Beckway Insights: Complexities of Business Planning & Tactical Execution Within The Current Environment
These days you can’t turn on the TV, open your internet browser or read a business periodical without seeing something new about corporations missing their objectives due to supply chain disruptions. The pandemic, inflation, and war in Ukraine placed exponential variabilities on an already complex business process.
It has always been challenging to get cross-functional and multi-site alignment on a Strategic Action Plan (StrAP) and Annual Operating Plan (AOP), but these multiple global disruptions have substantially increased the standing struggles.
Over the past 30+ years, companies have been rolling out 3 to 18-month mid to long-term planning S&OP/SIOP/IBP processes to assist with this effort, but how do these plans get executed amid unforeseen and incessant short-term demand shifts, supply shortages, and system parameter gaps? Unfortunately, and with little effect, many organizations are trying to address these short-term difficulties during routine planning meetings.
We’ve seen companies navigate these challenges successfully by combining a short-term tactical business process referred to as Sales & Operations Execution (S&OE) with more traditional monthly planning meetings. The key to a successful S&OE process is to have its objectives, priorities, and performance measures aligned with higher-level strategic plans. Instead of taking time during high-level strategic planning sessions to delve into lower-level tactical details, S&OE empowers mid-level site leads through weekly standard work procedures. S&OE addresses the demand, supply, capacity, systems, and potential gaps in the StraP and AOP with responsive methodologies.
Getting the “Integrated Business Planning Flywheel” moving does require engagement across organization, but it’s well worth it. For more information on the elements of integrated business planning, contact Steven Hainey, at email@example.com.