Definition of Integrated Business Planning (Advanced S&OP)
Here’s the accepted definition of Integrated Business Planning (Advanced S&OP) which reflects best practices:
- A process led by senior management that evaluates and revises time-phased projections for demand, supply, product and portfolio changes, strategic projects, and the resulting financial plans. This is done at the aggregate level on a monthly basis, typically over a 24-month or greater rolling planning horizon.
- A decision-making process that realigns the tactical plans for all business functions in all geographies to support the company’s strategies, business goals, and targets.
- A primary objective of Integrated Business Planning is to reach consensus on a single operating plan to which executives of the management team hold themselves accountable and allocate the critical resources of people, equipment, materials, time, and money to most effectively satisfy customers in a profitable way.
The Transition of Sales and Operations Planning to Integrated Business Planning
Companies have been achieving improved business performance for close to three decades by implementing and operating with an integrated business management process known as Sales and Operations Planning (S&OP). A significant number of companies have led the evolution of S&OP from fundamental demand and supply balancing to an integrated strategic deployment and management process. This evolving process is known as Integrated Business Planning (IBP).
Oliver Wight pioneered Sales and Operations Planning in the 1980s and continues to play the role of thought leader in helping companies to transition to Integrated Business Planning. We know what it takes to operate an Integrated Business Planning process as the way to run and manage a business.
Here are some resources to get you started:
- Books: Read the latest book on The Transition from Sales and Operations Planning to Integrated Business Planning or the original book on Enterprise Sales and Operations Planning.
- Webcast: Transition from Sales and Operations Planning to Integrated Business Planning.
- Whitepapers: We offer many white papers and articles on Integrated Business Planning.
FastTrack Methodology for Implementing Integrated Business Planning (Advanced S&OP)
We use a FastTrack Proven Path methodology for accelerating the time it takes to implement Integrated Business Planning or Sales and Operations Planning. Our approach focuses on developing the executive and middle management teams to effectively design, implement, and operate the process. Oliver Wight Principals also provide guidance using S&OP software tools to develop executive views of the business. Finally, we provide coaching and mentoring to ensure that the process continues to mature and continues to provide substantial financial and operational improvements to the company.
This approach enables companies to implement Integrated Business Planning quickly – within three months – and to sustain the process year after year. To learn more, attend this Integrated Business Planning (Advanced S&OP) course.
Getting Started – – People, Processes, and Tools Approach
One way to start is with an Oliver Wight Executive Briefing. This Briefing is a one-day awareness-raising session for senior leadership. The leadership team gains a clear understanding of what could be gained in terms of operational and financial performance improvements from improving or implementing an Integrated Business Planning process. The leadership teams also gain an understanding of their role and accountabilities in the process.
Another first step in the FastTrack Proven Path methodology is a Diagnostic Review. We spend two days reviewing your Sales and Operations Planning or Integrated Business Planning process. The diagnostic culminates with feedback for the leadership team.
During the diagnostic feedback session, we provide our findings, provide high-level education on what Integrated Business Planning is and is not, and provide insight on how your process and the results the process generates compares to other companies. We also facilitate a discussion with the executive team on the opportunity to improve company performance by operating the business using an integrated management approach. For more information on an executive briefing or a diagnostic review, contact an Oliver Wight representative to begin your diagnostic review.