Planning organization

Here, between the construction and Process organization the planning differed. While the Organizational structure Oriented towards the organizational structure of the planning company and regulates the assignment of tasks to the organizational units involved in the planning process, the chronological sequence of the planning process is determined in the process organization. As a prerequisite for planning, each organizational unit that is involved in the company's decision-making process, as part of its task, provides for and carries out the planning task at certain times.
At the beginning of the planning process, the planning areas generally work out premises (e.g. earnings, market share targets) and define working hypotheses (e.g. exchange rates). These jointly developed and uniform guidelines improve the quality of the planning results and their assessment options.

The divisions carry out their individual planning on the basis of these premises. A basic distinction is made between planning from above (top down) and planning from below (bottom up). In the first case, the planning is initiated and specified by top management; in the second case, the planning results from the ideas developed by the subordinate bodies. In practice, the countercurrent process is often encountered. A dialogue or negotiation process takes place between the parties involved, which is aimed at harmonizing the plans from above and below (planning coordination). This is particularly pronounced in the context of Hoshin planning.

The planning results of the respective units are discussed in voting rounds and, if necessary, committees set up for this purpose. It is checked whether the methodology is correct, planning premises are adhered to and whether the planning approaches of the respective areas are compatible with one another.

The coordinated divisional plans are finally brought together by a planning department entrusted with overall coordination and incorporated into a planning template for the company management for final decision-making.

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