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

=== 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.