Brookey & Company

 
Zero-Based Budgeting (ZBB)

Unlike traditional budgeting processes that start with the previous year’s budget and incremental targets, ZBB begins with a clean slate and a focus on the company's strategic priorities. By assigning cost element ownership and setting clear governance rules, we establish a shared responsibility model that ensures everyone is aligned with the budget targets.

Here are some of the key benefits of ZBB:

• Greater visibility and control over costs: With ZBB, you can identify and eliminate unnecessary costs that may have gone unnoticed in traditional budgeting processes. By starting from zero and scrutinizing every expense, you can gain greater visibility and control over your costs.

• Alignment with strategic priorities: ZBB ensures that every cost is aligned with the company's strategic priorities. This helps to prevent silos and ensure that everyone is working towards the same goals.

• Increased agility and flexibility: ZBB allows you to adapt to changing business conditions more quickly and efficiently. You can adjust your budget in real time as market conditions and other factors change, without being tied to last year's budget.

Despite these benefits, some companies may be hesitant to adopt a clean sheet approach like ZBB. They may worry that it will be too disruptive or time-consuming. However, we believe that the benefits of ZBB far outweigh any potential drawbacks. Here are a few reasons why companies shouldn't be scared away from a clean sheet approach:

• ZBB is not an all-or-nothing proposition: You don't have to start from zero for every expense category. Instead, you can focus on the areas that are most likely to produce significant cost savings and build from there.

• ZBB is not a one-time event: While ZBB may require more effort up front, it can produce long-lasting benefits that far outweigh the initial investment. With our help, you can establish a sustainable ZBB process that becomes a part of your company's culture.

• ZBB can produce results quickly: By focusing on the areas that are most likely to produce significant cost savings, you can start seeing results in a matter of weeks or months. This can help to build momentum and demonstrate the value of ZBB to the rest of the organization.

If your company already has cloud-based budgeting and planning software, we help you leverage the functionality of your existing system to analyze data in combination with the zero-based budgeting effort to restructure cost allocations. For businesses without enterprise budget and planning software, we work with you to develop a customized solution using tools like Excel and Microsoft BI to model the data and generate reports. Our consultants will work closely with you to understand your business needs and develop a solution that is tailored to your unique requirements.

Don't settle for suboptimal budgeting processes that only produce short-term results. Contact us today to learn more about our strategic cost reduction services and how we can help you achieve long-term success with ZBB. Let's unlock the full potential of your company's budget!

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