Budgeting for Capabilities Based Planning

Abstract

The Department of Defense (DoD) and many of its agencies are implementing capabilities-based strategic management and planning systems. Concurrently there are also other major initiatives underway, including DoD Transformation and AFSO21, that are specifically addressing changing capability requirements and process-improvement initiatives. Some have questioned whether there are sufficient budgetary resources available to implement the results of these initiates. As our nation's security challenges are becoming more complex, our military is transforming into an increasingly agile joint force. This new, highly flexible DoD requires an equally flexible and responsive business, financial and budgeting support infrastructure that is capable of adapting to an ever-changing operational landscape while ensuring adequate financial resources are available. Capabilities-based strategic planning may be the answer. It differs from the traditional threat-based planning by focusing on internal agency assets and processes rather than specific external threats. Using this approach at multiple levels of an agency or organization, with top-level integration focused on agency mission and key outcomes, allows the most efficient budgetary allocation of resources and promises better performance against a poorly defined or understood threat. This presentation reviews the academic theory behind capabilities-based strategic planning and ties it to current budgetary processes.