Zero-based resource allocation (ZBRA) is a budgeting and planning approach that involves allocating resources based on a thorough evaluation of each activity or initiative, starting from a “zero” base, rather than simply continuing to fund existing programs and initiatives.
With ZBRA, resources are allocated based on the anticipated returns or value of each initiative, rather than being based on historical spending or current funding levels. This requires managers to justify each resource request, project, or activity based on its importance to the organization’s overall goals and objectives.
ZBRA encourages managers to evaluate each initiative, project or activity individually, to identify potential efficiencies, redundancies, and waste, and to focus resources on those activities that have the greatest potential to create value for the organization.
The ZBRA approach can be time-consuming and challenging, as it requires a significant amount of data gathering, analysis, and evaluation. However, it can lead to more efficient and effective use of resources, improved performance and profitability, and greater alignment between an organization’s budget and its overall strategic goals and objectives. learn more about Admission Management.
