Terms

Zero-Based Budgeting (ZBB)

What is Zero-Based Budgeting?

Zero-Based Budgeting (ZBB) is a budgeting method where all expenses must be justified for each new period, starting from a "zero base." Every function within an organization is analyzed for its needs and costs, and budgets are built around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one. This approach contrasts with traditional budgeting, which often bases new budgets on previous ones with incremental adjustments.

Implementing Zero-Based Budgeting

When implementing ZBB, it's essential to adopt a strategic approach including:

  1. Start Fresh: Begin each budgeting cycle from scratch, ensuring no automatic carry-over of past figures.
  2. Justify Expenses: Require managers to justify every expense, emphasizing rational spending based on current needs rather than historical expenditures.
  3. Align with Strategic Goals: Ensure that all budget requests align with organizational objectives to enhance strategic focus and resource allocation.
  4. Engage Stakeholders: Involve all relevant stakeholders in the budgeting process to gain comprehensive insights and foster accountability.

Benefits and Drawbacks

Benefits:

  • Cost Efficiency: Encourages identifying cost-saving opportunities by scrutinizing all expenditures.
  • Resource Optimization: Allocates resources more effectively by focusing on essential and strategically aligned activities.
  • Strategic Alignment: Links spending with organizational goals, promoting more strategic investments and spending.

Challenges:

  • Time-Consuming: The need to justify every expense can make the budgeting process longer and more labor-intensive.
  • Focus on Short-term Goals: Potential risk of prioritizing immediate cost savings over long-term investments, such as R&D.
  • Complexity: Can be complex to implement, requiring robust processes and training to ensure understanding and effectiveness.

Zero-Based vs. Traditional Budgeting

Traditional budgeting is based on the previous year's budget, adjusting it as needed, often with incremental increases. It is cost accounting-oriented, and management decides on expenditures without necessarily requiring justification for each expense.

On the other hand, ZBB starts from scratch every budget cycle, requiring justification for all expenditures, new and old. It is decision-oriented, promotes greater clarity and responsiveness, and involves line(s) of business management proposing expenditures.

Keys to Successful Zero-Based Budgeting

Successful ZBB implementation involves:

  1. Thorough Training: Educate all involved personnel on the ZBB approach and its benefits to ensure clear understanding and effective implementation.
  2. Technology Utilization: Leverage advanced budgeting tools and software to streamline the process and enhance accuracy.
  3. Continuous Review: Regularly review and adjust the ZBB process to refine approaches, improve efficiency, and adapt to changing business needs.
  4. Cultural Alignment: Foster a culture that embraces scrutiny and justification of expenses to support sustainable implementation of ZBB principles.

Other terms

Oops! Something went wrong while submitting the form.
00 items

Virtual Selling

Learn about virtual selling, including advantages of virtual selling, key strategies for successful virtual selling, & virtual selling vs. traditional selling.

Virtual Selling

Unique Selling Point

Learn about unique selling point, including identifying your unique selling point, crafting a compelling USP, & unique selling point vs. value proposition.

Unique Selling Point

Sales Dialer

Learn about sales dialer, including types of sales dialers, benefits of using a sales dialer, & choosing the right sales dialer for your team.

Sales Dialer

Direct-to-Consumer

Learn about direct-to-consumer, including advantages of direct-to-consumer models, key strategies for D2C success, & comparing D2C with traditional retail.

Direct-to-Consumer

Lead Enrichment Software

Learn about lead enrichment software, including benefits of lead enrichment software, key features to look for, implementing lead enrichment in your sales process.

Lead Enrichment Software

Pipeline Management

Learn about pipeline management, including strategies for effective pipeline management, & key stages in pipeline development.

Pipeline Management

NoSQL

Learn about NoSQL, including advantages of NoSQL, types of NoSQL databases, use cases for NoSQL, & challenges with NoSQL.

NoSQL

Data Mining

Learn about data mining, including introduction to data mining concepts, benefits of effective data mining, & data mining techniques and approaches.

Data Mining

Request for Proposal

Learn about request for proposal, including crafting a winning RFP, key elements of an effective RFP, & RFP vs. RFQ.

Request for Proposal

Ransomware

Learn about ransomware, including impact on outbound sales, common types and examples, preventive measures, & how to respond.

Ransomware

Data Visualization

Learn about data visualization, including benefits of data visualization, tools for data visualization, & best practices for visual storytelling.

Data Visualization

Sales Enablement Platform

Learn about sales enablement platform, including key features of sales enablement platforms, & selecting the right sales enablement platform.

Sales Enablement Platform

GDPR Compliance

Learn about GDPR compliance, including understanding GDPR requirements, steps to achieve compliance, & common pitfalls and solutions.

GDPR Compliance

Text message marketing

Learn about text message marketing, including its definition, key benefits, strategies, best practices, compliance tips, and examples of successful campaigns.

Text message marketing

Low-Hanging Fruit

Learn about low-hanging fruit, including identifying low-hanging fruit, strategies for capturing easy wins, & comparing high and low effort opportunities.

Low-Hanging Fruit

Voice Broadcasting

Learn about voice broadcasting, including advantages of voice broadcasting, setting up voice broadcasting, & best practices for voice broadcasting.

Voice Broadcasting

Channel Partner

Learn about channel partner, including benefits of partnering with channels, choosing the right channel partner, & channel partners vs. direct sales.

Channel Partner

Challenger Sales Model

Learn about challenger sales model, including key principles of challenger sales, implementing the challenger approach, & challenger vs. solution selling.

Challenger Sales Model

Demand Generation

Learn about demand generation, including strategies for effective demand generation, & key components of demand generation.

Demand Generation

Bulk Application Programming Interface

Learn about bulk API, including how it works, the advantages of using it, common use cases, and tips for optimizing it.

Bulk Application Programming Interface

Sales Performance Metrics

Learn about sales performance metrics, including key components of sales performance metrics, & essential sales metrics to track.

Sales Performance Metrics

Referral Marketing

Learn about referral marketing, including benefits of referral marketing, building a successful referral program, & referral marketing vs. affiliate marketing.

Referral Marketing

Digital Rights Management

Learn about digital rights management, including how digital rights management works, & benefits of digital rights management.

Digital Rights Management

Contact Data

Learn about contact data, including sources and collection methods of contact data, & the significance of accurate contact data.

Contact Data

Programmatic Advertising

Learn about programmatic advertising, including how programmatic advertising works, & key benefits of programmatic advertising.

Programmatic Advertising

Consumer Buying Behavior

Learn about consumer buying behavior, including understanding consumer decision processes, & the impact of culture on buying habits.

Consumer Buying Behavior

Application Performance Management

Learn about application performance management, including benefits of application performance management, & challenges in implementing APM.

Application Performance Management

Competitive Landscape

Learn about competitive landscape, including analyzing your competitors, crafting your competitive edge, & key metrics for competitive analysis.

Competitive Landscape

Kubernetes

Learn about Kubernetes, including importance of Kubernetes, core features of Kubernetes, setting up Kubernetes, & benefits of using Kubernetes.

Kubernetes

Docker

Learn about Docker, including how Docker works, benefits of using Docker, Docker vs. virtual machines, & key Docker concepts.

Docker

Sales Engagement

Learn about sales engagement, including strategies for effective sales engagement, key principles of sales engagement, & sales engagement vs. sales enablement.

Sales Engagement

Average Order Value

Learn about average order value, including maximizing your average order value, strategies for increasing AOV, & AOV vs. customer lifetime value.

Average Order Value

Funnel Analysis

Learn about funnel analysis, including how funnel analysis works, steps to implement funnel analysis, & common funnel analysis mistakes.

Funnel Analysis

Dynamic Segment

Learn about dynamic segment, including benefits of using dynamic segments, crafting effective dynamic segments, & dynamic segments vs. static segments.

Dynamic Segment

Marketing Attribution Model

Learn about marketing attribution model, including types of marketing attribution models, & key benefits of attribution modeling.

Marketing Attribution Model

SFDC

Learn about SFDC, including overview of Salesforce.com (SFDC), key components of SFDC, benefits of using SFDC, & popular SFDC integrations.

SFDC

Overcoming Objections

Learn about overcoming objections, including the art of handling rejections, & strategies for effective objection management.

Overcoming Objections

B2B Demand Generation

Learn about B2B demand generation, including strategies for effective B2B demand generation, & key components of a demand generation program.

B2B Demand Generation

Demand Capture

Learn about demand capture, including strategies for effective demand capture, key principles of demand capture, & demand capture vs. demand generation.

Demand Capture

Unique Value Proposition (UVP)

Learn about unique value proposition (UVP), including its definition, key components, how to create one, benefits, and examples of effective UVPs.

Unique Value Proposition (UVP)

Single Page Applications

Learn about single page applications, including benefits of single page applications, key features of SPAs, how to build SPAs, & common mistakes in SPAs.

Single Page Applications

Scrum

Learn about scrum, including advantages of scrum, implementing scrum in sales, scrum roles explained, & common scrum mistakes.

Scrum

Feature Flags

Learn about feature flags, including benefits of feature flags, how to implement feature flags, & best practices for using feature flags.

Feature Flags

Key Accounts

Learn about key accounts, including identifying key accounts criteria, strategies for managing key accounts, key accounts vs. regular accounts: understanding the differences.

Key Accounts

Early Adopter

Learn about early adopter, including identifying early adopters, benefits of targeting early adopters, & strategies to attract early adopters.

Early Adopter

Headless CMS

Learn about headless CMS, including benefits of using a headless CMS, how a headless CMS works, & headless CMS vs. traditional CMS.

Headless CMS

Customer Retention Cost

Learn about customer retention cost, including strategies to reduce retention costs, & critical metrics for measuring retention success.

Customer Retention Cost

Sales Demo

Learn about sales demo, including preparing a winning sales demo, characteristics of successful sales demos, & sales demo versus product demo.

Sales Demo

Data Encryption

Learn about data encryption, including understanding the basics, types of data encryption, benefits of data encryption, & implementing data encryption.

Data Encryption

Buying Process

Learn about buying process, including key stages in the buying process, understanding consumer decision-making, & optimizing your sales for the buying process.

Buying Process

Loss Aversion

Learn about loss aversion, including understanding loss aversion in sales, mitigating loss aversion effects, & loss aversion vs. risk seeking.

Loss Aversion

Predictive Analytics

Learn about predictive analytics, including key benefits of predictive analytics, & implementing predictive analytics successfully.

Predictive Analytics

Load Testing

Learn about load testing, including benefits of load testing, how to conduct load testing, common load testing tools, & best practices for load testing.

Load Testing

Target Account Selling

Learn about target account selling, including implementing target account selling strategies, & key benefits of target account selling.

Target Account Selling

Master Service Agreement

Learn about master service agreement, including key elements of a master service agreement, & crafting an effective master service agreement.

Master Service Agreement

Data Appending

Learn about data appending, including benefits of data appending, implementing data appending effectively, & data appending vs. data scrubbing.

Data Appending

Dark Funnel

Learn about dark funnel, including unraveling the dark funnel mystery, strategies to illuminate the dark funnel, & dark funnel vs. traditional sales funnels.

Dark Funnel

B2B Marketing Channels

Learn about B2B marketing channels, including maximizing B2B channel effectiveness, & exploring digital vs. traditional channels.

B2B Marketing Channels

Sales Productivity

Learn about sales productivity, including maximizing sales productivity: strategies and tools, & key metrics for measuring sales productivity.

Sales Productivity

Persona-Based Marketing

Learn about persona-based marketing, including crafting your ideal customer persona, & the impact of persona-based marketing.

Persona-Based Marketing

Sales Qualified Lead

Learn about sales qualified lead, including identifying sales qualified leads, criteria for sales qualified lead, transitioning leads to sales qualified s.

Sales Qualified Lead

Performance Monitoring

Learn about performance monitoring, including benefits of performance monitoring, key metrics to track, common challenges, & best practices.

Performance Monitoring

Closing Ratio

Learn about closing ratio, including improving your closing ratio, closing ratio versus conversion rate, & strategies for maximizing closing ratios.

Closing Ratio

Subscription Models

Learn about subscription models, including how subscription models work, advantages of subscription models, & implementing subscription pricing.

Subscription Models

Prospecting

Learn about prospecting, including strategies for effective prospecting, key principles of successful prospecting, prospecting vs. lead generation.

Prospecting

Inside Sales Metrics

Learn about inside sales metrics, including key indicators in inside sales metrics, & measuring success: essential metrics.

Inside Sales Metrics

Closed Question

Learn about closed question, including crafting effective closed questions, advantages of closed questions, & closed vs. open questions.

Closed Question

Sales Director

Learn about sales director, including roles and responsibilities of a sales director, & key skills for a successful sales director.

Sales Director

CRM Analytics

Learn about CRM analytics, including key benefits of CRM analytics, implementing CRM analytics effectively, & CRM analytics vs. traditional sales metrics.

CRM Analytics

Closed Lost

Learn about closed lost, including understanding common causes of closed lost, & strategies to minimize closed lost scenarios.

Closed Lost

Sales Demonstration

Learn about sales demonstration, including preparing for a successful sales demo, crafting an engaging sales pitch, sales demo vs. sales presentation.

Sales Demonstration

Point of Contact

Learn about point of contact, including identifying your point of contact, effective communication strategies, roles and responsibilities of a point of c.

Point of Contact

Sales Cycle

Learn about sales cycle, including key phases of a sales cycle, steps to shorten your sales cycle, & sales cycle vs. sales funnel.

Sales Cycle

Opportunity Management

Learn about opportunity management, including key strategies in opportunity management, & the role of technology in managing opportunities.

Opportunity Management

Challenger Sales

Learn about challenger sales, including implementing the challenger sales model, key principles of challenger sales, & challenger sales vs. solution selling.

Challenger Sales

Account-Based Everything

Learn about account-based everything, including implementing account-based strategies, & key principles of account-based alignment.

Account-Based Everything

Internal signals

Learn about internal signals, including identifying key internal signals, strategies for effective monitoring, & impact of internal signals on sales strategy.

Internal signals

B2B Leads

Learn about B2B leads, including identifying quality B2B leads, generating B2B leads effectively, & B2B leads vs. B2C leads: understanding the differences.

B2B Leads

Cost Per Click (CPC)

Learn about CPC, including understanding it, CPC calculation, maximizing ROI with CPC, CPC vs. CPM, and its future trends.

Cost Per Click (CPC)

FAB Technique

Learn about FAB technique, including implementing FAB in sales strategies, benefits of the FAB technique, & FAB vs. other sales techniques.

FAB Technique

Upsell

Learn about upsell, including benefits of effective upselling, strategies for successful upselling, & upsell vs. cross-sell: understanding the difference.

Upsell

Net 30

Learn about Net 30, including advantages of utilizing Net 30, implementing Net 30 in your business, & Net 30 vs. immediate payment terms.

Net 30

Email Deliverability Rate

Learn about email deliverability rate, including factors affecting email deliverability, & improving your email deliverability rate.

Email Deliverability Rate

Business Process Management

Learn about business process management, including benefits of implementing BPM, steps to effective BPM, common BPM mistakes to avoid, & BPM tools and software.

Business Process Management

Pipeline Coverage

Learn about pipeline coverage, including key components of pipeline coverage, improving pipeline coverage efficiency, pipeline coverage vs. traditional s.

Pipeline Coverage

Browser Compatibility

Learn about browser compatibility, including understanding the importance, common challenges, best practices, & tools for testing.

Browser Compatibility

Functional Testing

Learn about functional testing, including definition, key methodologies, benefits, best practices & how it ensures software quality.

Functional Testing

Decision Maker

Learn about decision maker, including identifying key decision makers, strategies for engaging decision makers, decision maker vs. influencer: understanding the differences.

Decision Maker

Sales Champion

Learn about sales champion, including identifying your sales champion, qualities of an effective sales champion, sales champion vs. sales representative.

Sales Champion

Direct Sales

Learn about direct sales, including benefits of direct sales, strategies for successful direct sales, & direct sales vs. indirect sales.

Direct Sales

Content Delivery Network

Learn about content delivery network, including how CDN works, benefits of using CDN, CDN vs traditional hosting, & CDN implementation tips.

Content Delivery Network

Sales Pipeline Velocity

Learn about sales pipeline velocity, including maximizing sales pipeline velocity, key metrics to monitor, & improving velocity with automation.

Sales Pipeline Velocity

Awareness Buying Stage

Learn about awareness buying stage, including definition, importance, key strategies, best practices & how it fits into the sales funnel.

Awareness Buying Stage

Copyright Compliance

Learn about copyright compliance, including how to ensure copyright compliance , & key benefits of copyright compliance .

Copyright Compliance

Video Messaging

Learn about video messaging, including benefits of video messaging in sales, crafting engaging video messages, & video messaging vs. traditional email.

Video Messaging

Complex Sale

Learn about complex sale, including navigating complex sale challenges, key strategies in complex sales, & complex sale vs. simple sale.

Complex Sale

Revenue Operations (RevOps)

Learn about revenue operations, including the core functions of revenue operations, building an effective revenue operations strategy, and more!

Revenue Operations (RevOps)

Email Deliverability

Learn about email deliverability, including improving email deliverability rates, & key factors affecting email deliverability.

Email Deliverability

Small to Medium-Sized Business

Learn about small to medium-sized business, including characteristics of SMEs, scaling strategies for SMEs, challenges facing SMEs, & SMEs in the global market.

Small to Medium-Sized Business

Compliance Testing

Learn about compliance testing, including definition, importance, key strategies, best practices & how to ensure regulatory adherence.

Compliance Testing
Clay brand asset shaped as a 3D group of abstract objects made out of purple and pink clayClay brand asset shaped as a 3D group of abstract objects made out of purple and pink clay

Scale your outbound motion in seconds, not months

14 day free Pro trial - No credit card required

Try Clay free