ppbe presentation

7/28/2019 PPBE Presentation

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Georgina AnthonyAntonella DemartiniChantell FletcherJacob LileSereney Usta


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Overview of PPBS & PPBE PPBS was developed in 1961 by the Department of Defense

Designed to improve efficiency through long-termplanning and cost-benefit analysis of alternative programs

Not expenditure driven, not limited to a single year

Linked policies and priorities with available financial

resources

PPPS became PPBE in 2003 to streamline connection

between priorities and decisions

PPBE is a high-level multi-year continuous budgetary

process

Used by DOD, NASA and NOAA


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Four Phases of PPBE (Planning) Provides strategic rationale for agency programming and

budgeting

Articulates long-range goals superimposed over ever-changing

conditions and trends

Forecasting is conducted from a cost-benefit perspective

Relates resource allocation to alternative uses of capabilities

and capacities

Example: DOD forecasts the number of troops/

equipment/services required for a military operation. This resultsin the creation of a Strategic Planning Guide (SPG) by the

Secretary of Defense and Joint Chiefs. The SPG is the final

analysis and will set the stage for phase two.


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Four Phases of PPPB (Programming) Aligns resources with specific actions to achieve department

goals

Programs are the actual activities, supporting equipment, goods

and services purchased/developed

Translates planning into action

Compares current capability with needed future capability

Evaluates existing programs for efficiency and guideline

development

Example: DOD FY 2012 Budget Request includes a 374page document addressing programming changes/terminations

i.e. promoting joint service solutions to address strategic needs


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Four Phases of PPBE (Budgeting) Budget Estimate Submission (BES) four years: Last completed,

current, next two years

Goal of BES is to estimate, formulate, justify, document to

support and implement directives

Using categories to associate programs to each objective, the

budget phase clearly connects budget decisions and strategic

planning

Example: DOD FY 2012 Budget Request includes a 87

page section: Program Acquisition Costs by Weapon System

reporting FY 10 and 11 quantity and cost detail for the

militarys combined weapon system

DOD uses this data to forecast cost estimates for maintaining

required programs for strategic compliance


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Four Phases of PPBE (Execution) The real world manifestation of the budget (where the rubber

meets the road)

A critical element of PPBEs core strategic purpose

Matches planned programs with actual resources

Measures performance

Provides feedback for more efficient and effective future

execution

Example: DOD FY 2012 Budget Request features the

Department of Defense Efficiency Initiatives, including reviewsof program costs, discussion of reduced overlap, emerging best

practices and potential for program reductions


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Advantages to PPBE Allows for long-term forecasting Provides the ability to connect budgetary decisionmaking with strategic outcomes Allows visualizing trade-off options as needs andcosts are considered simultaneously Provides prioritization by conducting gap andexcess analysis Offers flexibility, continual revision and ease ofprogram performance tracking


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Challenges to PPBE High financial and administrative costs (requires ahigh number of specialized analysts over an extendedperiod of time) Requires a high level of management and departmentacceptance and participation Limits creativity (long-term projection could lead to auniform approach to treating an evolving issue PPBE is only useful when units of an agency performsimilar tasks Despite the multi-year approach, the link betweenexpenditure and revenue may not be transparent


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Challenges to PPBE High financial and administrative costs (requires ahigh number of specialized analysts over an extendedperiod of time) Requires a high level of management and departmentacceptance and participation Limits creativity (long-term projection could lead to auniform approach to treating an evolving issue PPBE is only useful when units of an agency performsimilar tasks Despite the multi-year approach, the link betweenexpenditure and revenue may not be transparent


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Recommendations PPBE should only be used in highly structured agencieswith considerable capital and human resources (DOD,NASA) Performance measurement should be integrated intothe budgetary cycle The form of PPBE lends itself to performancemeasurement in each phase of the cycle As budget justification rests upon performance results,justification is necessary to receive public support The DOD could act more responsibly in their budgetingprocess


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Questions?

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