Zero Based Budgeting
27-31 May 2024
Sandton
Johannesburg South Africa
Cost per Delegate
R17,999.00
Overview
As manufacturers face shifting customer prospects, macro-economic turmoil, and technological revolution, business decisions can be more complex and consequential than ever. How can leaders expand their odds of victory? One answer lies in an astonishing source: zero-based budgeting (ZBB), or zero-basing.
Too often blamed for uneventful cost-cutting plans, ZBB real goal is to implant a growth mindset—a return on investment (ROI) mindset based on value, and not cost. Obviously, changing minds is tough work: most transformations flop because of management attitude and resistance from the employees.
So, creating a philosophy of cost management for growth takes more than just the CEO and the management team asking the right questions. Instead, managers must study to examine expenditure with an eye in the direction of investing where it matters..
While cost-cutting has a part to play, ZBB’s real purpose is to make thoughtful spending decisions—reframing options as cost management. The small deviations that result have the collective effect of generating investment opportunities to drive growth.
This quickness helps businesses seize opportunities as they rise, improving flexibility. Improved visibility can encompass beyond just budgets across both individuals and Capex. ZBB can be an important device: driving innovation, clarifying how to invest where it matters, and most vital of all, shifting culture to have a mentality of growth.
This interactive course also allows participants to adopt a disciplined style to developing budgets, forecast results, use variance analysis to track performance, and presentation of results.
Course Objectives
The main objective of this Zero-Based Budgeting (ZBB) Training Course is to empower professionals with:
• Complete knowledge and information of principles, trends and practices related to ZBB.
• Observe how ZBB affect market conditions today.
• Complete experience and knowledge of tools and techniques instrumental in successful implementation of budget.
• Understanding the principles behind best practice.
• The importance of ZBB within a strategic framework and orient how to establish budgets focused on accomplishing definite goals.
• Build a healthy budgeting process within their organization.
• Use effective variance reporting to evaluate organizational performance.
• Make use of various functions and tools that are particularly appropriate to the budgeting process.
• Experience to plan possible ways to solve current complications and overcome challenges in budgeting procedures.
• Model appropriate funding which aligns more with the goals and strategies of the organization.
WHO SHOULD ATTEND
• This ZBB course is designed for those who are responsible for financial management, budgeting, and forecasting within their organizations. This may include professionals working in financial planning and analysis (FP&A), accounting, treasury, financial reporting, corporate development, etc.
• Auditors and compliance officials responsible for ensuring transparency and integrity of all costing information and facts reported by organizations as setting up ZBB would involve a great deal of transparency to management reporting structure.
• Any other personnel who can contribute to overall improvement in the budgetary controls of the organizations.
COURSE OUTLINE
The Zero-Based Budgeting (ZBB) Training will cover the following areas that are critical for ZBB:
Module 1:
• What is ZBB?
• Brief history of ZBB
• Role of ZBB in current market conditions
• The myths and realities of ZBB
• Behavioural aspects of budgeting
• Setting the difficulty level of a budget
Module 2:
• Budgeting and participation
• Feedback control and feedforward control
• Difference between ZBB and traditional budgeting
• Possible alternatives to ZBB (Top-down vs bottom-up budgeting, Incremental budgeting, Rolling budgets, Activity-based budgeting, and Feed-forward control)
Module 3:
• Advantages and disadvantages of ZBB
• Basic process flow under ZBB
• Budgets that are tied to specific activities and levels of service
• Funding is targeted more to activities that align with the strategy
Module 4:
• Manage spending through cuts or increases which are not spread equally across the budget
• Completing a ZBB
• Challenges and risks of ZBB
• Assess suitability of ZBB in an organization
Module 5:
• Changing a budgetary system
• Dealing with uncertainty in budgeting
• Beyond Budgeting Model
• Budget Reporting