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Exposing the Myths (and Realities) of Zero-Based Budgeting - Part 5


ZBB frees up unproductive costs and allows those savings to be taken to the bottom line or redirected to more productive areas that will drive future growth.


In this series of blogs, we explore some misunderstandings and realties of ZBB as outlined by Shaun Callaghan, Kyle Hawke, and Carey Mignerey of McKinsey and Company.


Myth five: ZBB is not designed for growth-oriented companies.

Reality: ZBB is successfully used by growing companies to redirect unproductive costs to more productive areas that drive growth


Zero-based budgeting is a powerful tool for any company, whatever its orientation. Even if the organization’s primary focus is on growth, profit, or talent retention, cost management remains crucial to its success. Eliminating unproductive costs allows the company to be redirected to more productive areas. As we mentioned in the earlier example, back-office costs can be redirected to customer-facing activities.


ZBB is not a slash-and-burn exercise that cuts costs without regard for the expense. With deep visibility into costs, changes can be made to surgically cut the fat and help build up organizational muscle.


Read the full article here:


Ramesys Global

Ramesys is an all-in-one budgeting, forecasting and reporting platform, purpose-built for the mining industry, that offers complete cost visibility across the entire organisation. 


Our goal is to make it easier for mining companies to achieve a transparent understanding of their cost performance, develop a cost-conscious culture and create a single source of truth that helps key stakeholders make better decisions, faster.



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