Drive culture and mindset change from the top
A ZBx program should never be launched without the support of C-suite leadership. The smart spend journey will unearth many decisions that may be counterintuitive to longstanding cultural habits. These decisions require leadership to engage in debate and set the tone for the organization to follow.
Surveyed companies report cultural buy-in (67 percent) and change management (41 percent) as the most challenging ZBx obstacles to overcome.3 Change is executed throughout the company, but it is the business leaders who instill the required mindset for smart spend to be effective within their cultures.
Get smart on all things ZBx for retail organizations
It is critical to become educated on the nuances and pitfalls of applying a ZBx approach in retail. Every retailer is at a different point in the journey, whether that’s cost restructuring, acquisition and integration of companies, or fatigue from countless transformation programs.
The time to embark on a ZBx journey must fit a retailer’s unique needs. This is why it is so critical to invest the upfront time and effort to truly understand what ZBx means, the appropriate scope (COGS and/or SG&A or front office and/or back office) and time phasing for long-term success.
Reinvest ZBx savings back into the retail business
With major retail market disruptors growing exponentially, it is imperative to define strong and clear initiatives to generate reinvestments and retain a healthy and stable market share. Retailers should ensure their employees and stakeholders have visibility into the difficult choices being made across the organization to remove and/or reallocate costs to innovate and grow.
Periodic communication celebrating outcomes and tying the ZBx initiatives to strategic objectives helps to ensure buy-in across all levels of the retail organization and builds internal momentum. Ultimately, ZBx becomes part of the lifeblood of the culture and discipline.
Companies of all sizes and geographic reach are adopting ZBx. If you are not innovating and growing, your retail brand will become extinct. To fund these non-negotiables, the ZBx journey must be part of your culture and DNA. With the retail landscape moving fast and furiously, there is no time to waste.
1 “Global Companies Extend Use of Zero-Based Budgeting to Slash Costs,” Wall Street Journal, February 2018
2 Accenture Strategy, “Getting Ahead by Cutting Back,” 2018
3 Accenture Strategy, “Beyond the Buzz: The Zero-Based Mindset,” 2018