A big thank you to Niels van Hove for sharing excellent insights during our session and to all IBP practitioners for exchanging practical experiences and co-generating ideas to drive decision-centric IBP forward.
In our breakout session, we explored four key characteristics that, based on Niels’ survey, make a significant difference between effective and non-effective S&OP/IBP processes:
1️⃣ Use Time for High-Impact Decisions
- Effective IBP focuses more than 75% of meeting time on decisions with the highest strategic impact or value.
- Key ideas to enable this: Agreement on process roles, prioritization of strategic topics, pre-read preparations for clarity, and focusing meetings on decision-making rather than data presentation.
2️⃣ Urgent Decisions
- Processes should define how urgent decisions are made effectively at any time during the S&OP/IBP cycle.
- Key ideas to enable this: Clear criteria for urgent decision-making, respect for authority levels, and preparation through real-time visibility into urgent needs.
3️⃣ Transparency of Decision Progress
- Decision progress and status must remain transparent throughout the S&OP cycle.
- Key ideas to enable this: Use consistent metrics, add transparency tools into the S&OE process, and create a culture of „open up“ to track progress and communicate outcomes clearly.
4️⃣ Clarity on Key Decisions
- Clearly define decision rights, data requirements, and evaluation approaches for multiple scenarios in IBP.
- Key ideas to enable this: Develop a clear RACI matrix, align senior leadership, and ensure data is accurate, complete, and actionable.
These characteristics are crucial for creating a decision-centric IBP process that leverages both human and machine capabilities to make better, faster, and more consistent decisions.
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