What is the top-down plan? It is the starting point of business planning. Defined by the leadership, it sets overall goals, key assumptions, and high-level numbers: revenue growth, cost limits, headcount needs. It is then used as a baseline for more detailed planning.
Without the top down planning, each team builds its own version. Put them together, and they rarely fit: too many costs, too few people, or unrealistic revenue promises. And then, the teams spend more time fixing these inconsistencies than really planning.
The result? ➡️ chaos.
Why is the top down planning important?
Here are the four Cs of top down planning effects:
- Clarity: Everyone sees the same overall direction. Teams know what the company is aiming for, not just their own tasks.
- Consistency: Operations and recruitment can plan ahead to match the sales growth targets.
- Confirmation: A quick high-level check shows if ambitions are realistic before anyone wastes weeks on details.
- Concentration: It prevents endless debates. The frame is set, and teams can work within it during the bottom-up planning.
When planning, how do you make sure all teams stay aligned with the overall direction?