Bottom-up, top-down, countercurrent method

Different design options of the planning process in CoPlanner are of course possible, depending on whether it is a forecast, a budget or a multi-year plan. The three planning directions are bottom-up planning, top-down planning or planning according to the counterflow method. Which planning direction is appropriate for a company depends preferably on the respective corporate culture. CoPlanner offers a holistic implementation/realisation of the planning processes.

Bottom-up planning

Bottom-up planning represents a hierarchical planning principle in which the individual sub-areas work out detailed plans on their own responsibility, which are then linked and coordinated in the course of the overall planning.

Advantages

Increased motivation of employees, as they are not scheduled "from above".
Operational areas are best informed about their respective area.
Employees have all information about the plans from the beginning, which is why they can be implemented better.

Disadvantages

Contradictions of the individual area plans can possibly arise
High planning/coordination effort is required
Not all sub-plans are necessarily aligned with the overall objective

Top-down planning

Top-down planning as a corporate planning principle signals that planning is directed downwards from the upper levels of the company.

Advantages

All sub-plans are specifically aligned with the overall objective
Individual plans are not in competition with each other
Due to the dependency and leadership relationship between employees and management, plans can be implemented quickly.

Disadvantages

Predefined plans "from above" may not be fulfilled at all.
Motivation of employees may decrease if they have no say in the plans

Countercurrent method

In contrast to top-down or bottom-up planning, the countercurrent method focuses on the interactions between top management and operational levels. It can thus be seen as a kind of interplay between top-down and bottom-up procedures.

Advantages

Advantages of bottom-up and top-down planning are combined
Strategic goal orientation is maintained
Realistically realizable plans can be created thanks to the support of operational units.
Acceptance of the plans by the executing employees can be strengthened

Disadvantages

requires high planning/coordination effort
can become sluggish
Changes made by subordinate bodies must be accepted by superordinate bodies

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Together we will discuss your professional requirements for business planning, consolidation, personnel cost planning, cost/performance accounting or reporting and we will show you the benefits of a standardized but flexible solution.

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