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.
Information: 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