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Zero-Based Budgeting

Zero-based budgeting supports large-scale transformation by freeing up resources to drive growth and innovation, allowing organizations to fundamentally change what they do and how they work. BCG’s zero-based budgeting consultants help clients anchor this approach in a culture of cost-consciousness, delivering clear benefits including spend-baseline reductions of as much as 30%.

This approach isn’t about deploying one-time cost-reduction strategies. ZBB is about using facts to decide how to liberate resources and make smart choices about where to allocate them—and in turn, drive sustainable positive change in the business. Zero-based budgeting and zero-based operations work best when they’re tailored to an organization’s unique circumstances.

Zero-based budgeting should also lead to changes in mindsets and cultures—as well as to new roles, responsibilities, and processes. To manage these aspects of zero-based budgeting organizational design, leaders and managers must be invested in the approach and take accountability for executing it effectively.

How BCG Helps Clients Implement Zero-Based Budgeting

The Power of Zero-Based Budgeting

Zero-based budgeting is more than a one-off cost reduction; it’s a method for transforming your business. Learn how BCG can help.

At BCG, we don’t take a cookie-cutter approach to the zero-based budgeting process. Instead, we tailor it to each client’s unique needs—including where they are in their business cycles and what they’ve defined as their strategic priorities and transformation agendas. As a result, we help companies avoid common pitfalls and capture the full potential of zero-based budgeting.

Notably, we enable companies to implement zero-based budgeting in ways that strike a balance between driving growth and managing costs, through these means:

Our Zero-Based Budgeting Consulting Work

Examples of our zero-based budgeting work include:

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Zero-Based Budgeting