# Presentation: 857140

## PPBES: Meeting Requirements, Maximizing Value

- Panelists:
**Paul Doremus**, **Steve Austin**, **Maureen Wylie**
- NOAA Leadership Seminar
- 29 August 2007

## NOAA Strategic Plan for2006 - 2011

**NOAA’s Vision:** An informed society that uses a comprehensive understanding of the role of the oceans, coasts, and atmosphere in the global ecosystem to make the best social and economic decisions
**NOAA’s Mission:** To understand and predict changes in the Earth’s environment and conserve and manage coastal and marine resources to meet our Nation's economic, social, and environmental needs

## NOAA Goals and Functions

## Many opportunities exist for NOAA to create value for society, however, fully addressing society’s needs would require roughly double NOAA’s current resource levels.
Extensive requirements gaps in all Goals 
Societal demands are increasing in many areas		
How does NOAA set priorities, align programs, and maximize the value of its investments?

- Extensive requirements gaps in all Goals
- Societal demands are increasing in many areas
***How does NOAA set priorities, align programs, and maximize the value of its investments?***

**Opportunities and Limitations**

## PPBES is an integrated, requirements-based system for planning, programming, budgeting and execution...
that uses NOAA’s strategic vision to drive annual investment and management priorities, programmatic and policy choices, and budget development; and
that provides a systematic approach to allocating resources optimally and maximizing programmatic impact.

- that uses NOAA’s strategic vision to drive annual investment and management priorities, programmatic and policy choices, and budget development; and
- that provides a systematic approach to allocating resources optimally and maximizing programmatic impact.

**PPBES Objective**

## Why PPBES?

- The Planning, Programming, and Budgeting System (PPBS) had its birth in the government in 1962.
- Proponents of PPBS believed that efficiencies and improvements in government operations could be achieved through a common approach for:
- Establishing long-range planning objectives
- Analyzing the costs and benefits of alternative programs that would meet those objectives
- Translating programs into budget and legislative proposals and long-term projections.

## Why PPBES?

- PPBS differed from the traditional budgeting process that preceded it in two significant ways.
**Emphasized objectives: **PPBS focused less on the existing base and annual incremental improvements to it, and more on the objectives and long-term alternative means for achieving them. As a result of this shift in focus, PPBS was elevated to a level on par with budgetary management and control.
**Linked planning and budgeting**: by means of programming, PPBS instilled a process that essentially defines a procedure for distributing available resources equitably among the many competing or possible programs.

## PLAN

- PROGRAM

- BUDGET

- EXECUTE

- PURPOSE

- STEPS

- LEAD

- What
- NOAA
**SHOULD**
**DO**

- What
- NOAA
**CAN**
**DO**

- What
- NOAA
**WILL**
**DO**

- What
- NOAA
**REALLY**
**DOES**

- Program
- Review
- and
- Development

- Strategic
- and
- Annual
- Planning

- Budget
- Formulation
- and
- Justification

- Program
- Performance
- and
- Management

- Program
- Planning &
- Integration
- (PPI)

- Program
- Analysis &
- Evaluation
- (PA&E)

- Chief Financial
- Officer
- (CFO)

- Deputy
- Under
- Secretary
- with CFO

## PPBES:Functions and Products

- Planning

- Programming

- Budgeting

- Execution

- Set long-termstrategic direction
- Evaluate trends,requirements, &stakeholder needs
- and adjust NOAA
- -wide priorities

- NOAA Strategic
- Plan
- Annual Guidance Memorandum
- ProgramOperating Plans& Goal PortfolioAssessments

- Analyze NOAA’sability to meetits strategic goalsand objectives
- Alignresources tomeet NOAApriorities

- Adjust ProgramPlan to meet
- budget guidance& new requirements
- Develop Budget
- Allocate andmanage finances

- Execute adjustedProgram Plan
- Optimizeoperations
- Monitor progressand adjust

- Programming and Fiscal Guidance
- ProgramDecisionMemorandum
- NOAA
- Program

- NOAA
- Budget
- DOC Budget
- President’s
- Budget
- Fiscal Plans &Reports

- Annual & Budget
- Operating Plans
- Employee
- Performance
- Financial Statements & Audit
- Performance and Accountability Report

**Functions**

**Products**

**PPBES:****Functions and Products**

**Notes:**
Shorthand for PPBES:
Planning:  What NOAA should do
Programming:  What NOAA can do
Budgeting:  What NOAA will do
Execution:  What NOAA has done

## Planning Phase

- Planning

- Set long-termstrategic direction
- Evaluate trends,requirements, &stakeholder needs
- and adjust NOAA
- -wide priorities

- NOAA Strategic
- Plan
- Annual Guidance Memorandum
- ProgramOperating Plans& Goal PortfolioAssessments

**Functions**

**Products**

**Planning Phase**

- March – August:** PPI**

- Through the Strategic Plan, NOAA articulates its long-term vision and establishes its overarching goals and strategies required to reach that vision.
- The Strategic Plan is based on a comprehensive analysis of NOAA mission requirements and incorporates extensive stakeholder input.

- Each year, NOAA’s Planning processes provide an opportunity to assess its strategic direction, analyze new trends and challenges within and outside of NOAA, and adjust our corporate priorities to ensure progress towards our strategic goals.

**Notes:**
Shorthand for PPBES:
Planning:  What NOAA should do
Programming:  What NOAA can do
Budgeting:  What NOAA will do
Execution:  What NOAA has done

## Programming Phase

- Programming

- Analyze NOAA’sability to meetits strategic goalsand objectives
- Alignresources tomeet NOAApriorities

- Programming and Fiscal Guidance
- ProgramDecisionMemorandum
- NOAA
- Program

**Functions**

**Products**

**Programming Phase**

- September – January:** PA&E**

*Program Review* compares NOAA’s current capabilities with those needed to perform current and future missions
- Identifies critical gaps across all programs
- Analyzes alternatives for filling those gaps and meeting NOAA requirements
- Provides guidance to goals for use in development of the program plans

- Program Development determines the optimal use of our limited resources to advance NOAA toward achievement of its strategic goals
- Goal and Sub-goal program plans provide the analytical foundation for the NOAA Program
- NOAA Program forms the fiscal and programmatic baseline for the NOAA Budget

**Notes:**
Shorthand for PPBES:
Planning:  What NOAA should do
Programming:  What NOAA can do
Budgeting:  What NOAA will do
Execution:  What NOAA has done

## What Does Programming Add?

- An analytical foundation for corporate decisions
- Advantages and risks associated with alternative actions
- Independent and objective analysis to support optimal use of NOAA’s resources
- Considers new ways of doing business (the "base" is not sacred)

**Notes:**
to support efficient and effective decision-making that will ensure the accomplishment of NOAA’s mission in accordance with the NOAA Strategic Plan
More fully examine the current Program (formerly known as “the Base”)
Highlight deficiencies, excesses, and overlaps in the current Program
Provide additional opportunities for leadership to impact NOAA’s future
Planning - NOAA Annual Strategic Guidance Memorandum
Programming - Fiscal and Programming Guidance
Ensure FY 06 budget reflects corporate priorities

## Budgeting Phase

- Budgeting

- Adjust ProgramPlan to meet
- budget guidance& new requirements
- Develop Budget
- Allocate andmanage finances

- NOAA
- Budget
- DOC Budget
- President’s
- Budget
- Fiscal Plans &Reports

**Functions**

**Products**

**Budgeting Phase**

- January -  December:** CFO**

- Develop executable budget to support NOAA’s missions

**Notes:**
Shorthand for PPBES:
Planning:  What NOAA should do
Programming:  What NOAA can do
Budgeting:  What NOAA will do
Execution:  What NOAA has done

## Budget

*Program* = Subactivity

- Activity Orientation

**LO**

**PPA**

**PPA**

**PPA**

**PPA**

**PPA**

**PPA**

**PPA**

**PPA**

**LO**

**LO**

**Program**

**Program**

**Program**

**Program**

**Program**

**Program**

- Execution organization

- Mission Goal Orientation

*Program* <> Mission Goal

**Program**

**Program**

**Program**

**MG**

**MG**

- Planning organization

**Capability**

**Capability**

**Capability**

**Capability**

**Capability**

**Coherent Corporate Resource Management**

**Notes:**
The traditional, activity-oriented, budget formulation and execution process reliably moves the NOAA program forward. But it can be difficult to coordinate the large number of PPA’s to effect mission goals, because, for example, the program structure in part predates the Strategic Plan required by GPRA. The mission goal orientation of the PPBES makes more explicit the connection between strategic planning and resource management decision-making. This slide illustrates the translation between the technical budget and the PPBES program structure.

The GPRA Equation:Plan for Performance – Manage for Results

“Mission results” are defined by the NOAA Strategic Plan
The PPBES directly and comprehensively relates the programs to the Strategic Plan
PPBES program structure is explicitly mission goal oriented
Facilitates coordinating program activities through optimized prioritization and resourcing decisions
NOAA must produce mission results with the resources it uses
Information delayed is information denied - requires practical and timely access to accurate information
Decisions must be documented and linked across the years with performance results

## Budgeting Phase

**Products**

**Budgeting Phase**

- January - December:** CFO**

- Develop executable budget to support NOAA’s missions

- Defend the NOAA budget during external reviews and
- Defend President’s Budget

- Budgeting

- Adjust ProgramPlan to meet
- budget guidance& new requirements
- Develop Budget
- Allocate andmanage finances

- NOAA
- Budget
- DOC Budget
- President’s
- Budget
- Fiscal Plans &Reports

**Notes:**
Shorthand for PPBES:
Planning:  What NOAA should do
Programming:  What NOAA can do
Budgeting:  What NOAA will do
Execution:  What NOAA has done

## NOAA Funding Trends(Dollars in Billions)

## Budgeting Phase

**Products**

**Budgeting Phase**

- January – December:** CFO**

- Develop executable budget to support NOAA’s missions

- Defend the NOAA budget during external reviews and
- Defend President’s Budget

- Develop LO and program allocations based on final appropriation

- Budgeting

- Adjust ProgramPlan to meet
- budget guidance& new requirements
- Develop Budget
- Allocate andmanage finances

- NOAA
- Budget
- DOC Budget
- President’s
- Budget
- Fiscal Plans &Reports

**Notes:**
Shorthand for PPBES:
Planning:  What NOAA should do
Programming:  What NOAA can do
Budgeting:  What NOAA will do
Execution:  What NOAA has done

## Execution Phase

- Execution

- Execute adjustedProgram Plan
- Optimizeoperations
- Monitor progressand adjust

- Annual and Budget
- Operating Plans
- Variance Reports
- Financial Statements and Audits
- Performance and Accountability Report

**Functions**

**Products**

**Execution Phase**

- All the time by everyone

- “Execution is the missing link between aspirations and results.” (*Execution* by Larry Bossidy & Ram Charan)
- Match plans to resources
- Document expectations of performance
- Provide feedback to improve execution
- Ensure accountability
- Produce results
- Apply lessons learned to future plans and programs

## Obligations NOAA-wideJuly, FY 2007 Dollars in Thousands

## Marine Operations and Maintenance Program  As of Third Quarter, FY 2007Elizabeth White, Program Manager

**                 **

_**Key Issues/Risks**_

_**Budget/Funding FY07**__** **_

_**Schedule FY 2007**_

| 
CPM/Other Measure | 
This Q planned | 
This Q actual | 
FY07 Target | 
FY07 Actual
 |
| --- | --- | --- | --- | --- |
| Ship Operating Days NOAA ships and MO&M funded outsourcing
 | 1560 | 1432 | 4500 | 2678 |
| Ship Customer Satisfaction | 3.45 | 3.56 | 3.45 | 3.44 |

**G**

**Y**

**G**

**Y**

_**Corporate Performance Measures (GPRA & non-GPRA)**__**(or other relevant measures)**_

| Qtr | Milestones Planned | Milestones completed |
| --- | --- | --- |
| 3 | 9 | 8 |

_**Issue #1**_**:** Current spending rate cannot be sustained within budget ceiling for FY07.
_**Risk**_**:**  Fleet operating tempo will fall short of planning.
_**Mitigation**_**: **OMAO looking at potential sources of savings in order to sustain ship operating tempo.
_**Issue #2**_**:** Milestone to initiate study for new location of MOC-P missed.
_**Risk**_**:** Identification of permanent homeport is delayed.
_**Mitigation**_**:** Contract terms being negotiated to close gap between original spending plan of $250K and new higher cost for expanded scope which includes two new sites.

**12/31**

**12/31**

**6/30**

**6/30**

**6/30**

**9/30**

**9/30**

**9/30**

**9/30**

**6/30**

**9/30**

## FY 09-13

**WE ARE HERE**

- J

- F

- M

- A

- M

- J

- J

- A

- S

- O

- N

- D

- J

- F

- M

- A

- M

- J

- J

- A

- S

- O

- N

- D

- J

- F

- M

- A

- M

- J

- J

- A

- S

- O

- N

- D

- J

- F

- M

- A

- M

- J

- J

- A

- S

- O

- N

- D

- FY 2006

- FY 2007

- FY 2008

- FY 2009

- O

- N

- D

- J

- F

- M

- J

- FY 10-14

- FY 07-11

- PLAN

- PROGRAM

- BUDGET

- EXECUTE

- PLAN

- PROGRAM

- BUDGET

- EXECUTE

- FY 2010

- FY 08-12

- PROGRAM

- BUDGET

- EXECUTE

- BUDGET

- EXECUTE

## PPBES

- NBO

- PA&E

- PPI

- Goal Teams

- Programs

- Annual Guidance Memo

- Program Operating Plans

- Program Decision Memo

- NOAA Sub-mission to DoC

- DoC

- DoC
- Sub-mission to OMB

- OMB

- Pres-ident’s Budget

- Annual
- Planning

- Annual
- Programming

- Annual
- Budgeting

- Goal Team Program Plans

- Strategic Portfolio Analysis

- NOAA Strategic Plan

- Program Charters

- Pre-
- Planning

- Products

- Fiscal & Program-ming Guidance

## Maximizing Benefits to NOAA and the Nation 

- PPBES is helping NOAA become an organization that...
- is greater than the sum of its parts
- generates ever greater value to society
- remains relevant, vibrant, and competitive

## How Can You Contribute

- Many opportunities
- Program Operating Plan inputs
- Goal team Program Plan inputs
- Line or Staff Office Integrated Priority Lists
- Council Comments on Program Plans
- PPBES guidance posted at www.ppbs.noaa.gov

## Thank You

**Questions**
**and**
**Comments**