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Hi,
Could you kindly explain ‘vertical consistency’ in relation to objectives please?
Thanks
If Division A is planning profit of $5 million and Division B planning profit of$4 million, then the strategic plan for the group has to be predicting $9 million.
Wouldn’t that be horizontal consistency (horizontally across departments)? What is the difference between vertical and horizontal consistency please?
Thanks
It’s vertical consistency because the problem is only discovered as you go up through the group and consolidate results.
Horizontal consistency could be manufacturing 1000 units, being able to distribute only 800, but hoping to sell 1100.
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