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