The Problem at Hand

For more than 20 years as sales executives, we helped build annual P&Ls and owned the high-level revenue goals that guided everything from compensation plans to hiring strategies. Every year, starting in Q4, the process began — projections, budgets, hiring plans, and investment decisions — all hinging on one key number: the annual revenue target.

If you’ve been part of that process, you know it’s not an easy task.

Over time, we learned that the difference between a P&L that energizes a team and one that discourages them often comes down to one common mistake:

Relying only on a top-down approach to setting sales goals.

The Missing Link

Most organizations are thorough with their top-down analysis. They review market trends, investor expectations, competitor outlooks, and hiring capacity. These are all essential steps and typically get you 80% of the way there.

But the missing 20% — the part that makes your plan more accurate, credible, and motivating — comes from incorporating a bottom-up approach.

The Solution
The Top-Down Approach: A Necessary Foundation

When building your P&L, the top-down view ensures alignment with strategic and market realities. You should be asking questions like:

  • What’s the overall market outlook?
  • How are competitors performing or forecasting?
  • What guidance is coming from your PE firm or C-suite?
  • What does your sales bench strength and hiring plan look like?
  • What internal initiatives might impact sales performance?
  • How are other stakeholder departments forecasting the year ahead?

This perspective gives you the structural foundation for your plan — the view from 30,000 feet.

The Bottom-Up Approach: Where the Plan Becomes Real

The bottom-up approach adds the view from the ground — the insight from those closest to the customer and the work. It’s how you validate assumptions and uncover the nuances that data alone can’t reveal.

Ask your line and senior leaders:

  • Which team members are poised for a breakout year?
  • Who might have a softer year due to personal or professional factors (e.g., maternity leave, burnout, potential turnover)?
  • Which clients or markets show strong growth potential?
  • Which accounts are showing early signs of risk?

Incorporating this step doesn’t just improve accuracy — it creates ownership and buy-in from the people responsible for achieving the goals.

Benefits of Adding a Bottom-Up Perspective
  • Improves forecast accuracy beyond basic employee-count math
  • Supports smarter hiring and investment planning
  • Builds alignment and engagement across leadership levels
  • Develops your leaders’ strategic and financial acumen
  • Reveals gaps early between what executives expect and what the field sees as possible

When teams contribute to the planning process, they’re more invested in the outcome — and far more likely to work toward it with focus and enthusiasm.

How to Do It Well
  • Train your leaders. Don’t assume they know how to model or forecast effectively.
  • Provide a simple tool. Keep it clear and easy to use — avoid overcomplication.
  • Be available for support. Encourage questions and discussion as they work through it.
  • Create psychological safety. Make it clear that honesty is valued over optimism.
  • Clarify decision roles. Emphasize that leaders are contributing input, not making the final call.

(Tip: A simple, standardized template goes a long way toward making this process efficient and consistent.)

In Summary

If you’re relying solely on a top-down plan, you’re missing valuable insight and engagement from your teams.

Adding a bottom-up approach takes more time and effort, but the payoff in accuracy, motivation, and alignment is significant.

How LeDev Coaching & Consulting Can Help

At LeDev Coaching & Consulting, we help organizations strengthen their sales planning processes by integrating both top-down strategy and bottom-up input. The result: more accurate forecasts, more engaged teams, and stronger business performance.

If you’d like to explore how to bring this approach to your organization, we’d love to connect.