Why You Should Consider Zero-Based Budgeting at Your Organization

Disruption from a multitude of sources is rife in the manufacturing industry. In order to maintain success, leaders need to work hard to make careful, well-informed decisions. In a recent article published by Forbes, author Kweilin Ellingrud makes a suggestion for manufacturers: consider zero-based budgeting (ZBB).

Why should manufacturers turn to ZBB? Ellingrud explains that manufacturers who employ this method are able to develop a valuable growth mindset, which leads to greater success. Here are some ways that employing ZBB leads to a growth mindset:

1. It inspires thoughtful spending decisions and drives valuable change in the form of the cumulative impact of many small decisions made well.
2. It creates greater visibility within an organization’s budget, which can help to highlight underutilized resources.
3. It makes room for innovation by allowing for flexible, agile spending decisions. This impact is multiplied when modern digital tools are employed.
4. It stimulates positive change and attitudes in other areas of an organization, beyond just the budget.

For more details, read the article in full at Forbes.