Planning, Programming, Budgeting and Execution - Research Paper Example

Planning, Programming, Budgeting and Execution Purpose: The aim of this paper is just to create the better understanding about the working of PPBE, Planning, Programming, Budgeting and Execution System. Moreover, the role of NOAA’s agency is also explained in relation with PPBE system. Methodology: This paper involves theoretical framework to make the system of PPBE clear in the mind of the readers. Findings: Findings of this paper make it clear that no system can work in isolation. As far as PPBE is concerned, it involves all the phases carefully balanced and work in relation to make the system more effective and applicable. Value: This paper will definitely contribute a lot if you want to make clear in your minds the system and working of PPBE. Keywords: Planning, Programming, Budgeting and Execution. Hypothesis: Department of Defense DOD, allocates its resources effectively through Planning, Programming, Budgeting and Execution System. Introduction: First of all it is very important to mention all the relevant terms used in the paper before embarking a detail discussion on our topic. This will help the readers to understand each and every bit of the paper in a well manner. So, here I am explaining some key and practical terms including PPBE, Planning, Programming, Budgeting and Execution in the context of the main theme of the research paper. PPBE: Basically, PPBE refers to Planning. Programming, Budgeting and Execution process that involves the working of the defense department. This process tells us that how department of defense (DOD) allocates their resources. It further highlights the process that how department of defense in collaboration with their contractors work together in managing their tasks within fiscal budget. Moreover, how they follow the defense strategies, goals and policies of the defense department. So, DOD put into practice a process that further manages resource allocation. This process is carried out in four essential phases. So, the functions of PPBE includes, The development and articulation of the strategy Identification of the programs and required forces Requesting for the funding of different programs Execution of all the available funds and their monitoring plus further adjustment Moreover, the facets analyzed in PPBE include, Long term guidance ( out of 20 years) Long range objectives (out of 10 years) Mid range objectives (out of 6 years) Planning: OSD and Joint Staff are the two main acting participants of the planning phase. They jointly articulate military strategy and national defense policies. Military strategy also known as SPG, Strategic Planning Guidance leads into EPP, Enhanced Planning Process. In EPP, several priorities of military budget are set for further program developments including force modernization, sustainability and readiness. Moreover, it also supports business process and overall infrastructure of the military. Finally, the result of EPP is written up and forwarded to JPG, Joint Programming Guidance. JPG helps in linking the two phases including planning and programming phase. Furthermore, it also helps various agencies and DOD department to write a POM, Program Objective Memorandum. So, planning is a process that includes the definition and assessment of all the alternatives strategies plus the critical analysis of changing trends and conditions, technology and threat. Moreover, it also includes the economic assessments with efforts to recognize change and the long term goals and implications of the current choices. Finally, we can say that it is a process of determining requirements and needs. Programming: In the beginning of this phase, each agency and DOD department writes a POM, Program Objective Memorandum. Each POM describes the proposed budget for manpower, forces and funding. It is a next six years plan. Moreover, POM also highlights those risks that may associate with the shortfall of budget. Each POM is reviewed by senior leaders of OSD and Joint Staff Committee. Furthermore, if there is any shortfall on the behalf of the budget then Joint Staff and OSD propose reasonable alternatives and they finally adjust the budget. Finally, the Secretary of Defense settles and resolves all the issues left behind and write all these in PDM, Program Decision Memorandum. So, we can say programming is the process that defines and analyzes the alternative force structures, support systems and weapon systems with their multi year resource implications. It also involves the evaluation of various options available. Generally, it is a process that helps to balance and integrate resources among various programs according to specific priorities. Budgeting: Programming and budgeting phase both run at the same time. Each agency and DOD department suggests and submits its budget estimate with POM. This budget estimate is submitted along with all the essential justifications. USD and OMB analysts critically review the overall submissions. The submission is reviewed to ensure that current policy and program funding is matched or not and finally this is justifies to the Congress. In a general way, the analysts do hearings and write up their questions during reviewing the budget. After the completion of hearings, each analyst prepares the PBD, Program Budget Decision for every program that is used to adjust any further issue or problem that is identifies in hearings. After resolving all the issues, the PBD then goes to DEPSECDEF for final decision. The decision to OMB and in last step the DOD budget is provided as a part of president’s request to Congress for final approval. It can be well said that budgeting is the process that includes the formulation, reasoning, execution and control of budget. It is a complete process to convince Office of Secretary of Defense and Congress to provide necessary resources that would be used and spends in accordance with law. Execution: The phase of execution is carried out at the same time when the programs and budget reviews are carried out. Basically, execution reviews provide feedback to senior leadership of OSD. This feedback is about the effectiveness of the budget. During execution phase, program metric developed that helps in measuring the actual output versus the expected performance. Background: The system of PPBS, Planning, Programming and Budgeting System was established and developed in 1962 by Secretary of Defense Robert McNamara. The system we know today is quite different as compared to the one established in 1962. When we look at the era prior to McNamara, we will see that each and every service developed and maintained its own budget and submitted to the Congress for final approval. However, when McNamara became SECDEF, Secretary of Defense in 1962, he brought into practice more rational and professional approach to control big organizations and large departments. His theory of controlling and establishing important areas involve the principle of long term and multi year programming. His approach required each service to submit its document for multi year programming which was termed as FYDP, Five Year Defense Program. The SECDEF was considered as the only authority that can approve any change to the overall document. In the light of that consideration, if any service wanted to add, delete and revise anything in the document they should have the final approval of the Secretary of Defense. The office of Secretary of Defense had the final authority to approve, disapprove and modify any change. To make the system more rational and impersonal, OSD established the Program Analysis and Evaluation office. The fundamental responsibility of this institution was to establish a system that evaluated all the change requests and recommended to Secretary of Defense those that had merits. In the beginning, Program Analysis and Evaluation office focused on all the technical merits and defense needs. Later on it started focusing on the affordability against technical merits because of the resource constraints. So, office of the Secretary of Defense required a system that can discipline timing, quantity, frequency and value of all the changed proposals. So, PPBS framework was developed to coordinate all these disciplines. This system was based on the guidance of OSD. To make the system more rational and responsive, several initiatives were generated and changed the system of PPBS into PPBE process. PPBE process includes the complete range of activities that coordinates the functioning of Department of Defense. Army decisions concerning budget and the allocation of resources are also fulfilled with the help of this process. So, in 2003, Department of Defense changed PPBS to PPBE process and currently both the army and DOD processes are collectively known as PPBE. Major Members Involved in PPBE Process: OSD Defense Resources Board (DRB) HQDA Army Resources Board (ARB) HQDA Senior Review Group (SRG)  HQDA The Planning Program Budget Committee (PPBC) HQDA Council of Colonels HQDA Program Evaluation Groups (PEGs) MACOM/ Program Budget Advisory Committee (PBAC) Why PPBE system should be used? There are many reasons behind this system that makes it a popular process and system followed while allocating various resources. First of all, this system is rigorous or comprehensive that can better deal with all the issues associated with resource allocation. It further identifies the mission requirements. Moreover, it translates mission requirements into personnel resources PPBE helps in the evaluation of alternatives It prioritizes the requirements Process of PPBE incorporates legislative and administrative initiatives Two Kinds of Systems Operating At Department of the Army: Two kinds of systems operating at department of the army includes, Admin Plan Program Budget Administrative system involves the processes of control that are established to provide the policies and procedures that can be followed to communicate while living in a standard format within the army headquarter. PPBE is the internal system of Department of Defense, DOD and it has become an integral part of Congress and other Executive Departments. This system influences the activity levels, weekend tasks requirements, and late hours, leave schedules and character of everyone it touches and involved. The entire process of PPBE focuses on the capabilities of the Army. These capabilities not only include the needs of army for today but for the near future as well. Congress and Executive Branch adjust and refine these capabilities of the Army while fulfilling their responsibilities. Capabilities of the Army: Here it is very important to mention that if we want to sustain, provide and improve the capabilities of the Army and want to associate the overall functioning with PPBE, we will see a relation like that, So, it is an integration of various functions performed through the process of PPBE. This process and relationship requires considerable coordination and cooperation between all the responsible agencies. Now, we turn to some more description about PPBE working. Different phases are explained with some more description, Process Involved in PPBS system: PLANNING: In the planning phase, department of defense conducts an enhanced, joint, collaborative, capabilities based planning process, resolving major issues and analyzing all the problems related to budget and finances. In this process the Army or the Department of Defense breaks the time frame of planning into three main sections including the far term out of 25 years, the mid term out of 16 years and the near term out of 6 years. Consistency during this phase is critical if the plan is relevant. However, if there is no consistency and the plans are constantly and continuously changing then it loses its credibility and people start ignoring the plan. So, consistency is the fundamental reason why army provides stability by its resource allocation during planning phase. Here a question arises, who carry out all the tasks of planning? When we talk about the ‘who’ aspect of the planning, we will see that OJCS, Organization of the Joint Chiefs of Staff produces a document known as NMS, National Military Strategy. NMS is considered the Chairman of Joint Chiefs of Staff document that helps to define the national military objectives, establishes all the strategies that can be helpful in achieving the required objectives and finally addresses all those capabilities of the military that can further assist in the execution of these strategies. NMS further provides recommendations, how the military force is employed to achieve the objectives and goals. PROGRAMMING: In the phase of programming, the programmer translates the objectives and goals of the planners. These objectives involving the requirements are translated into finite actions by applying resources. In this phase the programmer concentrates and considers all the alternatives but he remains focused on the objectives and guidance put forward by the planner. So, the most important and critical task of the programmer is to integrate all the objectives and requirements into a balanced and well defined program. Here are some important questions that come into the category of programming phase. How big will we make the Army? What forces will it contain? What will we buy? Where and what will we build? What are the expected resource constraints? BUDGETING: Programming phase leads towards budgeting phase. Once the senior leadership of the Army approves and prioritizes the program of the army, it leads to budgeting. POM and BES jointly work for the formulation of the budget. EXECUTION: After budgeting it comes the phase of execution. Before 1981, PPBS more focused on planning, programming and budgeting phases of the system and they consider these as the essential systems of the overall process. So, there was a major deficiency in the process and that was the execution of the programs and budget in the field of Army. So, it was badly required that execution also becomes an essential and critical part of the process. So, this was the basic reason why the name of PPBS changes into PPBES. Execution also became an important part of the overall system. Formally and officially, Army changed PPBES to PPBE in September 2003. However, there are several aspects and events that must be followed before carrying out final execution in the program. Army can execute its entire program after the signs of the President and the authorization and approvals of bills from Assembly or Congress. OMB must allocate the appropriations providing budget authority. Moreover, it would be required that the Department of Treasury must concern and issue a Treasury Warrant providing cash. Under Secretary of Defense also known as Comptroller released the program authority. So, before executing the final program for a fiscal year, all these important authorities must be included in the Program Budget Accounting System. NOAA’s Approach to PPBE: NOAA’s approach is considered one of the leading agencies to PPBE system. Here I am briefly discussing about NOAA’s vision as well as its relation to PPBE system. NOAA’s Approach or Vision: It is an informed society that helps to develop an understanding about the role of various land forms like coasts, oceans and atmospheres in the overall global ecosystem to make best economic and social decisions. The mission of this agency is to predict the changes in the environment and manage various resources to meet Nation’s social, economic and environmental requirements. Here I am briefly describing the functions and goals of this agency. Produce: All the research of this agency is based on observation and data, research and development and models and predictions. Provide: So, the data and research collected through several means provide data and information, ecosystem stewardship and expert knowledge as a whole. Application: The application of the results and data collected is applied on the overall environment including weather & water, climate, ecosystem, commerce and transportation. Manage: This approach further helps in the management of finances, infrastructure, workforce and the concerned organizations and departments. So, it can be well said that NOAA creates several values for a society. Relation of NOAA’s Approach to PPBE System: Here the question arises how NOAA set its priories, aligns various programs and maximizes the overall value of its investments in relation to PPBE? PPBE, as already mentioned in detail, is the planning, programming, budgeting and execution system. Basically, NOAA’s strategic vision is used by PPBE system. This is used to drive annual investments and to manage priorities. Various policy choices and budget developments are also made with the help of NOAA’s vision. Moreover, NOAA’s also provides systematic approach and knowledge while resource allocation and programming maximization in PPBE system. Conclusion: Finally, we can conclude the overall discussion in a way that PPBE, Planning, Programming, Budgeting and Execution system works well when all the phases properly work and coordinate in relation to one another. Moreover, each and every phase has complete framework with which it works and executes the final policies and objectives in a more balanced way. References: 1. Ft, Jackson. “The Army’s Planning, Programming, Budgeting & Execution System”. Accessed, 23 March 2010. Available at: http://74.125.113.132/search?q=cache:qmPe-OKHGHAJ:mass.epoweredlearning.com/FA45_DO85/Project_Web/First%2520Draft/AJA45101Slides.ppt+ppbes+process&cd=9&hl=en&ct=clnk&gl=us 2. “Department of Defense PPBE Process”. Accessed, 23 March 2010. Available at: http://www.skit.com/usc/sae550/DoD-Army-PPBE.pdf 3. John, Roth. “The Planning, Programming, Budgeting and Execution (PPBE) Process”. Accessed at, 23 March 2010. Available at: http://www.napawash.org/pc_government_performance/Workshops/Roth05-05.pdf 4. “Defense Acquisition Portal”. Accessed at, 24 March 2010. Available at: https://dap.dau.mil/aphome/ppbe/Pages/Default.aspx . Read More