What is Zero-based budgeting (ZBB) | McKinsey & Company

"Zero-based budgeting (ZBB) is over 50 years old, but is making a comeback. Learn how ZBB can build a culture of cost and performance management.

After first making a splash in the 1970s and then fading in popularity over the ensuing decades, ZBB is now gaining in popularity among numerous businesses. At its best, ZBB brings remarkable spending visibility, helps achieve relentless cost discipline, encourages managers to reallocate resources in an agile fashion, and unleashes a culture of continuous improvement. Those benefits apply to organizations in all stages of the corporate cycle, from mature (and often profitable) companies still budgeting under “same old, same old” methodologies to more nimble, posttransformation firms trying not to slide back to their former “business as usual.”

In this video, McKinsey's Matthew Maloney and Kyle Hawke explain more about what zero-based budgeting is and how businesses can effective leverage it.

For more information, please visit: https://www.mckinsey.com/business-fun...

You can also find further information on ZBB here: https://www.mckinsey.com/business-fun...

And read more about the ""Five Myths & Realities of ZBB"" here: https://www.mckinsey.com/business-fun...

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