Pentagon bureaucracy and to restrain the growth of personnel. The Department wants to break down layers of red tape by simplifying structure, trimming layers of nonvalue-added management, and putting more trust in key commanders and staff to make decisions. The goal is to move faster and be more flexible while also enhancing operational efficiency. Tomorrow’s DoD civilian workforce will be smaller, but will it be more tech savvy, agile, and strategically minded?

If we are truly at a turning point, it appears that the first instinct for many DoD organizations has been hesitation – or even a retrenchment, from developing their civilians, believing it no longer necessary and not tied to mission. We are seeing this now at the Institute for Defense and Business, through an inconsistent application of the new guidance, as represented by a tangible reduction in DoD civilian participants in our professional development programs. We believe this is the wrong course of action as it poses significant risks to mission execution. 

This initial response is understandable given the uncertainty that often accompanies enterprise-wide change, but hopefully it is just a temporary reflex. Ironically, crescendo moments such as this are when we should lean into the change, not shy away from it. In my experience, reinforced by recent observations, when budgets get tight the first things on the chopping block are investments in our People. If anything, this is the moment to double down on developing talented civilian leaders and preparing for not just what is next, but what we already know of peer and near-peer competitors as reflected in today’s global security environment. Leader development supports not only organizational agility and innovation, but also the retention of those who do remain to lead our organizations. 

My suggestion would be for the organizations across the department to prepare their civilian leaders for the mission with renewed vigor. Invest aggressively in retraining the civilians you keep. They have and will continue to answer the call and will evolve to meet the needs of warfighters – but only if leadership gives them the tools. As we all know, Civilians are Force Multipliers.

To retain great people and get them ready for what’s coming, the Department should invest in training that fits future missions, especially in fast-growing areas like Artificial Intelligence, robotics, data fluency and autonomous systems. Building those skills is a large part of the puzzle, but growing strong leaders matters just as much. Leadership development, especially in areas like change management and strategic planning, will help our forces handle the speed and complexity of all the changes coming. At the end of the day, growing and developing their people is probably the smartest investment DoD can make right now.

As the DoD regains their footing adjusting to these civilian workforce reductions, the Institute for Defense and Business (IDB) remains a proven, flexible partner that helps leaders adapt fast and lead with confidence. Our programs are designed specifically for DoD leaders and managers, giving them the tools to navigate change, tackle risk, and make smart, data-driven decisions.

This moment is a real opportunity to build a smarter, more adaptable force. That starts with rapidly adjusting to personnel losses, keeping top DoD civilian talent and continuity amongst those who remain in the fight, building flexible, forward-thinking leaders, and making smart investments in our people. To do otherwise is to miss the moment, which would be a demonstrably unfortunate and unaffordable outcome. Frankly, it would be an unforced strategic error that would directly affect near and long-term warfighting readiness.

Mark Faulkner is a retired Marine Corps Lieutenant General. His final assignment was Deputy Commandant, Installations and Logistics, and he currently serves as the President for the Institute for Defense and Business.