Zero-Based Budgeting Is Not a Wonder Diet for Companies

Harvard Business

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. One might conclude from such failures that implementing zero-based budgeting is simply too ambitious. Budgeting Costs Digital Article

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

Harvard Business

reset the budgets. Look closely, and you’ll find that most companies have stretched their brands and product portfolios to customers and markets in which they are undifferentiated and profits are weak. Reset the Budgets. We recommend zero-based budgeting and planning to make the choices clearer. This is why we find a zero-based approach preferable. Zero-basing can both reset the cost structure and keep out cost over time.

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7 No-Fail Ways to Build a Successful Cost Management Strategy

The Kini Group

Marketing and selling costs: How much does it cost for your company to close a deal? From advertising to wining and dining a high-quality lead, marketing and sales costs can easily get out of hand. This includes the marketing and sales tools, teams, and trips. Frameworks like Zero Base Budgeting can also provide detailed analysis and deep visibility into costs that typically fly under the radar.

Can You "Re-Anchor" Your Next Budget Meeting?

Harvard Business Review

It has been another long, exhausting budget meeting. In the end you raised their targets a little, but, if you're honest, you have to admit it: the budget this unit will have to deliver next year is not very different from the one they proposed at the beginning of the budget process, which in turn is not very different from the latest forecast for this year. Zero-based budgeting is one such technique, but it is a time-consuming approach that cannot be used systematically.