Executive Outcomes: Lessons from a High-Risk, High-Reward Venture

Executive outcomes can be a double-edged sword - they offer immense rewards, but also come with significant risks. High-risk ventures often require bold decisions and calculated risks.

In the case of Executive Outcomes, a private military company founded in 1989, the risks were substantial. The company's early successes in Sierra Leone and Angola were followed by a series of costly and disastrous interventions.

One of the key lessons from Executive Outcomes is the importance of clear objectives and a well-defined exit strategy. Without these, even the most successful ventures can quickly spiral out of control.

The company's experience in Sierra Leone is particularly instructive - after a series of costly battles, Executive Outcomes was ultimately forced to withdraw due to a combination of factors, including a lack of clear objectives and a failure to adapt to changing circumstances.

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Executive Outcomes' Structure and Operations were built around a military doctrine that emphasized relentless offensive action. This approach allowed them to quickly defeat their enemies by delivering overwhelming pre-emptive strikes supported by superior air power and firepower.

Their combat teams were assisted by forces within the countries they operated in, which not only saved on manpower costs but also made their elite units force multipliers.

In Angola, Executive Outcomes trained, integrated, and led the 5000-strong 16th Brigade, maximizing the effectiveness of the forces on the ground.

The firm's ability to maintain dynamic flexibility at the operational level and constantly keep the initiative was crucial to their success.

Executive Outcomes viewed intelligence as the lifeblood of any realistic and credible strategy, with Eeben Barlow emphasizing the importance of situational awareness.

Their operations took them across Africa and beyond, with notable contracts involving Angola and Sierra Leone.

Executive Outcomes' financing model is based on securing quotations only after clients have accepted their proposals. This approach is evident in the experience of Eeben Barlow, the founder of EO.

In many cases, military companies like EO have close relationships with corporate sponsors, such as Heritage Oil. These sponsors provide the majority of the funds for PMCs in exchange for permits to exploit energy resources.

According to Eeben Barlow's experience, EO will only secure a quotation after the client has accepted their proposals. This suggests a client-driven approach to financing.

Corporations, such as those that sponsor EO and Heritage Oil, receive permits to exploit energy resources in exchange for providing the funds for PMCs. This has been a point of criticism from many.

Eeben Barlow was the founder and CEO of Executive Outcomes, with Lafras Luitingh serving as his deputy.

As the CEO, Barlow was responsible for leading the company, and he later resigned, with Nic van der Bergh taking over as CEO.

Simon Mann, Tony Buckingham, and Derek Williams were senior associates who worked closely with Barlow and Luitingh.

Crause Steyl was the South African-based director of Ibis Air, the private "air force" for Executive Outcomes.

Eeben Barlow, also known as Echo Bravo (EB), was a former Lieutenant-Colonel of the South African Defence Force and later rose to second-in-command of the 32nd Battalion Reconnaissance Wing.

Lafras Luitingh was a senior EO personnel and served as the project manager for Executive Outcomes before becoming the CEO after Barlow's departure.

Nic van der Bergh took over as CEO after Eeben Barlow resigned, and he was previously a senior associate of Executive Outcomes.

Eeben Barlow was also the Chairman of STTEP (Specialised Tasks, Training, Equipment and Protection International) until 2020.

Executive Outcomes' success can be attributed to their ability to deploy quickly and with minimal political costs.

Their chain of command was streamlined, ensuring a smoother operation and higher compatibility of equipment and training.

This allowed them to deploy overwhelming force without the constraints of governments and the UN.

Their lower costs compared to national or multinational foreign forces also contributed to their success.

Executive Outcomes' success can be attributed to their ability to deploy faster and with much lower political costs than national militaries and multinational coalitions. This was due in part to their clear and smooth chain of command.

Their equipment and training were highly compatible, allowing them to hit the ground running in new theatres of war. This compatibility also meant they could respond quickly to changing circumstances.

The company's recruitment of highly skilled combat veterans was a key factor in their success. These veterans were willing to deploy overwhelming force on their enemies without the political constraints of governments and the UN.

Executive Outcomes was less expensive than using national or multinational foreign forces, making them a cost-effective solution for states under threat from rebels and insurgents.

Sandline International was a private military company from the United Kingdom that had a significant operation in Papua New Guinea.

In 1997, Sandline directly subcontracted Executive Outcomes, another private military company, for their operation on Bougainville Island.

The goal of the operation was to oust the rebels holding the Pangua mine, which led to the so-called "Sandline affair".

News of the government's intention to hire mercenaries was leaked to the Australian press, causing a stir.

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The Commander of the Papua New Guinea Defence Force, Jerry Singirok, ordered the detaining of all the mercenaries on their arrival.

He also reversed his support for the operation and forced the Prime Minister Sir Julius Chan to resign.

Papua New Guinea came close to a military coup as a result of the controversy surrounding the operation.

Executive Outcomes was accused of no longer being an independent military company, allegedly due to connections with UK-based companies like Heritage Oil and Branch Energy.

Critics from academia and journalism raised concerns about conflicting interests between PMCs and multinational corporations.

The company was constantly accused by the media of reasoning by profit to exploit local resources and lack of accountability.

Academics have raised concerns about conflicting interests between PMCs and multinational corporations, but the claims remain largely unproven.

Executive Outcomes faced a "disinformation war" from elements of South African politics and society, which allegedly fueled public criticism against the company.

The company terminated its operations on 1 January 1999 due to negative publicity and the "disinformation war" against it.

Executive Outcomes was dissolved on 31 December 1998, marking the end of its first iteration. This decision came after the company was granted a license under the newly introduced Regulation of Foreign Military Assistance Act in 1998.

The Act aimed to prevent mercenary activities by two main actions: preventing direct participation as a combatant in armed conflict for private gain and requiring approval for offering military assistance overseas.

The Regulation of Foreign Military Assistance Act was formulated with the help of Executive Outcomes, which actively encouraged the South African government to enforce regulations on Private Military Companies (PMCs).

Here are the two main actions of the Act:

Executive Outcomes would later be reestablished in 2020, but that's a story for another time.

Executive Outcomes was actively involved in shaping the South African government's approach to regulating private military companies (PMCs). The company encouraged the government to enforce regulations to prevent mercenary activities.

In 1998, the South African government introduced the "Regulation of Foreign Military Assistance Act", which aimed to stop mercenary activities by two main actions.

The Act's dual actions included preventing direct participation as a combatant in armed conflict for private gain, and requiring approval from the National Conventional Arms Control Committee for offering military assistance overseas.

Executive Outcomes was provided with a license stipulating that it met the requirements of the newly introduced Act. This was likely due to the company's involvement in shaping the regulations.

Executive Outcomes was dissolved on 31 December 1998.

In November 2020, founder Eeben Barlow stepped down from his position as chairman of STTEP to restart Executive Outcomes. He had "little choice but to accept" the request from some African governments to restart the company.

Barlow mentioned that part of Executive Outcomes' mission would now be to expose those who lie for secret payments. This change in mission suggests a shift in the company's priorities.

The decision to restart the company was made by Eeben Barlow, who had previously stepped down as chairman of STTEP.

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Executive Outcomes has been revived, but it's difficult to map out potential future scenarios due to its secretive nature.

The company has stated it will not operate in South Africa due to past divergences with elements of the South African state.

Executive Outcomes has a reputation for effectiveness, earned through impressive military accomplishments, and will likely capitalize on this to provide "African solutions to African problems".

The private military industry has seen important developments in recent years, with the rise of companies like Wagner Group in Africa.

Executive Outcomes has a history of successfully completing contracts, never failing in a contract or abandoning a client government, and saved many thousands of lives during its active years.

Eeben Barlow, the founder and chairman of Executive Outcomes, has stated that the company will not comment on current contracts, but has mentioned strategic partnerships with two companies that have a reputation for adding value to governments.