Is the personnel management system really as jaded as Tim Kane says it is?

I know this is nearly a two year old story, but are we past the tipping point for changing the system or has the system just dug in its heals and refused to change to the times?

http://www.washingtonpost.com/national/on-leadership/how-to-lose-great-leaders-ask-the-army/2013/02/05/725f177e-6fae-11e2-ac36-3d8d9dcaa2e2_story.html