Harvard Business Review

JUNE 30, 2016

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.

Zero Based Budgeting 9

Zero Based Budgeting Budgeting Supply Chain Company 9

Harvard Business Review

SEPTEMBER 23, 2015

There are countless other examples. Using Moore’s Law , zero-based budgeting would call for technology spending to fall each year by about 30%; in most companies spending goes up by at least 5% each year. A total overhaul is required. This leads to the predominance of the lowest common denominator.

Technology 8

Technology Zero Based Budgeting Banking CIO 8

Harvard Business Review

MARCH 26, 2012

Zero-based budgeting is one such technique, but it is a time-consuming approach that cannot be used systematically. Another approach is to ask the "what would it take" question: for example, "What would it take to double that rate of growth? Many management techniques attempt to overcome this challenge.

Budgeting 10

Budgeting Zero Based Budgeting Benchmarking McKinsey 10

Harvard Business Review

MARCH 13, 2017

For example, large biopharma companies compete in many categories and tend to accumulate an array of follower positions. We recommend zero-based budgeting and planning to make the choices clearer. This is why we find a zero-based approach preferable. But that drags down shareholder returns.

Zero Based Budgeting 14

Zero Based Budgeting Organization Budgeting How To 14