This article is an exclusive feature for Business Insider subscribers. Join now to access full content and insights.

Mara Karlin, a former high-ranking official in the Department of Defense (DoD) during the Biden administration, has issued a strong warning against attempts to run the Pentagon with a business-oriented mindset. In her recent commentary for the prestigious magazine Foreign Affairs, Karlin argues that neglecting the intricate realities of military risk could have disastrous consequences for national security.

Secretary of Defense Pete Hegseth has expressed optimism about the potential for the Department of Government Efficiency, headed by Tesla CEO Elon Musk, to instill what he describes as actual businesslike efficiency within the government. However, Karlin is skeptical of this approach, emphasizing that while the need for reform within the DoD is widely recognizedespecially given its notorious reputation for inefficiency and a dismal track record of failing seven consecutive auditsmodeling the Pentagon after corporate structures is not a viable solution.

"The Pentagon is not a business," Karlin asserts, pointing out significant distinctions between the military and corporate environments. One of the primary factors is the size and composition of the DoD's workforce. The Department is supported by an all-volunteer military force and a vast number of lifelong civilian public servants, creating a workforce that is 40% larger than that of the next biggest employer in the United States. This complexity and reliance on institutional knowledge make the Pentagon fundamentally different from a typical corporation.

Moreover, Karlin highlights the absence of a centralized leadership structure akin to a CEO or board of directors that could implement rapid changes within the DoD. Instead, oversight belongs to the hundreds of members of Congress, who have a history of inadequately addressing crucial issues such as the broken continuing resolution process. This ineffectiveness has created temporary funding solutions that hinder the ability to finance essential contracts for munitions, maintenance, and other critical military needs.

The staggering budget of the DoD, which currently stands at an eye-watering $850 billion and is projected to increase, is also under Congressional control. Lawmakers ultimately dictate how this substantial funding is allocated, further complicating the Pentagon's ability to make swift adjustments to its operational framework.

Karlin explains that the structural challenges faced by the DoD are compounded by its unique mandate related to national security. The nature of risk management in the military is vastly different from that in the private sector. In a corporate setting, the failure of a startup may lead to financial losses and job layoffs; however, in the military realm, failure can have dire human consequences. As Karlin poignantly notes, "If the military fails, people die." This stark reality elevates the stakes involved in risk-taking for the DoD, necessitating a more cautious and measured approach compared to the corporate world.

According to Karlin, the disconnect between military operations and corporate strategies means that efforts to transform the Pentagon into a more business-like entity are likely to backfire. She warns that if Secretary Hegseth and the Department of Government Efficiency continue their current trajectory, it could not only lead to failure but also potentially jeopardize the effectiveness of the U.S. military.

While Karlin acknowledges the pressing need for change within the Pentagon, she insists that any effective reform must respect the unique characteristics of the organization. Unfortunately, she notes that early indicators suggest a troubling path ahead. Karlin also cautions that aggressive reforms by the Department of Government Efficiency could produce outcomes worse than mere failure, referencing past instances where similar initiatives have led to significant operational disruptions. For example, she points to the Department of Energy, where the DOGE initiative led to the termination of many employees responsible for handling nuclear materials, a decision that was later reversed after recognizing the critical nature of these roles.

In the meantime, Pentagon leadership remains focused on identifying and eliminating what they deem as wasteful expenditures. Recently, Secretary Hegseth announced that the DoD has successfully eliminated approximately $5.1 billion in contracts considered unnecessary or overly costly. This move is part of broader efforts to streamline operations and enhance accountability within the organization.