Mills has been named on the governing body's commission charged with improving the national game along with FA chairman Greg Dyke, ex-England manager Glenn Hoddle, Football League chairman Greg Clarke, FA vice-chairman Roger Burden, plus LMA chairman Howard Wilkinson, new PFA chairman Ritchie Humphreys and former Crewe boss Dario Gradi.
The ex-Leeds man told the Times: "There are pockets of real potential - young players with skills I never dreamt of and progressive coaches - but they are isolated cases. I also watch a lot of awful football.
"If we want the best for English football, we need improvement with the right coaching in every school and club in the country.
"We like to think that there can be organic change, but sometimes you have to enforce it. We have to rip up the rulebook if necessary to improve kids' football."
The appointments of Mills and Gradi to the commission bring the total to eight representatives and Dyke said there would be "no more than 10" in total.
Dyke, who said that it was "a shame" the Premier League had turned down his offer to have a its chairman Anthony Fry on the commission, revealed that Mills had impressed by sending him a paper on his ideas.
Dyke said: "He wrote a very interesting paper and gave it to us - very interesting ideas.
"We are still talking to one or two other people who have not made up their minds."
The commission will report back by the end of March.
Dyke added: "It will take a few months, we are employing some people to work full time on it, to do some research. We have to look at all sorts of other countries, look at the discussion we had this morning, look at Spain, Germany and the rest, look at what they did, what could we do and the rest of it."
Asked about the Premier League's decision, he said: "I spoke to the chairman, who is an old mate of mine, and Richard [Scudamore] and we discussed it before and they said 'look, we will give all the support we can but we don't want to sit on it'.
"I think it's a shame but I understand."
Dyke also refused to discuss England manager Roy Hodgson's future if the team fail to qualify for the World Cup.
He said: "What I don't want to do is get into a discussion about backing or not backing Roy Hodgson at the moment because we have got two important games. I have got a lot of time for Roy Hodgson - I am a Roy Hodgson fan.
"What I don't want to do is get into a debate this week about Roy Hodgson. I think the debate is, 'Are we going to win or not?' I am told we can still lose after Friday night, we can still lose on Tuesday if we lose 7-0 to Poland. I am sweating!"