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Zero based budgeting

Zero based budgeting

Rapidly changing business models demand increasingly agile responses, as resources shift to support strategic objectives. The true value of zero based cost management lies in driving trade-offs between risk and value, thereby facilitating the need to constantly direct resources to the point of greatest strategic worth.

Read about power of zero basing and why it has recently made a resurgence in the following series of articles exploring topics related to zero basing, its implementation and its potential to transform specific industries.

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Zero basing – tackling attitudes to risk

How can companies manage the attendant risks of zero basing without blocking the good ideas that spring from this new and challenging way of rethinking the cost base? In this, the second in a series of articles, we discuss how to balance risk and value by looking at three key risk management challenges face by multiple industries and recommend appropriate responses.

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Zero basing in automotive

The automotive industry is in a turbulent period, with disappointing shareholder returns and poor return on capital. All of this is happening in the midst of huge transformational pressure brought on by three megatrends of electric powertrains, connected and autonomous vehicles and Mobility-as-a-Service – and exacerbated by geopolitical uncertainties like Brexit and potential trade wars. With so much funding required for vital strategic initiatives, it’s time for the automotive industry to reconsider zero based budgeting or zero basing.

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