Redesigning Costs With Zero-Based Budgeting [Infographic]

When it comes to cost cutting, companies can take one of two routes. One way involves targeted cost cutting, with tightly focused initiatives to realign the cost structure in a particular business, geography, function or process. It might include trimming indirect costs, outsourcing business processes or using Lean Six Sigma to eliminate waste. This tried-and-true approach to realigning costs works under normal circumstances.

But companies in industries that are going through disruptive change often need a more comprehensive approach. In these cases, a tactic called zero-based budgeting can provide a practical way for companies to radically redesign their cost structures and cut as much as 25% of spending on overhead and support functions, while boosting efficiency and competitiveness.

This infographic explains how zero-based budgeting works: - Source      

Redesigning Costs With Zero-Based Budgeting [Infographic]