Round table Always in control with Integrated Business Management!
Marco van Alfen | June 28, 2016 |
In the afternoon of June 28 EyeOn hosted a round table on Integrated Business Management at Croy Castle. Participating were multinationals from the High-Tech and FMCG industry.
We kicked off by Marco van Alfen (EyeOn) explaining the main elements of each of the five pillars (further discussed in this whitepaper):
1. Process designed around decisions
- Fast, transparent and efficient decision making
- Fixed structure
- Smart implementation
- Closed loop planning
2. Balance demand and supply
- Fit for purpose
- E2E visibility
- Use statistics where possible
- Use human intelligence where it adds value
3. Link financial planning to volume planning
- Operational plans drive P&L projection
- Driver based planning
4. Realizing strategic ambitions
- Tactical planning as link between strategic direction and operational planning
- Different horizons, different decisions, different information needs
- Increasing need for anticipation and qualitative analysis
5. Driven by Business Leaders
- Sponsorship and active involvement of executive level management
The next hour we discussed the results of the self-assessment, where we compared the scores of each of the participating companies based on a spider-chart containing the five pillars. On forehand we expected to see some archetype Integrated Business Management processes. Some very volume oriented, others financially oriented and perhaps 1 or 2 balanced out processes coming close to true Integrated Business Management.
And indeed we did find some resembling the archetypes! Also, around half of the participants were able to point out their company’s spider chart whilst the company names were not disclosed. The questionnaire being only 23 questions does not give an in depth view on where you stand with your Integrated Business Management process, but it does point at elements that require more attention and serves perfectly as a vehicle for discussion with peers.
Guest speaker Patrick Tullemans, director FP&A at Philips Health Tech shared how Philips Health Tech is shaping Integrated Business Planning. Focus was on the role and behaviour of executive leaders in Finance, Sales, Marketing and SCM in IBP. To Philips the top 3 enablers of a good IBP process are process discipline, a cross functional set-up and above all senior leadership driving the process. Philips started the IBP roll-out by market and to achieve both sponsorship and active involvement of senior leadership, each of the roll-outs is kicked off with engaging the executive leaders. Always the same sequence: install leadership, start the redesigned process with existing tools, bring in discipline and once that is stabilized they bring in the standard Philips tools. The process is owned by the market leaders who are actively coached in their new role.
This will round table will become a recurring event (probably twice a year) with the ambition to each time take a deep dive in one particular Integrated Business Management topic. A focused discussion around the topic being presented from the organization’s perspective of one of the participants. This way we learn most from peers. We welcome also life science and process companies to the table to further encourage cross-industry learning.
Interested to join the Integrated Business Management round table? please contact EyeOn at firstname.lastname@example.org or contact directly email@example.com
For some further reading please see this article on Integrated Business Management at Lamb Weston / Meijer, recently posted.
To be continued!
Marco van Alfen