Zero-Based Budgeting Revival
Zero-based budgeting (ZBB) is a budgeting approach where budget numbers are developed from scratch (from ‘zero’) rather than by incrementally updating past numbers. ZBB hence requires managers to reflect upon the resources they will need next year and to justify such a need in the budgeting process. The practice reportedly first emerged in the late 1960s and gained quite some attention in the 1970s. This attention, however, faded in the 1980s and there was not a lot of discussion of the concept in the 1990s or 2000s. Starting in 2014, there was again considerable attention around ZBB in corporate circles and the business media, particularly in the U.S.
In this seminar, Professor Martin Messner (University of Innsbruck) will discuss the reasons for this renewed interest in Zero-based budgeting and will show how consulting firms tried to fashion a new type of ZBB. Corporate experiences with the practice will also be discussed.
Breakfast is served at 7:30.
Register