AOP is typically developed once per fiscal year. It is set in a top-down approach. You as the CEO (or Management) will set targets for your direct reports, who in turn will set targets for their direct reports. The account managers can click through the key accounts in their territory and develop the AOP for those accounts. You can also click through to the Opportunities for a key account and develop the Opportunities in detail. In addition, it gives you visibility to all the activities needed to meet the plan target. Plan numbers are entered quarterly for the entire fiscal year. A clear owner is also assigned for each level. Each owner is supposed to align their plan with the plan for the level above and the level below their own level. The AOP module relies on the user reporting hierarchy as configured in the user module. The interface is hierarchical and you can iterate up and down through the levels, allocating and adjusting numbers and reconciling the numbers for that level and the aggregate from all lower levels. At each level, you will have visibility to last year’s performance for that level to help plan for the current year. Once completed, the plan can be locked till the next fiscal year begins.
The AOP includes activities and tasks for everyone involved to meet the plan goals. These tasks can vary significantly in time and scope. Timely execution of the activities and measuring the plan actual with the target gives everyone with the visibility to what adjustments needs to be done within the organization. Account Plans are typically reviewed on an annual or quarterly basis. Opportunity Plans are typically reviewed more frequently to adjust to Customer demands. The system gives you Actual Versus Commit variance by Quarter and Year to Date for each level of the hierarchy.