Two-Stage Strategic Planning
Strategic planning determines how we can meet value-related and corporate goals. It is conducted in two stages. First, our divisions identify their market and competitive positions, and their value-related strength. We then use these results to formulate recommendations regarding strategic positioning and planned steps. This input is consolidated at the Group level and specific goals are set. All of this is supplemented by innovation and investment projects, and approved by the Strategy Conference.
Operational planning in the second half of the year addresses strategic-planning decisions with a five-year timeline. The Executive and Supervisory Boards jointly approve the annual plan. This forms the basis for determining basic forecasts for the current year in early February. We monitor whether we are meeting our forecasts by means of monthly comparisons of planned and actual figures. The overarching framework is based on a medium-term plan (five years).
Strategic and Operational Planning