On June 8 at 1 p.m. Central, APICS magazine contributing author Ehap Sabri, PhD, CFPIM, LSSMBB, advisory director at KPMG, will present the APICS Extra Live webinar “Achieving Better-Integrated S&OP with IBP.” As a preview, below are Sabri’s five tips for IBP transformation success, which are detailed in the May/June 2017 APICS magazine article “Five Success Factors for Integrated Business Planning.”
IBP is a best-practice model that extends the principles of S&OP to deliver a seamless management process. It aligns company plans to help decision makers allocate critical resources and evaluate plans and activities based on changing conditions and potential impacts. As a result, an IBP transformation program can help company leaders enhance visibility and financial predictability, increase top-line revenue growth, reduce costs, optimize assets, and boost customer satisfaction.
However, IBP transformation programs can be tricky to implement, with more than half of companies that attempt them failing to reach their goals. Many of the challenges relate to human resources and relationship management. Following are five tips that can help you ensure success in your IBP transformation program.
- Display unflinching executive commitment and championing.
Like with most projects, having an executive or group of executives to champion the change effort and explain the importance of the change can help encourage employees to support the effort as well. Top executives must speak with one voice and model the desired behaviors, especially because IBP transformations require intensive cooperation and cross-functional collaboration among executive peers.
- Leverage an IBP-enabled technology strategy.
The appropriate technology is a key tool in any IBP transformation process. Technology can replace manual efforts of collecting and reviewing siloed data and help leaders collate the information to identify gaps and opportunities for improvement. In addition, technological solutions can institute what-if simulations to check the impacts of different scenarios on profitability and key constraints.
- Articulate the case for change.
Clearly articulate the goals of your IBP transformation project and quantify the expected operational and financial results. This helps ensure alignment between leaders and stakeholders and identify the most important metrics for measuring project success.
- Employ a proven IBP transformation methodology.
Develop a formal, comprehensive plan for implementing the IBP transformation process — beginning with the transformation team and then engaging key stakeholders — and execute it effectively as changes move through the organization. Be sure to include guidance for planning, implementation and sustaining the changes.
- Have effective governance and maintain a high level of energy.
Having the right governance is just as important as having the right processes. Governance should help establish clear ownership, ensure regular attendance at meetings, and support decisions made as part of the IBP process. Leaders also should ensure that stakeholders know why the changes are happening, how their work will transform, what is expected of them, and what benefits the project will bring to them personally. This direction, in combination with highly visible incentives and recognition, can help maintain enthusiasm and sustain change.
Read Sabri’s full article, “Five Success Factors for Integrated Business Planning,” on the APICS magazine website at apics.org/magazine. For an opportunity to learn more about this topic and participate in a live question-and-answer session with the author, be sure to register for his APICS Extra Live presentation on June 8.