Bob Stahl www.tfwallace.com April 15, 2009 95 Gathering Place Wallingford, CT Bob Stahl www.tfwallace.com Sales & Operations Planning: Sales & Operations Planning: Top Management’s Handle on the Business Top Management’s Handle on the Business A A PICS PICS New Haven Chapter New Haven Chapter Top Management Night Top Management Night
A PICS New Haven Chapter Top Management Night. Sales & Operations Planning: Top Management’s Handle on the Business. April 15, 2009 95 Gathering Place Wallingford, CT. Bob Stahl www.tfwallace.com. MIT CTL Supply Chain Strategy IOMA/ISM Webinar. Unlocking the Planning Power of - PowerPoint PPT Presentation
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Cumulative YTDCum Original PlanLatest Call2008 S&OP Plan
Original Plan 25,400$ Latest Call 25,540$ 2008 S&OP 27,959$
2007 Fiscal Year
Bob Stahl www.tfwallace.com
Sales & Marketing and Sales & Marketing and Forecasting . Forecasting .
. .. .
Sales & Marketing and Sales & Marketing and Forecasting . Forecasting .
. .. .
– Complain & Whine– Beat on Sales/Marketing people– Drive them away from the table– Use complex algorithms & formulae– Buy new forecasting software– Give up
Rather than– Change approach, methods, & processes
What do we do about inaccurate forecasts?
Bob Stahl www.tfwallace.com
Getting out of the Getting out of the Suicide Suicide
Quadrant . . .Quadrant . . .
Getting out of the Getting out of the Suicide Suicide
Quadrant . . .Quadrant . . .PTF
Horizon
Deta
il
ISuicideQuadrant
IIAggregate
OnlyQuadrant
Exec.S&OP
IIIBuilding toCustomerDemand
Bob Stahl www.tfwallace.com
Sales & Marketing’s Sales & Marketing’s Job Job
Enablers . . . Enablers . . .
Sales & Marketing’s Sales & Marketing’s Job Job
Enablers . . . Enablers . . . • No full granularity for the entire
planning horizon - 18 to 24 Months (Getting out of the Suicide Quadrant)
• Family definitions that enable them to correlate to extrinsic factors that are “leading indicators” (Using “simplifying data assumptions” to deal with MIX)
• No complex software cost or learning curve
Willingly & Enthusiastically Join the Party!
Bob Stahl www.tfwallace.com
Top Management’s Role . . . Top Management’s Role . . . Top Management’s Role . . . Top Management’s Role . . .
• Create an environment (culture) that allows the Ugly Moose to be put on the table -- so that . . .
• They can respond to it with effective:– Policy– Strategy– Risk
Desired Force = CentripetalNatural Force = Centrifugal
Bob Stahl www.tfwallace.com
A Couple of Truisms . . A Couple of Truisms . . ..A Couple of Truisms . . A Couple of Truisms . . ..• When a company is trading off one
constituency against another, it’s on a slippery slope
• Being able to serve all constituencies has a lot to do with timing:1. In the short term, the customer is king2. Proper prior planning is necessary to serve
all constituencies well (Doesn’t happen by accident)
3. Executive S&OP is the tool to set conditions for success with regard to Supply Chain performance
Bob Stahl www.tfwallace.com
Engaging Top Engaging Top Management . . .Management . . .Engaging Top Engaging Top Management . . .Management . . .
In Change, there is no Comfort(In Comfort, there is no Change)
Those who succeed withExecutive S&OP
are willing to deal with the discomfort that is required!
Counter-Intuitive & Counter-Experiential
Not doing what you do better. Doing something different to be better!Ris
kRis
k
Bob Stahl www.tfwallace.com
• Uninformed (before Go/No-go #1)
Boss: “Okay, let’s do an Executive Briefing.”
• Semi-informed (after Briefing: Go/No-go #1)
Staff: “Okay, let’s do a Live Pilot Demo”
• Fully informed (after Pilot: Go/No-go #2)
Staff: “Okay, let’s go to full cutover.”
Low
RiskLow
Risk
Three Levels Three Levels of Commitment . . of Commitment . .
. .
Three Levels Three Levels of Commitment . . of Commitment . .