The Zero-Based Budgeting (ZBB) is a methodology that can be utilized by companies that need to rethink their budgeting process. Instead of the traditional way where companies base their forecast on historic data and analysts predictions for the industry, the ZBB is based on the company’s fundamental business premises, closely connected to its strategic vision.

All the expenses are analyzed, evaluated and revised in order to obtain a standard to be followed. In this phase, the key areas are involved to set reduction goals to be achieved through a budgeting action plan. All the non-core investments and activities are budgeted separately, and are classified according to a priority matrix to further evaluation.

In this manner, the company is more agile in its decision making process, resulting in high value-added solutions. All the teams efforts are translated in an action plan that pushes the company in the right direction, making the budgeting tool a very productive way to control performance.

AGR’s methodology can be applied in all business areas, resulting in an integrated strategy for the whole company that boost performance and reduce costs.

The ZBB project includes expense analysis, evaluation of the department’s organizational structure, processes mapping and redesign, strategic vision and key operational premises, making the budgeting process an integrated experience between all the company’s areas. In the end, the final budget is a clear mirror of the upper management expectations.