Resourcing Defense Innovation: The role of organizational values

Abstract

The U.S. Department of Defense (DoD) Planning, Programming, Budgeting, and Execution (PPBE) system aims to provide efficient and stable allocation of resources for defense needs that were first articulated in the 1960s. Today, the DoD continues to use this process even though its needs are changing. Namely, keeping pace with different adversaries and effectively capitalizing on fast-moving commercial technology developments are requiring the DoD to invest in new and different capabilities. To do so, it needs a resource allocation system with greater flexibility and agility to meet these demands. However, the DoD has only developed modest efforts to enable innovation that work within the current system. This paper will develop an evaluation framework for a resource allocation system to enable innovation and compare/contrast with the current system; explore levers the DoD currently enjoys for enabling innovation within the current system; assess several case studies of process, policy, and organizational change to bolster innovation; and develop lessons learned from past efforts, including insights related to the future promise and constraints of reform.