These days everyone agrees that it is vital to have a control of costs in order to survive and thrive in business. No strategy or business plan will get off the ground unless the cost base is understood and under control.
Whilst we all understand this, I am still amazed at the number of people who ‘talk the talk’ on cost management but don’t actually do it.
For example, how many people have said to you that ‘we need to build a zero-based budget’, but have no idea what Zero Base Budgeting actually means in practice? For most people it means trying really, really hard to think about their costs. In other words doing the normal budget process but with a bit more challenge.
No, Zero Base Budgeting (ZBB) is a structured approach for assessing the costs and resources that you really need to deliver the outputs that you really want. See the attached white paper for a summary on how to do it.
Most business management isn’t rocket-science. Just keep it simple and use the tools that are already out there.