To effectively implement a top-down and bottom-up planning approach, it's essential to distribute or break down targets from higher-level (parent) nodes to lower-level (child) nodes in the organizational hierarchy.
Here are some common methods for distributing top-down targets:
No Distribution: Child nodes do not inherit targets from the parent node.
Same Value: Each child node receives the same target as the parent node.
Note
This method may not accurately reflect the total target if the child nodes' targets do not match the parent's target.
Equal Distribution: The parent node's target is divided equally among the child nodes.
Ratio-Based Distribution: Targets are distributed based on a specific metric or field. For example, expense targets might be distributed based on the percentage of total revenue each child node contributes.
Figure 1. Distribute Target