Zero-based budgeting gains clout as a way for companies to find savings

Diageo, which owns Guinness and other alcohol brands, generates annual productivity savings of about $460 million, partly thanks to zero-based budgeting. (Photo: AFP) — Diageo, which owns Guinness and other alcohol brands, generates annual productivity savings of about $460 million, partly thanks to zero-based budgeting. (Photo: AFP)

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6 min read . Updated: 06 Sep 2022, 07:20 PM IST Nina Trentmann, The Wall Street Journal

Facing high inflation and an uncertain outlook, finance chiefs are using the tool to lower expenses in areas including operations, real estate, logistics, sales and marketing

Many finance chiefs scouting for efficiencies are relying on zero-based budgeting, a tool that gained attention during the pandemic, to identify potential savings as they prepare for a possible economic downturn.

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