s&op and strategy alignment apics ibf jun 2016

Institute of BusinessForecasting & Planning

How to Align the Corporate Strategic

Vision with S&OP/ IBP

June 16th of 2016 3:45 PM – 4:45 PM

Michel Nachbar

#BOTBSOP

Michel Nachbar’s Bio

Senior Supply Chain Manager at The Martin-

Brower Company he currently supports the

S&OP and CPFR process implementation for

fast food chains. Prior to this job he worked for

11 years at Procter & Gamble in Brazil focused

on key Supply Chain activities including

logistics, planning and process/system

improvement. Michel has also led the

implementation and management of S&OP/IBP

at Coca-Cola, Barry-Callebaut and Tigre - Pipes

and Connectors in Brazil. He earned a degree in

Foreign Business Administration from UNIP

Paulista University and is currently enrolled in an

Executive MBA program in Business

Management at Faculdade Getúlio Vargas.

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#BOTBSOP

How to Align the Corporate Strategic Vision

with S&OP/ IBP

Measure the successful

alignment of the strategic vision and S&OP/ IBP through metric

tracking of established goals

and objectives

Maintain functional areas

of excellence during alignment without impacting

service levels

Designing a strategic vision

that ensures corporate

excellence and alignment to

S&OP

#BOTBSOP

Designing a strategic vision that ensures

corporate excellence and alignment to S&OP

Understanding and Analyzing the Internal and

ExternalEnvironment

Statement Business Mission, Vision, and Values

Strategic Planning & S&OP/IBP

Supporting Process and Function Strategies

#BOTBSOP

Value Preposition

Key

Activities

Customers/ Stakeholders

Channels

Customer Relationship

$ Revenue

$

Operational Cost

Key Resources

Key Partners/

SLA

Understanding and Analyzing Internal

Business Model Elements

Business

Model

Components

Efficency

Components

Value

Components

#BOTBSOP

Understanding and Analyzing External


Value Preposition

Key

Activities

Customers/ Stakeholders

Channels


$ Revenue

$

Operational Cost

Key Resources

Key Partners/

SLA

#BOTBSOP

Understanding and Analyzing External


Value preposition

Key

ActivitiesCustomers/ Stakeholde

rs

Channels


$ Revenue

$

Operational Cost

Key Resources

Key Partners/

SLA

Key Trends

Market

Forces

Macro

economy

forces

Industry

forces

REGULATORY TRENDES

TECHNOLOGY TRENDS

SOCIETAL AND CULTURAL TRENDS

SOCIECONOMIC TRENDS

MARKET SEGMENTS

NEEDS AND DEMANDS

MARKET ISSUES

SWITCHING COSTS

REVENEU ATTRACTIVENESS

ECONOMIC INFRASCTRUCTURE

COMMODITIES AND OTHER RESOURCES

CAPITAL MARKETS

GLOBAL MARKET CONDITIONS

SUPPLY CHAIN AND OTHER

VALUE CHAIN ACTORS

STAKEHOLDERS

COMPETITORS

(INCUMBENTS)

NEW ENTRANTS

(INSURGENTS)

SUBSTITUTE PRODUCTS

AND SERVICES

#BOTBSOP




ExternalEnvironment




#BOTBSOP

Statement Business Mission

... clear and concise statement of

the company’s strategic intente,

summarize the main purpose of

the business or business unit

and the value that its products

and service bring to customers,

consumers and society.

#BOTBSOP

...must be inspiring and

memorable, and summarizes

concisely what the company

wants to become in its

market and community.

Statement Business Vision

#BOTBSOP

Statement Business Value

... the company values

shape the business

strategies and

supporting plans,

captures in values

statement and are lived

throughout the

company.

#BOTBSOP

Painting pictures in words... the long term!

Mission

Vision Values

#BOTBSOP




ExternalEnvironment




#BOTBSOP

Strategic Planning and S&OP/IBP

Present

Environment

Projected

Environment

Mission

Vision

Values

#BOTBSOP

MA

RK

ETST

RA

TEG

Y

PR

OD

UC

TA

ND

SER

VIC

E ST

RA

TEG

Y

FIN

AN

CIA

LST

RA

TEG

Y

HU

MA

N R

ESO

UR

CES

ST

RA

TEG

Y

INFO

RM

ATI

ON

TE

CH

NO

LOG

Y S

TRA

TEG

Y

DA

TA

STR

ATE

GY

Why Strategic Planning exist?

VALUE VISION MISSIONSTRATEGIC PLANNING

STRATEGIC BUSINESS OBJECTIVES

The Strategic Planning enables the

alignment of all companies process and

functional plans and deployment of a

hierarchy of measures.

#BOTBSOP




and objectives



service levels




S&OP


with S&OP/ IBP

#BOTBSOP

Maintain functional areas of excellence during

alignment without impacting service levels

Strategy Deployment

Goals, Targets and Projects Plans

Performance measures

#BOTBSOP

Strategy Deployment

VALUE VISION MISSIONSTRATEGIC PLANNING


MA

RK

ETST

RA

TEG

Y

PR

OD

UC

TA

ND

SER

VIC

E ST

RA

TEG

Y

FIN

AN

CIA

LST

RA

TEG

Y

HU

MA

N R

ESO

UR

CES

ST

RA

TEG

Y

INFO

RM

ATI

ON

TE

CH

NO

LOG

Y S

TRA

TEG

Y

DA

TA

STR

ATE

GY

Business Competing Priorities and Goals Definition

Projects pipeline alignment & Master Plan Definition

Strategic Plan Cascaded to Working Levels with

Ownership and Sponsorship

#BOTBSOP



Strategy Deployment



#BOTBSOP

Strategic Plans are Converted into Goals,

Projects and Measures Master Plan

Strategic Planning

Market StrategyMarket

Goals, Projects

Market

Measures

Product and Service Strategy

P&S

Goals, Projects

P&S

Measures

Financial Strategy

Financial

Goals, Projects

Financial

Measures

HR StrategyHR

Goals, Projects

HR

Measures

IT StrategyIT

Goals, Projects

IT

Measures

Data StrategyData

Goals, Projects

Data

Measures

#BOTBSOP

Strategic Plans is cascaded from global to

regional and country level

#BOTBSOP



Strategy Deployment



#BOTBSOP


Integrated measures

− A balanced suite of measure must be in place from the top of the

company targets, linking stakeholders interest management

− It is the head of an integrated hierarchy of measures for the whole

business used to monitor progress and drive action.

Visibility of targets and continuous improvement

− Team and personal targets are documented on one sheet to show

trend and performance

− The measures must be displayed to everyone in order to

improvement.

#BOTBSOP

Daily Management System

Critical Processes must be identified and documented;

Key Process in Measure must be identified, KPI’s

hierarchically structured to support final results;

Formal process and tools must be used to manage, review,

and measure projects and goals at all levels;

Management by exception must be implemented and

proactive corrective action plans are communicated.

#BOTBSOP




and objectives



service levels




S&OP


with S&OP/ IBP

#BOTBSOP

Measure the successful alignment of the strategic vision

and S&OP/ IBP through metric tracking of established

goals and objectives

S&OP/IBP Monthly Process

S&OP/IBP Maturity Assessment

Project Portfolio

#BOTBSOP

BUSINESS PLANNING = 1 YEAR

S&OP/IBP = MONTHLY REVIEW 24 MONTHS

GAP between Strategic and Business Plan vs S&OPGAP CLOSING ACTIONS TO DELIVERY BUSINESS PLAN

STRATEGIC BUSINESS OBJECTIVES VALUE MISSION VISION

STRATEGIC PLANNING = 5 YEARS

S&OP/IBP Process … a monthly process

Pro

du

ct R

evie

w

De

man

d R

evie

w

Sup

ply

Rev

iew

Ap

pra

isal

Fin

anci

al

& In

tegr

ate

d

Re

con

cila

itio

n

Rev

iew

(Pre

-S&

OP

)

Man

age

me

nt

Bu

sin

ess

Rev

iew

(S

&O

P e

xecu

tive

me

etin

g)

PROCESS (WEEKLY AND DAILY), PEOPLE, RESOURCES AND KPIs

#BOTBSOP

Man

age

me

nt

Bu

sin

ess

Rev

iew

(S

&O

P e

xecu

tive

me

etin

g)

Pro

du

ct R

evie

w

De

man

d R

evie

w

Sup

ply

Rev

iew

Ap

pra

isal

Fin

anci

al

& In

tegr

ate

d

Re

con

cila

itio

n

Rev

iew

(Pre

-S&

OP

)

Sales

Revenue

$

Operating

Profit

$

Return on

Net Assets

$

Cash

$ OTIF%

S&OP/IBP = MONTHLY REVIEW 24 MONTHS

Business Performance Measure – Strategic KPIs

STRATEGIC BUSINESS OBJECTIVES VALUE MISSION VISION

BUSINESS PLANNING = 1 YEAR

STRATEGIC PLANNING = 5 YEARS

PROCESS (WEEKLY AND DAILY), PEOPLE, RESOURCES AND KPIs

GAP BETWEEN BP AND S&OPGAP CLOSING ACTIONS TO DELIVERY BUSINESS PLAN

#BOTBSOP

Measure the successful alignment of the

strategic vision and S&OP/ IBP through metric

tracking of established goals and objectives



Project Portfolio

#BOTBSOP

Pro

du

ct R

evie

w

De

man

d R

evie

w

Sup

ply

Rev

iew

Ap

pra

isal

Fin

anci

al &

In

tegr

ate

d R

eco

nci

lait

ion

R

evie

w (P

re-S

&O

P)

Man

age

me

nt

Bu

sin

ess

R

evie

w (S

&O

P e

xecu

tive

me

etin

g)

Lead

ers

hip

Vis

ion

, Mis

sio

,Val

ue

s

HR

an

d C

om

mu

nic

atio

ns

Co

nti

nu

ou

s Im

pro

vem

en

t

Stra

tegi

c P

lan

nin

g an

d

Bu

sin

ess

Pla

nn

ing

S&OP/IBP BEST IN PRACTICE ASSESSMENT


PROCESS

PEOPLE

RESOURCES

S&OP/IBP Assessment

#BOTBSOP

Action Plan to achieve high maturity

Senior managers, sponsors and stakeholders must be

informed about the maturity level and main opportunities

providing feedback about expectations in order to define the

priorities;

Is very important to summarize the main opportunities

defining owner, date and control the execution of each

action;

The output is a input for the project portfolio.

High

Maturity

Today

#BOTBSOP

Measure the successful alignment of the

strategic vision and S&OP/ IBP through metric

tracking of established goals and objectives



Project Portfolio

#BOTBSOP

Project Portfolio Management

S&OP/IBPAssessment

Strategic

Projects

S&OP/IBP Process

Priorities alignment and quick wins

Project Execution

#BOTBSOP

QA – THANK YOU!

Contact info:

− Email: [email protected]

− Mobile: + 55 11 9 8251 3784

− Linkedin: https://br.linkedin.com/in/michelnachbar

− Facebook: https://www.facebook.com/nachbar1976

− Twiter: @michelnachbar

− Skype: michelnachbar

mailto:[email protected]

https://br.linkedin.com/in/michelnachbar

https://www.facebook.com/nachbar1976