Integrating regional and functional plans at Henkel

The article describes the planning system of the Henkel KGaA. The company is completely family owned. It is the fourth largest chemical company in Germany with affiliated companies nearly all over the world. The product range consists of consumer good articles such as detergents, cosmetics, household cleaners and adhesives and a wide range of chemical specialities which are sold to industry. The turnover world-wide is nearly DM7bn. The planning system of the Henkel KGaA is constructed in such a way that despite the necessity of short-term control the longer-term perspective still remains the basis for decision making. The planning structure and process throughout the company are explained in detail. The authors show that this system is an investment in managerial information processing.