Renewed focus

The process requires a renewed focus on purpose, results and cost reduction. In a Zero Base world, past inefficiencies and legacy cost structures will be eliminated, changed or reduced. Creative thinking will result in a leaner, more agile business - a game changer when you are struggling to survive.

Long term and sustainable Zero Base savings result from clamping down on discretionary costs like travel and telephones, and also from doing things in different innovative ways. There is often an overlap between zero base thinking, technology and business process engineering.

For example, the banking industry have been automating their loan approval process aiming to eliminate human intervention. The whole "work from home" movement is a changed business process, a new approach to a traditional way of working. Zoom and Skype have impacted travel costs and the way we hold meetings.

Feasible choices

It’s also important to recognise that starting entirely from scratch is simply not feasible for most organizations. There will be pre-existing suppliers’ contracts, labour and union arrangements, entrenched (but not necessarily efficient and effective) business processes, and distribution channels that may take some time to re-design. Trade-offs will be required.