The top-down approach to determining the appropriate funding level for a business development program typically involves starting with an overall budget target set by senior management or based on financial constraints and then allocating funds to specific programs or initiatives. This approach is often driven by the organization’s overall financial goals and limitations.
Here are the steps involved in a top-down approach:
While the top-down approach is a common method for budget allocation, it has its advantages and limitations:
In practice, many organizations use a combination of top-down and bottom-up approaches. The top-down approach provides a framework for resource allocation, while the bottom-up approach allows program managers and teams to provide input and insights into their specific resource needs based on detailed plans and analyses. This hybrid approach aims to strike a balance between strategic alignment and program-specific requirements.
Ultimately, the appropriate funding level for a business development program should consider both the top-down and bottom-up perspectives to ensure that resources are allocated effectively and in line with the organization’s objectives.
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