Implementing S&OP and making the process stick is hard. You’re probably reading this today because you are having challenges doing just that. Failed implementations are common, but they aren’t inevitable.
In a previous blogpost, I touched on two core questions that must be answered for a successful S&OP implementation and created a model to show you how it works (click here to read).
Today, I’m going to cover how to avoid another pitfall common in implementations: trying to be perfect! In other words, spending time on the perfect solution and process, before engaging the executive decision makers. Only to find out that when you do it fails because you failed to truly address what they need to run the business. This then leads to frustration as the process really doesn’t deliver the strategic benefit you were expecting for your business.
Well the good news is that you can address this hurdle by implementing S&OP using our Iterative approach model we employ as part of our emPPPower process.
The Change Model, as we looked at in the previous blog, uses smaller successive projects to reduce the risk of a failed implementation, rather than waiting for a large payoff at the end. These successive projects or iterations not only allow you to improve your current state during a project, but they also allow you to examine any underlying assumptions you may have gotten wrong at the start of the implementation and correct them as you go along.
This approach is based on the work of strategic coach Dan Sullivan, is based on quickly getting a solution partially correct, and then re-evaluating and correcting in subsequent iterations.
Implementing Iterations
Start with the perfect S&OP solution, as represented by this box. This box contains 100% of what is needed for a successful S&OP process. Or in other words, your “end state”, or “perfect solution”. Currently, 0% of the box is filled.
You have just set out on your S&OP journey. Let’s say in the first iteration, we were able to identify and fix 50% of the difference between our current start and end state.
Though the solution is only partially correct, it is a working prototype for what the perfect solution will be. This also allows us to identify any errors and adjust course if needed. Next iteration let’s say we continue on this path and solve another 50% of the issues. You can see that we now have 75% of a perfect solution, and we have had another opportunity to evaluate our assumptions.
Our third iteration would then take us to 87.5% following this trajectory, which takes closer to our eventual goal! We can continue to iterate and fix the solution, bringing us closer and closer to the perfect solution.
The iterative approach has a number of advantages:
The team participates in developing the process. As a result, by the end of the sixth iteration, the team members understand the process that they had a hand in building. To be clear, for S&OP, the team should include executive leadership and they should be involved from the start.
The solution developed involves all of the team members and their issues. Instead of one person rolling the process out to the rest of the organization, all of the players are involved in the iterative change process.
The process is faster, and the solution developed is better. This process also yields an improved current state along the way, rather than waiting for a big payoff based on assumptions made much earlier in the project.
You must be comfortable with the lack of perfection in the early iterations. This process will bring underlying issues to the surface, forcing the team to reconcile with the current state. This is much better to do early in the process rather than after significant time and resources have been invested into the wrong areas. If you have a clear picture of where your S&OP process needs to go, try using the iterative approach to get there. You will find that team buy-in and ownership come with the process, and you will be clear on the issues you are trying to solve.
Prevent failure when Implementing an S&OP Process
If your S&OP has struggled to take off, step back and ensure that:
You aren't trying to do everything all at once
You aren't trying to be perfect
You are breaking things into chunks
This model is a part of our standard S&OP implementation methodology, the emPPPower program. The emPPPower program is the culmination of decades of experience making S&OP change stick, and it includes all the tools, education, and support you need to make your “end state” a reality.
At DBM Systems, we’ve spent decades refining our approach to S&OP implementation through our emPPPower program. This program includes all the tools, education, and support needed to make your “end state” a reality. Click the button to learn more today!