ZEROING IN ON
ZBB delivers cash back to the business in the form of significant cost
savings. The surveyed companies are seeing average bottom-line savings of
more than US$260 million annually and rapid payback, paying for themselves
within the first year itself, often multiple times over.
For example, by leveraging ZBB principles, one of the business units of a
leading Indian construction company achieved a 14 percent reduction in its
indirect budget over the previous year and a further 10 percent reduction
over the new budget.
NUGGETS OF WISDOM
Accenture Strategy conducted the largest-ever
research initiative on zero-based thinking, involving
85 of the largest global companies across different
A SWEET PILL TO SWALLOW REINVENT TO DISRUPT ZERO IN ON PROFITS
ZBB is a simple but progressive idea to set
budgets to zero each year to cut
unnecessary costs rather than base them
on what happened the previous year.
Why do companies pursue ZBB?