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Top-Down

What is the top-down method? Definition and meaning

In the top-down method, the total effort of a project is estimated on the basis of empirical values. The individual budgets for the sub-projects and work packages are derived from this accordingly, so that the goals that have been set are distributed from the top down, i.e. top-down, to the lower organisational hierarchies.

Advantages of the top-down method

  • Planning is carried out globally, eliminating time-consuming and cost-intensive tasks
  • The fine planning takes place within the sub-projects and can be made more precise

Disadvantages of the top-down method

  • Management sometimes has little insight into individual departments
  • Unrealistic target specifications
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Frequently asked questions

What is the top-down method?
In the top-down method, the total effort of a project is estimated first. From this overall budget, the budgets for sub-projects and work packages are then derived, so the goals are distributed from the top down.
What are the advantages and disadvantages of the top-down method?
The advantage is quick, global planning without time-consuming and cost-intensive detailed work; the fine planning only happens within the sub-projects. The drawbacks are the sometimes limited insight of management into individual departments and the risk of unrealistic targets.
How does software support top-down planning?
With structured project planning, overall budgets can be set and gradually broken down into sub-projects and work packages, so the fine planning can be made more precise within the sub-projects.