ZERO-BASED ORGANIZATION – An approach to swift organization redesign

Point of view – June 2023

ZERO-BASED ORGANIZATION – An approach to swift organization redesign in a Volatile, Uncertain, Complex and Ambiguous world (VUCA)

Companies face events or changes in their environment that require to quickly adapt their organization, whether it is:

• Market evolutions such as a strong reduction or ramp up of activities, the adaptation to new stakes, COVID
• Drop in team efficiency due to new management, important staff turnover, critical size reached or not reached yet
• Integration of new constraints including the evolution of regulations, digitalization or a new company strategy
• Evolution of footprint

These changes trigger a transformation of the current organization to avoid a performance drop. However, when these challenges are particularly sudden or with a magnitude that can dramatically alter the company’s performance, it requires a disruptive approach.

Guided by the same principles as Zero-Based Budgeting, the Zero-Based Organization (ZBO) methodology enables to address this transformation in a structured way.

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