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PPBE: Research on Operation and Latest Development

Received: 16 December 2020     Accepted: 24 December 2020     Published: 31 December 2020
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Abstract

PPBE (Planning-Planning-Budget-Execution System), is a multi-year, overlapping and rolling budget cycle process, which consists of four phases of planning, programming, budgeting, and execution. The purpose of PPBE is to establish a link between policy objectives and budgeting and form an effective defense resource allocation system with optimized combination of manpower, equipment, and support under certain resource constraints. Since the 1960s, PPBE has continued to make revisions and reforms with increasing changes of political, institutional environment. There were three important reforms, Laird reform, The Goldwater-Nichols Defense Restructuring Act, and Rumsfeld Reform. Since Rumsfeld's reform, the adjustment and development of PPBE is mainly to improve the efficiency of resource. Although budget management has its own emphasis in different periods, last development of PPBE is mainly flexibility, conciseness, and efficiency improvement. This paper reviews the evolution process and the latest development by historical analysis. After more than 60 years of evolution and development, PPBE continues to play an important strategic management function in the US Department of Defense. The study found that PPBE is more challenging for large organizations to maintain normal operation and improve adaptability and responsiveness in uncertain environments. In the 21st century of conflict and uncertainty, it would be long-time challenge for PPBE to trade off increasing defense demand and decreasing financial constraints. Therefore, it is worthy of further studying how to improve the budget capability of PPBE participants in the future.

Published in American Journal of Theoretical and Applied Business (Volume 6, Issue 4)
DOI 10.11648/j.ajtab.20200604.17
Page(s) 98-105
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Strategic Planning, Defense Resource Allocation, PPBE

References
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[4] Team, J. D. C. S. (2004). Joint Defense Capabilities Study: Improving DoD Strategic Planning, Resourcing, and Execution to Satisfy Joint Capabilities: US Department of Defense.
[5] Grimes, S. R. (2008). PPBS To PPBE: A Process Or Principles? ARMY WAR COLL CARLISLE BARRACKS PA.
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[17] Raj Gnanarajah. (2019). Defense Primer: FY2018 Department of Defense Audit Results. Available at: https://crsreports.congress.gov/product/details?prodcode=IF10913. Accessed.
[18] Blume, S. V. & Lauren, F. (2017). A Brief History of Defense Budget Instability: Center for a New American Security.
[19] Andrew, H. (2019). Budget Strategy Mismatch. Armada International, 43 (6), 34.
[20] Sharp, T. (2019). DID DOLLARS FOLLOW STRATEGY? ANALYSIS OF THE 2020 DEFENSE BUDGET REQUEST. Available at: https://csbaonline.org/research/publications/did-dollars-follow-strategy-a-review-of-the-fy-2020-defense-budget. Accessed.
[21] West, W. F., Lindquist, E. & Mosher-Howe, K. N. (2009). NOAA's Resurrection of Program Budgeting: Déjà Vu All Over Again? Public Administration Review, 69 (3), 435-447, 370. doi: 10.1111/j.1540-6210.2009.01990.x.
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    Lixiang Chen. (2020). PPBE: Research on Operation and Latest Development. American Journal of Theoretical and Applied Business, 6(4), 98-105. https://doi.org/10.11648/j.ajtab.20200604.17

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    Lixiang Chen. PPBE: Research on Operation and Latest Development. Am. J. Theor. Appl. Bus. 2020, 6(4), 98-105. doi: 10.11648/j.ajtab.20200604.17

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    AMA Style

    Lixiang Chen. PPBE: Research on Operation and Latest Development. Am J Theor Appl Bus. 2020;6(4):98-105. doi: 10.11648/j.ajtab.20200604.17

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  • @article{10.11648/j.ajtab.20200604.17,
      author = {Lixiang Chen},
      title = {PPBE: Research on Operation and Latest Development},
      journal = {American Journal of Theoretical and Applied Business},
      volume = {6},
      number = {4},
      pages = {98-105},
      doi = {10.11648/j.ajtab.20200604.17},
      url = {https://doi.org/10.11648/j.ajtab.20200604.17},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20200604.17},
      abstract = {PPBE (Planning-Planning-Budget-Execution System), is a multi-year, overlapping and rolling budget cycle process, which consists of four phases of planning, programming, budgeting, and execution. The purpose of PPBE is to establish a link between policy objectives and budgeting and form an effective defense resource allocation system with optimized combination of manpower, equipment, and support under certain resource constraints. Since the 1960s, PPBE has continued to make revisions and reforms with increasing changes of political, institutional environment. There were three important reforms, Laird reform, The Goldwater-Nichols Defense Restructuring Act, and Rumsfeld Reform. Since Rumsfeld's reform, the adjustment and development of PPBE is mainly to improve the efficiency of resource. Although budget management has its own emphasis in different periods, last development of PPBE is mainly flexibility, conciseness, and efficiency improvement. This paper reviews the evolution process and the latest development by historical analysis. After more than 60 years of evolution and development, PPBE continues to play an important strategic management function in the US Department of Defense. The study found that PPBE is more challenging for large organizations to maintain normal operation and improve adaptability and responsiveness in uncertain environments. In the 21st century of conflict and uncertainty, it would be long-time challenge for PPBE to trade off increasing defense demand and decreasing financial constraints. Therefore, it is worthy of further studying how to improve the budget capability of PPBE participants in the future.},
     year = {2020}
    }
    

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    AU  - Lixiang Chen
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    N1  - https://doi.org/10.11648/j.ajtab.20200604.17
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    T2  - American Journal of Theoretical and Applied Business
    JF  - American Journal of Theoretical and Applied Business
    JO  - American Journal of Theoretical and Applied Business
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    SN  - 2469-7842
    UR  - https://doi.org/10.11648/j.ajtab.20200604.17
    AB  - PPBE (Planning-Planning-Budget-Execution System), is a multi-year, overlapping and rolling budget cycle process, which consists of four phases of planning, programming, budgeting, and execution. The purpose of PPBE is to establish a link between policy objectives and budgeting and form an effective defense resource allocation system with optimized combination of manpower, equipment, and support under certain resource constraints. Since the 1960s, PPBE has continued to make revisions and reforms with increasing changes of political, institutional environment. There were three important reforms, Laird reform, The Goldwater-Nichols Defense Restructuring Act, and Rumsfeld Reform. Since Rumsfeld's reform, the adjustment and development of PPBE is mainly to improve the efficiency of resource. Although budget management has its own emphasis in different periods, last development of PPBE is mainly flexibility, conciseness, and efficiency improvement. This paper reviews the evolution process and the latest development by historical analysis. After more than 60 years of evolution and development, PPBE continues to play an important strategic management function in the US Department of Defense. The study found that PPBE is more challenging for large organizations to maintain normal operation and improve adaptability and responsiveness in uncertain environments. In the 21st century of conflict and uncertainty, it would be long-time challenge for PPBE to trade off increasing defense demand and decreasing financial constraints. Therefore, it is worthy of further studying how to improve the budget capability of PPBE participants in the future.
    VL  - 6
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Author Information
  • Institute of Finance and Economics, Central University of Finance and Economics, Beijing, China

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