The approaches to strategic management of defense resources: the US experience

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Abstract

The article argues that for effective management of defense resources, it is necessary to coordinate strategic priorities with the general system of defense resource management and public finances. Attention is focused on the fact that in the USA several levels of such coordination are distinguished: the initial, level of direct regulation and control, the level of structural regulation and efficiency assessment. It is revealed that the process of reforming public finance management in the USA faces a number of problems, in particular, coordination of goals, responsible parties, adjustment of the public finance management process itself and, if necessary, its alignment. Therefore, it is the defense strategy and action planning that allows achieving the desired results. The article examines that it is strategic resource management that makes it possible to form a plan to achieve goals, ensure comparison of goals and desired results, assess all priorities and risks and also establish responsibility. Regarding defense planning, it is noted that it is important to bridge the gap between resources and planners who develop a joint strategy for the future capabilities of the armed forces and state financial authorities, which should allow translating this plan into reality. Enhanced coordination of relationships and different views on resource provision processes is possible through decentralization, i.e. the transfer of some powers (authorities) to lower organizational levels, in particular by fiscal and administrative methods. The main areas of improvement of strategic resource provision are identified, among which the following can be distinguished: development of better models for: assessment and management of risks, design of necessary capabilities / results to support them, assessment of necessary input resources and their cost and measurement of the effectiveness of results. In addition, attention is focused on what needs to be continued or improved: search for the most effective ways (cost of input resources used to produce a finished ship) to provide capabilities, monitoring of productivity, flexibility of «solutions», connection of data and systems to provide information.

Author Biographies
  1. Vladislav Sotnyk, Central Scientific Research Institute of Armament and Military Equipment of the Armed Forces of Ukraine

    кандидат технічних наук, старший науковий співробітник

  2. Viktoriia Sotnyk, National University of Life and Environmental Sciences of Ukraine

    Candidate of Economics Sciences Associate Professors of Department of Management Named after Professor J. S. Zavadskyi

  3. Sergii Kutsak, Center for Military and Strategic Studies of the National Defense University of Ukraine

    Leading Researcher

References

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Department of Defense (2020). Financial Management Regulations.

https://comptroller.defense.gov/FMR/.

Levine, P. (2020). Defense Management Reform: How to Make the Pentagon Work Better and Cost Less. Stanford, CA: Stanford Univ. Press. DOI: https://doi.org/10.1515/9781503611856

Section 809 Panel. (2019). Report of the Advisory Panel on Streamlining and Codifying Acquisition Regulations. Vol. 3. Arlington, VA. P. 180. Available at:

https://section809panel.org/wpcontent/uploads/2019/01/Sec809Panel_Vol3-Report_JAN19_part-1_01-28.pdf.

Di Francesco, M., & Alford, J. (2016). Budget rules and flexibility in the public sector: towards a taxonomy. Financial Accountability & Management. № 32(2). Рр. 232—256. DOI: https://doi.org/10.1111/faam.12087

Candreva, P.J. (2017). National Defense Budgeting and Financial Management: Policy & Practice. The Negative Impacts of the Benchmarks. Paper for Senior Acquisition Course, Nat. Defense Univ.

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2025-03-31
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MILITARY TECHNICAL POLICY
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Copyright (c) 2025 Владислав Сотник,Вікторія Сотник,Сергій Куцак,Олександр Ніколайчук

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How to Cite

The approaches to strategic management of defense resources: the US experience. (2025). Weapons and Military Equipment, 45(1), 14-18. https://doi.org/10.34169/2414-0651.2025.1(45).14-18 (Original work published 2026)

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