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How to Set Zero-Based Goals

thoughtLEADERS, LLC

Use this common budgeting technique to set goals that are more relevant and actionable. When you’re setting goals, you can borrow a technique from a common budgeting process called zero-based budgeting. Every dollar you’re going to spend in the budget is justified.

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Do You Set Zero-Based Goals for Yourself?

thoughtLEADERS, LLC

Use this common budgeting technique to set goals that are more relevant and actionable. When you’re setting goals, you can borrow a technique from a common budgeting process called zero-based budgeting. Every dollar you’re going to spend in the budget is justified.

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Airbnb, Plus Lessons from Kraft Heinz and Zero Based Budgeting

Harvard Business Review

They also discuss Kraft Heinz’s controversial zero-based budgeting approach to management. Youngme, Felix, and Mihir debate how well Airbnb is managing growth amid backlash from cities like New York City.

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Zero-Based Budgeting Is Not a Wonder Diet for Companies

Harvard Business Review

Zero-based budgeting (ZBB) is elegantly logical: Expenses must be justified for each new budget period based on demonstrable needs and costs, as opposed to the more common method of using last year’s budget as your starting point, then adjusting up or down. We believe the exact opposite to be true.

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Your Organization Wastes Time. Here’s How to Fix It.

Harvard Business Review

We recommend zero-based budgeting and planning to make the choices clearer. This also helps get over the dilemma that companies often face when they are making cuts: Should they eliminate the work and then reduce the budgets that allowed these costs, or should they shrink the budgets to squeeze out the unnecessary work?

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Can You "Re-Anchor" Your Next Budget Meeting?

Harvard Business Review

Zero-based budgeting is one such technique, but it is a time-consuming approach that cannot be used systematically. If we can be "anchored" by such obviously irrelevant inputs, imagine the gravitational attraction of highly relevant numbers, such as this year's outcomes when discussing next year's targets.

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All Boards Need a Technology Expert

Harvard Business Review

Using Moore’s Law , zero-based budgeting would call for technology spending to fall each year by about 30%; in most companies spending goes up by at least 5% each year. It’s often focused on the competitive environment — used to reassure management that it is not falling behind rivals.