Zero-based resource planning (ZBRP) is a method of financial planning and budgeting in which all expenses must be justified for each new period or project. Unlike traditional budgeting, where previous budgets serve as a starting point, ZBRP requires all expenses to be evaluated from scratch.
In ZBRP, each expense is evaluated based on its necessity and potential value to the organization. All expenses are ranked in order of priority and allocated funding based on their importance to the overall goals and objectives of the organization.
ZBRP is a more strategic approach to budgeting and resource planning, as it requires organizations to regularly reassess their expenses and investments, rather than simply rolling over budgets from previous years. By taking a more granular approach to resource allocation, Admission Management, organizations can identify areas where resources are being misused or underutilized and redirect those resources to more high-impact areas.
Overall, ZBRP is a valuable tool for organizations looking to optimize their use of resources and ensure that every expense is justified and aligned with the organization’s strategic goals and objectives.