Definitive Logic has proposed five concepts to the Planning, Programming, Budgeting and Execution Reform Commission to help improve the Department of Defense’s PPBE process and one of those is the need to start with Fortune 500-tested processes for financial planning.
“Today’s Fortune 500-tested financial planning processes have a proven track record of allocating resources well against major systemic changes. These software-based processes support multi-dimensional competition,” the company wrote in an open letter to the commission published Monday.
Another idea suggested by the Arlington, Virginia-based information technology services contractor is shifting the focus of PPBE from the management of inputs to “performance management, including prioritizing the outputs and goals of the National Defense Strategy at each step in the process, with evidence-based indicators of effectiveness and other outcomes.”
The other three concepts Definitive Logic proposed to help reform DOD’s PPBE process are eliminating the “color of money” by tying “money to purpose with agility in how resources are applied”; shifting to a more decentralized resource allocation process to enable users to generate data-driven decisions and the Pentagon to become more agile; and expanding the charter of the commission beyond process by making changes to people and culture, partners, policy and authorities and IT platforms.
In late February, DOD named two former defense officials to the 14-member commission tasked with exploring potential alternatives to the current PPBE process and practices and offering policy recommendations that will enable the department to deploy operational capabilities against near-peer competitors. The commission was established in accordance with the fiscal year 2022 National Defense Authorization Act.