A successful zero-based budgeting (ZBB) program relies on four repeatable components to achieve continuous cost improvement:
- Target-setting based on granular KPIs
- Driver-based budgets negotiated between dual owners of costs
- Rigorous tracking and monitoring
- And, the identification of a steady stream of savings initiatives and breakthrough ideas that challenge the status quo.
We have helped companies in many different industries successfully execute ZBB programs, freeing up, in some cases, hundreds of millions of dollars to re-invest in the business. When combined with zero-based redesign the impact can be even more transformative. In fact, when companies use ZBB and ZBR together they achieve savings of 25% or more for targeted functions and activities, since this combined approach extends the clean-sheet view of your business across your operating model, processes and workflows.