Most corporate budgeting is lazy. We take last year's budget, add 5% for inflation, and call it growing. This is a recipe for bloating. Zero-Based Budgeting (ZBB) asks a harder question: 'If we starte
Most corporate budgeting is lazy. We take last year's budget, add 5% for inflation, and call it growing. This is a recipe for bloating. Zero-Based Budgeting (ZBB) asks a harder question: 'If we started this company today, would we spend money on this?' If the answer is no, cut it.
Justify Every Dollar
ZBB forces every department to justify every expense from scratch. It's not about austerity; it's about efficiency. It reveals the 'zombie costs'—subscriptions nobody uses, processes that are obsolete, and vendors that are on autopilot. It frees up capital to invest in what actually drives growth.
Surgical vs. Axe
Critics say ZBB is demoralizing. That's only true if you use a blunt axe. Used surgically, it empowers teams. It gives them the agency to say, 'Let's stop spending $1M on trade shows that don't convert and put $1M into digital ads that do.' It aligns spending with strategy, not history.
Don't let the ghost of budgets past dictate your future.
