In today's competitive business world, organizational facilities of all sizes are forced to find time to improve the performance of their resources. In times of need for timely interventions, cost reduction plans alone can deliver the necessary benefits. However, most organizations realize that this advantage is short-lived and costs start to increase after a while.
In pursuit of long-term and cost-saving efforts, many organizations have turned to zero-based budgeting (ZBB). ZBB is a method that requires organizations to create an annual budget from scratch each year.
In order to receive funding, each price line must be confirmed and cannot be guaranteed except as historically calculated. This allows organizations to gain insight into cost drivers and identify areas of ineffective spending, allowing them to reinvest in projects that directly support departments, company strategies, or long-term goals such as productivity or sustainability.
But moving to Zero Based Budgeting is not easy; The process itself is time consuming and difficult compared to traditional methods. It is a process that requires a change in mindset and culture, as well as the processes and tools to make it happen. If not done well, employee morale can be negatively affected if the owners at the charging station are too strict, or the process can clog if the process starts to take up too much time beyond its core functions.
For organizations that want to set up a ZBB system, we offer comprehensive services in the following areas:
The concept of using Zero Based Budgeting is different from traditional spending methods. It's important to note that organizations' ZBB process's budgets (eg travel) and cost areas (eg. Commercial Marketing Manager). In addition, ZBB changed the role of the financial district from the newly established budget to the party running the process and issuing all budgets.
We create budgeting and forecasting processes and management based on the needs and culture of your organization, and we clarify the roles and responsibilities of all professionals (package leader, regional manager, financial district, etc.).
We work with you to create a budget for next year, identify all costs and expenses, and list savings in the first cycle. We use our experience to be competitive, inviting all levers to reduce costs and increase efficiency, while supporting stakeholders in building knowledge and understanding of the procedure.
In our work, we resolve the conflict between corporate culture and financial issues.
We know that ZBB is not just a project, it's a change of mind. For this change to be successful, it is important to establish new behaviors, clearly define new roles for each position, and have a commitment from senior management to engage, support ideas, and resolve conflicts.
In our work, we remove their dependence on Consult for the future by helping companies understand this challenge and prepare for future changes with thought and hope.
We believe that our customers know their business better than anyone else. At the same time, we provide experience, proven processes, cross-industry business models and change management that can support our customers in their transition to ZBB without any business interruption. To create
ZBB, we take it step-by-step, making sure we understand the company's culture and business process; generate step-by-step solutions and involve leadership throughout the process; this allows change management to be established. Or promote a production culture. This often translates into 4 project phases:
In order for the project to be completed, we think that the process should be coordinated with our customer team by identifying the package owners not only related to finance but also coming from other sources as part of the process. This integration is important (a) to ensure that the opportunities in the process reflect the reality of the business, (b) to have experts in each package to identify the path and use it for the next year, and (c) to the company. will be able to carry out the financial process without this method.
CHALLENGE
Our client, a large healthcare company, wanted to standardize the costing process across its 30+ hospitals by understanding each hospital’s needs for medical assistants (nurses, receptionists, and doctors) and administrative staff.
APPROACH
We have developed ZBB systems and tools that allow companies to understand their costs in detail and identify the appropriate staff for each hospital. The key to the success of the process is the careful selection of specialists with the necessary methods to justify the costs. Our preferred package owners are merchants (such as financial services or insurance) and healthcare providers (medical devices or infectious dise
RESULT
Thanks to this project, we not only saved 20% of our workforce, but also optimized the balance of our workforce across the entire field.
After the initial budget, the company continued to use new methods and tools not only to manage the hospital budget, but also to forecast staffing needs for the new hospital.
CHALLENGE
Our client, a financial institution, discovered after their annual campaign that they needed to cut costs to increase their profits and meet their business goals. The organization does not have a “culture”, so the company’s leadership assumes that significant changes are necessary to improve performance across the enterprise.
APPROACH
We worked with the CEO and board to determine the minimum cost reduction plan needed to deliver
Strategies. From now on, we are ready to work with all parts of the company to create a strong ZBB process to change both the thinking and the financial/forecasting process.
Package Members and Paid Members have been identified and trained, and we are working closely with all areas of the organization to clarify new roles and responsibilities for the parties.
Then, we support the managers in the implementation of the budget, in all kinds of price and area drawings.
RESULTS
Together with the finance team, we determined an opportunity to reduce costs and expenses by 20% compared to last year. The new predictive management allows companies to monitor these opportunities as they are captured and influence cultural change over the next few years.
CHALLENGE
The national beauty company monitors the budgeting process and allocates negative budgets to initiatives that align with the company’s strategy. The current system is primarily financial and lacks oversight and cooperation between companies and regional leaders, increasing costs and making verification difficult.
APPROACH
We supported the company in improving ZBB processes and management to improve value visibility and ownership. For example, from all organizational costs (eg.
Vacation expenses). In this way, we connect them to the same goal and ensure that every manager has a company-wide view.
RESULTS
We have implemented and installed new budgeting and forecasting management systems that include and connect business units, regions and business units. Running the financial cycle with the customer enabled us to identify many opportunities for improvement, resulting in cost reductions of over 10%.
Incorporated is involved in working with companies in a variety of industries including personal and home care, appliances, construction and financial services.
Our professionals work across industries to develop a deep understanding of market trends, best practices and customer/needs across industries. This enables us to offer our clients powerful and customized solutions that take into account the internal and external environment.
Dhruv Patel is an engagement manager at BMCS and has been working since 2019 in the Argentinean office in the Supply Chain Practice.
Aarush Gandhi is a Manager at BMCSwith significant experience in Supply Chain and Implementation having worked across both of BMCS practices.
Nikhil Singh is a Director at BMCS and has been working since July 2011 in the practice of Marketing & Sales. Prior to BMCS, Jonathan was an Analyst
Keshav is a Manager in the Marketing & Sales practice. Originally from Columbia, Luis is an entrepreneur at heart, and has worked in several start-ups in Colombia, receiving his MBA
Chaitanya Varma is a Financial Controller at BMCS and has been part of the Finance area since January 2011. Her experience includes financial analysis.
Rishi Sinha is a Specialist on Supply Chain Strategy at BMCS, working since 2010 at the firm. He has over 20 years of experience in Supply Chain collaborating with companies
Knish is a Managing Partner and has overseen the Mexico City office since 2008. Prior to BMCS, Gerard accumulated 25 years of experience in executive positions at L’Oréal
Rajbir is a senior manager I within the Implementation practice at BMCS, and has been part of the team since July 2011. His experience includes leading transformational projects.
