Budgeting & Forecasting › Zero-Based Budgeting

How does ZBB interact with strategic priorities during ranking?

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Answer

Ranking uses criteria drawn from strategy, so decision packages that advance strategic priorities (growth, customer value, compliance) rank above those that don't, directing scarce funds accordingly. This makes ZBB a mechanism for aligning the cost base with strategy rather than merely trimming costs uniformly.
Real-world example Packages supporting the digital-growth strategy are funded ahead of legacy activities during ranking.

Common follow-ups: Where do ranking criteria come from? | How does this align cost with strategy?