What it can do for your business
Create forensic visibility into costs and eliminate waste.
Businesses struggle with strategic cost reduction: Only 23 percent say they have optimized their process for identifying and removing business activities and investments that do not add value.
Make cost savings sustainable
Businesses struggle with strategic cost reduction: Only 36 percent strongly agree their business sustains the benefit of cost reduction programs.
Create a corporate culture where cost-cutting is part of the company’s DNA and individuals are held accountable
Zero-based budgeting can help: Accenture compared those using zero-based budgeting techniques to industry peers. Revenues increased by 28 percent for the zero-based budgeting group, compared to 22 percent in the peer group. EBITDA also increased by 50 percent, compared to 39 percent among the peer group.
Identify areas where the freed-up cash can be reinvested into growth and innovation
Leading companies are precisely cutting costs and purposefully reinvesting, they are aligning cost reduction efforts with growth strategy and they are implementing techniques, such as zero-based budgeting, to accelerate the path to growth.
- ZBB Summary: Zero-based budgeting can, effectively, fuel growth by removing waste and freeing up capital that can then be turned to more lucrative activities. At its core zero-based budgeting is about agility, and getting companies to run in a more cost-efficient way to make them more competitive.