1 minute read
Shared Values
from Zero Base thinking
by John Stretch
Whether you are a start-up or established business, involved in trading, construction, manufacturing, services, or contracting, your ZBB program builds a culture of cost management through shared principles and a common set of values.
These values are: all costs are visible and transparent, strong process governance , accountability for costs at all levels of the organization, incentives aligned to cost saving targets, and rigorous reporting, followup and control.
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To achieve the benefit, the process must be professional, open and respectful. ZBB needs objectivity. In times of real crisis, a review of a company's spending processes and habits by external directors and consultants acting as benevolent dictators
– the Kraft-Heinz approachcan create more immediate value than doing it internally.
In the original US government version many years ago, the zero-base budget proposals were prepared by the department managers themselves, which took months and didn’t result in any cost reduction. Turkeys don’t vote for Christmas. Carter brought ZBB in, Reagan threw it out.