[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-254035-105":53,"doc-detail-254035-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","zero-based-budgeting-an-effective-response-to-economic-uncertainty","ZERO-BASED BUDGETING - AN EFFECTIVE RESPONSE TO ECONOMIC UNCERTAINTY","","Zero-based budgeting (ZBB) resets an organization’s cost base to zero and requires each line item to be justified on necessity, not on prior-period history. The approach has gained momentum during economic instability, including the 2008 financial crisis and the COVID-19 downturn. ZBB avoids “grandfathering,” focuses spending on required activities, reduces padding, and aligns expenditures with corporate strategy. It can improve liquidity, support recovery, and enable sustainable cost transformation by building a lean, flexible cost base through ongoing, bottom-up analysis.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":11,"@type":70,"position":76},"https://docshare.wps.com/template/presentations/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/zero-based-budgeting-an-effective-response-to-economic-uncertainty/254035/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/zero-based-budgeting-an-effective-response-to-economic-uncertainty/254035.png","ImageObject",442,249,{"name":88,"@type":89},"Sage","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-30","2026-09-13",true,{"@type":98,"interactionType":99,"userInteractionCount":15},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What is zero-based budgeting (ZBB) and how does it differ from incremental budgeting?","Question",{"text":108,"@type":109},"ZBB resets the organization’s cost base to zero and requires justification of each line item based on necessity. Unlike incremental budgeting that relies on prior-period actuals, ZBB challenges how every dollar is spent.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"Which core principles does ZBB use to control costs?",{"text":113,"@type":109},"ZBB does not automatically carry over (grandfather) costs, bases spending on required activities, and requires justification for all costs. It also reduces manipulation and padding by analyzing and prioritizing activities.",{"name":115,"@type":106,"acceptedAnswer":116},"What benefits does ZBB provide during economic uncertainty and recovery?",{"text":117,"@type":109},"ZBB can provide liquidity relief through prioritized cost-saving measures, support lean recovery by maintaining bottom-up cost analysis, and drive sustainable cost transformation by reinforcing a cost-discipline mindset and reallocating resources to value-adding uses.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},254035,1791743714,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":8,"category_name":11,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":15,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":79,"language":135,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":61,"update_tm":139,"read_time":73},687197207057,"https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0","ZERO-BASED BUDGETING:  \nAN EFFECTIVE RESPONSE TO ECONOMIC UNCERTAINTY  \nBy Michelle Leon and Chris T roe del  \nTHE RESURGENCE OF ZERO-BASED BUDGETING  \nZero-based budgeting (ZBB) is a financial planning technique that resets the cost base of an organization to zero. It is a bottom-up approach that involves justifying each line item based on necessity rather than reverting to the prior period’s actuals. ZBB has been used since the 1970sto help companies scrutinize costs, cut unnecessary expenses, and align funding with strategic priorities. ZBB often gains momentum during times of economic instability, as it did during the financial crisis of 2008.  \nMore recently, the economic fallout from COVID-19 is generating dialogue around ZBB for its promise of cost reduction and increased agility. While the economic environment remains uncertain, traditional incremental budgeting will not deliver adequate cost control in a dynamic world of economic volatility, disruptive technologies and fierce competition.  \nPrior Period’s Budget Not Considered  \n• No automatic ‘grandfathering’ of costs to the next budget period  \n• Bases spending levels on necessary activities rather than budget history  \nJustification of All Costs  \n• Eliminates manipulation and ‘padding’ practices in the budgeting process  \n• Requires more work than traditional budgeting to analyze and prioritize activities  \nFocus on Required Activities  \n• Links spending with required activities  \n• Requires detailed knowledge of the organization’s activities to determine whether to reduce or discontinue activities  \nAlignment with Corporate Strategy  \n• Aligns expenditures with the overall strategy of the enterprise  \n• Enables more strategic allocation of expenditures  \nAs many companies watch their revenues fall due to the pandemic’s social isolation measures, they are taking a closer look at all costs across the enterprise, eliminating unnecessary spending, and making sure remaining expenditures translate into value for their business.  \nIn a March survey of over 300 global finance executives conducted by Gartner Inc.1 , 20-26 percent said they would zero-base their budgets to respond to the coronavirus. This approach is not surprising as ZBB can result in significant cost savings, as well as improve efficiency and competitiveness. Indeed, ZBB delivers the following benefits that help companies weather this time of uncertainty:  \n1. [https://emtemp.gcom.cloud/ngw/globalassets/en/finance/documents/trends/covid-industry-perspectives-30-march-2020.pdf](https://emtemp.gcom.cloud/ngw/globalassets/en/finance/documents/trends/covid-industry-perspectives-30-march-2020.pdf)  \nZERO-BASED BUDGETING: AN EFFECTIVE RESPONSE TO ECONOMIC UNCERTAINTY / 1  \n• Provide liquidity relief: Implemented now, ZBB could help companies respond to the crisis and generate liquidity relief through the identification and prioritization of cost-saving measures. Starting from scratch and focusing on value-adding costs will enable companies to make the appropriate decisions and trade-offs  \n• Succeed in recovery: An ongoing, bottom-up analysis that challenges how the organization spends every dollar can deliver a lean, flexible cost base during and after the recovery. This approach can also channel spending to more strategic, growth-oriented uses  \n• Drive sustainable cost transformation: Instituting ZBB principles today can kick-start a sustainable cost transformation that will help firms succeed in the ‘new normal’ as ZBB fosters a business owner’s mindset to spend enterprise resources in the right places  \nHOW TO APPROACH ZBB  \nZBB involves extensive planning, coordination, and support from many levels of the organization. As such, it is of paramount importance to secure c-suite sponsorship and commitment of the ZBB program so that buy-in for the program trickles down to all levels of the organization. Program governance, including roles and responsibilities, is critical to enforce clear accountability acros","cbCaitoyS4FNxoqK","https://ap.wps.com/l/cbCaitoyS4FNxoqK","pdf",87638,"English","# The resurgence of zero-based budgeting\n## Prior period’s budget not considered\n## Justification of all costs\n## Focus on required activities\n## Alignment with corporate strategy\n# How to approach ZBB\n## Embedding change for sustainability\n## Critical success factors of an evolved ZBB program\n## Technology","[{\"question\":\"What is zero-based budgeting (ZBB) and how does it differ from incremental budgeting?\",\"answer\":\"ZBB resets the organization’s cost base to zero and requires justification of each line item based on necessity. Unlike incremental budgeting that relies on prior-period actuals, ZBB challenges how every dollar is spent.\"},{\"question\":\"Which core principles does ZBB use to control costs?\",\"answer\":\"ZBB does not automatically carry over (grandfather) costs, bases spending on required activities, and requires justification for all costs. It also reduces manipulation and padding by analyzing and prioritizing activities.\"},{\"question\":\"What benefits does ZBB provide during economic uncertainty and recovery?\",\"answer\":\"ZBB can provide liquidity relief through prioritized cost-saving measures, support lean recovery by maintaining bottom-up cost analysis, and drive sustainable cost transformation by reinforcing a cost-discipline mindset and reallocating resources to value-adding uses.\"}]","ZERO-BASED BUDGETING - AN EFFECTIVE RESPONSE TO ECONOMIC UNCERTAINTY | PDF",1789273418]