Editing Bottom-up and top-down design (section)

== Management and organization ==
[[File:Top-bottom image.jpg|thumb|right|Information flow top-down and bottom-up in leadership]]

In the fields of management and organization, the terms "top-down" and "bottom-up" are used to describe how decisions are made and/or how change is implemented.<ref name=":0">{{Cite journal |last1=Stewart |first1=Greg L. |last2=Manges |first2=Kirstin A. |last3=Ward |first3=Marcia M. |year=2015 |title=Empowering Sustained Patient Safety |journal=Journal of Nursing Care Quality |volume=30 |issue=3 |pages=240–246 |doi=10.1097/ncq.0000000000000103 |pmid=25479238 |s2cid=5613563}}</ref>

A "''top-down''" approach is where an executive decision maker or other top person makes the decisions of how something should be done. This approach is disseminated under their authority to lower levels in the hierarchy, who are, to a greater or lesser extent, bound by them. For example, when wanting to make an improvement in a hospital, a hospital administrator might decide that a major change (such as implementing a new program) is needed, and then use a planned approach to drive the changes down to the frontline staff.<ref name=":0" />

A bottom-up approach to changes is one that works from the [[grassroots]], and originates in a flat structure with people working together, causing a decision to arise from their joint involvement. A decision by a number of activists, students, or victims of some incident to take action is a "bottom-up" decision. A bottom-up approach can be thought of as "an incremental change approach that represents an emergent process cultivated and upheld primarily by frontline workers".<ref name=":0" />

Positive aspects of top-down approaches include their efficiency and superb overview of higher levels;<ref name=":0" /> and external effects can be internalized. On the negative side, if reforms are perceived to be imposed "from above", it can be difficult for lower levels to accept them.<ref>e.g., {{harvnb|Bresser-Pereira|Maravall|Przeworski|1993}}</ref> Evidence suggests this to be true regardless of the content of reforms.<ref>e.g., {{harvnb|Dubois|2002}}</ref> A bottom-up approach allows for more experimentation and a better feeling for what is needed at the bottom. Other evidence suggests that there is a third combination approach to change.<ref name=":0" />

=== Corporate environment (Performance management) ===
Top-down and bottom-up planning are two fundamental approaches in [[enterprise performance management]] (EPM), each offering distinct advantages. Top-down planning begins with senior management setting overarching strategic goals, which are then disseminated throughout the organization. This approach ensures alignment with the company's vision and facilitates uniform implementation across departments.<ref>{{Cite web |title=Top-down and Bottom-up planning: an important aspect in EPM |url=https://www.jedox.com/en/blog/top-down-bottom-up-planning/ |access-date=2025-04-11 |website=www.jedox.com |language=en}}</ref>

Conversely, bottom-up planning starts at the departmental or team level, where specific goals and plans are developed based on detailed operational insights. These plans are then aggregated to form the organization's overall strategy, ensuring that ground-level insights inform higher-level decisions.

Many organizations adopt a hybrid approach, known as the countercurrent or [[Integrated Planning System|integrated planning]] method, to leverage the strengths of both top-down and bottom-up planning. In this model, strategic objectives set by leadership are informed by operational data from various departments, creating a dynamic and iterative planning process. This integration enhances [[collaboration]], improves data accuracy, and ensures that strategies are both ambitious and grounded in operational realities.

[[FP&A|Financial planning & analysis]] (FP&A) teams play a crucial role in harmonizing these approaches, utilizing tools like driver-based planning and AI-assisted forecasting to create flexible, data-driven plans that adapt to changing business conditions.

=== Product design and development ===
{{Main article|New product development}}
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During the development of new products, designers and engineers rely on both bottom-up and top-down approaches. The bottom-up approach is being used when off-the-shelf or existing components are selected and integrated into the product. An example includes selecting a particular fastener, such as a bolt, and designing the receiving components such that the fastener will fit properly. In a top-down approach, a custom fastener would be designed such that it would fit properly in the receiving components. For perspective, for a product with more restrictive requirements (such as weight, geometry, safety, environment), such as a spacesuit, a more top-down approach is taken and almost everything is custom designed.