Blackwater:A Managerial Analysis

By: Benjamin Sanders

Company Overview

Blackwater USA was formed in 1997, by Erik

Prince in North Carolina, to provide training

support to military and law enforcement

organizations.

He spent part of his inherited wealth to purchase

about 6,000 acres of the Great Dismal Swamp, a

vast swamp on the North Carolina/Virginia

border, now mostly a National Wildlife Refuge.

Company Overview Continued…

There he created his state-of-the-art private training facility, and his contracting company, Blackwater, which he named for the peat-colored water of the swamp.

In 2002 Blackwater Security Consulting (BSC) was formed.

Money and Power

Overall, the company has received over $1 billion USD in U.S. government contracts.

Blackwater consists of nine divisions, and a subsidiary, Blackwater Vehicles.

Change from Blackwater to Xe

http://www.youtube.com/watch?v=FdkA5H8bHfk&feature=related

Onto the P-O-L-C

Company Mission

The mission statement of Blackwater as of 2007 is “To support national and international security policies that protect those who are defenseless and provide a free voice for all with a dedication to providing ethical, efficient, and effective turnkey solutions that positively impact the lives of those still caught in desperate times. Blackwater is committed to the foot soldiers -- the men and women who stand on the frontlines of the global war on terror and who believe in a peaceful future for their communities and nations. Whether serving in or out of uniform, Blackwater is committed to providing these men and women with the very best in training and tactical support to ensure they are fully prepared to meet current and future global security challenges.”

Company Vision

The Vision statement of Blackwater is "To support security, peace, freedom, and democracy everywhere."

Formal Structure of the Organization

Blackwater USA consists of five companies: Blackwater Training Center Blackwater Target Systems Blackwater Security Consulting (Moyock,

North Carolina) Blackwater Canine Blackwater Air (AWS). Blackwater's president, Gary Jackson, is a

former Navy SEAL, as are other executives within the firm.

Organizational Chart

Planning

Strategic planning is the process of analyzing

competitive opportunities and threats, as well as the

strengths and weaknesses of the organization, and then

determining how to compete effectively in its

environment.

Blackwater has certainly determined how to compete

effectively in its environment.

With a renewable contract with the Department of

Defense (Blackwater’s primary customer by far),

Blackwater is way ahead of the competition.

Criticisms of Blackwater In 2006 a car

accident occurred in

the Baghdad Green

Zone when an SUV

driven by

Blackwater

operatives crashed

into a U.S. Army

Humvee.

Blackwater guards

allegedly disarmed

the Army soldiers

and forced them to

lie on the ground at

gunpoint until they

could disentangle

their SUV from the

wreck.

More Criticism On February 16, 2005, four Blackwater guards escorting a U.S. State

Department convoy fired 70 rounds into an Iraqi's car. The guards stated

that they felt threatened by the car's approach. The fate of the car's driver

was unknown because the convoy did not stop after the shooting.

An investigation by the State Department's Diplomatic Security Service

concluded that the shooting was not justified and that the Blackwater

employees provided false statements to investigators.

The false statements claimed that the one of the Blackwater vehicles had

been hit by insurgent gunfire, but the investigation found that one of the

Blackwater guards had actually fired into his own vehicle.

John Frese, the U.S. embassy in Iraq's top security official, declined to

punish Blackwater or the security guards, stating that "any disciplinary

actions would be deemed as lowering the morale" of the Blackwater

contractors.

Organizational Terminations

Leading

Leadership within the Blackwater organization, especially those operating in Iraq and Afghanistan, closely resembles a top down militaristic leadership style for issuing commands.

Wrong Type of Approach

Leadership Confusion

This lack of a defined role is where one of the major problems arises within the Blackwater organization. Blackwater uses an empowering leadership style on individuals who are not highly competent or highly committed to upholding the company’s mission to “uphold peace”.

What They’re Doing Right

100% mission success rate

The top down communication is clear

Prince and other Blackwater executives have

anticipated a shift away from the private security

sector and allocated company resources accordingly.

In this way, they handle change with a “premortem”

approach, being proactive to their environment

instead of taking a reactive approach.

Reccomendations

Clear Channels of Communication- Not just top-down.

There are many concerns and protests from the field mercenaries that are not relayed to higher commands.

Further Reccomendations

Clear set of operating procedures needs to be put into effect

I would also recommend stiffer penalties for breaking these rules.

According to a report from the State Department, “The most serious consequence faced by Blackwater personnel for misconduct appears to be termination of their employment”.

Questions?