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Zero-Based Budgeting

Zero-based budgeting supports large-scale transformation by freeing up resources to drive growth and innovation. BCG’s zero-based budgeting consultants help clients anchor this approach in a culture of cost-consciousness that delivers clear benefits.

Zero-based budgeting is about more than deploying one-time cost-reduction strategies. It’s about using facts to decide how to liberate resources and make smart choices about where to allocate them. And Zero-based operations deliver maximum value when they are tailored to an organization’s unique circumstances and embraced by people throughout the business.

What Is Zero-Based Budgeting?

Zero-based budgeting is about fundamentally reimaging your cost base from scratch—supported by cost-reduction strategies and driving related cost-conscious behaviors. Successful organizations leverage zero-based budgeting as:

  • An integral part of strategy
  • A business transformation
  • A growth enabler
  • A cultural change journey

Our Approach to Zero-Based Budgeting

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 Insights on Zero-Based Budgeting

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Zero-Based Budgeting