Integration of Planning Processes : Linking Business Planning and Sales Forecasting in a Case Company
Riekkinen, Teemu (2022)
Riekkinen, Teemu
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022120125696
https://urn.fi/URN:NBN:fi:amk-2022120125696
Tiivistelmä
This thesis focused on improving the alignment between the strategic business plan and the operational sales forecast. Through proper alignment, a company can ensure the strategic plan is being linked to the execution. Therefore, the objective of this thesis was to propose improvements for linking business planning and sales forecasting in the case company.
This study used action research to solve a practical problem by progressing in a cyclical manner by diagnosing, planning, acting, and evaluating the action on each of the research steps. The key steps in the research process were the current state analysis, exploration of existing knowledge, building of the proposal and validation of the proposal. The data within these steps was collected by utilizing qualitative research methods such as interviews, document analysis, workshops, and discussions. The proposal was co-created with the company stakeholders.
The current state analysis revealed several strengths and weaknesses in the existing way of linking business planning and sales forecasting, as well as their implications for the sales & operations planning process. The two main weaknesses were selected as focus areas for further study. The first one was a lack of alignment between the sales plan and the sales forecast and, the second, limited visibility to reasoning and knowledge behind the plans. Existing knowledge and best practices were explored for the integration of business planning processes and sharing of knowledge in organizations. Consequently, the proposal consisted of two elements. First, for integrating sales planning and sales forecasting, 11 actions with guidelines for the implementation were defined. Second, for sharing the knowledge behind the plans, six crucial knowledge areas were mapped and a plan for sharing the available knowledge was created. Sharing of knowledge was trialled where applicable to ensure the proposal works in practice.
By implementing the improvement proposal as described in this thesis, the case company can enhance the integration and the transparency between the functions and, thus, improve the linkage between business planning and sales forecasting. By doing so, the company will be in better position to anticipate and react to changes in performance or business environment and to operationalize the strategy of the company.
This study used action research to solve a practical problem by progressing in a cyclical manner by diagnosing, planning, acting, and evaluating the action on each of the research steps. The key steps in the research process were the current state analysis, exploration of existing knowledge, building of the proposal and validation of the proposal. The data within these steps was collected by utilizing qualitative research methods such as interviews, document analysis, workshops, and discussions. The proposal was co-created with the company stakeholders.
The current state analysis revealed several strengths and weaknesses in the existing way of linking business planning and sales forecasting, as well as their implications for the sales & operations planning process. The two main weaknesses were selected as focus areas for further study. The first one was a lack of alignment between the sales plan and the sales forecast and, the second, limited visibility to reasoning and knowledge behind the plans. Existing knowledge and best practices were explored for the integration of business planning processes and sharing of knowledge in organizations. Consequently, the proposal consisted of two elements. First, for integrating sales planning and sales forecasting, 11 actions with guidelines for the implementation were defined. Second, for sharing the knowledge behind the plans, six crucial knowledge areas were mapped and a plan for sharing the available knowledge was created. Sharing of knowledge was trialled where applicable to ensure the proposal works in practice.
By implementing the improvement proposal as described in this thesis, the case company can enhance the integration and the transparency between the functions and, thus, improve the linkage between business planning and sales forecasting. By doing so, the company will be in better position to anticipate and react to changes in performance or business environment and to operationalize the strategy of the company.