Rewiring the IC: Can Reform Strengthen Security Without Missing a Beat?

July 15, 2025

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The Intelligence Community may be on the verge of its most significant restructuring in two decades, and John Sherman—former CIO of both ODNI and the Department of Defense—thinks the time is right. Sherman shares his perspective on the Intelligence Community Efficiency and Effectiveness Act of 2025, a legislative proposal that aims to recalibrate the size, structure, and focus of the Office of the Director of National Intelligence.

Sherman praises the bill’s overall direction, saying it “mostly hits the mark.” He reflects on ODNI’s original intent—created after 9/11 to close information-sharing gaps across agencies—and acknowledges its critical role in national security. But after more than 20 years of growth, Sherman argues it’s time to “prune it back” to ensure the office remains agile and focused.

A key piece of the legislation would move several of ODNI’s operational centers—like the National Counterterrorism Center and the National Counterintelligence and Security Center—to agencies such as the CIA or FBI. Sherman supports this move, noting that these centers function more like standalone agencies and are better suited to be housed within operational departments. However, he emphasizes the importance of preserving interagency collaboration. He warns that losing the “cross-pollination” of skillsets and authorities could take the IC back to a fragmented, pre-9/11 posture.

Sherman voices concern about the proposed dissolution of the National Intelligence University (NIU). He describes NIU as a “force multiplier” and praises its unique ability to operate in a top-secret setting. The school’s ability to bring together professionals from across government for advanced, classified study and research is, in his view, irreplaceable. While there may be other institutions with similar missions, Sherman worries that shutting down NIU risks losing the capability to generate strategic, high-level intelligence work in a secure academic environment. His recommendation? Relocate NIU to the Defense Intelligence Agency—but only if funding and mission continuity are guaranteed.

One of Sherman’s biggest concerns is the risk inherent in any government reorganization. In the intelligence world, he says, “the adversary is busy all the time,” and any disruption—whether physical relocation or a reporting structure change—can’t result in gaps in mission coverage. He stresses the need for a seamless “warm handoff” of duties and a leadership approach that keeps the engine running during transition.

Sherman sees opportunities for the IC to learn from both the military and private sector when it comes to change management. While he acknowledges that intelligence work is fundamentally different, he believes there are best practices to borrow—especially in how organizations maintain service delivery while changing structure. He also cautions against turning the reorg into a massive contractor windfall, advocating instead for a cost-conscious, mission-first approach.

You can read John’s recent LinkedIn post here.