S&OP and Strategy Alignment APICS IBF Jun 2016
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Thank you for the presentation. I appreciate you taking the time to share your insights on aligning corporate strategic vision with S&OP/IBP processes.
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S&OP and Strategy Alignment APICS IBF Jun 2016
- 1. Institute of Business Forecasting & Planning How to Align the Corporate Strategic Vision with S&OP/ IBP June 16th of 2016 3:45 PM – 4:45 PM Michel Nachbar
- 2. #BOTBSOP Michel Nachbar’s Bio Senior Supply Chain Manager at The Martin- Brower Company he currently supports the S&OP and CPFR process implementation for fast food chains. Prior to this job he worked for 11 years at Procter & Gamble in Brazil focused on key Supply Chain activities including logistics, planning and process/system improvement. Michel has also led the implementation and management of S&OP/IBP at Coca-Cola, Barry-Callebaut and Tigre - Pipes and Connectors in Brazil. He earned a degree in Foreign Business Administration from UNIP Paulista University and is currently enrolled in an Executive MBA program in Business Management at Faculdade Getúlio Vargas.
- 3. #BOTBSOP How to Align the Corporate Strategic Vision with S&OP/ IBP Measure the successful alignment of the strategic vision and S&OP/ IBP through metric tracking of established goals and objectives Maintain functional areas of excellence during alignment without impacting service levels Designing a strategic vision that ensures corporate excellence and alignment to S&OP
- 4. #BOTBSOP Designing a strategic vision that ensures corporate excellence and alignment to S&OP Understanding and Analyzing the Internal and External Environment Statement Business Mission, Vision, and Values Strategic Planning & S&OP/IBP Supporting Process and Function Strategies
- 5. #BOTBSOP Value Preposition Key Activities Customers/ Stakeholders Channels Customer Relationship $ Revenue $ Operational Cost Key Resources Key Partners/ SLA Understanding and Analyzing Internal Business Model Elements Business Model Components Efficency Components Value Components
- 6. #BOTBSOP Understanding and Analyzing External Business Model Elements Value Preposition Key Activities Customers/ Stakeholders Channels Customer Relationship $ Revenue $ Operational Cost Key Resources Key Partners/ SLA
- 7. #BOTBSOP Understanding and Analyzing External Business Model Elements Value preposition Key Activities Customers/ Stakeholde rs Channels Customer Relationship $ Revenue $ Operational Cost Key Resources Key Partners/ SLA Key Trends Market Forces Macro economy forces Industry forces REGULATORY TRENDES TECHNOLOGY TRENDS SOCIETAL AND CULTURAL TRENDS SOCIECONOMIC TRENDS MARKET SEGMENTS NEEDS AND DEMANDS MARKET ISSUES SWITCHING COSTS REVENEU ATTRACTIVENESS ECONOMIC INFRASCTRUCTURE COMMODITIES AND OTHER RESOURCES CAPITAL MARKETS GLOBAL MARKET CONDITIONS SUPPLY CHAIN AND OTHER VALUE CHAIN ACTORS STAKEHOLDERS COMPETITORS (INCUMBENTS) NEW ENTRANTS (INSURGENTS) SUBSTITUTE PRODUCTS AND SERVICES
- 8. #BOTBSOP Designing a strategic vision that ensures corporate excellence and alignment to S&OP Understanding and Analyzing the Internal and External Environment Statement Business Mission, Vision, and Values Strategic Planning & S&OP/IBP Supporting Process and Function Strategies
- 9. #BOTBSOP Statement Business Mission ... clear and concise statement of the company’s strategic intente, summarize the main purpose of the business or business unit and the value that its products and service bring to customers, consumers and society.
- 10. #BOTBSOP ...must be inspiring and memorable, and summarizes concisely what the company wants to become in its market and community. Statement Business Vision
- 11. #BOTBSOP Statement Business Value ... the company values shape the business strategies and supporting plans, captures in values statement and are lived throughout the company.
- 12. #BOTBSOP Painting pictures in words... the long term! Mission Vision Values
- 13. #BOTBSOP Designing a strategic vision that ensures corporate excellence and alignment to S&OP Understanding and Analyzing the Internal and External Environment Statement Business Mission, Vision, and Values Strategic Planning & S&OP/IBP Supporting Process and Function Strategies
- 14. #BOTBSOP Strategic Planning and S&OP/IBP Present Environment Projected Environment Mission Vision Values
- 15. #BOTBSOP MARKET STRATEGY PRODUCTANDSERVICE STRATEGY FINANCIALSTRATEGY HUMANRESOURCES STRATEGY INFORMATION TECHNOLOGYSTRATEGY DATA STRATEGY Why Strategic Planning exist? VALUE VISION MISSION STRATEGIC PLANNING STRATEGIC BUSINESS OBJECTIVES The Strategic Planning enables the alignment of all companies process and functional plans and deployment of a hierarchy of measures.
- 16. #BOTBSOP Measure the successful alignment of the strategic vision and S&OP/ IBP through metric tracking of established goals and objectives Maintain functional areas of excellence during alignment without impacting service levels Designing a strategic vision that ensures corporate excellence and alignment to S&OP How to Align the Corporate Strategic Vision with S&OP/ IBP
- 17. #BOTBSOP Maintain functional areas of excellence during alignment without impacting service levels Strategy Deployment Goals, Targets and Projects Plans Performance measures
- 18. #BOTBSOP Strategy Deployment VALUE VISION MISSION STRATEGIC PLANNING STRATEGIC BUSINESS OBJECTIVES MARKET STRATEGY PRODUCTANDSERVICE STRATEGY FINANCIALSTRATEGY HUMANRESOURCES STRATEGY INFORMATION TECHNOLOGYSTRATEGY DATA STRATEGY Business Competing Priorities and Goals Definition Projects pipeline alignment & Master Plan Definition Strategic Plan Cascaded to Working Levels with Ownership and Sponsorship
- 19. #BOTBSOP Maintain functional areas of excellence during alignment without impacting service levels Strategy Deployment Goals, Targets and Projects Plans Performance measures
- 20. #BOTBSOP Strategic Plans are Converted into Goals, Projects and Measures Master Plan Strategic Planning Market Strategy Market Goals, Projects Market Measures Product and Service Strategy P&S Goals, Projects P&S Measures Financial Strategy Financial Goals, Projects Financial Measures HR Strategy HR Goals, Projects HR Measures IT Strategy IT Goals, Projects IT Measures Data Strategy Data Goals, Projects Data Measures
- 21. #BOTBSOP Strategic Plans is cascaded from global to regional and country level
- 22. #BOTBSOP Maintain functional areas of excellence during alignment without impacting service levels Strategy Deployment Goals, Targets and Projects Plans Performance measures
- 23. #BOTBSOP Performance measures Integrated measures − A balanced suite of measure must be in place from the top of the company targets, linking stakeholders interest management − It is the head of an integrated hierarchy of measures for the whole business used to monitor progress and drive action. Visibility of targets and continuous improvement − Team and personal targets are documented on one sheet to show trend and performance − The measures must be displayed to everyone in order to improvement.
- 24. #BOTBSOP Daily Management System Critical Processes must be identified and documented; Key Process in Measure must be identified, KPI’s hierarchically structured to support final results; Formal process and tools must be used to manage, review, and measure projects and goals at all levels; Management by exception must be implemented and proactive corrective action plans are communicated.
- 25. #BOTBSOP Measure the successful alignment of the strategic vision and S&OP/ IBP through metric tracking of established goals and objectives Maintain functional areas of excellence during alignment without impacting service levels Designing a strategic vision that ensures corporate excellence and alignment to S&OP How to Align the Corporate Strategic Vision with S&OP/ IBP
- 26. #BOTBSOP Measure the successful alignment of the strategic vision and S&OP/ IBP through metric tracking of established goals and objectives S&OP/IBP Monthly Process S&OP/IBP Maturity Assessment Project Portfolio
- 27. #BOTBSOP BUSINESS PLANNING = 1 YEAR S&OP/IBP = MONTHLY REVIEW 24 MONTHS GAP between Strategic and Business Plan vs S&OPGAP CLOSING ACTIONS TO DELIVERY BUSINESS PLAN STRATEGIC BUSINESS OBJECTIVES VALUE MISSION VISION STRATEGIC PLANNING = 5 YEARS S&OP/IBP Process … a monthly process ProductReview DemandReview SupplyReview AppraisalFinancial &Integrated Reconcilaition Review(Pre-S&OP) Management BusinessReview (S&OPexecutivemeeting) PROCESS (WEEKLY AND DAILY), PEOPLE, RESOURCES AND KPIs
- 28. #BOTBSOP Management BusinessReview (S&OPexecutivemeeting) ProductReview DemandReview SupplyReview AppraisalFinancial &Integrated Reconcilaition Review(Pre-S&OP) Sales Revenue $ Operating Profit $ Return on Net Assets $ Cash $ OTIF% S&OP/IBP = MONTHLY REVIEW 24 MONTHS Business Performance Measure – Strategic KPIs STRATEGIC BUSINESS OBJECTIVES VALUE MISSION VISION BUSINESS PLANNING = 1 YEAR STRATEGIC PLANNING = 5 YEARS PROCESS (WEEKLY AND DAILY), PEOPLE, RESOURCES AND KPIs GAP BETWEEN BP AND S&OPGAP CLOSING ACTIONS TO DELIVERY BUSINESS PLAN
- 29. #BOTBSOP Measure the successful alignment of the strategic vision and S&OP/ IBP through metric tracking of established goals and objectives S&OP/IBP Monthly Process S&OP/IBP Maturity Assessment Project Portfolio
- 30. #BOTBSOP ProductReview DemandReview SupplyReview AppraisalFinancial& IntegratedReconcilaition Review(Pre-S&OP) ManagementBusiness Review(S&OPexecutivemeeting) Leadership Vision,Missio,Values HRandCommunications ContinuousImprovement StrategicPlanningand BusinessPlanning S&OP/IBP BEST IN PRACTICE ASSESSMENT STRATEGIC BUSINESS OBJECTIVES PROCESS PEOPLE RESOURCES S&OP/IBP Assessment
- 31. #BOTBSOP Action Plan to achieve high maturity Senior managers, sponsors and stakeholders must be informed about the maturity level and main opportunities providing feedback about expectations in order to define the priorities; Is very important to summarize the main opportunities defining owner, date and control the execution of each action; The output is a input for the project portfolio. High Maturity Today
- 32. #BOTBSOP Measure the successful alignment of the strategic vision and S&OP/ IBP through metric tracking of established goals and objectives S&OP/IBP Monthly Process S&OP/IBP Maturity Assessment Project Portfolio
- 33. #BOTBSOP Project Portfolio Management S&OP/IBP Assessment Strategic Projects S&OP/IBP Process Priorities alignment and quick wins Project Execution
- 34. #BOTBSOP QA – THANK YOU! Contact info: − Email: michelnachbar@yahoo.com − Mobile: + 55 11 9 8251 3784 − Linkedin: https://br.linkedin.com/in/michelnachbar − Facebook: https://www.facebook.com/nachbar1976 − Twiter: @michelnachbar − Skype: michelnachbar
Editor's Notes
- Como alinhar o S&OP com a estratégia e chegar na execução . Qual o nível estratégico . Qual o operacional ... Trazer o futuro para o presente
- Mission, Vision and Strategy is a Top Down Term Based It is for a suitable long-term horizon apropriated to the business; Iniciated and agreed by the CEO and the company leader ship team. The Mission Statement Clear and concise statement of the company’s strategic intente; Summarize the main purpose of the business or business unit and the value that its products and service bring to customers, consumers and society.
- The Expanded Vision Paints a picture in words and overview figures to show empoyees, customers, suppliers, and shareholders what the company plans to become in the medium and long term.
- The company values shape the business strategies and supporting plans, captures in values statement and are lived throughout the company; Owned by the CEO and leadership team, formally documented in consensus with the company stakeholders; Its sets out the guiding principles and ethics by which the company will be known, embodies how the company wishes to be perceived by all its stakeholders and is the prime driver for setting the culture of the business.
- The Strategic Planning exist to support the mission and vision statement that is focused on strategic business objectives; It enables the alignment of all companies process and functional plans and deployment of a hierarchy of measures.
- Strategic Deployment The competing priorities of the business and its performance goals are resolved to determine the priority of strategic projects and their skill and capability requirements; Projects are justified by demonstrating a compelling need and case for change; The vision for the business is widely communicated in a succint, consistent, and repeatable way with opportunity for builds and feedback; Strategic Plans are Cascaded to working levels with ownership and sponsorship.
- Goals, Targets and Projects Plans Strategic Plans are converted into goals at every level of the business with detailed and prioritized action and resource plans; Performance targets to fulfill the business strategy and the goals outlined in approved and planned improvement projects are represented as goals and targets of the business; Approved projects have detailed plans for goal achievement with supporting resource capability plans to develop and allocate the appropriate skills and competencies; People development plans are prepared and actioned to prepare people for the change program and projects.
- Goals, Targets and Projects Plans Strategic Plans are converted into goals at every level of the business with detailed and prioritized action and resource plans; Performance targets to fulfill the business strategy and the goals outlined in approved and planned improvement projects are represented as goals and targets of the business; Approved projects have detailed plans for goal achievement with supporting resource capability plans to develop and allocate the appropriate skills and competencies; People development plans are prepared and actioned to prepare people for the change program and projects.
- Measures and Reviews Formal process and tools are used to manage, review, and measure projects and goals at all levels; Management by exception is commonplace and proactive corrective action plans are communicated.
- Integrated Business Planning Establish an holistic business management process that realigns company plans in response to change, to optimize financial performance. It drives gap-closing actions to address competitive priorities, upper-quartile performance, and to deliver management commitments and strategy. It is the mechanism that provides visibility and control for Corporate Performance Management.
- Integrated Business Planning Establish an holistic business management process that realigns company plans in response to change, to optimize financial performance. It drives gap-closing actions to address competitive priorities, upper-quartile performance, and to deliver management commitments and strategy. It is the mechanism that provides visibility and control for Corporate Performance Management.
- Integrated Business Planning Establish an holistic business management process that realigns company plans in response to change, to optimize financial performance. It drives gap-closing actions to address competitive priorities, upper-quartile performance, and to deliver management commitments and strategy. It is the mechanism that provides visibility and control for Corporate Performance Management.