Zero-Based Budgeting

Description Zero based budgeting means money booked for studies disappears at the end of the year and must be re-justified the next year. Studies fall behind schedule as researchers fine-tune the direction of research based on interim results. So money unspent gets swept up in general earnings in November (leaving no money to continue research). This looks good for the last Quarterly earnings, but further slows down enrollment till new budget approval in Feb.
Weaknesses World Class R&D must meet the challenges of discontinuous discovery+. Spending is discontinuous as well. What may look good for smooth earnings of the corporation is disastrous for this type of research. R&D governance does concern itself with the need for the corporation to show predictability in its earnings. But not at the level of the individual R&D pursuits. Individual pursuits (occasionally) may show wild swings in spending patterns, and these must be absorbed within the overall financial projections.
Appropriate Uses  None. Zero-based budgeting should be banned from the corporation.
Further Reading