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Zero-Based Budgeting Comes to Business Functions
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Zero-Based Budgeting Comes to Business Functions

Mark Austin, Karin von Funck, Gregor Gossy, Christoph Hilberath and Reinhard Messenböck
Boston Consulting Group, 2018
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8

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Recommendation

The adage “less is more” has a fresh application. “Zero-based organization” (ZBO), a cousin of zero-based budgeting, can help firms prepare for digitalization or other transformations by winnowing their processes and activities to the essential, says a team of Boston Consulting Group professionals. Mark Austin et al. ZBO is both a mind-set and an approach, the authors explain, and this primer will help you develop both.

Take-Aways

  • Before attempting digitalization or other transformations, firms should decide which services are core to their business, “streamline” those and cut the rest.
  • Identify what’s core by using “zero-based organization” (ZBO), an approach that begins with a “clean slate.”
  • Start by getting a complete, detailed picture of all services, and then sort activities into the classifications of “mandatory, core” or “strategic.”

About the Authors

Mark Austin, Karin von Funck, Gregor Gossey, Christoph Hilberath and Reinhard Messenböck are professionals with the Boston Consulting Group.

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    C. M. 2 years ago
    I liked that the summary included the four steps of zero-based organization to prepare for digitalization.