ZBB IS AN OPERATING, PLANNING, AND BUDGETING PROCESS WHICH REQUIRES MANAGERS TO JUSTIFY THEIR ENTIRE BUDGET REQUEST IN DETAIL FROM A ZERO BASE; IT SHIFTS THE BURDEN OF PROOF AWAY FROM TOP MANAGEMENT. THE APPROACH DEMANDS THAT ALL ACTIVITIES BE IDENTIFIED IN 'DECISION PACKAGES' SMALL ENOUGH TO BE UNDERSTOOD, COMPARED, AND ANALYZED FOR EVALUATION AND RANKING IN ORDER OF IMPORTANCE. ANALYSIS ENTAILS NOT ONLY COST-BENEFIT APPRAISAL BUT ALSO CAREFUL ATTENTION TO LEGALLY MANDATED EFFORTS, THE TECHNICAL 'STATE OF THE ART,' AND SUCH INTANGIBLES AS 'BETTER HUMAN RELATIONS.' STEPS FOR DEFINING ZBB OBJECTIVES, STRUCTURING AN IMPLEMENTATION STRATEGY, IDENTIFYING DATA REQUIREMENTS AND DEVELOPING SUPPORTING DOCUMENTS, COMPLETING DECISION PACKAGES, AND RANKING, APPROVING, AND FUNDING THE PACKAGE ACTIVITIES ARE PROVIDED. CRITICAL IMPLEMENTATION FACTORS NOT ASSOCIATED STRICTLY WITH THE SYSTEM ARE ALSO DEALT WITH. IDEAS ARE PRESENTED FOR DEVELOPING A CLOSED-LOOP FEEDBACK SYSTEM TO LINK ZBB WITH ORGANIZATIONAL OBJECTIVES AND STRATEGIES FORMULATED DURING LONG-RANGE PLANNING, CREATING STRATEGIES FOR OBTAINING HIGH-LEVEL SUPPORT AND COMMITMENT, STIMULATING INNOVATION AMONG MANAGERS PUTTING TOGETHER DECISION PACKAGES, AND DEVELOPING SALEMANSHIP SKILLS IN ALL CONCERNED SO THAT ALL LEVELS WILL WORK TO KEEP THE ZBB CONCEPT OPERATING. A MODEL ZBB PROCEDURE, SAMPLE FORMS, DECISION PACKAGES, AND RANKING SUMMARIES, A LIST OF COMPANIES PRODUCING ZBB FORMS, A PAPER ON ZBB IN THE FEDERAL GOVERNMENT, A BIBLIOGRAPHY, AND AN INDEX ARE PROVIDED. (DAG)