Zero-Based Budgeting

Not a very exciting topic, budgets.  

Yet, it is part of every school's resource equation. Leaders and managers must understand the impact it has along with all of the other resources such as people, skills, time, and space. All of these are ultimately finite, inter-related, and important for business continuity and growth.

When I was a manager, I would always ensure that my budget was balanced. However when I entered into a leadership position, it became extremely important to forecast budgets and anticipate the future needs of the school to ensure the resources it needed to be readily available and planned for. Some may think that is the job of the organization's CFO rather than the principal or other senior leaders, except the CFO's primary focus is to ask questions making sure the budget requested is justified, aligned to the school's goals, and has fiscal accountability.

Working with the CFO, I learn the importance of Zero-based budgeting (ZBB). Investopedia defines ZBB as "a method of budgeting in which all expenses must be justified for each new period. The process of zero-based budgeting starts from a zero base, and every function within an organization is analyzed for its needs and costs. Budgets are then built around what is needed for the upcoming period, regardless of whether each budget is higher or lower than the previous one."

Using ZBB and closely working with the CFO and principal, a leader in technology will gain a strong track record in forecasting costs, training, and time for implementation school improvement initiatives connected to things like student and staff safety (online security), hyflex learning (audio and visual needs), contact tracing (visitor sign-in kiosks), virtual signage (digital screens for the home learner), and virtual processes for online requisitions, contact tracing, and attendance (interoperability of data systems).

If you are interested in ZBB, and want to know more - I am happy to share examples on how to work with the CFO and principal using a template to present your forecasted costs. Those who work with you will see that you can predict what is needed accurately many months or even years in advance.