In this series, Effective S&OP, we are identifying the key characteristics required to have an effective Executive S&OP process. In this article, we will outline how to establish and maintain a clear Executive Engagement.
Executive S&OP is a management process for the Senior Executive. Ultimately the process needs to work for them. Your Senior Executive (President) is accountable for the performance of the business. They should be able to use the Executive S&OP Process to evaluate performance (specifically the ability to plan and execute) have clear line of sight to a workable plan. Their input and ownership of the process is necessary for this to happen.
Your President should expect the following outcomes from the process:
A clear link between strategy and execution.
A place to set the flow rate for the business.
A place to establish clear accountabilities.
A regular and repeatable management process.
Your President should be engaged in the monthly Executive Meeting. This starts with showing up. They are the leader of this meeting and should be driving most of the discussion and asking most of the questions. They should expect the team to come prepared and knowledgeable to the meeting, and hold them accountable for their plans and performance. This means if operations did not hit the previous plan, the operations leader should know why.
Your President has final sign off on each family plan coming out of the Executive S&OP Meeting. Asking for this sign off is a good way to make sure you have a clear, achievable, and well-understood plan. This simple step can often be the catalyst to improving executive engagement.
Accountabilities and responsibilities should be set and managed by your President. It should be clear to them, when reviewing each S&OP family (performance AND plans) who in the room owns what part of the plan.
Educating your President (Senior Executive) on what to expect out of the process and how to make it work is often necessary to make this happen. They may know what they want, but most likely not how to get there. This will help them drive the improvements necessary to get the most out of the process. This assessment provides the basic framework and recommendations. Additional coaching for your business leader is often required.
At DBM, we provide your team with coaching and the tools needed to run an effective S&OP process. Through the Virtual Accelerator process, you can implement a sustainable Executive S&OP process in just six months. Our coaching provides executives the support and guidance to drive S&OP and get to the true story of the business. Let us help you unlock the power of S&OP in your organization. Reach out to us.
How effective is your S&OP? Evaluate your process and get recommendations.
At DBM Systems, our consultants have over 20 years of experience providing S&OP leadership to businesses worldwide. We equip teams with coaching and the tools to quickly start and sustainably run an effective S&OP process. Learn about our process and unlock the power of S&OP in your organization.