Zero base budget (ZBB)

Zero-based budgeting is a straightforward, high-impact methodology for significant spending reductions. It is recommended for companies that need restructuring and better allocation and control of resources.

This is an approach in which the budget is built from scratch, like a blank sheet, in which each resource (people and suppliers) from each department is prioritized in a tower according to the company's strategic guidelines.

All resources allocated to each activity are discussed, analyzed and rethought regarding their relevance to the company. Expenses considered to be less of a priority are eliminated and new alternatives are made viable, generating savings or the possibility of investing in other projects or items of higher priority.

Optimization of expenses and alignment of the budget process with the company's activities and projects, in accordance with its strategic positioning

Companies experiencing successive increases in expenses and erosion of the Operating Profit Margin.

  • Cost reduction with simplified decision-making without disrupting management;
  • Rational allocation of resources through the prioritization of activities and projects in various areas;
  • Creation of cultural value through the budget and a focus on results;
  • Recognition of individuals through the implementation of performance feedback and variable remuneration;
  • Operational efficiency of core processes within the company.

Understand how our methodology works