I have a much broader FAO reading list broken down by location/themes here.
GENERAL
A Force More Powerful by Peter Ackerman and Jack Duvall.
A Prince of Our Disorder: The Life of T. E. Lawrence by John E. Mack
Arts of Power: Statecraft and Diplomacy (Cross-Cultural Negotiation Books) by Charles W. Freeman
Exporting security: International Engagement, Security Cooperation and the Changing Face of the U.S. Military by Derek S. Reveron
Force and Statecraft by Gordon A. Craig and Alexander L. George
Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher
Guide for Participants in Peace, Stability and Relief Operations edited by Robert M. Perito
Guns, Germs and Steel by Diamond. Posits the strong influence of geography on development.
How Wars End: Why We Always Fight the Last Battle by Gideon Rose
Making War and Building Peace: U.N. Peace Operations by Doyle and Sambanis, 2006. Statistical analysis of trends leading to success and failure in Peace operations.
*Matterhorn by Karl Marlantes. My review on Amazon is available here and my full FUUO review is available here. My two sentence summary: We spend a disproportionate amount of time studying the facts, tactics, techniques and history of wars. I add this novel to my "must read for FAOs" list because it adds something missing: CONTEXT and TEXTURE.
Seven Pillars of Wisdom: A Triumph by T. E. Lawrence
Stillwell and the American Experience in China by Barbara Tuchman. Recommended by Hoyawolf:
Perhaps the consummate soldier/diplomat who went from Attaché to Theater Commander in WWII.
Strategy for Sustainability: A Business Manifesto by Adam Werbach
The Admiral: The Memoirs of Albert Gleaves, Admiral by Albert Gleaves
*The Diplomat’s Dictionary by Chas W. Freeman, Jr.
The Future of Power by Joseph Nye, 2011.
The SPEED of Trust: The One Thing That Changes Everything by Stephen R. Covey
*The Tipping Point by Malcom Gladwell
The Ugly American by William J. Lederer
*The Ultimate Weapon is No Weapon: Human Security and the New Rules of War and Peace by Shannon D. Beebe and Mark Kaldor