BUSINESS

Defense: a blueprint for program objective memorandum planning

October 18, 2006

For defense departments, Program Objective Memorandum (POM) budgeting and planning is complex. Using spreadsheets for this process makes it more so.

Spreadsheet-based systems have many shortcomings. There is little or no workflow management to support multiple contributors. And version control is always a concern. Spreadsheets aren't dynamic, so there is little room to do in-depth analysis or scenario planning.

Worse yet, they're prone to errors. Reliability of information is a big issue – people don't trust the data as much as they should. As a result, finding and validating information tends to be among the most challenging aspects of preparing the budget.

A dynamic approach to planning

IBM Cognos 8 Planning is everything spreadsheets are not. The Web-based solution provides a dynamic, trusted environment for the budget and planning cycle. It offers capabilities for planning and managing performance, assessing alternatives and scenarios, and analyzing results from multiple perspectives.

Workflow capabilities facilitate collaboration and accountability throughout the organization. And Cognos provides a single source of information, so planners don't have to spend their time validating definitional or inconsistent data.

A blueprint for POM

IBM Cognos Performance Blueprints are pre-configured building blocks that let organizations jump-start their planning implementations. In this case, the POM Performance Blueprint provides a best-practices platform to support the defense budget formulation and planning process.

The flexible, secure planning environment lets budget owners model and consider the impact of various budget decisions. And they can establish cost models that reflect the actual costs of their organization. A planner, for example, could assess the best mix of forces, equipment, and support units within the fiscal guidelines of a mission. If changes are required, they can be done efficiently and quickly at all levels.

The result? More accurate budget estimates and better management. Planners focus less attention on straight financial discipline and more on improving performance and results. Just as important, they can finalize the budget planning process in August, rather than November.

Based on industry best practices

The POM Blueprint is one of several industry blueprints created by the Cognos Innovation Center for Performance Management™. The Center develops best-practices solutions for organizations to help them cut costs, streamline processes, boost productivity, and increase management visibility.

Summary

POM budgeting and planning is critical for aligning defense organizations. Spreadsheets can't support the complexities of this process. Instead, the POM Blueprint provides a dynamic planning environment that connects plans, targets, and operational objectives. The result is improved efficiency and fiscal performance.