Zero-Cost–Based Management Theory: A Conceptual Framework for Organizational Transformation
TL;DR
The Zero-Cost–Based Management Theory (ZCBMT) framework provides a pathway for sustainable transformation in resource-constrained environments while emphasizing organizational resilience, ethical considerations, and equitable access to services.
Abstract
Escalating costs, particularly in healthcare, have intensified the need for approaches that improve performance while preserving financial sustainability. Existing models such as zero-based budgeting (ZBB), zero-based cost management (ZBCM), and value-based management emphasize expenditure control and efficiency but often assume the availability of resources for implementation. This paper introduces Zero-Cost–Based Management Theory (ZCBMT), a conceptual framework explaining how organizations can achieve meaningful organizational change with minimal additional financial investment. The theory is built on three principles: optimization of existing resources, elimination of low-value activities, and mobilization of internal organizational capabilities. Rather than focusing solely on cost reduction, ZCBMT emphasizes value maximization—achieving optimal outcomes at the lowest feasible cost—through resource reallocation, process redesign, digital innovation, evidence-based practices, and collaborative capacity. The framework provides a pathway for sustainable transformation in resource-constrained environments while emphasizing organizational resilience, ethical considerations, and equitable access to services. ZCBMT may offer a practical approach for organizations seeking performance improvement when financial resources are limited.