Many organizations use top-down planning. Leaders set the goals and communicate them through the chain of command. A top-down sales approach offers a faster and more streamlined decision-making process, but it has some negatives, too. For example, this approach doesn’t consider employees’ feedback, which can impact morale.
Bottom-up planning, however, is the exact opposite. This approach begins at an organization’s lowest level and then filters up to senior leaders. Employees set their targets and then send them to their boss for approval.
Sales professional Orsi West says bottom-up planning empowers workers and their divisions, allowing them to decide how to operate. It can be especially beneficial in effective territory management. Wondering why bottom-up planning is so helpful? Read on. In this issue of PromoPro Daily, we share West’s thoughts on why you should consider a bottom-up approach.
Enhanced employee engagement. This is one of the biggest benefits, according to West, because employees at all levels get to share their input. As a result, staff members feel like their ideas are valued and develop a sense of ownership over company goals. They often feel more invested overall since they had a part in creating the goals.
Improved adaptability. When employees’ input is gathered from all departments, West says it results in diverse perspectives and relevant ideas that workers are eager to implement. Since the organization already has buy-in from sales reps, its more nimble and ready to adapt to changes quickly. This can have a powerful impact on the organization as a whole, West says.
Increased accuracy of forecasts. Using a bottom-up sales approach allows you to tap into the knowledge of sales reps who interact with clients and prospects every day. They know better than anyone what’s going on in the market and how clients’ preferences may be changing. West says business can achieve more accurate predictions when such details are incorporated into the forecasting process.
Optimized resource allocation. When you use a bottom-up sales approach, you’re making the most of your team’s talent. You’ve giving them a chance to weigh in with their ideas and participate in the decision-making process. This can lead to improved sales performance, West says.
Deepened customer insights. Sales reps are usually the first to notice emerging trends or changes in client behavior. Organizations can tap into their observations and experiences to stay ahead of market trends and adapt to better need customer needs, West says. This proactive approach can lead to more informed decision-making and a deeper understanding of customer preferences.
While top-down planning is great in certain situations, like setting broad, long-term goals or making quick, high-level decisions, don’t overlook bottom-up planning. It can help with setting more accurate sales targets, provide valuable insights and give your sales team a morale boost.
Compiled by Audrey Sellers
Source: Orsi West is a sales professional and contributor to the eSpatial blog. eSpatial is a sales optimization mapping tool.
