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Follow Jack Baxter, President of the fictional Global Products and Services, Inc., as he considers the business advantages of evolving Sales and Operations Planning into Integrated Business Planning. Jack takes steps to launch the IBP initiative and, once again, taps Mark Ryan, General Manager, to lead the effort.
Advance praise for The Transition from Sales and Operations Planning to Integrated Business Planning.
Torkel Rhenman, CEO, Lhoist Group: "Every executive who thinks he or she has control of their business should read this book. In working with George Palmatier, I used Integrated Business Planning to bring the entire executive team together to focus on delivering the turnaround of our business. We set financial and operational performance records for multiple years. I could not imagine running a business without the IBP process."
Roger Brooks, former Oliver Wight Principal: "Great book - it certainly relates to clients of mine. This book paints a really good picture of how to evolve the IBP process to concentrate on strategy deployment and financial integration.
The Oliver Wight Class A Checklist for Business Excellence; Sixth Edition The Sixth Edition of the Oliver Wight Class A Checklist for Business Excellence is used by companies worldwide to assess their business process performance. Score yourself against industry standard to measure your progress toward excellence.
Enterprise Sales and Operations Planning; Synchronizing Demand, Supply, and Resources for Peak Performance - Palmatier and Crum
Written in the form of a novel, this book focuses on a leadership team's experience in learning about Sales and Operations Planning. You will learn about the foundation upon which Integrated Business Planning is built. Enterprise Sales and Operations Planning is the precursor to The Transition from Sales and Operations Planning to Integrated Business Planning.
For additional products and services or to find out how we can help you on your journey, contact us at www.oliverwight.com.
- Sales Rank: #1106030 in Books
- Published on: 2013-04-29
- Original language: English
- Number of items: 1
- Dimensions: 9.02" h x .31" w x 5.98" l, .71 pounds
- Binding: Hardcover
- 112 pages
About the Author
Crum is a leading consultant with Oliver Wright Companies.
Most helpful customer reviews
0 of 0 people found the following review helpful.
Supercharged S&OP
By Samuel D. Beaird
How do you move a business from being merely good to being the best? What path should a business take to strive for and actually achieve excellence in performance? The author asserts that this is best done by using a structured, disciplined integrated management process to run the business. This process is called Integrated Business Planning.
As the title declares, George Palmatier describes "The Transition from Sales and Operations Planning to Integrated Business Planning" in this well-written little book. Palmatier is recognized to be the foremost authority of the Sales and Operations Planning (S&OP) process. He has written a number of excellent books on the subject, including "Enterprise Sales and Operations Planning." Now in this his latest book he guides the practitioner and the business leader in how to move from the fundamental demand, supply, and inventory balancing of S&OP to more fully utilize the S&OP process to strategically manage the business. Indeed, the reader might think of this book as instruction on how to “supercharge” S&OP, although it is much more than that.
The basic principle of the book is that the excellent companies are making far greater gains in their business results by evolving S&OP into the industry best practice for strategic management. By implementing Integrated Business Planning (IBP), companies now have the means to assure their strategic and business objectives are met.
Indeed, companies that are making huge gains in both their top-lines and bottom-lines have not solely focused their Sales and Operations Planning process on balancing demand, supply, and inventory. They are using S&OP as a strategic management weapon as well. As the author illustrates, it is a natural extension of S&OP to validate whether the latest projections and plans are aligned and synchronized with the company’s strategies. If they are not, one or the other requires adjustment.
The book is an easy, fun read. It is written as a novel. The principles of Integrated Business Planning are imbedded in a story telling how a fictional multi-divisional global company initiates a project to transition from an existing Sales and Operations Planning process to that of Integrated Business Planning.
The story flows from the initiation of the project to transition to IBP, to the formation of a core steering team, to the development of the principles and tactics to be used in establishing the IBP process, and finally to planning for the implementation of IBP division by division throughout the company. Along the way Palmatier provides valuable insight and explanation as to the differences between traditional S&OP and Integrated Business Planning. He also testifies to the power of IBP to improve integration and focus of the business’s resources and functions, provide more forward visibility and transparency, and facilitate more strategic thinking.
The story demonstrates how a core steering team consisting of multi-functional teammates copes with the difficulties and questions of developing and implementing the Integrated Business Planning process in their business and collaboratively come to a consensus in their approach. The story also demonstrates the value of using a consultant, an outside coach, to bring knowledge of best practices to the team and guide the development and training so as to jumpstart the process development and shorten the time to results.
Palmatier points out that the IBP process should first, and foremost, be built on a solid, well-functioning Sales and Operations Planning process that the leadership team and management team have firmly established. It is imperative that an installed S&OP process regularly and routinely balance demand, supply, and inventory in the enterprise on a disciplined, regular, and routine basis each month. Without this alignment, the leadership team’s time is spent dealing with chaos and problems, rather than the opportunities for the business.
While the book assumes the reader has at least a basic knowledge of Sales and Operations Planning, a high-level description of the fundamental S&OP process is included. The standard reviews within the S&OP process are enumerated as (1) Product and Portfolio, (2) Demand, (3) Supply, and (4) Financial Appraisal as precursors to an (5) Integrated Reconciliation Review. The S&OP process culminates in the (6) Management Business Review. The author explains how each of these six fundamental reviews are elevated and enhanced in carrying out the Integrated Business Planning process.
Some of the primary themes and insights Palmatier espouses for transitioning from Sales and Operations Planning to Integrated Business Planning are as follows: First of all, IBP is strategy oriented whereas traditional S&OP is primarily focused on demand and supply balancing. The IBP process is an aggregate planning process aimed at integrating Strategic Management into the organization. The six fundamental reviews of S&OP enumerated above are the same as those of IBP. The difference is strategy is intentionally incorporated into each of the review steps in the case of IBP. In fact, strategy is explicitly made an agenda item in each review every month, as appropriate. There is a greater emphasis placed on such monthly reviews as Product Portfolio Management and Integrated Reconciliation. As a company moves from S&OP to IBP, the underlying thought process moves from being execution oriented to strategy oriented. The time in discussion moves more from near-term product and project management to longer-term product portfolio and market strategy.
Integrated Business Planning facilitates the leadership and management team in executing the business’s strategies and in following up by tracking the effectiveness of the strategies themselves. IBP enables the management team to focus on closing the gap between current reality and the business’s strategic goals and objectives. Visibility is given to any such gaps early on so that they can be identified and quickly acted upon.
Secondly, a properly implemented Integrated Business Planning process is fully connected to the execution processes of the enterprise. More specifically, the plan emanating from IBP must be connected to the next downstream level of execution, namely the Master Supply Planning and Scheduling System. The Master Supply Planning and Scheduling System, in turn, drives materials requirements planning, capacity planning, logistics planning, manufacturing scheduling, and other detailed planning and control systems of the business so as to execute the monthly IBP plan.
Thirdly, if done right, IBP is used to manage the very essence of the entire enterprise, from a business perspective, not just a supply chain perspective. It is truly an integrated process where the latest picture of the entire business is made visible to the leadership and management team from a single, structured process. IBP integrates all operating and support functions into a single action plan. The disciplined monthly reviews of IBP provide a regular and routine forum to address resource and investment issues and priorities of not only the operations and sales functions, but of all of the business support functions (human resources/infrastructure/administration) as well. Some companies, depending on their size, complexity, and organization, may wish to add additional reviews to the process structure. Issues are surfaced and addressed in the appropriate functional reviews each month. Issues requiring cross-functional discussions, leadership guidance, or leadership decisions are addressed in the Integrated Reconciliation Review of IBP and, in some cases as necessary, are elevated to the Management Business Review.
Finally, the case is made for deploying the copyrighted Fast Track Proven Path implementation model for improving the current S&OP process and evolving and maturing it into Integrated Business Planning. This implementation model is fully explained in the book. The Fast Track Proven Path implementation methodology is designed to deliver results more quickly than any other known approach when the process being implemented is IBP. Time to results is key to a successful, sustainable implementation.
If you have implemented an S&OP process or contemplate implementing the process, you owe it to yourself and your business to read this insightful book in order to assure you gain all you can out of your endeavors.
2 of 3 people found the following review helpful.
Do not buy the kindle version
By Jan Chen
Nice book but do not but the kindle version - the pictures are not readable. The writing on the pictures is with too small characters and the resolution is too pure to read even when trying to zoom in. Buy the paper back version instead - sorry they do not make the quality proper
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