The HARD TRUTH about Zero Base Budgeting (ZBB)

SNAPSHOT SUMMARY 3:19
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Zero Base Budgeting has historically had a bad reputation ...and for good reasons. However, if applied properly you would be surprised of the benefits to your business.

THE BAD
CUTTING
Evenly in all business areas regardless of their true value generated
ALL “soft” investments generating employee engagement & retention
Regardless of customer impact

HONEST PERSPECTIVE
It's only a method
A business methodology that focuses on reducing low value-added investments to re-channel them into higher value-added activities for the customer
It's tough
Making tough choices that puts us ahead of the competition
It's not for everybody
An approach which requires resilience, discipline and emotional maturity/safety to tackle healthy business dialogue
It's rewarding with 15% liquidity created.

HOW to ZBB?
1 - Start from scratch
2 - Minimal viable PRODUCT & SERVICE
3 - Set a STRATEGIC INVESTMENT PLAN
4 - Reinvest new liquidity in INVESTMENT PLAN
5 - MOMENTUM
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WANT TO KNOW MORE?
To save time, here are all the best (in my opinion) articles you will be able to find to learn more about ZBB. This information is readily available through Google:
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How Zero-Based Budgeting Can Inspire Employees, 2018
https://www.bain.com/insights/how-zer...
BEST QUOTE
"...Despite these gains, zero-based budgeting did not inspire employees. Based on data from Glassdoor, the percentage of employees “recommending the company to a friend” dropped in nine of the eleven cases, by an average of eight percentage points..."

Zero-based productivity—Organization: Using zero-based principles to forge a purpose-built organization, 2018
https://www.mckinsey.com/business-fun...
BEST QUOTE
"...Achieving a successful organizational transformation is far from an easy feat. According to the McKinsey Transformation Change survey, just 26 percent of companies accomplish their performance objectives and can lay the groundwork for sustained result..."

Zero-based budgeting revisited: Why this time is different, 2018
https://www.mckinsey.com/business-fun...
BEST QUOTE
"...Resources get stuck where they have always been, and we’ve done a lot of research on this. We studied the resource reallocation of 1,500 companies over a 20-year period, and what we found is that 90 percent of the dollars stay where they were the year before..."

Beyond the Buzz. ZBx: The Zero-Based Mindset, 2018
BEST QUOTE
"....Our surveyed company set is seeing average cost reductions of 15 percent and average bottom-line savings of more than US$260 million annually ..." The article was readily available in 2019 but now the link has changed and there is a download function to get the report which probably has been updated since 2018.
https://www.accenture.com/ca-en/insig...

ZBB - WIKI
https://en.wikipedia.org/wiki/Zero-ba...
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