Zero Based Organization

Zero Based Organization

The Strategy to reduce the Indirect Costs


What is Zero Based Budgeting

Costs reduction approach for eliminating waste expenditure is zero-based budgeting (ZBB). Managers usually evaluate the budget for a new year for last year. However, the ZBB overlooks previous outlays. All expenses must be justified — and this might lead to substantial cutbacks. In a couple of months, companies may cut the costs of SG&A by up to 25%.

The method addresses underlying costs systematically, pragmatically, and unassumingly by assessing costs for all organizational actions. Also offers more chances of identifying structural budgetary problems and necessary cost interventions inside a department, a project group, or the company.

Zero Based Budgeting

A systematic and realistic zero-basing approach help reduce sustainable costs while safeguarding critical operations.


Although international economies exhibit indications of crisis, cost control remains a goal for most firms and a critical performer. Many companies have overcome the slump by targeting cost reduction possibilities that are readily available.

However, it is more difficult to reduce expenses significantly and sustainably without compromising performance and competitiveness since many firms cannot systematically identify and assess the whole spectrum of activities the business undertakes and the related costs and consequences.

For that reason, the notion of “zero-based” costs and levels of operations is increasingly concerned, and cost may be addressed from the root by reviewing each business as though it were brand new. Although the theory understands the notion of zero-basing, it is commonly misapplied. A systematic and realistic zero-basing approach can help reduce sustainable costs while safeguarding critical operations.

What to Expect

Our Cost transformation focuses on long-term structural changes that reduce costs while increasing profit margins
Make sure that every dollar contributes to the achievement of your primary objectives.
Inculcate a culture of sense of ownership throughout the entirety of the organization.
Changes in behaviour & approach towards work in order to achieve process improvements.

Direct the finances on endeavours & activities that will contribute to business development.

Contribute to the enhancement of the extended business value through financial assistance.
Develops an effective program that cuts across functional boundaries & focus on objectives.

Our Approach

Business may reduce costs significantly and sustainably. It is realistic, pragmatic, and in many business conditions, a suitable design

The ongoing global crisis has prompted firms to cut costs considerably. Our experience allows organizations if fully implemented, to make fundamental decisions about how many resources to deploy for their businesses and how these resources must be focused, according to a comprehensive zero-based strategy.

Praxis Value Cost Management focuses on enterprise-wide, structural changes that might lead to long-term cost reductions and profit increases. In doing so, we work to assist our clients in creating cost structures that are scalable and profitable to generate profits. Based on our significant experience with cost improvement initiatives across industries, our services typically fall into main transformation strategies to assist firms in addressing their unique cost and strategic concerns.

At Praxis Value we leverage facts to make impactful decisions, with the goal of maximizing financial value, and this spirit infuses all we do. Our approach is to capitalize on the potential opportunity, which results in an increase in EBITDA.


Cost Reduction
20 %
ROI for Cost Transformation
0 X
Value in First Year
40 %

Client Result - Case Study

Metal Industry - Aluminum Business

Champions never rest on their laurels, but instead focus on the next stage goal. A company with around 5000 people across multiple sites is likewise on the lookout for a “North Star.” It all starts with an operations strategy and the initiatives that follow it, which should be applied at every location to improve efficiency. In addition to the OPEX problems, the corporation reorganized all manufacturing facilities using the “zero-based organization” method in collaboration with Praxis Value…

Cost Reduction with Praxis Value


Unbiased Viewpoint

We leverage facts to make informed & impactful decisions, with the goal of maximizing financial value, and this spirit infuses all we do

Straight to the point

We bring the experience and approach to capitalize on potential opportunity, which often results in a 20–40% increase in EBITDA

Execution & Speed

Because time is the single asset that can never be bought back, we understand the significance of delivering True Value – Rapidly

Innovative toolbox

Our cutting-edge, one-of-a-kind approaches help businesses in accounting for complexity costs and comprehend their true profitability

Core Competencies

What we think

What can we help you achieve?

You are on the way to the easiest business growth ever. Don’t hesitate and reach us today to change the future

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