Posted on : March 10, 2017
Views : 4
Category : Finance
Most companies today base their cost management approaches on the past—setting budgets based on what happened last year. It’s time to reimagine cost structures based on what’s needed in this new, disruptive environment. Zero-based budgeting  (ZBB) can fuel growth by removing waste and freeing up capital that can then be turned to more lucrative activities. And getting companies to run in a more cost-efficient way gives them competitive agility.  ZBB requires justifying each budget item’s need or cost, while respecting strict policies and top-down targets set by the cost category owners. This level of detail allows for useful internal and external benchmarking. ZBB is an open and transparent way of creating a budget, resulting in important insights into consumption. Budgeting from zero each year helps to remove unnecessary cost and create a detailed forecast. Savings can be earmarked and assigned to activities that ultimately boost growth. source: