The difference between ordinary and zero-based budgets

2019-04-15 Finance No comment

Almost every organization uses a certain budget during its planning and strategic operations phases and continues to move forward in the future. However, after more than 40 years of personal involvement, almost all aspects of leadership, especially planning, from identification, qualification, training, development and consulting to thousands of actual leaders, and pseudo-leaders, I have been Emphasize how those who use the budget to make effective use of this process seriously, exponentially, and in a relevant, sustainable, responsible and responsive manner enhance their leadership, strategy and effective planning potential. Most groups use their budgets only as exercises, not to maximize their potential benefits, to perform effectively, through professional strategic planning, and so on. This is what I mean by ordinary, the same, the same – old, method and budget, compared to using more explored methods, such as zero-based budget. With this in mind, we will try to briefly examine, consider, review, and discuss some of the differences in these methods and philosophy.

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General budgeting process: from

Unfortunately, in most cases, the budget process simply checks past budgets and makes some relatively minor adjustments. This is usually the way things are, because it's easier, takes less time and effort, and allows potential leaders to stay comfortable in his personal comfort zone. When priorities are welcomed, avoided, wavering, and in the same way, in the same way, groups do not often maintain their relevance in the most sustainable way, and cannot move on!

2. from

Zero base budget: from

If we focus on the best way to proceed and plan in a clear way, not just to continue, as we did before, does this make sense? We should not consider effective work, demand, no adjustments, things that may be relevant, but need a more thorough review, understanding, best way, continuation, progress, future, what should be given up, because it is no longer relevant, etc. ? Using the concept of a zero-based budget, its philosophy, each process must effectively serve voters and groups in a relevant, sustainable way, rather than simply, the same – old, same – old! Using this method, check each non-contractual item and ask if we spend our resources in the best possible way!

If the group pays more attention to the combination of idealism, objectivity and pragmatism, they usually benefit and become more relevant and sustainable. Quality leaders seek the best tools, not just expedients, popular ones, or ones that are always done!

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