cost-cutting and zero-based budgeting
As the old maxim goes, you can’t cut your way to growth. Last week, Kraft Heinz posted record losses and an historic goodwill write-down. Many are pointing to years of aggressive and relentless cost-cutting as a root cause. Since their merger in 2015, Kraft Heinz has become the poster child of a budget planning tool called zero-based budgeting (ZBB), evangelized by private equity firm 3G Capital. The 3G Capital cost-cutting playbook has cast a long shadow across the marketing world, with many brands and companies following suit. In zero-based budgeting, rather than benchmark off of a previous year’s budgets, all […]
