Featured Content

  • Wie vielfältig sind Österreichs Chefetagen?

    Diese Frage beantwortet der BCG Gender Diversity Index Österreich 2018. Es ist der erste Gender Diversity Index für Österreichs 50 größte börsennotierte Unternehmen, der nicht allein die quantitative Frauenquote in Vorstand und Aufsichtsrat betrachtet, sondern auch einen Vergleich der Vergütung miteinbezieht.

  • Decoding Digital Talent

    Österreich ist unter den Top Ten der beliebtesten Arbeitsorte für hochqualifizierte Digitalkräfte aus der EU. Das zeigt die gemeinsame Studie Decoding Digital Talent der Boston Consulting Group (BCG), der Jobbörse StepStone.at und The Network, für die rund 27.000 digitale Talente in 180 Ländern befragt wurden.

  • Mind the (AI) Gap: Leadership Makes the Difference

    Weltweit nutzen immer mehr Unternehmen aus allen Branchen künstliche Intelligenz (KI) und Machine-Learning mit großem Erfolg. Unternehmen versprechen sich von der erfolgreichen Implementierung von KI-Technologien revolutionäre Fortschritte im Geschäftsbetrieb und signifikante Wettbewerbsvorteile. Die Anwendung und der Erfolg von KI sind jedoch ungleichmäßig verteilt.

Choose your location to get a site experience tailored for you.

Remember my region and language settings

Zero-Based Budgeting

Zero-based budgeting (ZBB) is a sustainable cost philosophy and a continuous, bottom-up approach for rigorously resetting the cost basis, which frees up capital to reinvest for growth. This growth enabler is gaining momentum in a CPG industry burdened by cost pressures.

Why are so many CPG players talking about zero-based budgeting?

Zero-based budgeting uncovers cost savings for companies, allowing them to reinvest in long-term sustainable growth opportunities—like innovation and product development—by resetting companies’ cost basis and ensuring it’s kept lean in the long-term. It’s about making smart choices on where to spend. Success depends on accountability, and leadership needs to be invested in the outcomes.

Smart zero-based budgeting is not just about cost savings. It is a continuous approach, targets the whole cost base, differentiates targets, and stimulates an environment of change.
Zero-based budgeting is much different from the typical cost-cutting approaches companies have tried in the past.

The Advantages and Disadvantages of Zero-Based Budgeting

Zero-based budgeting is not a one-time effort. And it isn’t right for every organization. Before choosing whether or not zero-based budgeting is the best approach for your company, be sure to weigh the following advantages and disadvantages:

Advantages

When done right, zero-based budgeting can significantly reduce costs, and improve efficiency and competitiveness. It has the potential to prevent take overs, identify and grow top performers, and instill a cost-conscious culture throughout the organization.

Disadvantages

Zero-based budgeting has a reputation of being extremely aggressive to bleed out an organization, and negatively impacting employee morale. It is extremely important for the company to find the right balance to operate in a successful, sustainable way.


7-15%

CPG companies have achieved a 7% to 15% savings on absolute cost base with zero-based budgeting.

How CPG Players Can Implement Zero-Based Budgeting

There’s a smarter approach to zero-based budgeting. .

  1. Vision. Understand motivation, determine ambition, link to strategy, and design a tailored zero-based budgeting program.
  2. Transparency. Create full transparency with detailed baseline along value drivers and a rigorous analysis of cost drivers.
  3. Governance. Introduce dual cost accountability, support decision-making system, and enable people.
  4. Target. Lock in business model choices, prioritize saving areas, and set smart targets.
  5. Zero-Based Budget. Create granular packages from the bottom up, challenge the budget rigorously, and integrate targets.
  6. Monitoring. Set clear system for tracking costs and how to address variances and the reallocation of funds.
  7. Execution. Devise action plans and milestones, and implement and follow a variance/reallocation process.
  8. Reinvestment. Reinvest a significant part of savings in growth.
  9. Culture. Establish culture of cost ownership with strong performance management, then manage and communicate change.

Learn More About Zero-Based Budgeting

Meet BCG's Experts in Zero-Based Budgeting

 View All Experts
  • Zero-based budgeting (ZBB)
  • Category management
  • Cost restructuring
  • Consumer goods
  • Verbraucher und Retail
  • Co-Leiter von BCG TURN in Nordamerika – Turnaround, Restrukturierung und Transformation
  • Umfassende Veränderungen
  • Lebensmittel und Getränke
  • Fast-moving consumer goods
  • Digital transformation
  • Zero-based budgeting
  • Trade spend
  • Consumer packaged goods
  • Growth strategy
  • Zero-based budgeting
  • Mergers and acquisitions (M&A)
  • Retail profitability improvement and turnaround
  • Zero-based budgeting
  • Category management and store operations
  • Broad-based cost transformation
  • Leads BCG's M&A and Post-Merger Integration practice globally
  • Corporate portfolio strategy
  • Brand strategy in multiple categories
  • Cost reduction programs
Konsumgüter
Previous Page

BCG uses cookies to improve the functionality, performance, and effectiveness of our communications. Detailed information on the use of cookies is provided in our Privacy Policy. By continuing to use this site, or by clicking "I agree," you consent to the use of cookies.