1. Unilever
✔ Implemented ZBO to achieve over $6 billion in cost savings, enabling reinvestment in digital transformation and sustainability initiatives.
✔ Used zero-based budgeting (ZBB) to eliminate unnecessary expenses and shift spending toward high-growth categories.
✔ Improved agility by restructuring business units based on performance and consumer demand.
2. Coca-Cola
✔ Adopted ZBO to streamline operations, reduce complexity, and enhance efficiency.
✔ Focused on eliminating underperforming product lines and reallocating resources to fast-growing segments like health-focused beverages.
✔ Used zero-based principles to restructure regional operations, cutting costs while improving decision-making speed.
3. Kraft Heinz
✔ Used ZBO to drive cost efficiency and margin improvements after its merger.
✔ Eliminated non-essential roles, reduced operational costs, and optimized supply chain management.
✔ Focused on lean operations and reinvestment in product innovation to stay competitive in the food industry.
4. Anheuser-Busch InBev (AB InBev)
✔ Implemented ZBO to enhance cost discipline and operational efficiency across its global operations.
✔ Applied zero-based budgeting (ZBB) to marketing, sales, and procurement, ensuring resources were allocated to high-ROI initiatives.
✔ Used savings to expand into new markets and invest in premium beverage segments.
5. Mondelez International
✔ Leveraged ZBO to simplify its supply chain, reduce overhead costs, and improve profitability.
✔ Focused on optimizing its workforce structure, removing layers of management to accelerate decision-making.
✔ Reinvested cost savings into product innovation and digital marketing.
6. Diageo
✔ Applied ZBO to reshape its cost structure and improve profitability in competitive markets.
✔ Used zero-based resource allocation to prioritize spending on high-margin products and emerging market growth.
✔ Implemented leaner business models while maintaining brand strength and innovation.
7. General Motors (GM)
✔ Used ZBO principles to identify inefficiencies and drive cost reductions in manufacturing and R&D.
✔ Shifted investments toward electric vehicles (EVs) and autonomous driving technologies, reallocating resources from legacy operations.
✔ Focused on leaner organizational structures to improve speed and flexibility in decision-making.
Key Takeaways
✔ ZBO is not just about cost-cutting—these companies have successfully used it to reallocate resources, drive innovation, and enhance competitiveness.
✔ Many organizations use zero-based budgeting (ZBB) as part of a broader Zero-Based Organization (ZBO) transformation.
✔ The approach works across industries, from FMCG and automotive to beverages and technology.
Would you like insights on how your organization can implement ZBO effectively? Let’s discuss a tailored approach