Top down vs bottom up budgeting

It also means that as well as measuring resources, the budget process needs to include workload and outcome measures. This is done at a summary level with certain key figures such as revenue and total costs being 'pushed down' to a divisional level. This is 'bottom up' but may be driver-based. These will have been proposed throughout the year and so this process is about assessing them in combinations to see how overall performance can be improved. If it relies on just top-down, then everyone has a great excuse to miss the budget as it top down vs bottom up budgeting not their figures.

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Top down vs bottom up budgeting

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Top-down Budgeting Vs. Bottom-up Budgeting

These will have been proposed throughout the year and so this process is about assessing them in combinations to see how overall performance can be improved. It's not a question of top-down or bottom-up budgeting, but both. It also means that a separate budget for the chosen initiatives will need to be established.

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Top down vs bottom up budgeting
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The targets will probably be driver-generated based on key relationships between costs and amount of work done, to produce key outputs. Hopefully the above is clear enough, given the limited space in this blog. These will have been proposed throughout the year and so this process is about assessing them in combinations to see how overall performance can be improved.

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Top down vs bottom up budgeting
Top down vs bottom up budgeting
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