PPBE: How Data Analytics Assists Companies With Budget Decisions
The United States Department of Defense uses a process called PPBE (planning, programming, budget and execution) to allocate resources for procurement. This fairly complex, but extremely effective budgeting process can be copied by any organization, but there is one important requirement: the data that drives the process must be accurate and easily accessible. Without good data, good PPBE can never take place. In order to make your PPBE process work optimally, you need to step back and make sure that your data storage and data analytics are of the highest possible standard.
What is PPBE?
PPBE involves four steps. First is the planning stage, in which management projects the various requirements across all departments for a given future period (a year, two years - the cycle will differ from one organization to another). During the second phase - programming - management analyzes current decisions and the effect they will have on the organization’s future needs and resources. A program objective is then put in place to guide the process of bringing future plans and current decisions and actions in line with one another. In the third phase, the budget is drawn up. Given current actions and future needs, management must decide whether the budget is adequate to provide for future acquisitions, or if adjustments need to be made. Finally, the plan and budget are put into action during the execution stage.
How Can Data Analytics Help?
As should be obvious, each one of these four stages is heavily dependent on the information available. Plans are drawn up in line with each department’s stated needs. Programs are designed based on these plans, together with detailed information about current decisions and their effects. If data is lacking or incorrect at any of these stages, then errors, omissions and miscalculations will affect the final execution.
The organization should be gathering and reviewing data from all departments routinely in order to make better decisions, plan better and draw up accurate budgets. Data should be accurate and accessible, as well as detailed and granular. The more accurate and detailed an organization’s data, the more successful its PPBE processes will be.
Dimensional Concepts can help with your PPBE through tools and expertise that provide for cutting-edge data analysis. Since data analysis is the key to successful planning and budgeting, our data analytics, managed IT and database management services can help you maintain and grow your company’s present and future success. Contact us for more information.