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We propose an efficient dual boson scheme, which extends the dynamical mean-field theory paradigm to collective excitations in correlated systems. The theory is fully self-consistent both on the one- and on the two-particle level, thus describing the formation of collective modes as well as the renormalization of electronic and bosonic spectra on equal footing. The method employs an effective impurity model comprising both fermionic and bosonic hybridization functions. Only single- and two-electron Green's functions of the reference problem enter the theory, due to the optimal choice of the self-consistency condition for the effective bosonic bath. We show that the theory is naturally described by a dual Luttinger-Ward functional and obeys the relevant conservation laws.



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