article thumbnail

How to Set Zero-Based Goals

thoughtLEADERS, LLC

Use this common budgeting technique to set goals that are more relevant and actionable. When you’re setting goals, you can borrow a technique from a common budgeting process called zero-based budgeting. Every dollar you’re going to spend in the budget is justified.

Goal 124
article thumbnail

Zero-Based Budgeting Is Not a Wonder Diet for Companies

Harvard Business Review

Zero-based budgeting (ZBB) is elegantly logical: Expenses must be justified for each new budget period based on demonstrable needs and costs, as opposed to the more common method of using last year’s budget as your starting point, then adjusting up or down. We believe the exact opposite to be true.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Your Organization Wastes Time. Here’s How to Fix It.

Harvard Business Review

reset the budgets. Recent analysis by Bain found that the biggest biopharma value creators are category leaders, and those that combine their category leadership with portfolio focus within their categories deliver annual total shareholder returns more than twice those of companies that are diversified followers.

article thumbnail

All Boards Need a Technology Expert

Harvard Business Review

Executive directors are usually selected for their leadership qualities; they often have experience with generalized management or leadership experience rather than narrow expertise or technical acumen. Why should knowledge of IT be an exception? The truth is that many industries today employ outdated technology.