As manufacturers face shifting customer prospects, macro-economic turmoil, and technological revolution, business decisions can be more complex and consequential than ever. How can leaders expand their odds of victory? One answer lies in an astonishing source: zero-based budgeting (ZBB), or zero-basing.
Too often blamed for uneventful cost-cutting plans, ZBB real goal is to implant a growth mindset—a return on investment (ROI) mindset based on value, and not cost. Obviously, changing minds is tough work: most transformations flop because of management attitude and resistance from the employees.
So, creating a philosophy of cost management for growth takes more than just the CEO and the management team asking the right questions. Instead, managers must study to examine expenditure with an eye in the direction of investing where it matters.
While cost-cutting has a part to play, ZBB’s real purpose is to make thoughtful spending decisions—reframing options as cost management. The small deviations that result have the collective effect of generating investment opportunities to drive growth.
Only by evaluating what you spend your money on can you decide if it’s worth it. ZBB doesn’t set an annual budget for everybody to stringently follow too. Instead, it drives a philosophy of ongoing, conscious enquiring about resources, which in turn, permits for spending to respond rapidly to market volatility.
This quickness helps businesses seize opportunities as they rise, improving flexibility. Improved visibility can encompass beyond just budgets across both individuals and Capex. ZBB can be an important device: driving innovation, clarifying how to invest where it matters, and most vital of all, shifting culture to have a mentality of growth.
This ZOE training course will empower you with comprehensive knowledge of the need for ZBB and the necessary steps to successfully introduce ZBB in any organization.
Undertaking this course will provide you with the essential information, skill, capability and experience to be able to play an important role in modern cost structure and enable you to enter into a new era of decision-making mechanism.
This course will teach you about the entire ZBB process from start to the-end, including how to create a controlled philosophy of budgeting in your organization, techniques to analyze results, and how to increase the chances of organizational performance perfections.
This interactive course also allows participants to adopt a disciplined style to developing budgets, forecast results, use variance analysis to track performance, and presentation of results.
The main objective of this Zero Based Budgeting (ZBB) Training Course is to empower professionals with:
- Complete knowledge and information of principles, trends and practices related to ZBB.
- Observe how ZBB affect market conditions today.
- Complete experience and knowledge of tools and techniques instrumental in successful implementation of budget.
- Understanding the principles behind best practice.
- The importance of ZBB within a strategic framework and orient how to establish budgets focused on accomplishing definite goals.
- Build a healthy budgeting process within their organization.
- Use effective variance reporting to evaluate organizational performance.
- Make use of various functions and tools that are particularly appropriate to the budgeting process.
- Experience to plan possible ways to solve current complications and overcome challenges in budgeting procedures.
- Model appropriate funding which aligns more with the goals and strategies of the organization.
Training at Zoe Talent Solutions is delivered in various formats, customized to the training content, trainee or trainee group background, etc. The course content is delivered through presentations and discussions by the trainer, who also encourages questions and experience sharing at relevant time points during the course delivery in order to foster two-way participation. There are case studies, role-plays and group competitions and assignments that further help bring about variation and garner interests for the topic.
The course follows Zoe Talent Solutions’ Do–Review–Learn–Apply Model.
Professionals attending the Zero-Based Budgeting (ZBB) Training Course, the organization will benefit in the following ways:
- The final output is well justified and is aligned with the company’s overall business strategy, or business plan.
- Encourages more collaboration throughout the company.
- Improves performance and operating efficiency by challenging assumptions and examining expenditures.
- By avoiding traditional budgeting percentage increases, there is a significantly better chance of being able to make cost reductions.
- Promote the careful planning culture at all level of the organization.
- Finance manager gives a clear picture about the extent of finance available and the consequences of raising the finance.
- It forces the management executives at all levels for active participation in budgeting process, results increasing the motivational level.
- ZBB provides an opportunity to realign a company’s profit-and-loss statement with its strategic priorities whether by operating with a smaller cost base or by redirecting spending to more productive investments.
- The structural and cultural elements of ZBB help to guide organizations and their management teams to achieve performance improvements.
This Zero Based Budgeting (ZBB) Course will offer the following benefits:
- In-depth understanding of ZBB and the necessary experience to manage the successful implementation of the same.
- Increased skill and capability to accept and manage cost constraints within the organization, as a result of adopting ZBB.
- A more secure career within the organization by stabilizing and standardizing the organization’s costing and budgeting policies, work, processes, etc. to global market standards.
- Increased knowledge and skill to work with the latest technologies for faster and more efficient output.
- Increased capability, potential and competency to work not just in the public sector but also in the mixed and private sectors.
- Increased agility and preparedness to undertake additional roles and responsibilities, thus ensuring faster growth and progression for oneself.
- Executives view it as a significant mindset shift that requires change management and system improvements to help employees deliver more than they ever thought possible.
Who Should Attend?
- This ZBB course is designed for those who are responsible for financial management, budgeting, and forecasting within their organizations. This may include professionals working in financial planning and analysis (FP&A), accounting, treasury, financial reporting, corporate development, etc.
- Auditors and compliance officials responsible for ensuring transparency and integrity of all costing information and facts reported by organizations as setting up ZBB would involve a great deal of transparency to management reporting structure.
- Any other personnel who can contribute to overall improvement in the budgetary controls of the organizations.
The Zero-Based Budgeting (ZBB) Training will cover the following areas that are critical for ZBB:
- What is ZBB?
- Brief history of ZBB
- Role of ZBB in current market conditions
- The myths and realities of ZBB
- Behavioural aspects of budgeting
- Setting the difficulty level of a budget
- Budgeting and participation
- Feedback control and feedforward control
- Difference between ZBB and traditional budgeting
- Possible alternatives to ZBB (Top down vs bottom up budgeting, Incremental budgeting, Rolling budgets, Activity-based budgeting, and Feed-forward control)
- Advantages and disadvantages of ZBB
- Basic process flow under ZBB
- Budgets that are tied to specific activities and levels of service
- Funding is targeted more to activities that align with the strategy
- Manage spending through cuts or increases which are not spread equally across the budget
- Completing a ZBB
- Challenges and risks of ZBB
- Assess suitability of ZBB in an organization
- Changing a budgetary system
- Dealing with uncertainty in budgeting
- Beyond Budgeting Model
- Budget Reporting
- All our courses can be facilitated as Customized In-House Training course.
- Course duration is flexible, and the contents can be modified to fit any number of days.
- As for Open Enrolment Courses, we offer our clients the flexibility to choose the location, date, and time and our team of experts who are spread around the globe will assist in facilitating the course.
- The course fee includes facilitation, training materials, 2 coffee breaks, buffet lunch and a Certificate of successful completion of Training.
- FREE Consultation and Coaching provided during and after the course.