Integrated Business Planning (IBP) is the business planning process that extends the principles of S&OP throughout the supply chain, product and customer portfolios, customer demand and strategic planning, to deliver one seamless management process.
Integrated Business Planning is the industry's best practice model. Led by senior management, it is a common-sense process for aligning the company plans every month, which will help you to allocate the critical resources - people, equipment, inventory, materials, time and money - to most effectively satisfy your customers, in a profitable way.
In addition to providing substantial bottom-line benefits, the Integrated Business Planning process ensures early focus on any potential gaps in business performance - it allows organizations to predict and respond positively to changing conditions, in plenty of time.
Companies that do Integrated Business Planning well are more efficient, more effective, and make more money than those who don't.
The key to success in implementing
Integrated Business Planning:
- People are fundamental
- Education drives behavioral change
- Create internal experts within the company
- Develop multi-disciplined teams
- Consistent processes with clear responsibilities
- Deliver outstanding sustainable results through the integration of business processes and functions, and executive-led and managed IBP
Are you ready for Integrated Business Planning?
Unless your business is truly ready to effectively deploy and support Integrated Business Planning, it is likely the benefits will be short-term and your organization will revert to its previous state, with only significant cost and disillusionment to show for your efforts.
So how do you know when the time is right? The Oliver Wight Maturity Model provides the answer. The Model characterizes businesses as being in one of four key phases of maturity (figure 1) and allows you to determine what you need to do, to progress your organization from one phase to the next. You can use Integrated Business Planning to manage the timing if this progression but Integrated Business Planning itself can only be successfully implemented when your organization is ready, when the organization ‘in control’ - at the top of Phase 1, as figure 2 shows.
Figure 1: The Oliver Wight Maturity Model
Beginning with a thorough ‘Business Health Check’, you will be able to identify the position your organization in the correct ‘Phase’ within the Maturity Model - where it sits in terms of its current performance and visualizing the benefits, so you can put in place a plan of action to reach the desired level, moving your business along the Oliver Wight Proven Path to the industry-recognized Class A standard for business excellence.
Your progression to fully Integrated Business Planning (at the top of Phase 2) is made through a series of five transitional steps, each of which will produce nothing less than a transformation in your organization - progressing from the bottom of Phase 1 to the top, will improve your performance from 70 to 95% and in turn, bring substantial productivity gains for your business. It’s a transformation worthy of recognition and celebration, so it is marked with the award of the Oliver Wight Class A Milestone for capable Integrated Business Planning.
To understand how mature your Integrated Business Planning process is complete the online self-assessment.
Fig 2: Transitions