Many organisations say they run IBP.
In reality, IBP is still treated as a rigid 𝐩𝐫𝐞𝐝𝐢𝐜𝐭-𝐚𝐧𝐝-𝐜𝐨𝐧𝐭𝐫𝐨𝐥 process:
❌ forecasts instead of decisions
❌ control instead of learning
❌ stability optimised at the expense of adaptability
That logic may have worked in more stable environments. In today’s world of volatility, disruptions, and uncertainty — it no longer does.
The trick is to design IBP as an 𝐞𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧-𝐦𝐚𝐤𝐢𝐧𝐠 “𝐬𝐞𝐧𝐬𝐞 𝐚𝐧𝐝 𝐫𝐞𝐬𝐩𝐨𝐧𝐝” 𝐩𝐫𝐨𝐜𝐞𝐬𝐬 — one that deliberately 𝐧𝐨𝐮𝐫𝐢𝐬𝐡𝐞𝐬 𝐥𝐞𝐚𝐫𝐧𝐢𝐧𝐠 𝐚𝐧𝐝 𝐚𝐝𝐚𝐩𝐭𝐚𝐭𝐢𝐨𝐧 of the organisation.
That is why our 𝟕𝟓𝐭𝐡 𝐈𝐁𝐏 / 𝐈𝐁𝐒𝐢𝐧𝐠 𝐏𝐫𝐚𝐜𝐭𝐢𝐭𝐢𝐨𝐧𝐞𝐫𝐬’ 𝐂𝐚𝐥𝐥 on Adaptability in IBP felt so refreshing.
Luis Carvajal shared a real operational case of how IBP can be developed into a highly adaptive decision system, supporting cross-enterprise decision-making in a very volatile environment shaped by tariffs and other uncertainties.
A few ideas that strongly resonated with the group:
💡 𝐀𝐝𝐚𝐩𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐢𝐬 𝐚𝐛𝐨𝐮𝐭 𝐛𝐚𝐥𝐚𝐧𝐜𝐞, 𝐧𝐨𝐭 𝐟𝐫𝐞𝐞𝐝𝐨𝐦.
Like earthquake-resistant buildings, IBP needs enough 𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 to handle small shocks — and enough 𝐟𝐥𝐞𝐱𝐢𝐛𝐢𝐥𝐢𝐭𝐲 to absorb major ones.
💡 𝐒𝐜𝐞𝐧𝐚𝐫𝐢𝐨𝐬 𝐨𝐧𝐥𝐲 𝐦𝐚𝐭𝐭𝐞𝐫 𝐰𝐡𝐞𝐧 𝐭𝐡𝐞𝐲 𝐥𝐞𝐚𝐝 𝐭𝐨 𝐩𝐫𝐞-𝐚𝐥𝐢𝐠𝐧𝐞𝐝 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬.
Otherwise, they remain theoretical models when reality hits.
💡 𝐓𝐡𝐞 𝐫𝐞𝐚𝐥 𝐞𝐧𝐞𝐦𝐲 𝐢𝐬 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧 𝐥𝐚𝐭𝐞𝐧𝐜𝐲.
Adaptive IBP reduces the time between changing assumptions and aligned action.
𝐖𝐡𝐚𝐭 𝐩𝐫𝐚𝐜𝐭𝐢𝐭𝐢𝐨𝐧𝐞𝐫𝐬 𝐡𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐞𝐝 𝐚𝐜𝐫𝐨𝐬𝐬 𝐭𝐡𝐞 𝐈𝐁𝐏 𝐀𝐝𝐚𝐩𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐑𝐨𝐚𝐝𝐦𝐚𝐩
𝐏𝐡𝐚𝐬𝐞 𝟏 – 𝐅𝐨𝐮𝐧𝐝𝐚𝐭𝐢𝐨𝐧
→ 𝐃𝐚𝐭𝐚 𝐪𝐮𝐚𝐥𝐢𝐭𝐲 and a clear monthly IBP cadence are non-negotiable
→ Clear structures, roles, and coordinators create reliability
→ Regulatory context and external constraints must be considered early
𝐏𝐡𝐚𝐬𝐞 𝟐 – 𝐄𝐧𝐚𝐛𝐥𝐞𝐦𝐞𝐧𝐭
→ Tight 𝐢𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 is critical
→ Technology helps — but only with 𝐚𝐥𝐢𝐠𝐧𝐞𝐝 𝐊𝐏𝐈𝐬
→ Tools do not compensate for misaligned incentives
𝐏𝐡𝐚𝐬𝐞 𝟑 – 𝐂𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐢𝐨𝐧
→ Adaptability becomes a 𝐥𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩 𝐚𝐧𝐝 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧-𝐝𝐞𝐬𝐢𝐠𝐧 challenge
→ Clear 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧 𝐫𝐢𝐠𝐡𝐭𝐬 and standard decision logic matter
→ Shifting from functional to 𝐯𝐚𝐥𝐮𝐞-𝐬𝐭𝐫𝐞𝐚𝐦 𝐭𝐡𝐢𝐧𝐤𝐢𝐧𝐠 is essential
𝐏𝐡𝐚𝐬𝐞 𝟒 – 𝐎𝐩𝐭𝐢𝐦𝐢𝐳𝐚𝐭𝐢𝐨𝐧
→ Advanced analytics only matter if they improve 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧 𝐪𝐮𝐚𝐥𝐢𝐭𝐲
→ Performance reviews close the 𝐥𝐞𝐚𝐫𝐧𝐢𝐧𝐠 𝐥𝐨𝐨𝐩
→ True adaptability extends to 𝐬𝐮𝐩𝐩𝐥𝐢𝐞𝐫𝐬 𝐚𝐧𝐝 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐬
If you are interested in joining future 𝐈𝐁𝐏 / 𝐈𝐁𝐒𝐢𝐧𝐠 𝐏𝐫𝐚𝐜𝐭𝐢𝐭𝐢𝐨𝐧𝐞𝐫𝐬’ 𝐂𝐚𝐥𝐥𝐬,
you will find the program of the next sessions with excellent speakers and the registration link in the comments below.