ZBB IMPLIES THAT ALL OPERATIONS, EVEN THOSE WHICH HAVE BEEN CARRIED OUT IN PREVIOUS YEARS, MUST BE REANALYZED (FROM ZERO BASE) EACH YEAR. CONVENTIONAL BUDGETING, ON THE OTHER HAND, USES THE PREVIOUS YEAR'S ACTIVITIES AS A BASE, WITH REQUESTS FOR ADDITIONAL FUNDS MADE OVER AND ABOVE THE BASE. ZBB WAS INTRODUCED TO SUDBURY IN 1979 BY THE REGIONAL COUNCIL, AND SUPERVISION WAS PROVIDED BY A STEERING COMMITTEE COMPRISED OF THE CHIEF ADMINISTRATIVE OFFICER OF THE REGION AND DEPARTMENT HEADS OF SPECIAL PURPOSE BOARDS AND COMMISSIONS, INCLUDING THE CHIEF OF POLICE. THE COMMITTEE MADE DECISIONS, ESTABLISHED THE IMPLEMENTATION TIMETABLE, AND DEMONSTRATED SENIOR MANAGEMENT'S COMMITMENT TO THE PROCESS. BUDGET PROPOSALS FOCUSED ON DECISION UNITS, OR LOGICAL GROUPINGS OF ACTIVITIES THAT COULD BE EVALUATED, AND DIVISION COMMANDERS WERE SELECTED TO PREPARE THE BUDGET PROPOSALS FOR EACH DECISION UNIT. FOLLOWING AN INTENSIVE TRAINING SEMINAR, THE DIVISION COMMANDERS WERE GIVEN A SERIES OF INDIVIDUAL ASSIGNMENTS INCLUDING DEFINING GOALS AND OBJECTIVES, IDENTIFYING KEY ISSUES AND ALTERNATIVES, STRUCTURING DECISION PACKAGES OR LEVELS OF SERVICE, DEFINING PERFORMANCE MEASURES, AND DETERMINING FINANCIAL REQUIREMENTS. FOLLOWING A SENIOR MANAGEMENT REVIEW PROCESS, A PRIORITY RANKING LIST OF DECISION PACKAGES WAS SUBMITTED TO THE COUNCIL. RESULTS INCLUDED IMPROVED MANAGEMENT INFORMATION, BETTER TRAINING FOR BOARD MEMBERS, MORE ACCURATE INFORMATION PROVIDED TO THE REGIONAL COUNCIL, AND INCREASED STAFF INVOLVEMENT. SINCE ZBB IMPLEMENTATION IS A TIME-CONSUMING PROCESS, PLANS SHOULD BE CAREFULLY IMPLEMENTED. FOOTNOTES AND TABULAR DATA ARE GIVEN. (AOP)