Accelerated

Zero Based
Budgeting
Identify and
implement quickly
up to 25% of agility

September 2016
AZBB – Overview

Zero-Based Budget (AZBB): Our proprietary method to react

quickly to the volatility of your environment

AZBB focuses on rapid and

Benchmarking alone does not durable cost savings
provide enough guidance
AZBB ABC Lean
Costs driven Process driven
AZBB creates transparency and approach approach
identifies precisely your savings
potential Costs analysis Analysis of cost Process
drivers efficiency
Review and
challenge of Review of Performance
Savings up to 25%, quick payback activities allocation keys management
(6-18 months), with an unrivaled ability
to align the organization on the target Client feedback Detailed tasks Coaching and
analysis best practices
Budgeting sharing
100% of our clients are satisfied or Review of
Organization organization Mindset, shared
highly satisfied, both on actual mobilization vision
savings and on efficiency of
implementation
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AZBB - How?
Systematically question the cost drivers and generate creative
ideas to foster efficiency and cost reduction – Typical phasing
Vague 1
1 Transparency
Cost drivers analysis
4 weeks
Functional approach, building
robust cost base (HR and spend)
> Data collection and modeling
("cube"), clarification of the cost
and resource structure and
drivers
> Indicative benchmarking
Operational approach:
understand and share cost base
status with managers
> Mapping of Decision Units (~40 to
50 FTEs each) and tasks (~50 to
100 tasks per DU), identification
of internal clients, assessment of
service levels
> First level assessment
Other waves if needed, depending on project scope
2 Ideas generation Savings
potential
4 weeks
Cost savings idea generation with
DU managers (weekly workshops)
> Systematic review of activities
and costs, identification of
optimization levers (simplify, stop,
automate, empower, outsource)
> Assessment of related savings
(spend and HR)
Quantification and allocation
> Conversion of savings in hard
cash gains/ ramp-up
> Comprehensive view for
management arbitration
3 Validation of ambition
Implementation plan
4 weeks
Selection and clustering of
savings
> Classification of effort level and
complexity of implementation
> Scenario building
> Roadblocks and resistance
mapping
Arbitration with COMEX
> Formal validation of level of
ambition
> Implementation roadmap
> Budgeting
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AZBB - How?

A proof-tested Roland Berger toolset to successfully

deliver your program – Key tools

A Challenge grid Monitoring

Are we doing Do we really need this activity?
> Progress monitoring and coordination of complex
the right transformation programs (up to thousands of actions)
things? What is the appropriate service level? > Consolidation of savings
Where should the activity be located?
Are we doing Who should do it? Benchmarking
the things
right? What process should frame it? > Internal Roland Berger database of benchmarks with 1000+
inputs on European companies
Can we automate this?
> Market comparison of target sizing

Change
Activities analysis > Mobilize and inform
B framework > Manage transformation
> HR planning
1 DU detailed org chart

2 Mission, Activities, Deliverables, KPIs

IT enablers
3 DU internal interactions (clients and suppliers)
> IT projects identification
4 Activity volume (FTE and spend) > Prioritization of IT enablers
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AZBB - Why?

A unique cross-sectorial expertise, which also covers change

and acceptability management
Examples of savings achieved – Roland Berger clients [% of addressed cost base]
HR levers [%] Spend levers [%]
26
25
24
20 20 20 20 20
18 18
17 17 17
16 16
15 15 15 15 15
13
11
10 10 10 10

Chemicals Distribution Metallurgy Automotive Chemicals Transport / Glass Utilities Financial Public Building Automotive Energy
tourism services sector materials

1 Differentiators
We know how to embark your
teams in the AZBB journey without
creating trauma or passive
resistance
2 3
We have a solid levers database We are totally dedicated to actual
and the ability to show convincing results through alignment on
examples to drive acceptance levers, management commitment
and robust monitoring methods

Roland_Berger_AZBB_EN_V1.pptx 5
To discuss how the AZBB approach can be beneficial to your
organization, please feel free to contact your usual contact
Roland Berger or email us:

AZBB@rolandberger.com

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