Overview: Six Guiding Principles of a Next-Generation Defense Budget System Whitepaper

Now more than ever our adversaries are posing a real threat to our economy, sovereignty, and security. As other countries are investing in rapidly modernizing their militaries we are plagued with the overly bureaucratic and increasingly inflexible Planning, Programming, Budgeting and Execution (PPBE) process.

In short, our rivals are seemingly better equipped to modernize their militaries more rapidly. Meanwhile, the PPBE process in the US, while intended to unify strategy and budget, has become overly rigid, bureaucratic, and unproductive.

Despite the current dynamic, by modifying the current system, re-engineering antiquated processes and infusing new technology will ensure the United States remains the premier global military.

Recognizing the importance of this transformation, leaders across the federal government have commenced two major initiatives to address urgency of this transformation:

• The President’s Management Agenda (PMA) cites that managing the business of government – specifically financial systems – is worthy of sustained focus.
• The 2022 National Defense Authorization Act requires the establishment of a committee to reform the DoD’s 60-year old Programming, Planning, Budgeting and Execution (PPBE) process. The final report from this commission is due in the summer of 2023. 

Before reforming the system, it is essential to identify the challenges with the current approach. These include:

1. The current system is too rigid
2. It slows innovation
3. It prevents strategic alignment
4. It is not transparent
5. It’s mostly manual

The eBook Six Guiding Principles of a Next-Generation Defense Budget System highlights the essential elements a new system must adhere to, to advance national interests.

1. Powered by leading edge technology
2. Deliver mission alignment
3. Planning must be continuous
4. Transparency and accountability are embedded
5. Collaboration is required
6. It must be enterprise-wide

It is time for the DoD to accelerate its adoption of a next generation defense budget system. We cannot continue to accept the rapidly diminishing return on each dollar invested in national security and the resulting delayed delivery of new capabilities and innovations to US forces.

With the right partners, the best technology, and forward-leading thinkers our next defense budget system will allow the DoD to achieve the software supremacy necessary to deliver for the warfighter, protect its citizens and win future wars. By rethinking how it plans, programs, budgets, and executes, the DoD will regain lost momentum, restore readiness, and win the future.

Read Six Guiding Principles of a Next-Generation Defense Budget System