1Sales & Operations Planning & Analysis 2011              Sales & Operations Alignment                              Tuesda...
2                          Who I Am – Jim Biel•   20 Years Multi-Functional Experience, Concentrated in CPG Industry (Sara...
3             Polling the Room•    Function•    Industry•    Interest•    Experience with S&OP•    Desired Outcome with S&...
4                         Presentation Flow• Presentation of Concepts• Interactive As We Go – Brief Discussion / QA – Conc...
5   Overview of Discussion Topics• Results Through Integration & Performance  Management• Cross Functional Alignment Throu...
6                                  Closing Remarks                                       (Now & Later, Too)•   Key Learnin...
7     “Connecting the Knobs”               (Why Integration is Important)• “Before we had Executive S&OP in the  Company, ...
8Alignment/Integration Defined•   One Integrated Process (Process)•   People/Functional Alignment (People)•   One Common S...
9                      One Forecast Caveat                         (Linkage – S&OP to Other Plans)                        ...
10Results Through Integration & Performance Management  •   Desired Results       –    Positive P&L Impact               •...
11      Connection – Integration, Performance         Management (Metrics), Results    INTEGRATION                        ...
12      Cross Functional Alignment / Effective                Communication  Functional Role                    Business R...
13Cross Functional Alignment / Effective Communication – The S&OP Flow    Demand                                          ...
14    Cross Functional Alignment / EffectiveCommunication – The S&OP Communication Flow     Role                          ...
15Accountability Systems For Internal Stakeholders     • Metrics – Common        – 5 Basic Metrics:                 •    F...
16   Alignment Between Corporate Strategy and             Operational ExecutionCorporate Strategy                         ...
17Methodological Approach Measuring, Managing, Executing StrategiesFrequency                Activity                      ...
18Methodological Approach Measuring, Managing, Executing Strategies                                                S&OP Ti...
19Methodological Approach Measuring, Managing, Executing Strategies                                Tool Box Needed to Exec...
20Alignment/Integration Defined•   One Integrated Process (Process)•   People/Functional Alignment (People)•   One Common ...
21                                  Closing Remarks•   Key Learnings From My Experience    – The Concept is Easy    – The ...
22                                   Resources• A Book: Sales & Operations Planning, The  Executive’s Guide, Thomas Wallac...
23                         General QA & Closing• Please ask now• Ask After Session• Or  – Contact Me:       • Cell: 847.68...
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Sales & Operations Alignment - Presentation @ Sales & Ops Bus Conf - Chicago - Biel 04 19 11

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Sales & Operations Alignment - Presentation @ Sales & Ops Bus Conf - Chicago - Biel 04 19 11

  1. 1. 1Sales & Operations Planning & Analysis 2011 Sales & Operations Alignment Tuesday, April 19, 2011 Hotel “W” City Center Chicago, IL Jim Biel Management Consultant E-Mail: bielconsulting@gmail.com Phone: 847.687.5379 http://www.linkedin.com/in/jimbiel Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  2. 2. 2 Who I Am – Jim Biel• 20 Years Multi-Functional Experience, Concentrated in CPG Industry (Sara Lee, Unilever, Chiquita, Pepsi) – Retail & B-to-B• Experience in Business Forecasting, Sales Operations & Planning, S&OP, Sales Systems, ERP, CRM, Demand Planning, Business Information Management, Supply Chain, Trade Promotion Management, IT, HR, Training & Development, and Finance (Corporate & Public Accounting, CPA)• Core understanding of multiple supply chains – frozen, fresh, cold, dry, liquid• Independent Management Consulting for large and small entities• Client Services position with a SaaS (software as a service) provider of trade promotion software (Adesso Solutions)• Practiced public accounting for 4+ years – McGladrey; Corporate Finance FP&A Roles• Adept at integrating relevant business concepts and processes with enterprise-wide systems, a strong business process understanding and acumen including S&OP (boot strap and retrofit S&OP implementations) Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  3. 3. 3 Polling the Room• Function• Industry• Interest• Experience with S&OP• Desired Outcome with S&OP• Your Burning Question About S&OP AlignmentJim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  4. 4. 4 Presentation Flow• Presentation of Concepts• Interactive As We Go – Brief Discussion / QA – Concept by Concept – Share What We All Know• Fuller QA at End• Welcome / Encourage Contact After Presentation – E- Mail, Phone, LinkedIn (Take a Business Card)• Will Be Available After to Talk 1-on-1• Lunch• Presentation Available – E-Mail Me and Posted to My LinkedIn Profile Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  5. 5. 5 Overview of Discussion Topics• Results Through Integration & Performance Management• Cross Functional Alignment Through Effective Communication• Accountability Systems For Internal Stakeholders• Alignment Between Corporate Strategy and Operational Execution• Methodological Approach Measuring, Managing, and Executing Strategies Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  6. 6. 6 Closing Remarks (Now & Later, Too)• Key Learnings From My Experience – The Concept is Easy – The Initial Buy-In is Fairly Easy – The Change Mgt Required Can Be Hard • New Process • New Technologies / Systems • New Accountabilities / Roles • Traditional Functional Ownership Dies Hard – Silos • Transparency Hard For Some to Swallow – Consistency & Month-to-Month Execution is Hard – Leader Needs to Keep Functional Leads Feet to the Fire – May Need a Process Coach Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  7. 7. 7 “Connecting the Knobs” (Why Integration is Important)• “Before we had Executive S&OP in the Company, I Spent A Lot of Time Turning Knobs That Weren’t Connected To Anything” – VP & GM Quote From Tom Wallace’s Book, Sales & Operations Planning, The Executive’s Guide Page 24 Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  8. 8. 8Alignment/Integration Defined• One Integrated Process (Process)• People/Functional Alignment (People)• One Common Set of Metrics (Performance)• One System of Record (Platform)• All Demand Streams (Demand Supply)• Integrate All Available Data (Internal & External)• One Forecast (Used by All Functions * )• An Integrated Business Management Model• Buy-In, Accountability, & Trust• Transparency * With Some Caveats Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  9. 9. 9 One Forecast Caveat (Linkage – S&OP to Other Plans) Strategic Use S&OPStrategic Demand Supply Financial Target / As a Gut Plan Plan Plan Check Intent Use S&OPBusiness Demand Supply Annual As Key Financial Plan Plan Plan Plan Input / Core, Plus Risks/Ops Use S&OP Latest Demand Supply Interim As Key FinancialEst / Frcst Plan Plan Forecasts Input / Core, Plus Risks/Ops Future Future Execution Demand Supply Forecast / Details, S&OP Financial Execution Active Risk / Ops Plan Plan / Forecast Discussion S&OP Outputs Validate, Supports Other Planning Processes Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  10. 10. 10Results Through Integration & Performance Management • Desired Results – Positive P&L Impact • Increased Revenue • Reduction / Stabilization of Costs • Supply Chain Conversion Costs • Procurement Costs & Efficiencies – Working Capital Management • Inventory: Finished, Raw Materials (Cash is King) – Productivity / Value with Process • Planning / Forecasting Processes • New Product Launches (Cycle Time, Success) – Decision Making Improvements • Speed • Quality • Integration – Various Functions: Leadership - Demand - Supply - Finance – Integrated, Consistent, Efficient Forecasting & Management Process • Performance Management – P& L Targets – Working Capital Targets (Forecast Accuracy Drives Inventory Levels) – Service Level Targets – Productivity Improvements – Decision Making Improvements Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  11. 11. 11 Connection – Integration, Performance Management (Metrics), Results INTEGRATION PERFORMANCE METRICS Revenue, Cost Targets Leadership (Strategic Direction) Forecast Accuracy Working Capital Targets New Product Launch Success Cycle Time / Quality - Processes Demand Feeds Service Level Targets Supply; Balancing(Ops Execution, Future Forecast) DESIRED RESULTS Finance($ Scorekeeper, Forward Looking Positive P&L Outcomes Economic Advisor) Positive Working Capital Outcomes Productivity Improvements Decision Making Improvements Leadership Customer Service Levels (S&OP Process Owner) Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  12. 12. 12 Cross Functional Alignment / Effective Communication Functional Role Business Role S&OP Role CommunicationGeneral Manager Strategic Direction Owns the Overall Owns Monthly S&OP Process – The Process Meeting; Consulted Owner Daily/Weekly as Needed (Exception)Demand Translates Strategy into Owns the Demand Daily, Weekly > Sales Demand Generation; Forecast; Accountable Interaction with Supply > Marketing Dem Planning Reports for Excess Inventory & Finance; Owns to a Demand Leader; Generated by a Monthly Demand Unconstrained Demand Forecast Miss Component of S&OPSupply Demand Fulfillment, Owns the Fulfillment of Daily, Weekly > Finished Least Cost the Demand Forecast Interaction with > Raw at Least Cost Demand & Finance; (Balancing with Owns Monthly Supply Demand Planning) Component of S&OPFinance Economic Oversight / Counsel, Input, Risk Provides P&L Counsel Assessment, Pro- Proformas & Risk / Formas of Future Opportunity Forecasts Assessment Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  13. 13. 13Cross Functional Alignment / Effective Communication – The S&OP Flow Demand Finance GM Generates Controls Monthly Proformas, S&OP Cost, Risk / Ops Monthly; + Results As Needed In + Metrics Review Interim + Var to Bus Pl + Future Frcst Utilize Demand Supply Outputs as Basis + Assumptions For Forecasts, + Bulk of Meeting: Daily Annual Plans, Gaps, Opps in Strategic Plans, Weekly Add Risks / Opps / Future Frcst Monthly Other Lifts / Discount Factors Balancing As Needed + Create Business Rules (Between Demand/Supply) + Forecast Time Fence: Rolling 12-24-36 Months + Functional Leads & Leader Participate in Monthly S&OP Review Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  14. 14. 14 Cross Functional Alignment / EffectiveCommunication – The S&OP Communication Flow Role Daily Weekly MonthlyGM Rarely Rarely Owns the MeetingDemand Active w/ Supply Active w/ Supply Owns DemandPlanning Planning; Sales; Planning; Sales; Component Marketing; Marketing; Customers CustomersSupply Planning Active w/ Active w/ Owns Supply Demand Demand Component Planning PlanningFinance Consulted As Consulted As Owns Financial Needed Needed Component Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  15. 15. 15Accountability Systems For Internal Stakeholders • Metrics – Common – 5 Basic Metrics: • Forecast Accuracy (Demand Owner) • Perfect Orders (Cust Serv, Supply) • Revenue (Units & Mix) • Profitability (Mix, Margins, Costs) • Inventory (Demand Owner + Supply Owner) – Simple Scorecard – Improvement From a Baseline • Active Involvement By All Functions – – Accountability & Roles / Responsibilities • Daily • Weekly • Monthly (Decisions Made + Follow-Up Assigned) • Transparency Through Dynamic Communication Flow Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  16. 16. 16 Alignment Between Corporate Strategy and Operational ExecutionCorporate Strategy Business Plan S&OP Revenue Targets Revenue Targets Revenue Targets Margins Margins Margins Working Capital Working Capital Working Capital New Products New Products New Products New Markets New Markets New Markets New Customers New Customers New Customers New Channels New Channels New Channels Exit Strategies Exit Strategies Exit Strategies Capital Investment Capital Investment Capital InvestmentStrategic Intent 3-5 Yrs Annual Plan / Frcsts Rolling 36 Mo Review Amount of Detail (Increases through various processes) > Working Backwards from S&OP, Provides Validation of Plan & Strategy > S&OP Focuses on Gap / Opportunity Assessment vs. Plan Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  17. 17. 17Methodological Approach Measuring, Managing, Executing StrategiesFrequency Activity Typical Finance GM InteractionsDaily Demand Dem Pl with When needed, If Needed, very Planning: System & exception rare + Dem Planners Sources; basis + Sales Dem Pl w/ + Marketing Supply – + Customers Balancing + Synd Data Supply MetricsWeekly Demand Same as When needed, If Needed, very Planning: Above exception rare + Same as basis AboveMonthly + Demand Pre- Demand to P&L Proforma S&OP Meeting: Meeting Supply; Supply with Gaps / Metrics + Supply Pre- Back to Opps; Risks Best Frcst Demand; Assumptions Meeting New Products Finance P&L w/ + Capacitization Risks / Opps Gaps / Opps Strategic Issues Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  18. 18. 18Methodological Approach Measuring, Managing, Executing Strategies S&OP Time Fences Demand Demand Demand - Strategy Dem Pl – SKUs Dem Pl – Prod Fam Dem Pl – Prod Fam All Demand Streams All Demand Streams All Demand Streams Sales Marketing Marketing Customers Customers Customers Promotions Promotions Promotions New Products New Products New Products Supply Supply Supply - Strategy Fulfillment Fulfillment Fulfillment & Sourcing Cust Serv Finished Gds, Raw Ingred Contracts Finished Goods Supply Contracts Plant/Cap Network/Invest Supply Contracts Short-Term Mid-Term Long-Term (1-3 Months) (4-12 Months) (13-36 Months) Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  19. 19. 19Methodological Approach Measuring, Managing, Executing Strategies Tool Box Needed to Execute Systems of Record & Collaboration Tools - ERP System - Spreadsheets - Collaboration Tools - Purpose Built S&OP System Capability (i.e. SteelWedge) - Metrics Scorecard Capability Need a well thought-out and efficient S&OP Reporting Tool to support Meetings and interactions > Numbers > Metrics Reporting > Assumptions Make your analysts “analysts” – not data and report generators Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  20. 20. 20Alignment/Integration Defined• One Integrated Process (Process)• People/Functional Alignment (People)• One Common Set of Metrics (Performance)• One System of Record (Platform)• All Demand Streams (Demand Supply)• Integrate All Available Data (Internal & External)• One Forecast (Used by All Functions * )• An Integrated Business Management Model• Buy-In, Accountability, & Trust• Transparency * With Some Caveats Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  21. 21. 21 Closing Remarks• Key Learnings From My Experience – The Concept is Easy – The Initial Buy-In is Fairly Easy – The Change Mgt Required Can Be Hard • New Process • New Technologies / Systems • New Accountabilities / Roles • Traditional Functional Ownership Dies Hard – Silos • Transparency Hard For Some to Swallow – Consistency & Month-to-Month Execution is Hard – Leader Needs to Keep Functional Leads Feet to the Fire – May Need a Process Coach Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  22. 22. 22 Resources• A Book: Sales & Operations Planning, The Executive’s Guide, Thomas Wallace & Robert A. Stahl• “Sales & Operations Planning: Transformation From Tradition” White Paper, AMR Research, May, 2009• “The Transformation to Demand-Driven Industry Leader” White Paper, Oracle/Demantra, September, 2006 Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)
  23. 23. 23 General QA & Closing• Please ask now• Ask After Session• Or – Contact Me: • Cell: 847.687.5379 • E-Mail: bielconsulting@gmail.com • Via LinkedIn: http://www.linkedin.com/in/jimbiel Jim Biel, Ph: 847.687.5379, E-Mail: bielconsulting@gmail.com, http://www.linkedin.com/in/jimbiel (April 19, 2011)

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