The outcome of CBBM is the ability to better understand the total costs of capabilities and their cost drivers in order to inform portfolio decisions for investments, divestments, and re/allocations and to better defend budgets to overseers. CBBM is not a technology solution – it is a methodology that is conducted quickly using the existing budget structure and IT systems to view the budget around mission capabilities and slice and dice the budget based on the new information.
Capability-based Budget Management (CBBM) provides senior leaders and managers with clear, accurate data produced by repeatable methodology to answer the myriad of questions that arise during budget planning, formulation and execution. CBBM produces an intuitive budget structure based on capabilities and missions, identifies resources and processes associated with each output, and enables analysis of tradeoffs and scenario-based decision making. The CBBM methodology compliments the existing financial management information without disrupting budget personnel daily operational activities.