The Planning, Programming, Budgeting, and Execution (PPBE) process has been a cornerstone of the Department of Defense's decision support systems since the 1960s. This process is crucial for supporting the National Defense Strategy, delivering capabilities efficiently, and applying necessary tools and technologies to address emerging threats. Although PPBE has served well for over six decades, continual improvements are necessary to maintain agility in achieving mission success and ensuring warfighter readiness.
Under Secretary of Defense (Comptroller)/Chief Financial Officer Michael McCord emphasized his commitment to leading the PPBE reform agenda. "We have already made tremendous strides and improvements as we continue to modernize," he stated. The focus remains on evaluating and evolving capabilities and technologies to stay prepared for future challenges.
The reform agenda encompasses several components. Senior leaders within the Department are refining internal processes, with an evolved annual budget development process that aligns resources with strategy from a joint perspective while addressing critical issues. Additionally, PPBE reform has been integrated into the Strategic Management Plan under the guidance of the Performance Improvement Officer, forming a key framework for managing strategic priorities in support of the National Defense Strategy.
In 2024, the Commission on PPBE Reform released its final report with 28 overarching recommendations detailing 35 distinct initiatives. Deputy Secretary Hicks noted that "the Commissioners have put forward thoughtful and timely analysis and recommendations on a range of matters relating to effective defense resource management."
Deputy Hicks endorsed 26 out of these 35 initiatives for full or partial implementation across DoD. These reforms necessitate careful coordination with Congress, the Office of Management and Budget, and other stakeholders. While committed to advancing these reforms swiftly, McCord acknowledged that their implementation timeline would depend on cross-matrixed discussions and legislative actions.
McCord highlighted the importance of congressional partnership in evolving resourcing processes: "Their partnership is essential to vesting the Department with the authorities it needs to continue delivering results in a dynamic global environment." He called upon Congress to enact additional flexibilities to prepare for future challenges while maintaining oversight.
Finally, McCord extended gratitude towards civilian and military members contributing to PPBE reform initiatives: "I want to extend a sincere thank you to those leading these initiatives."
Further details on PPBE reform can be found on the Office of Under Secretary of Defense (Comptroller)/Chief Financial Officer's website: https://comptroller.defense.gov/
