Top-down judgmental forecasting relies on which group to make predictions?

Top-down judgmental forecasting is a method where the organization’s leaders make predictions based on their expertise, experience, and overall understanding of the business landscape. This approach stems from the belief that top executives have a broad perspective and valuable insights that can guide forecasting efforts.

When leaders make these forecasts, they typically consider various strategic factors that might influence outcomes, such as market trends, organizational objectives, and resource allocation. Their elevated position allows them to pull in different elements of the business and make informed judgments about the future.

This contrasts with methods that rely on lower-level managers, all employees, or external consultants. While those groups can contribute valuable insights and data, the top-down approach focuses on leveraging the strategic vision and authority of leaders within the organization to shape the forecast, ensuring alignment with long-term goals and strategic priorities.