Many initiatives fall short on delivering the full potential of their promise, implementing a S&OP process will face the same challenges if your organization is not careful. And when we talk about reaching the full value of a S&OP process; we define that as a process that is truly integrating all plans, is financially reconciled, has a monthly cadence, provides a long-term (24-month) planning horizon, is driven by key functional managers and owned by the executive team, and is measured by its sustainability.
How do successful organizations implement and sustain a mature S&OP process? They do so by following a roadmap. At AVATA we help our clients reach maturity in their S&OP process quickly (Speed to Value) by following a proven roadmap including these 5-key phases of implementation:
Awareness Phase: Awareness is the phase where managers and executives learn their roles and responsibilities in the S&OP process. It’s not enough to just provide support of the process, as an executive, you need to understand your responsibility as the process owner. As a functional manager, your role will be critical in preparing and positioning the critical decisions that executive will be focused on in each S&OP cycle.
Value Phase: You can’t take credit for what you don’t measure. If your S&OP process is going to deliver value, you must understand what to measure and where the baseline is when you start the journey. At AVATA, we manage this phase through a Value Workshop, utilizing benchmarking techniques and identifying key “value elements” that will measure the real financial impact of your S&OP process.
Design Phase: In this phase the organization will define the process for each step in the S&OP process, (Product Review, Demand Review, Supply review, Financial Review and Executive Review). The Design Workshop will document business processes for each step of the S&OP process, including ownership, inputs, KPI’s and deliverables.
Configuration Phase: Mature S&OP processes conduct multiple scenario plans, answering the executive question of “What-if.” To reach this maturity level, your organization is going to implement advanced planning tools to speed the process up and allow for multiple views to be reconciled. This phase is about setting up system tools to support and automate the S&OP process, KPI Dashboards, Analysis Reports & Integration of data that drives your planning system.
Sustaining Phase: Most initiatives die too young, typically soon after a disruption in the business like a merger, restructuring or leadership change. Overcoming these events and creating a truly sustainable initiative requires building a S&OP culture around your people. An effort to create business principles and values that drive S&OP will ensure the processes ability to overcome the disruptions, S&OP will need to be part of your business DNA. AVATA has helped its clients in this phase with on-gong coaching, returned assessments and workshops for new resources.
Following a proven Roadmap during your S&OP implementation will deliver the benefits listed above and create a culture and environment around your process that can overcome major business disruptions. However; there are hidden benefits to a mature S&OP process that can be overlooked. Get a clear understanding of all of the benefits of S&OP at our upcoming webinar and receive a complimentary maturity assessment survey.