Forget Last Year. Start With Zero.

Most companies I have been involved with on transformation projects have difficulties in letting go of all their ways of working and items of investment and spend that have been there allocated for ages. Every year you start from that base with a plus for inflation, but the anchor is already set.

Trying Zero Base Budgeting in full or even partially shakes the organisation and challenges the current thinking, stimulating innovation and creativity, generating efficiencies. I found it to be extremely helpful. It forces you to think of the relevance and alignment of every item to the strategy.

Implementation is tough for two main reasons: (a) immature leadership and (b) weak trust and collaboration between teams.

However, this is what you would naturally do if it was your own company... and that should be the mindset.