This thesis examines the Navy Planning, Programming and Budgeting System (PPBS) to determine if reengineering principles can be applied to increase the efficiency and effectiveness of resource allocation. In particular it focuses on improving the Program Objectives Memorandum (POM) process. A comprehensive description and analysis of the current Navy PPBS process is provided. This thesis analyzes unique characteristics of the policies, procedures and organizations that have shaped the development of the Navy POM process, as well as the major external forces that have affected Navy PPBS. Process reengineering for the POM is evaluated against criteria represented in three resource allocation methodologies: Strategy-to-Tasks, Mission-Based resource allocation, and the General Staff Command. A description of each methodology is provided along with its application to the Navy POM and PPBS process. Organizational structure and resource allocation processes within DOD have been under constant scrutiny and revision since WWII. This thesis recommends a resource management method that provides for a fundamental redesign of the current PPBS process. Implementation of this methodology would have broad effects on DOD and Navy organizations, the roles and missions of the military departments and services and unified military operations.

Subjects: Reengineering (Management), United States; Program budgeting, United States