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Brexit and Zero Basing: Creating certainty in an uncertain world
Brexit and Zero-Basing
CEOs are facing almost unprecedented levels of uncertainty and cost pressure from Brexit and other macro-economic conditions. One way we are seeing this is a renewed focus on cost management and use of Zero Basing to support this.
What is ‘zero basing’? It entails building operating plans and budgets from the bottom up. It means starting from a blank piece of paper and justifying every activity and cost, adding them back in if they support delivery of the business strategy.
Using this approach, it’s not uncommon to see cost savings of 25% or more. The spend that remains is directed to the activities of greatest strategic value. It’s a powerful proofing agent against the pressures of Brexit, making businesses leaner and more resilient for the future.
Read this two page document to find out what else we think companies should be doing.
© 2020 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
