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.





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[YourLocalGP]

First time I've seen "Is this good for the company" used without humorous reference to the movie...

[Cutter]

In a sense it’s very stupid not parable

[mediawhiz]

So basically, it stifles innovation, kill any investment for future growth, and creates a culture of constant psychological stress among every employee that their job is incredibly precarious leading to increasing velocity in revolving doors resulting in a constant retraining process and instability...driving up costs....

[AlfaMaleE]

Like everything I've ever seen from McKinsey, this was pointless doublespeak. 2 different people literally asked the question, "What is ZBB?" and then proceeded to not answer it. At least I didn't have to watch half of my coworkers get laid off and the other half quit because of their BS this time.