What it does

The Zero-Based Budgeting Training Deck helps

Zero-Based familiarize business unit and functional heads

with the zero-based budgeting process.

Budgeting Instructions:

Training Deck • Customize this presentation to suit your

organization's context.
• Use it to communicate the benefits of and
rationale for implementing zero-based budgeting.
• Each slide has a Notes section with:
o Discussion Guidance: Summary of the
purpose of the slide and how to use it
o Instructions for Input: Instructions on
customizing and modifying the slide

© 2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials,
is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,
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Executive Summary
1. We are facing costs pressures.
▪ Our costs are rising by <enter % increase in costs>
and our board and investors expect us to deliver <enter
expected margin improvement>.
▪ We need to improve productivity and reduce
costs.
▪ <enter other urgency drivers for zero-
based budgeting>
Zero-
Based
4. We need your constant Budgeting
support.
▪ We need you to endorse zero-based budgeting
across your business unit or function and help us drive
participation for zero-based budgeting.
▪ <enter other support you need from the business unit
and function>
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2. Zero-based budgeting offers a
solution.
Implementing zero-based budgeting will help us:
▪ Align resources with the company's strategic
objectives.
▪ Eliminate unnecessary spending and activities.
▪ <enter other benefits>
3. Savings will lead to funding
innovation projects.
▪ Cost savings generated from zero-based
budgeting will be used to fund innovation
projects that you want to implement during the
year.
▪ <enter additional benefits>
ZBB: Changing the Way Budgets Are Prepared

▪ <Add changes that your

organization will have to make
to implement zero-based
budgeting>

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The Benefits of Implementing ZBB

Zero-based budgeting • Identifies and eliminates unnecessary spending

creates visibility at • Creates spend accountability
activity line-item level • Increases costs transparency
and helps establish cost
ownership and
• Links expenditure to business unit and functional objectives
accountability. • <Enter other benefits>
• <Enter other benefits>

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Leading Organizations Have Used ZBB to Deliver
Significant Savings
To slash expenses, 3G applied
zero-based budgeting at a string of
companies, including H. J. Heinz Co.,
Burger King and Kraft Foods Group Inc. 1
Legg Mason started the process of identifying
which activities should be worth including in
the budget. This made it easier for the ZBB
team to decide what activities to cut and what
to be put into the “decision packages” that
eventually comprise the budget. 4
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Despite high growth, Mondelez Sydney Water realized cost savings by
International’s operating margins were implementing zero-based budgeting as an
lower than its peers. To control indirect exercise in value maximization instead of
costs and improve margins, they cost cutting, and successfully drove discipline
implemented zero-based budgeting. 2 in the business’s discretionary spend. 3
< Add success stories from your
industry >
Source: 1Anjali Athavaley, “3G to use its cost-cutting playbook on Kraft after Heinz merger”, Reuters, 26 March 2015,
http://www.reuters.com/article/2015/03/26/us-kraft-deals-analysis-idUSKBN0MM06020150326
2
Accenture, “Mondelēz International: Delivering savings with zero-based budgeting”, 2015,
https://www.accenture.com/in-en/success-mondelez-delivering-savings-zero-based-budgeting.aspx
3,4
Gartner
ZBB Will Help Us Achieve Our Business and
Functional Goals
Business and
How Zero-based Budgeting Supports Our Business and Functional Goals Key Metrics
Functional Goals

e.g. % of Research &

1. e.g. Market • e.g. Reduce product development costs to free-up resources for Asia
Development (R&D) Spend
Expansion expansion plans.
reduced

2. <Enter business/ <Enter metrics to measure

<Enter benefit of zero-based budgeting>
functional goal> success>

3. <Enter business/ <Enter metrics to measure

<Enter benefit of zero-based budgeting>
functional goal> success>

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Zero-Based Budgeting Process

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 We Are Available to Assist You

<Enter name and designation of ZBB implementation team member>

Email:
Phone:

<Enter name and designation of ZBB implementation team member>

Email:
Phone:

<Enter name and designation of ZBB implementation team member>

Email:
Phone:

<Enter name and designation of Finance staff involved in the process of ZBB>
Email:
Phone:

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