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We show management teams how to align all company plans and make annual planning a significant non-event.
Start with reviewing some of our thought-leadership pieces on Integrated Business Planning below; then call us for more help.
A new white paper from Oliver Wight Americas tells how a mature Integrated Business Planning (IBP) process stimulates the Finance organization to evolve as well.
Read this white paper to learn:
· Why the Finance organization is increasingly valued for its analysis of the optimal ways to deploy strategy.
· How the Finance organization evaluates options for dealing with the uncertainty of forward-looking plans.
· How the management team uses this input to compare scenarios to the base plan – and develop contingency plans as needed.
This new white paper, based on the authors’ experiences, is written through the perspective of chief financial officers (CFO). It explains how – and why – Integrated Business Planning (IBP) transforms the role of the CFO.
The authors describe how a transition from finance custodian to trusted advisor occurs, including the skill sets that are developed and the enabling behaviors. They also explain the role of functional copilot in the IBP process.
“The nature of an IBP process requires being approximately right rather than precisely wrong. It also requires focus well beyond the current quarter’s results,” the authors state. “These are big mental hurdles to overcome for people trained to be detailed, exacting, and fact based.”
The authors present a case study that demonstrates, through the CFO’s eyes, the role of the finance team in the IBP process. The case study also describes the role of the finance team in creating scenarios for refining and validating the annual plan.
This white paper details Robert Hirschey’s experience in using aggregate planning to keep executives “out of the weeds” and focused on the “big picture.” Hirschey has worked as an executive at both the operating and strategic levels.
When the executive mindset and skills for aggregate planning are lacking, company leaders experience detail dysfunction. They lose sight of the “big picture.”
Hirschey describes how to use multiple-level planning to combat detail dysfunction. He explains the fundamentals of aggregate planning and the role of Integrated Business Planning in performing aggregate planning.
Multiple-level planning helps to ensure the right people make decisions at the right level. Ultimately the decisions made at the strategic and tactical levels should drive what is made and sold at the execution level.
“Execution should not drive strategy and tactics. Strategy and tactics should drive execution, but all three need to be tied together,” Hirschey writes.
New white paper explains how middle market companies are developing financial discipline and managing and sustaining the right growth. It’s a proven process that is not reserved for only big companies. Oliver Wight’s Eric Deutsch and Aditya Sobti share insights on how to get started.
Can a modern Integrated Business Planning process actually engage with the Millennial workforce? Well beyond S&OP, a Class A modern IBP process can guide an organization into a behaviorally led successful arena. In this white paper, Leon Dixon discusses the Integrated Business Planning process and how it can close the gap between internal communication and technology disconnect in today’s modern workforce.
Written by Oliver Wight Partner Mike Reed, this white paper addresses the role of finance in Integrated Business Planning (IBP). Reed discusses the structure and approach that finance plays through the different IBP processes, in order to reach success and drive better results across all areas of the business.
If your S&OP or IBP process is not delivering the results you expected, read this white paper. The authors explain typical problems and how to resolve them.
Oliver Wight has released a new white paper which discusses how to manage volatility in developing markets to deliver strategic success.
Any company struggling to manage trade spend will find this white paper useful. It provides a case example of a company that optimized trade spend investment using Demand Management and Integrated Business Planning processes. Business growth increased significantly while trade spend investment overall was reduced.
The Role of the Coordinators in Integrated Business Planning (IBP)
This white paper explains the role of the coordinators for each step of the Integrated Business Planning (IBP) and Sales and Operations Planning (S&OP) processes. The article is based on the author's experience as the S&OP coordinator and project manager for a multi-national specialty chemical and biotech firm.
The FastTrack Integrated Business Planning (Advanced Sales and Operations Planning) program is designed to help you achieve: Improved Cash Flow, Integration of Strategy into Daily Operations, Better Utilization of Assets, Supply Chain Alignment to Market Demands, On-Time New Product Introduction, Superior Customer Service - fast.
FastTrack implementation methodology requires behavior change which can be achieved through a better understanding of Integrated Business Planning. Read about elements of a successful implementation in this article by David Goddard.
Integrated Business Planning (Advanced S&OP): An Executive Level Synopsis
The integrated management process known as Sales and Operations Planning (S&OP) has evolved over three decades. In recent years it has taken a major evolutionary step for many companies that have realized the need for, and the benefits of, operating with one integrated management process. Integrated Business Planning is the name many companies are using to describe a strategic management process integrating all the functional elements of the business, picking up where traditional S&OP leaves off. This paper discusses the integrated management process known as Sales and Operations Planning and its more mature version, Integrated Business Planning. It is written to give management and leadership a quick synopsis of this integrated strategic management process.
Oliver Wight’s new white paper, How Good Is Your Sales and Operations Planning/Integrated Business Planning Process?, by James Correll and George Palmatier, contends that the magic to successful S&OP/IBP is that regular, routine realignment and synchronization of all functional plans brings simultaneous improvement in those functional areas and that many organizations are not getting the available bottom-line results from the process. The authors present a 10-question survey that enables assessing the quality of a company’s S&OP/IBP process. Each question is scored on a scale from 0 to 5, and readers can tally their own score to judge the health of their S&OP/IBP process. The point system is based on the authors’ more than 35 years of experience, as well as the results of numerous independent surveys. Correll and Palmatier explain the point ranges and the organizational impact at each level.
Retailers that wish to not just survive, but flourish, must think carefully about how to adapt offerings to suit the market not just now, but in 5, 10, 15 years time. Integrated Business Planning, with its power to plan the business over a 24-36 month rolling horizon, is a retailer's most potent weapon.
This white paper tackles the tough questions retail executives are asking: How to reduce inventory while offering a broader product range to customers; how to reduce store sizes while encouraging in-store visits; and what impact these changes will have on demand plans, supply chain fulfillment, and ultimately financial goals.
Companies have been improving business performance for almost three decades through Sales & Operations Planning (S&OP), but not all have evolved from fundamental demand and supply balancing. Doing so drives even greater operational and financial gains. Read this new white paper, Transitioning from Sales and Operations Planning to Integrated Business Planning, to discover where your company is on the maturity of S&OP and the real benefits of transitioning from S&OP to Integrated Business Planning.
Twenty questions you should ask... and the answers you should expect.
Oliver Wight’s new white paper, Avoiding Atrophy in Your Planning Process, by Dennis A. Daniel, defines Integrated Business Planning and Integrated Planning and Control, and outlines the causes of a decline in the business planning processes that can lead to atrophy. The author presents a variety of scenarios that lead to planning process degradation including the reassignment of key players, a failure to replace critical resources, and a weakening of data integrity. The paper includes examples of atrophied processes, solutions for avoiding atrophy, examples of best practices, and diagnosis strategies.
New ways of thinking result in better planning
Published in Fall 2011 Manufacturing Today
Written by Oliver Wight Principals George Palmatier and Colleen "Coco" Crum,
For nearly three decades, companies have relied on Sales and Operations Planning (S&OP) in their effort to improve business performance. What originally started as basic production planning in the 1970s evolved into S&OP in the 1980s. During that period, companies developed aggregate planning processes to align supply, demand and resources such as capacity and inventory. By the mid-1990s, S&OP further evolved to include product and portfolio management and financial projections.
Marketing’s Role in the Integrated Business Planning Process
This white paper underscores why the marketing group is a critical stakeholder within Integrated Business Planning and how marketing impacts product management and business development. Discussion includes three key areas where marketing contributes to the Integrated Business Planning process: brand spending and awareness; program spending vs. predicted; and competitive analysis.
Integrated Business Planning (Advanced S&OP) Class A Behaviors in a Matrix Environment: You Have a Plan Until You Change It. Who Decides?
This white paper focuses on the principles and behaviors required to successfully operate Integrated Business Planning (Advanced S&OP), in a matrix environment. Three principles are highlighted, and the six behaviors needed to support those principles are explained.
New 2013 Research Report! - Closing the Gaps in Sales & Operations Planning: A Benchmark Study of S&OP/IBP Practices - Key Takeaways from the Research:
1. S&OP is still a fairly immature process in the majority of companies.
2. There is clearly a movement toward IBP approach, but a small percentage of companies still seem to not have fully embraced it yet.
3. Technology support for S&OP process is still generally weak.
4. Interest in moving to "Dynamic Strategy Management" is still strong.
The survey of 80 Sales and Operations Planning (S&OP) professionals was conducted by Oliver Wight Americas at the IE Group S&OP Innovation Summit held in Boston on September 24-25, 2015.
Executive Briefing for Integrated Business Planning
How to Leverage Longer Planning Horizons in Integrated Business Planning (Advanced S&OP)
In a global economy with increasing volatility and uncertainty, implementing the right planning horizon is critical. This white paper explains how Integrated Business Planning (IBP) with a rolling planning horizon of 24 months or longer provides early visibility of gaps between the annual bottom-up plan and the top-down strategic goals – vital data that empowers the leadership team to take timely action to close the gaps.
Diagnostic Review for Integrated Business Planning
Why Annual Planning Should be a Significant Non-Event
Tapping the power of Integrated Business Planning
Companies wedded to traditional annual planning and budgeting processes face significant risk of “losing” in the increasingly dynamic global marketplace. This white paper describes the pitfalls of the traditional annual planning process and offers a solution, with demonstrated results, on how to make the annual planning process a significant non-event.
Oliver Wight’s new White Paper, Demand Review: Tell the Story, by Colleen “Coco” Crum, advises clients implementing Integrated Business Planning (Advanced S&OP) to understand and adopt a true aggregate planning process and redesign their Demand Review. Crum presents a case study about a company attempting to implement IBP based on a 24-month planning horizon, while really only planning for the next quarter, and she argues that the demand planners simply allowed the statistical forecast to compute the item-level projections but failed to take into account that brand and product plans might change over time.
The purpose of this white paper is to introduce and describe the steps necessary to start on the journey to Sustainable High Performance and Profitability and how to do it in a holistic manner.
The Sales and Operations Planning / Integrated Business Planning processes consists of a series of steps, the Management Business Review being one of them. In this white paper, Colleen and George review the typical agenda for a management business review, questions that should be asked, and the role of the general manager or president.
Leading companies continue their migration towards best practices and emerging technologies as they strengthen their supply chain, both within their own corporation and externally with their trading partners. This paper describes how two leading industry supply chain best practices are being linked together to leverage what each does best -- collaboration. This paper describes the vision, process and value of linking CPFR® and Integrated Business Planning.
This white paper, The Day Exuberance Trumped a Proven Process; Use the Integrated Business Planning Process to Evaluate and Manage Risk and Opportunity, is about ensuring that Integrated Business Planning is adding value to the business. It is about recognizing the importance of a formal IBP process and the role that forecasting and demand management play in realizing the business benefits of that process.
Sales and Operations Planning (S&OP) is widely considered a best practice management methodology for manufacturing, engineering, and distribution organizations. It is a monthly management process that brings into one integrated plan all of a business’s separate operational plans and ensures that the plans are synchronized; particularly demand, supply, inventory, new product, and finance. If done well, the process provides a formal method for senior management to respond to change, both positive and negative, over a 24- to 60-month planning horizon. A mature process enables management visibility of the status of strategic initiatives and identification of gaps between current plans and strategic goals which leads to action plans to close the gaps.
Role of the S&OP Coordinator in the Integrated Reconciliation Step of the S&OP Process white paper discusses the importance of the Integrated Reconciliation Process, how it works, and who is responsible. There is also a review of symptoms that the process needs improvement.
In the final installment of his series on product management, Donald McNaughton reaches the Product Management Review, which provides an update on the status of projects and doubles as step one of the monthly S&OP process.
Finance’s Role in Integrated Business Planning / Sales and Operations Planning
In this article, Rob Tearnan and Bob Hirschey discuss the critical role of Finance and Treasury in the Integrated Business Planning/Sales and Operations Planning process. Specifically, the authors highlight the opportunity for the financial community to assist leaders in dealing with the uncertainty inherent in the IBP process. Published in AFP Exchange November 2010.
In the first article in a three-part series, published by Business Excellence Magazine, on retail sales and operations planning, authors Ronald Ireland and Mary Adamy explain why retailers are increasingly exploring a model that has long been a staple of manufacturing management.
written by Ronald Ireland and Mary Adamy
In the September, 2007, issue of Business Excellence Magazine, John Schorr continues his series of six articles on Integrated Business Management with The Demand Review.
The second article in a three-part series on retail sales and operations planning shows how retail S&OP has evolved into a strategic focused, executive-led integrated business planning model.
written by Ronald Ireland and Mary Adamy
The final article in a three-part series on retail sales and operations planning shows the impact of retail S&OP on the retailer and the retailer's suppliers.
written by Ronald Ireland and Mary Adamy
In the first of a new series of articles on Integrated Business Management, published in Business Excellence Magazine, John Schorr argues that S&OP is much more than a tactical logistics and supply chain process; it’s a way of managing the business as a whole.
Aberdeen Research Paper: Sales and Operations Planning: Building a Case for Making it a Strategic Process
Implementing your Strategy, Improving Your Business Processes, and Sustaining Improved Results with Your Own People!
Two day course on Integrated Business Planning (Advanced S&OP).
Integrated Business Planning (IBP), or next-generation Sales and Operations Planning (S&OP) is a common-sense process designed for effective decision making. It allows senior management to plan and manage the entire organisation over a 24-month horizon or more, aligning strategic and tactical plans each month, and allocating the critical resources – people, equipment, inventory, materials, time, and money – to satisfy customers in the most profitable way.
But how do you decide where the process should focus? One key technique is ABC analysis, which divides items (inventory, customers, suppliers, and many other areas), into three separate categories, based upon importance, from the high-value A items to the marginal C items. This white paper examines ABC analysis and the benefits of categorisation to yield further benefits for your business from an IBP process.
The benefits of Sales and Operations Planning, and its evolved, more sophisticated form, Integrated Business Planning, have long been demonstrated, but a number of more “traditional” manufacturing & distribution based organisations are struggling to successfully deploy S&OP and IBP.
There is a growing number of avant garde deployments in non-manufacturing environments that are yielding significant benefits. These non-manufacturing organisations are in a fortunate position; they can learn from the experience of peers in the manufacturing sector, and avoid the pitfalls, thus reducing the time to benefit.
In turn, manufacturing companies can look to the implementation in non-manufacturing industries for lessons in taking their IBP process to the next step. This white paper examines the practises that will aid sustainable improvement in any business, in any industry.
Many companies that have embarked on an Integrated Business Planning implementation still find senior managers being dragged into short-term tactical issues and problem solving. Despite putting considerable effort and energy into executing their plans, many still struggle with poor customer service, high costs, high inventories, and frustrated employees. Whilst Integrated Business Planning is highly effective in aiding planning over a four to 24- or 36-month horizon right down to EBIT projections, it was never designed to control the execution of those plans within the one-to three-month tactical horizon. This is the role of Integrated Tactical Planning. Unless plans are properly managed and coordinated during this time period, execution is problematic. Constant last minute changes and “firefighting”, poor service, high costs, and employee frustration, plague the business.