The document discusses strategies for B2B selling in a zero-based budgeting reality. It begins by dispelling five myths about zero-based budgeting, including that it means starting budgets at zero each year, that it focuses only on reducing costs to the bone, that it will overwhelm businesses, that it only focuses on SG&A costs, and that it does not work for growth-stage companies. It then provides resources for further information on zero-based budgeting.

1. B2B Selling Strategies in
a Zero-Based-Budgeting
Reality
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4. THE PROBLEM
ZERO-BASED BUDGETING:
EVERY EXPENSE MUST BE
JUSTIFIED AND APPROVED FOR
EACH NEW PERIOD

5. Do you think your customers will churn at
higher rates, the same, or less post-
pandemic?
POLL QUESTION

6. NEED
DATA
I t o l d y o u t h i s w a s
s e r i o u s .
T R A P P E D !
S c h e d u l e a
f a m i l y z o o m
u n p r e p a r e d
A n x i o u s
b o r e d
W i l l t h e
s t o r e s g e t
m o r e t o i l e t
p a p e r ?
I a m g o i n g t o
t h e s t o r e .
W e n e e d
t o g e t
i n t o a
h e a l t h i e r
r o u t i n e .
S i g n u p f o r
P e l o t o n
O p e n a
b o t t l e o f
w i n e
A t t e n d a
v i r t u a l
A A
m e e t i n g
LAW OF COMPENSATION
ABILITY
REPLACE-
ABILITY
DISPELLING THE 5 MYTHS OF ZBB
1) ZBB DOES NOT MEAN STARTING AT ZERO;
IT MEANS CUSTOMERS ARE STRUCTURING A CULTURE OF COST
MANAGEMENT, TRANSPARENCY, ALIGNMENT OF INCENTIVES, AND
ACCOUNTABILITY.

7. NEED
DATA
I t o l d y o u t h i s w a s
s e r i o u s .
T R A P P E D !
S c h e d u l e a
f a m i l y z o o m
u n p r e p a r e d
A n x i o u s
b o r e d
W i l l t h e
s t o r e s g e t
m o r e t o i l e t
p a p e r ?
I a m g o i n g t o
t h e s t o r e .
W e n e e d
t o g e t
i n t o a
h e a l t h i e r
r o u t i n e .
S i g n u p f o r
P e l o t o n
O p e n a
b o t t l e o f
w i n e
A t t e n d a
v i r t u a l
A A
m e e t i n g
LAW OF COMPENSATION
ABILITY
REPLACE-
ABILITY
DISPELLING THE 5 MYTHS OF ZBB
2) ZBB DOES NOT MEAN CUTTING COSTS “TO THE BONE”;
IT MEANS THE DEGREE OF COST CUTTING IS BASED UPON THE
COMPANY’S NEW (POST-PANDEMIC) TOP-DOWN TARGET-FREEZES
WILL HAPPEN FIRST UNTIL THERE IS MORE CERTAINTY TO THE
LANDSCAPE

8. NEED
DATA
I t o l d y o u t h i s w a s
s e r i o u s .
T R A P P E D !
S c h e d u l e a
f a m i l y z o o m
u n p r e p a r e d
A n x i o u s
b o r e d
W i l l t h e
s t o r e s g e t
m o r e t o i l e t
p a p e r ?
I a m g o i n g t o
t h e s t o r e .
W e n e e d
t o g e t
i n t o a
h e a l t h i e r
r o u t i n e .
S i g n u p f o r
P e l o t o n
O p e n a
b o t t l e o f
w i n e
A t t e n d a
v i r t u a l
A A
m e e t i n g
LAW OF COMPENSATION
ABILITY
REPLACE-
ABILITY
DISPELLING THE 5 MYTHS OF ZBB
3) ZBB WILL OVERWHELM YOUR CUSTOMER’S BUSINESS AND STOP
ALL ACTIVITY;
ZBB transformation of the culture in companies is usually led by a
tiger team of cross-functional leaders that are centralized and can be
completed in 4-10 months. This is likely what the majority of
Quarantine time has been focused on in your customer’s c-suite. It
also is typically rolled out in pilots across the enterprise before
tweaks are made to wholesale operationalizing of the ZBB culture.

9. NEED
DATA
I t o l d y o u t h i s w a s
s e r i o u s .
T R A P P E D !
S c h e d u l e a
f a m i l y z o o m
u n p r e p a r e d
A n x i o u s
b o r e d
W i l l t h e
s t o r e s g e t
m o r e t o i l e t
p a p e r ?
I a m g o i n g t o
t h e s t o r e .
W e n e e d
t o g e t
i n t o a
h e a l t h i e r
r o u t i n e .
S i g n u p f o r
P e l o t o n
O p e n a
b o t t l e o f
w i n e
A t t e n d a
v i r t u a l
A A
m e e t i n g
LAW OF COMPENSATION
ABILITY
REPLACE-
ABILITY
DISPELLING THE 5 MYTHS OF ZBB
4) ZBB ONLY FOCUSES ON SG&A COSTS;
The fundamental elements of ZBB (governance, accountability,
transparency, aligned incentives, and rigorous analysis) are applied
across CapEX, OpEx, SG&A, Marketing, Variable costs, and COGS.
Be proactive and find ways to add value or get your customer to use
dormant feature sets that create OpEx efficiencies by keeping you or
you will be vulnerable.

10. NEED
DATA
I t o l d y o u t h i s w a s
s e r i o u s .
T R A P P E D !
S c h e d u l e a
f a m i l y z o o m
u n p r e p a r e d
A n x i o u s
b o r e d
W i l l t h e
s t o r e s g e t
m o r e t o i l e t
p a p e r ?
I a m g o i n g t o
t h e s t o r e .
W e n e e d
t o g e t
i n t o a
h e a l t h i e r
r o u t i n e .
S i g n u p f o r
P e l o t o n
O p e n a
b o t t l e o f
w i n e
A t t e n d a
v i r t u a l
A A
m e e t i n g
LAW OF COMPENSATION
ABILITY
REPLACE-
ABILITY
DISPELLING THE 5 MYTHS OF ZBB
5) ZBB DOESN’T WORK WELL FOR GROWTH-STAGE COMPANIES
Quite the contrary. Even if the focus stage of your customer’s
company is growth, talent acquisition/retention, and they are awash
with cash and prepared to capitalize from this pandemic, cost
management is a core dna strand for sustainable success. ZBB works
and will likely be implemented by all companies regardless of stage

11. RESOURCES:
R E S O U R C E S F R O M TO D AY ’ S D E C K :
McKinsey ~
h t t p s : / / w w w. m c k i n s e y. c o m / b u s i n e s s - f u n c t i o n s / s t r a t e g y - a n d -
corporate-finance/our-i nsight s/f ive- myt hs-and-realities-about-
zero-based-budgeting
C O V I D - 1 9 D A S H B O A R D :
N c o v 2 0 1 9 . l i v e / d a t a
SPONSOR:
w w w. e m e r g e d . c o m
H O S T:
w w w. c h r i s j s n o o k . c o m
PRESENTED BY: www.sm art erB 2B. com