Click here to load reader
Upload
at-kearney
View
19.753
Download
4
Embed Size (px)
Citation preview
Zero-Based Budgeting:Cut Cost, Not Growth
#ZeroBasedBudgeting
#ZeroBasedBudgeting
Zero-based budgetingis a business concept that requires managers to plan each year’s budget by startingat “zero.”
Zero-Based Budgeting: Cut Cost, Not Growth
#ZeroBasedBudgeting
The process justifies all spendingeach year based on what a company needs, rather than on what it has done in the past.
Zero-Based Budgeting: Cut Cost, Not Growth
#ZeroBasedBudgeting
Zero-based budgetingis back in the spotlight thanks to some high-profile successes. Done right, it can lower costs permanently and ensure profitable growth.
Zero-Based Budgeting: Cut Cost, Not Growth
#ZeroBasedBudgeting
However, zero-based budgeting is not always the “silver bullet” many expect it to be. Many companies have tried it, quickly grown disenchanted, and stopped using the approach.
Zero-Based Budgeting: Cut Cost, Not Growth
#ZeroBasedBudgeting
A.T. Kearney’s ZBBplusprocess gives you the most value to ensure your company delivers a lasting and positive impact from zero-based budgeting.
Zero-Based Budgeting: Cut Cost, Not Growth
#ZeroBasedBudgeting
ZBBplus has three key features: broad targets, sweeping scope, and activegovernance.
Zero-Based Budgeting: Cut Cost, Not Growth
#ZeroBasedBudgeting
Broad targets: ZBBplus sets targets not only from top down using externalbenchmarks, but also from the bottom-up and across theorganization.
Zero-Based Budgeting: Cut Cost, Not Growth
#ZeroBasedBudgeting
Sweeping scope: ZBBplus looks beyond traditional back-o�ice spending and pursues lower costs elsewhere in theorganization.
Zero-Based Budgeting: Cut Cost, Not Growth
#ZeroBasedBudgeting
Active governance:ZBBplus creates lastingchange with a frameworkfor figuring out how work is done, how resources are used, and how decisions are made.
Zero-Based Budgeting: Cut Cost, Not Growth
For more information about A.T. Kearney’s Zero-Based Budgeting: Cut Cost, Not Growth, please visit: www.atkearney.com/ideas-insights/zero-based-budgeting
#ZeroBasedBudgeting