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Zero-Based Budgeting Is Not a Wonder Diet for Companies

Harvard Business Review

In comparison to other methods (such as Six Sigma or activity-based costing), ZBB typically does not address operational excellence in core processes (marketing, sales, supply chain, procurement, manufacturing) or fundamental cost drivers such as portfolio complexity, organizational complexity, customer complaints, and quality issues.

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Case Study: When to Drop an Unprofitable Customer

Harvard Business Review

The Power of Customer Costing. With three efficient plants staffed by 3,000 employees, it had reinvented itself to become an innovative manufacturer of modular steel staircases and fiberglass doors. Tommy, an avid reader of the business literature, wanted Egan to adopt an activity-based costing , or ABC, approach.