Zero-Based Budgeting Comes to Business Functions

Digitalizing processes isn’t always the cost-cutting “slam dunk” that executives anticipate. Companies that aim to reduce costs steeply and swiftly by digitalizing may see their plans crumble because it requires the right preparation. Before you start, you must decide which services are core to your business, “streamline” those and cut the rest. Identify what’s core by using “zero-based organization” (ZBO), viewing each activity through the lenses of “urgency” and “value.” As with its cousin zero-based budgeting, ZBO starts with a “clean slate.” As you assess and sort activities, you’ll understand them in the context...