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Zero-Based Budgeting
Leadership / Concepts
Every budget cycle starts from zero. Nothing is carried forward automatically.
The Idea
Instead of adjusting last year's budget by a percentage, you justify every expense from scratch. No team or project gets funding "because it had funding before."
Applied to Engineering
This mindset applies beyond money:
- Team allocation: Why does this team exist? What value does it deliver? Should we still invest here?
- Projects: Should we continue this project, or is it alive only because we already started?
- Meetings: Does this recurring meeting still serve its purpose?
- Tools: Are we paying for tools nobody uses?
Benefits
- Kills inertia and zombie projects.
- Forces honest conversations about value.
- Frees up resources for what actually matters now.
Risks
- Can feel threatening ("justify your existence").
- Time-consuming if done too frequently.
- Needs psychological safety to work.
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