Which of the following is an advantage of top down program development order as compared to bottom up program development order?

Planning 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.

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 business planning as well as for the definition of goals and possibilities for their achievement.

Top-down

In 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.

With 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 planning traditionally involves the definition of corporate goals and their subdivision into specific goals, which are then dealt with in phases.

• Top-down planning or retrograde planning is an approach that aims to gradually move from the top to the bottom level of a particular hierarchy. The organization’s management provides a framework plan with company goals, for example, based on the expected market development and growth targets, which is broken down into subplans and specified in detail in the subordinate levels of planning. These subplans in turn serve as outline plans and goals for the subsequent planning levels.
• The aim of bottom-up planning, or progressive planning, is to create a plan at a lower, meaningful classification level and then develop it to the higher level. For example, bottom-up planning focuses on specific products or services of a company in a particular region and is based on sales forecast data and other information such as production capacity, department specific costs, and a subjective assessment of market trends by the planner.

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

• The advantage of top-down planning is that the objectives of the subplans across all hierarchical levels largely correspond to the objectives of the entire company. In addition, complex and time-consuming coordination tasks are eliminated so that the plan can be created more quickly.
• The biggest disadvantage of the top-down planning approach results from the fact that management is only familiar with the opportunities and problems of individual departments in unique cases. Unrealistic and therefore unattainable targets can be the result.

• The advantage of bottom-up planning, on the other hand, is that due to the decentralized approach, planning starts directly from the employees involved. A higher motivation and identification with the created plan is the result. Employees are directly involved in the planning process. The plans are generally more realistic.
• A decisive disadvantage of the bottom-up planning approach is the high expenditure of time and coordination. It can also happen that subplans contradict each other in terms of content and the bar is set low for organizational goals.

Countercurrent procedure: Linking strategies and activities with each other

In 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?

• Top-down preparation: The company management sets targets (preliminary, overriding targets and framework plans, often based on previous bottom-up forecasts).
• The following hierarchy levels use the defined guidelines as orientation and create sub-goals and subplans for their respective departments from the higher-level goals.
• Bottom-up response: The lowest hierarchical level coordinates the subplans step by step and summarizes them.
• Corporate management approves corporate goals and plans.

Advantages of the countercurrent process:

• The strategic goals and measures are coordinated in terms of content.
• More feasible objectives are the result of this combined process.
• Employees are able to make a better connection with goals.

Take time into account

The 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, which offers functionality for collaboration and approval workflows, the additional effort in terms of personnel and time can be significantly reduced.

The top-down approach to management is when company-wide decisions are made solely by leadership at the top, while the bottom-up approach gives all teams a voice in these types of decisions. Below, we cover the details, pros, and cons of top-down vs. bottom-up management.

The top-down approach to management is a strategy in which the decision-making process occurs at the highest level and is then communicated to the rest of the team. This style can be applied at the project, team, or even the company level, and can be adjusted according to the particular group’s needs.

Many teams go with the top-down approach because it eliminates confusion, reduces risk, and keeps initiatives organized across larger teams. Below, we break down how the top-down approach compares to the bottom-up approach so you can decide which best fits your leadership style.

What is the top-down approach to management?

In the top-down approach to management, a team or project manager makes decisions, which then filter down through a hierarchical structure. Managers gather knowledge, analyze it, and draw actionable conclusions. They then develop processes that are communicated to and implemented by the rest of the team. You may hear this style of management referred to as “command and control” or “autocratic leadership.”

The top-down approach is probably what you think of when you think of the management process. Traditional industries like retail, healthcare, or manufacturing typically apply the top-down management style.

How the top-down approach works

When approaching a project from the top down, higher-level decision-makers start with a big picture goal and work backward to determine what actions different groups and individuals will need to take in order to reach that goal.

The entire project planning process takes place at the management level. Then, once an action plan has been created, decision-makers communicate it to the rest of the team to be implemented (usually without much room for adjustment ).

The top-down approach can be effective because it remains the same from project to project, allowing teams to establish a well-practiced process that grows more efficient over time. Since the nature of the top-down style is so steady and reliable, many organizations (think: IBM, The New York Times, and other legacy organizations) choose to operate their entire companies according to this approach.

When to use the top-down approach

Today, very few organizations apply a purely top-down approach to management. Most teams apply a hybrid approach that falls somewhere along a spectrum of combinations between top-down and bottom-up management styles. 

The top-down approach is more rigid and structured, so teams with multiple sub-teams, many different project parts, or any other factor that makes processes difficult to keep organized will benefit from incorporating elements of top-down methodology. Smaller teams or teams with a narrower project focus will have the freedom to lean more heavily on the bottom-up style.

Advantages of top-down management

There are benefits to a top-down management style, especially for larger teams that consist of multiple smaller teams or groups that function together in a broader organizational hierarchy.

Well-known management style

The top-down management style is common, which means there’s less of a learning curve for new hires if they came from a company that uses this structure. As a team leader, you can help new team members adjust more quickly by incorporating some familiar elements of top-down methodology into your management style.

Greater clarity

The top-down approach results in clear, well-organized processes that leave little room for confusion. Because all decisions are made in one place and all communication flows in one direction, mix-ups and misunderstandings happen less frequently than with other management styles.

More accountability

When problems or inefficiencies do occur, the top-down management approach makes it easy to track them to their source. With clearly defined teams that each have their own separate responsibilities, it’s easier to locate, diagnose, and solve problems quickly and efficiently.

Quicker implementation

Since the decision-making process takes place at just one level of management, they can be finalized, distributed, and implemented much more quickly than decisions that require input from multiple leaders or project stakeholders.

Disadvantages of top-down management

Though top-down methodology has some advantages, there are also drawbacks to consider in how this approach might impact individual team members and overall team morale. Ultimately, top-down management doesn’t work for everyone. It can limit creativity and slow down problem-solving, so it may not be the best choice for teams that require greater flexibility and responsiveness.

More of a strain on leadership

Since all decisions are made at the top, a mismatched project management hire can have a bigger impact on the success of the team. Many process problems are only visible at the lower level, so project managers who fail to solicit feedback from individual team members before making decisions can inadvertently cause significant problems, delays, and losses.

Less creativity

With all communication flowing from leaders to team members with little room for dialogue, the top-down approach allows fewer opportunities for creative collaboration. Less interdepartmental collaboration may also eliminate fresh perspectives and stifle innovation.

Team disengagement

One challenge with the top-down management approach is that it requires proactive work to keep non-leadership team members feeling engaged, connected, and respected. When all decisions are made at the top, the rest of the team might feel that their feedback and opinions aren’t valued.

Greater distance between decision-makers and decisions

While a bottom-up approach allows decisions to be made by the same people who are working directly on a project, the top-down style of management creates distance between that team and decision-makers. This can lead to poorly-informed decisions if leadership doesn’t ask for input or feedback from their project team.  

When approaching project objectives from the bottom up, a team will collaborate across all levels to determine what steps need to be taken to achieve overall goals. The bottom-up approach is newer and more flexible than the more formal top-down strategy, which is why it’s more commonly found in industries where disruption and innovation are a priority. 

Examples of bottom-up management include:

• Hybrid OKRs: broader objectives are set at the company level, but KRs (key results) are set by teams and individuals.

• Scrum teams: the daily standup meeting brings the entire team together to coordinate collaboratively. 

• Democratic management: leaders work with team members to determine what decisions should be made at each level, allowing for better collaboration while also maintaining structure.

The bottom-up style of management solves many of the problems that come with the top-down approach. This approach has advantages that make it a great fit for creative teams and industries where collaboration is key, like software development, product design, and more.

More informed decisions

In collaborative settings, those who work directly on projects and oversee project management can speak to the decisions that will impact their future work. Upper managers work directly with team members to chart a course of action, which prevents potential process blind spots that might otherwise appear when decisions are made without team input.

Better team morale

The bottom-up approach encourages greater buy-in from team members because everyone is given the opportunity to influence decisions regardless of seniority. It also facilitates better relationships between colleagues by offering members of all seniority levels an equal opportunity to influence project outcomes. In doing so, this approach increases the likelihood that all members will be invested in the team’s success.

More room for creativity

In top-down processes, there are fewer opportunities for teams to give input or suggestions. Collaborative approaches like the bottom-up approach, on the other hand, create opportunities for feedback, brainstorming, and constructive criticism that often lead to better systems and outcomes.

Of course, there’s a reason that the bottom-up approach hasn’t been more widely adopted: it comes with a number of challenges that make it incompatible with certain types of teams, projects, and industries.

Reduced momentum

A purely bottom-up approach to solving a problem might result in “too many cooks in the kitchen.” When everyone in a group is invited to collaborate, it can be harder to arrive at a decision and, as a result, processes can slow down. 

To avoid this: Consider assigning one to two group leaders who take into consideration all of the input and then make a decision based on feedback. 

Shift in team dynamics

Though it’s important to give team members the opportunity to provide feedback, not everyone is comfortable doing so—especially with leadership in the room. Keep in mind that everyone has different comfort levels and pushing too hard for feedback might stifle honesty or creativity. 

To avoid this: Offer different environments for team members to contribute, like in small group breakout rooms, 1:1 meetings, or quarterly anonymous feedback surveys. Encourage more senior team members to find ways to break the ice with new contributors so everyone feels comfortable participating.

Lack of high-level insight

In many ways, it makes sense for project decisions to be made at the project level. However, projects are still impacted by higher-level factors like company goals, budgeting, forecasting, and metrics that aren’t always available at the team level. Processes designed from the bottom-up can suffer from blind spots that result from a lack of access to insights  from upper management.

To avoid this: Create a communication flow that provides team leads with summaries of information from the company level that may be relevant to project-level decisions. As a team lead, you can pass along information to your team as you see fit to ensure team decisions are aligned with company-wide positions and goals.

Cross-functional team management tips

The key to implementing a management approach that works is to invest in your people as much as you do in your processes. The challenges of the top-down management approach can be alleviated or even eliminated entirely if the people at the top of the process aren’t just good managers, but are leaders too. 

Build relationships outside the management team

Since process-related communication flows top to bottom in top-down companies, it’s easy for individuals and groups to become siloed and eventually feel isolated. Create opportunities for communication across departments, teams, management levels, and even geographical locations to help ensure that your team members can build meaningful relationships with each other.

Facilitate cross-team communication

Whether your team uses a top-down or bottom-up approach, provide purpose-built opportunities for collaboration between teams that don’t normally work together. Though not part of your day-to-day processes, these additional brainstorms can help stimulate creativity, build relationships, and lead to creative solutions that can later be implemented to benefit the greater group.

Supplement with additional forms of feedback

Non-management teammates may feel less invested when their opinions and perspectives aren’t considered by the people making decisions at the top. Build new channels for bottom-up feedback to not only increase buy-in with lower-level team members, but also give decision-makers valuable insight into gaps or issues with processes.

Great management is all about balance

When it comes down to it, effective managers know how to balance the efficiency of the top-down approach with the collaborative and creative advantages that come from the entire team. 

By blending elements of different management styles, you can find an approach that works best for you and your unique team. Once you decide the right approach, you can establish streamlined workflow management. 

Test out Asana’s workflow management software to build and track your team workflows and communication all in one place.