Bottom Up and top down processing SlideShare
By JedoxCategories: Thought Leadership5.5 min read Top-down and Bottom-up planningPlanning is one of the most important aspects of a successful, enterprise-wide performance management process. Two of the most common planning approaches are top-down planning and bottom-up planning methods. Although these two models represent two opposing strategies, they share similarities in the way a company identifies its key objectives. At a very basic level, the top-down approach attempts to move from the general to the specific, while the bottom-up approach finds its way from the specific to the general. In companies, both approaches are often combined to form a countercurrent process. Show
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What is top-down and bottom-up planning?Top-down and bottom-up planning is bidirectional planning. It is a combination of top-down and bottom-up approaches. Planning takes place from top to bottom as well as from bottom to top. Differences between the two directions are continuously coordinated and coordinated. In detail, these are methods for planning as well as for the definition of goals and possibilities for their achievement. Top-downIn top-down planning, the first global (framework) objectives are defined and ways of achieving them are determined. They are gradually moved to the lower levels of the organizational hierarchy to be developed and specified. This is a divergent approach. Bottom-UpWith the bottom-up planning method, relatively narrow goals are initially set at the lower levels of the organizational hierarchy. They are then gradually integrated into the framework of the global goals and strategy at higher levels. It is therefore a convergent approach. Top-down vs. Bottom-up?Top-down planning traditionally involves the definition of corporate goals and their subdivision into specific goals, which are then dealt with in phases.
Which model is the best fit for my company?Determining the best model ultimately depends on the nature of the specific business and the resources available. As an entrepreneur, you need to decide how much control you want over the implementation of the strategies you need to achieve the key objectives. Top-down and bottom-up planning techniques each have their own advantages and disadvantages. Advantages and disadvantages of top-down planning
Advantages and disadvantages of bottom-up planning
Countercurrent procedure: Linking strategies and activities with each otherIn order to make optimum use of both approaches, both planning procedures are often used in combination with each other as required.If top-down and bottom-up planning are applied simultaneously, this is referred to as countercurrent planning or a countercurrent method. A combination of both planning methods enables an efficient and target-oriented implementation of the company goals as well as the inclusion of all affected departments and processes. This can considerably increase the quality of the planning results. How does the countercurrent procedure work?
Advantages of the countercurrent process:
Take time into accountThe need for communication and coordination between the central and decentral planning units is paramount. Experience has shown that the planning process must be run through several times before a final corporate plan can be drawn up. With a modern solution for planning, for example in the area of Financial Planning and Analysis (FP&A), which offers functionality for collaboration and approval workflows, the additional effort in terms of personnel and time can be significantly reduced. White Paper 8 Challenges & Solutions to Improve Planning Processes in ExcelEnhance your planning and budgeting in Microsoft Excel Get the white paper × Please accept marketing-cookies to show this form. Change SettingsJedox Jedox simplifies planning, analysis, and reporting with one unified and cloud-based software suite. Jedox empowers decision makers and business users across all departments and helps them work smarter, streamline business collaboration, and make insight-based decisions with confidence. Already 2,500 organizations in 140 countries are using Jedox for real-time planning on the web, the cloud, and on any device. Jedox is a leading Business Intelligence and Enterprise Performance Management solutions provider, available worldwide with offices in four continents and over 250 certified business partners.
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