What it can do for your business

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 then, zero-based budgeting is about agility. And getting companies to run in a more cost-efficient way to make them more competitive. A common mistake that occurs when it comes to unleashing cost-cutting: Piecemeal approaches focused mainly on overhead and cost of goods sold. These efforts only scratch the surface and risk causing the company to lose valuable, differentiating capabilities. Companies need to focus on their core goals; funds that are not working towards those goals should be shifted into activities that drive growth. Zero-based budgeting can help performance: it is a way to assist with driving growth. Indeed, without zero-based budgeting it’s likely the money needed to grow just wouldn’t be there.

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.

Essential information

  • 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.
Accenture's ZBB Solution helps organizations to remove wasteful spending and redirect resources for growth.

Company information

Accenture Zero-Based Budgeting

Provided by Accenture

Accenture Zero-Based Budgeting