Transforming S&OP into IBP
Most companies may run three separate processes – S&OP, S&OE and the ExCom. And a consulting firm may come in and preach IBP as a separate process and perhaps add a fourth one!! 😀
Transforming S&OP into IBP is really about the final step of the monthly cadence.
Executives walk into their ExCom planning review looking for decisionable information on the revenue and profit plan.
Most Executive S&OP meetings only get them part of the way there, with a volume plan and at best a partial revenue view against the Budget.
Combine the ExCom and Executive S&OP meetings into one Executive IBP meeting. If you develop the tools and process to facilitate an executive review of the revenue plan, the profit plan with risks and opportunities to the AOP, and comparisons to the Strategic Plan, then you have it.
Now you have really created an Integrated Business Planning process that integrates the bottom-up volume plan into the executive radar in their $$ language.
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