About this deal
Wigbert Böhm: Many of the companies we’ve seen are doing it every year and across multiple divisions. Certain political officials could say they greatly support a certain program and would like the Finance Department to focus more money on that particular program whilst other political officials would think otherwise. Through this exercise, executives found duplicate spending in some areas—primarily in misaligned talent.
In 1977, he wrote his seminal book on the subject, ‘Zero-Base Budgeting: A Practical Management Tool for Evaluating Expenses’. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). One global food producer did a country-by-country rollout because it had four or five different business units, with a lot of synergies, that had never really been integrated or captured.Indirect or proxy indicators could be used if these systems did not exist or were under development.
Cloud-based planning solutions that use AI and machine learning can help managers make data-driven decisions to recommend the best path forward. As a pilot, it sought to develop new operating models in its HR and marketing functions, with the goal of building the capabilities to support an enterprise-wide rollout. Further, a cleansheet approach to indirect marketing spending uncovered cost savings of 20 to 30 percent—resources that were reallocated to higher-value areas within the functions and throughout the organization.
And it’s not just a matter of getting the CFO’s support—the CEO and other C-suite leaders also need to get on board. Disruption has become a constant, and plans are now made to be changed, refined, and adjusted continuously.
