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