Effective demand planning requires good processes, agile systems, and talented people. Getting these all to work together requires a culture that rewards performance with opportunities for career growth as was as financial benefits.

All too often, I have seen companies try to improve their demand planning by investing in updated reporting systems and more elaborate processes. What’s often missing is a human element that can make or break the overall planning program. Without the right culture it’s hard for the demand planning function to flourish. We often blame people for not performing as expected, and ignore the environment that people work in. Without the right structure, it’s hard to perform well.

So what would a culture that supports effective demand planning look like? Here are 6 key elements that I believe contribute to growing an effective demand planning program.

Leadership That Believe In The Value Of Demand Planning

No demand planning program will survive very long without leadership support. The attitude that the leadership team has regarding planning will impact every aspect of the planning process, and all the people involved in it. Leaders who believe in planning promote it within their own company and to their suppliers and customers.

They regularly participate in planning meetings and support and challenge planners in their attempts to turn conversations about the business into numbers and plans. And they protect everyone involved in the process from undue criticism when reality intrudes and plans fail to predict the future correctly. The leaders don’t need to be experts in planning, but they do need to show consistent interest in the success of the planning programs.

Hiring The Right People

This is perhaps the most difficult piece, as Demand Planners are often hired based on their skillset. If a candidate’s skillset matches the company’s current needs, this is often a determining factor in hiring. And in many cases, this is a good tactic.

However, demand planning often requires analyzing and managing problems that do not have predictable patterns and have not been seen before. Every business and every customer has unique needs. So, while having a solid skillset is important, being able to “figure things out” is often a critical skill that cannot be measured by a list of qualifications on a resume.

When hiring a new Demand Planner, I recommend asking for examples of how the person has effectively handled these kinds of situations in the past. How did they solve a specific planning problem when they had few resources to do so? For example, how did they plan for an item that was completely new to the company, where there was no historical data to use as a base for future planning?

In addition, look for Planners who can handle being criticized for providing inaccurate data. Even though we all know that forecasts are never 100% accurate, some people will expect perfection. And they will often express their discontent by criticizing the Demand Planner. So a Planner who can professionally and calmly explain the rationale behind the numbers and maintain the confidence of the S&OP team members will have a much greater chance of success.

Training

Every company has its own unique way of managing the data that drives planning. New Demand Planners are often expected to teach themselves how to properly use the various systems that they use each day. While being “self-taught” has its advantages, it often also means that there are gaps in the Planner’s knowledge that only proper training can fill. And while training is often expensive, the lack of training can mean that users make expensive mistakes, take longer than necessary to master the key skills they need to be effective, and develop workarounds that often bypass the tools that would otherwise help them in their work.

As part of each Planner’s annual evaluation, I recommend asking what training they would like to receive in order to be more effective in their day-to-day tasks, as well as what training would help them advance in their career. Encourage them to look outside the company for training programs that the company may not be able to offer. And encourage them to visit the customer locations to see how the products they plan are displayed, and how their competitor’s products look on the shelf. Visiting customers with a team of sales and marketing people can be a very useful training activity for all involved.

Appropriate Performance Metrics

I am sure that most people reading the heading for this section immediately thought of forecast accuracy as the key metric for demand planning performance. And this is certainly important.

I believe the most important metrics for Demand Planners are communication and leadership. Without these there is no way for a Planner to meet the other, more common metrics such as bias and MAPE. Communicating item performance issues in a manner that other S&OP partners can understand, and then leading them to take action by recommending actions to improve forecast performance are key roles for any Demand Planner.

I can already hear the complaint that communication and leadership are hard to evaluate. So is nearly every activity that makes a person effective in their role. (Ask any group of people what makes a good teacher and you’ll get a different answer from every person.) I admit that measuring effectiveness in these two areas can be subjective. But I believe we must try to measure it.

One way I have seen this done is through measuring the actions a Planner recommends and whether these are implemented and effective. In my own career I kept spreadsheets for issues that I have communicated, along with my recommended actions. I tracked whether recommendations were accepted, who was accountable for acting on them, and when the actions were expected to be completed.

This not only helped me track what needed to be done, it also added accountability to everyone on the team. People knew what issues were being addressed, who owned resolving them, and when the issue should be resolved. This measured both my ability to communicate clearly as well as how effectively I was able to lead the team to take action.

Effective Tools

If you want to know if the forecasting and planning tools your Planners are using are effective, look at how often they revert to Excel to get their work done. While Excel is certainly a helpful tool, all too often it is used in place of other systems that are too hard to use or where the user has not had sufficient training. Exporting data from a system to make it presentable to a larger audience or to do analysis is understandable. But when users must do this with too many systems, it tells me that the original systems are not being used properly. Often this is because they are not designed with the user in mind. Properly designed user interfaces can make even the most complex systems more user friendly and increase usage of these expensive systems.

Key metrics for all members of the S&OP team should be easily accessible and not require exporting and reformatting before they can be presented to others. Forecast data especially should be easily accessible and reported in both units and dollars for each period.

In addition, planning systems must be stable and updated regularly. Plans based on shifting or incomplete data will undermine the entire process. Everyone on the S&OP team needs to know when systems update and how to report issues with each system. And as the business evolves, reporting systems should be updated to reflect the new reporting needs.

Clear Career Growth Paths

Nothing discourages an employee more than realizing that their current position is a dead end. And Planners who are good are sometimes discouraged from looking to advance since the company benefits from them staying where they are. In their role Demand Planners can impact every area of a company – Finance, Sales, Operations, and Marketing. If they are encouraged to learn how these other areas function and what skills are needed to perform well in them, they may find that they have an interest in moving into one of these areas.

I believe they should be encouraged to seek out other suitable roles, and that management has an obligation to support them in this process. Part of every Demand Planner’s annual evaluation should be an investigation into what other functional areas interest them. They need to know that they have a future with the company if their interest shifts to another role within the company.

It’s too easy to believe that poor demand planning is the result of an individual Planner’s poor performance. I believe we need to pay more attention to the environment that Planners work in and ensure that it is conducive to the Planner’s success, career growth and promotion. Once we create an environment where Demand Planners can thrive, then we can begin to properly evaluate our Demand Planner’s individual performance.

If you’re just starting out in your career, the corporate ladder may look insurmountable and overwhelming. You may feel that in demand planning, business forecasting, S&OP and related fields, it Is especially difficult to make it to the executive corner office. I am here to tell you that a promotion is not out of reach and if you want it and work at it, there are opportunities at director level and above.

I am going to be honest with you though, there are challenges, there is bias, and you may be your own worst enemy. But if you are determined to move up or change the course of your career path, there are some things you can do. Drawing on my own career in which I have worked as Director of Demand Planning at various companies, here are nine tips that can help you move from the cubical to the board room. Let’s get going and climb that corporate ladder!

1. Develop Your Own Career Map

To achieve your full potential, you need to own your career path. You cannot wait or assume your boss will just reward you for your hard work. Understand what it is you really want to do professionally. Ask yourself what your professional identity is and what it needs to be to get where you want to be. Figure out your strengths, values, and preferences and determine how these qualities will fit into the identity you aspire to become. Then create a roadmap that will get you where you want to be.

2. Be Willing To Let Go

There is a common career staller for demand planners who are technically proficient and have a lot of business forecasting expertise. You see, it may be all that success and ability that is stopping you from advancing. Many organizations become dependent on you as an individual contributor and fear that they may lose those insights if they put you in a management role. Leadership inherently requires letting go of control and enabling others to do the work. You have been effective, so the need to make changes in order to break through to leadership may be just what you need. While I do not advocate being less successful as an individual contributor, early on in your career you need to try to balance your time with strategic planning, coaching others, developing people and other work – and all that necessitates stepping back.

3. Be willing to Accept Risk

You are going to make mistakes. There is a great sports axiom – you miss 100% of the shots you don’t take. Making mistakes is one of the best learning opportunities there is, so don’t be afraid to make one. By trial and error, you’ll learn. From experience, you’ll grow. From failure, you’ll gain wisdom. From success, you’ll gain confidence. That’s the beauty of taking risks. Basically what I am saying is take the shot and don’t worry if it misses.

4. Come with Solutions

I hate the saying “don’t bring me problems, bring me solutions”. That’s how small-minded managers think. That said, regardless of how junior you may be or what department you are in, you can have ideas that positively affect the company. Bring solutions to the table or anything that can improve things in your area. Show people that you think strategically and look beyond your day-to-day activities. Do not be content with just doing things the way they have always been done and do not shy away from opportunities to show you add value at a higher level.

5. Play Well With Others

You never know who may end up being your boss or helping your career so try not to burn bridges early in your career. With what we do we have the unique advantage of touching so many other departments and collaborating with so many people. Use this and remember there may be a lot of value in doing things that at the moment do not benefit you. These relationships and positive behaviors may not have immediate benefits but in the long run, they may open up doors or move you up the ladder.

6. Promote Yourself

While this may not be entirely possible you can be your own greatest cheerleader. It is not always intentional but your boss and others may not know how great you are or the success you just had. Be comfortable with bragging about yourself from time to time. Not to the point that it is all about you, but a little positive press on a big accomplishment may be just the thing you need to get noticed. When others are aware of your value, they can help you get the recognition you deserve or help you get promoted.

7. Be an Influencer

The surprising thing is that you don’t need to be a director to have influence. I was an analyst running an executive S&OP process. I have seen others without a title be the one in a room that others are listening to. Your character and confidence build the trust and respect needed so people listen to your comments and value them. When you lead, others want to follow you. As you become to be known for getting things done, building alliances, and gaining buy-in for your ideas, you begin to be the kind of person people rely on. Then it only makes sense to promote you to a position that uses these qualities.

8. Continuous Learning

Truly good leaders are constantly learning. They’re the first to tell you that they don’t know everything. As a result, they are always challenging themselves and keeping on top of trends in the field. To help you, find ways to attend IBF conferences, read up on developments in the field and best techniques and methodologies, watch videos, and become active in the wider demand planning community. Consider getting IBF certified and challenge yourself to write for an industry publication [Ed: like the Journal of Business Forecasting] or speak at a conference or webinar. All these things help position you as a thought leader in the field. As a result, you’ll be prepared when higher-level positions open up because your skills and knowledge will have expanded.

9. Orchestrate Your Own Promotion

If all else fails and you find yourself in a position where no next level is in sight, it may be time to create your own. I have done this many times myself and have seen it successfully done by others. Many companies do not have a director of analytics or demand planning for you to move into. Help the organization understand the benefits of the role you want and show them that no other existing department can do it the way you can. Build a business case around what you can do for the company and include the new role, scope, responsibilities, and value. If you are genuinely hungry for a career advancement, you’ll make the promotion yourself.

Find your next role on IBF’s Jobs Page which features a range of demand planning, forecasting, supply chain and related vacancies.

An excellent way to secure your next promotion is to get IBF certified. This globally recognized demand planning certificate puts you in an elite group of forecasters and demand planners with many CPF professionals reporting that it helped land them their next promotion or pay raise. Click here for more information.

The forecast for the economy today is mostly sunny and mild temperatures. Things look great – unemployment at all-time lows, economy growing at over 3%, and consumer confidence is on the rise. All of this adds up to top line growth, reduced inventories, and efficiencies of scale reducing cost for businesses. But that’s today – what about tomorrow? 

The end is nigh. But fear not, because demand planners are here to save the day.

Not being a Debbie Downer but part of forecasting is looking forward and preparing for what may come, including wider economic downturns that threaten even the most robust of businesses. A naive forecast assumes (somewhat naively) that what is happening today is sure to continue unabated tomorrow. With that in mind, the current economic expansion is the second-longest in U.S. History, leading many economists to forecast a recession as early as next year.

Half the economists surveyed just a couple of months ago by the National Association of Business Economics foresee a recession starting in late 2019 or early 2020, and two-thirds are predicting a slump by the end of 2020. Last year someone from the Washington Times even went so far as to say that the outlook for 2019 is “worse than 2008, it reassembles 1937…”. Not to mention any names but the author must have been a genius to foresee this that far ago and maybe he should have written a book about it (see Cultural Cycles why History Repeats Itself, by Eric Wilson).

If you are a retailer, manufacturer or distributor, the day-to-day moves in politics or the Dow do not drive the day-to-day operations of your business

Shameless plug aside, the one constant will be change. I think the only common element we see today is uncertainty, and we have a lot of that. Tariffs, wars and rumors of wars, inflationary concerns, rising interest rates, government shutdowns – headlines may be important to stockholders, but despite what you may be hearing, business operations are not coming to a terrible end in the next twelve months. If you are a retailer, manufacturer, or distributor, the day-to-day moves in politics or the Dow neither drive, nor necessarily reflect, the day-to-day operations of your business.

What Does This Really Mean For Business?

It suggests that if the economy does change, you will still need to accomplish today’s tasks, but more efficiently. Managers must cope with potential lower demand for goods and services, limited pricing power and strong deflationary pressures, and tighter credit for consumers and businesses. This all begins to create the perfect storm and adds up to:

Smaller top line

Lower or even shrinking top line growth as consumers restrict spending

Potentially fewercconsumers with additional job losses

Less financing available because of uncertain financial conditions and tighter consumer credit

Reduced bottom line

Worse margins driven by too little demand

Too little disposable income

Too much inventories placing pressure on cutting prices to retain sales

Less cash and more costs

Higher cost of operations caused by tight credit and higher cost of money when it is available

Increased volatility of demand and the desire to maintain low inventory levels creates imbalances, drives inefficiencies, and adds cost

Forecast accuracy helps navigate the pain points of economic downturns

So What Needs To Change?

There aren’t many silver bullets available. In a good economy, you could look to sales and marketing and follow a top line growth strategy effectively, but when sales tank due to poor economic conditions, there is only one thing that works: an unbiased view of the future and an effective Supply Chain with a laser sharp focus on Cash, Cost, and Service.

When sales tank due to poor economic conditions, there is only one thing that works: an unbiased view of the future and an effective Supply Chain

During uncertain times, a good demand plan is the cornerstone that delivers both cost and asset turnover. In fact, Demand Planners are the foundational element that can make or break an organization during downturns in the economy. Take, for example, forecasting improvements. Improvements in forecast accuracy can enable efficiencies and improve responsiveness to market conditions. More accurate demand forecasts facilitate better plans, resulting in lower inventory levels, increasing inventory turnover while simultaneously improving customer service levels. For operations, better predictions of customer demand enable higher capacity utilization rates which lower per unit costs, and facilitate the staging of inventories at key locations in the supply chain.

So What Should Businesses Do To Prepare For Economic Downturn?

With today’s instability in the economy, companies should increasingly focus on the adoption of forecasting and demand planning best practices, and development of their demand planning talent to help navigate the rough waters ahead. If you haven’t done this in your company already, develop forecasting and demand planning as a function with specific competencies. Look at different ways that demand planning can begin to add value to other functions in the organization. Consider augmenting your team with specialized roles and develop skill sets outside of your key function and focus on the core competencies of your overall team. There is a trend towards a more centralized function, taking forecasting analytics out of just Supply Chain, because an independent Predictive Analytics and Planning department can drive insights across all functions, and beyond just driving Supply Chain efficiency.

Also, invest in an analytical and advanced decision-making infrastructure. Begin looking at ways to automate. While you might not be able to afford a sprawling automated warehouse operation like Amazon’s, you might be able to automate parts of demand planning and other processes to free you up to focus on key drivers and process management. In the future, it is not just about the internal supply chain, but forecasting will help look at the extended external service chain and focus on before and after the sell. You may also find other ways to help drive business process using forecasts to add value, and enable decision making in different areas. Finally, we need to start looking more at the softer skill sets and core competencies of demand planners going forward and invest more in training and development.

In difficult times, demand planning and a clearer view of the future has become a fundamental weapon to compete in an uncertain and changing economy

Especially in difficult times, demand planning and a clearer view of the future has become a fundamental weapon to compete in an uncertain and changing economy. The smart companies will not only be investing in predictive analytics and planning capabilities but supporting and growing their current resources through attending conferences, training, and certification.

I am not sure what the stock market will do, but I do know what the top performing companies will do during a bad economy. When and if times do get tough, the best companies utilize forecasting and demand planning strategies that will not only see them through a rough economy but create efficiencies that translate to higher growth and margin after the downturn as well.

There are countless roles today in Data, Analytics and Demand Planning and many different ways you can climb the ladder to the top. However, we see four main analytics and planning career paths. Knowing what they are, and the skills required to be effective in these roles, is important for any ambitious demand planner or data analyst, not to mention crucial for companies that want to leverage these skills. 

The four main roles are:

• Analytics Development (Data Analyst, Data Scientist)
• Business Analysis (Demand/Forecast Analyst, Demand Manager)
• Collaborative Planning (CPFR Analyst, S&OP/IBP Manager)
• Product and Market Management (Product Analyst, Launch Leader)

1. Analytics Development

Analytics Development oversees the technical aspect of analytics environments and is responsible for producing analytical models for a company’s major business processes. The main roles here are Data Analyst or Data Scientist and the core competencies are problem solving, diagnostics and the ability to visualize links between seemingly disparate things.

These roles provide support across all lines of business and corporate functions. In the case of an organization with a decentralized analytics function, each corporate function may have a Data Scientist or Data Analyst dedicated to producing analysis specific to their business processes. However, those resources (typically) are ultimately under the control of the centralized Analytics and Planning function.

The data and analytics foundation is transferable into many financial or business analyst roles for those looking for a different career path

Most Data Analysts join as graduates with a degree in Mathematics, Statistics, Computer Science or a related field but this can vary. Others transfer from other functions like IT and Finance. Beyond Data Analyst roles, they can progress to Demand Planner and business roles inside the analytics and planning department or move forward to the more senior Demand Scientist position. There are also opportunities to make lateral moves outside the department into more of a data engineering role or to roles within IT. Additionally, the data and analytics foundation is transferable into many financial or business analyst roles for those looking for a different career path.

2. Business Analysis

If Predictive Analytics is both and art and a science, the Business Analyst is the person who brings these two disciplines together. The Business Analyst oversees the process of using analytics, data, insights and experience to make predictions and respond to various business needs. The insight gained by business forecasting enables companies to automate and optimize their business processes. These are more traditional planning type roles such as Forecast Analyst, Demand Analyst and Demand Manager. While they may be analytical problem solvers, they also demonstrate effective gathering and interpretation of information, having to analyze situations and identify implications to make better decisions.

In some companies these roles reside in Finance, Sales or Supply Chain but they really need to be elevated to a more unbiased, centralized function. With specialities that support multiple purposes and enable decision making across the organization, an independent Demand Planning department provides enterprise-wide improvements. Centralizing the function means going from simply providing numbers to providing answers – it responds to business challenges and exploits commercial opportunities.

We have seen successful planners come from history and liberal arts majors if they have the right aptitude

Most Demand or Forecast Analysts join as graduates with a degree in Supply Chain Management, Business, Mathematics, Statistics, or a related field. That said, we have also seen successful planners come from history and liberal arts majors if they have the right aptitude. Many seem to transfer into the position from other functions like Supply Chain and Finance. They can progress linearly to the more senior Demand Planning and Demand Manager positions. Demand Analyst is a great feeder into many Financial or Business Analyst roles, as well as Supply Planning and Supply Chain positions.

3. Collaborative Planning

These roles and resources are devoted to not only the inputs but also the impacts and results of the planning process. Both internal and external collaborative planning roles help develop the required synergies with customers and suppliers (and every function in between). These roles vary depending on the organization, but they include Collaborative Forecast and Replenishment (CPFR) Analysts and S&OP Mangers or Champions. These roles share a common theme of being both data-driven and process orientated – indeed they must combine these two elements to ensure continuous alignment between planning roles and other functions, and between tactical and strategic plans. These roles are usually collaborative and end-result focused. The core competencies of professionals in these positions are: process-oriented, an ability to assume responsibility, and strong communication skills.

Collaborative Planning requires a centralized coordinator from the planning or analytics department who brings everything together

In a collaborative environment, everybody comes together. But given that people and processes are dispersed across the organization in multiple functions, there should be a centralized coordinator from the planning or analytics department who brings everything together. These collaborative roles serve to align all functional areas under a unified set of assumptions to enable and coordinate decision making and bridge any gaps between data, forecast, product and other areas in and outside the company.

These roles can be filled by entry level graduates with degrees in Business, Supply Chain Management, Marketing, or a related field. In this position, knowledge from different functions is often highly valued and positions may be filled by people from the Supply Chain, Finance and Commercial departments. The unique combination of skills and exposure to the Supply Chain, Sales and Marketing and Finance functions make this role ideal for progression into a variety of other different positions. Outside the department itself, other collaboration positions exist in Supply Chain and Product Management, and there are even opportunities at executive level.

4. Product and Market Management

Whereas collaborative roles focus on outcomes, these roles deal more with execution. These roles generally become more specific when it comes to mix of focus, but expand when it comes to their overall responsibilities. Positions include Product or Market Analyst and Launch Leader, the latter overseeing the final leg of new product introduction. These roles may deal with a specific product, merchandising, the market, or marketing campaigns. They deal both with the predictive and descriptive analysis and the actual planning associated with the execution of the plan. People in these positions are process and project oriented and have the unique competency to visualize the total process, identifying problems along the way.

Product Managers work with both predictive and descriptive analysis and the actual execution of the plan

Mature organizations tend towards a centralized position that leads these introductions from a final execution point of view and coordinates the analytics, planning, and deployment process. These project-orientated roles may work closely with Commercial and Operations but report to the analytics and planning department.

Most Product or Merchandising Analysts join as graduates with a degree in Business, Supply Chain Management, Economics, Marketing or a related field, but not all. Some transfer from other functions like Marketing, Sales and Supply Chain. Beyond Product Analyst roles, they can progress into broader collaborative or planning roles. There are also opportunities to make moves into Product Management positions.

Bottom Line: A Centralized Department Is Key To Leveraging These Roles 

A centralized planning and analytics department helps a company see, interpret and act on data and insights. Having specialized roles helps manage assumptions and processes from multiple inputs such as financial plans, market plans, sales plans, and industry information more effectively. To meet the needs of both the employee and employer, companies should look at structuring these key roles and developing a robust Analytics and Planning Department to coordinate the necessary people, resources and strategy.

[Ed: Visit IBF’s job board for the latest vacancies in Data Analysis, Data Science, Demand Planning, S&OP and more.]

Effective Demand Planning provides enormous benefits to the S&OP process by converting inputs from the Finance, Sales and Marketing, and Supply functions into a robust forecast. The role of the Demand Planner requires a wide range of skills, from data analysis to negotiation to coaching. But what does Management need to provide to ensure Demand Planners add value to the S&OP process? The 5 key components are:

• Alignment with leadership
• Leverage/influence with key departments
• Independence
• Well-defined job definition and performance metrics
• Opportunity for career growth/change to avoid burnout

Let’s examine why these are important.

Alignment with Leadership

A Demand Planner can only be truly effective if the company leadership recognizes the value of planning and openly supports it. This can mean that the numbers presented do not always meet the leadership’s expectations. When this occurs, there is an opportunity for all the teams to evaluate what they need to do to get the program in line with the plan. In doing this, they answer to the leadership team directly, and not to the Demand Planner. This drives conversation around where the plan may need to change, or where there is opportunity within the business, and includes all the team and management levels that impact the forecast.

If the Demand Planning role is supported by the leadership team, leverage and influence naturally follow.

Leverage And Influence With Key Departments

If the Demand Planning role is supported by the leadership team, leverage and influence naturally follow. However, I have often heard Demand Planners complain that no one listens to them. When this occurs, much of the value of their role is lost. It should not be the Demand Planner’s role to beg for others to listen to them. If their role does not carry significant influence with the other teams, it can be very frustrating and may lead to burnout and turnover in this key position. And ineffective planning can undermine the entire S&OP process.

Independence

The Demand Planner’s primary goal is to present a plan that matches reality – not what people wish will happen, but what will most likely occur. To do this well, the Demand Planner’s decisions need to be free from the influence of other departments. Otherwise there will be a bias toward one set of metrics vs. all the others. This means that often no department is fully satisfied with the consensus forecast. And if the forecast reflects the most likely reality, that’s OK.

I’ve seen Demand Planning positions where the planner was also doing customer service, master data maintenance and even sales training.

Well-Defined Job Definition And Performance Metrics

Planning takes focus. It can’t be done well if there are too many other competing responsibilities assigned to the demand Planner. I’ve seen Demand Planning positions where the planner was also doing customer service, master data maintenance and even sales training. Defining how a planner should be spending their time – and keeping distracting tasks away – is vital in allowing the planning function to flourish. And having realistic performance metrics that include both hard numbers (bias, MAPE, etc.) as well as soft skill goals can make the Demand Planning job more effective and also provide for career growth.

Management support, ability to move into different roles, and opportunity for promotion are key to stopping Demand Planners from burning out.

Opportunity for Career Growth/Change to Prevent Burnout

Demand Planning is challenging. Even when planners are properly supported, there is a limit to how much they can achieve in a given position. Management needs to recognize this and provide for opportunities for moving planners who are in this situation to another area in a similar role, or, where appropriate, to move into a supervisory or training role. Failure to do this can result in burnout and turnover, and both of these will undermine the value of the Demand Planning role.

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Conclusion

Demand planning – when done correctly – provides enormous benefits to an S&OP program. And to gain the most value from the people who take on this role it is vital that these people receive proper support. Without this support the role of Demand Planning cannot deliver the value that we need in today’s S&OP programs.

To ensure that Demand Planners have the support they need, we will need to educate company leaders about the value this role can have if it is properly supported and executed. While some leaders may resist the idea that this role is vital to an effective S&OP process, those leaders that do embrace the value and support the role will give their company a significant competitive advantage in lower inventory costs and improved service levels.

I am not a big fan of “2 in 1 shampoo” where the cleanser and conditioner are blended into one bottle. They say that it saves money because you only have to buy one product to get clean, soft, shiny hair.  While it may cost less, it just leaves me with limp hair and an itchy scalp. The reality is that in combining the two products into one, you do not get the full benefits of either. It seems to me that we often create another “2 in 1 shampoo” situation when we combine Demand Planning and Supply Planning into one role. Just as shampoo and conditioner have distinct functions, Demand Planning and Supply Planning are distinct disciplines that deserve equal and dedicated attention.

This is most important when developing an S&OP process and deciding who will be the S&OP leader. When I meet people who are S&OP leaders, they rarely have a title that reflects their role. Most of the time they were hired for a Supply Chain job, and then when the company decided to implement S&OP, it landed on top of their already full plate.

In an ideal world Demand Planning, Supply Planning, and S&OP leadership have their own jurisdictions.

Someone who is responsible for supply cannot fully engage in Demand Planning because the noise and urgency of Supply Planning activities will always win. I believe that we need to separate these into distinct roles. In an ideal world Demand Planning, Supply Planning, and S&OP leadership have their own jurisdictions. However, at this point in the evolution of supply chain management, that is rarely the case. Until such a time, the next best thing would be to have an S&OP Manager who is also in charge of the Demand Planning process.

What Does An S&OP Manager Do?

In addition to oversight of the Demand Planning team, the role should be the champion of the S&OP process. This includeS the education and training necessary for change management with the entire company. This person will engage all levels of the organization and guide each functional area in understanding of how they impact the S&OP process. The role assumes overall administration of scheduling all S&OP meetings and preparing the documentation.

This leader will also artfully facilitate each S&OP meeting to ensure that they stay focused on the horizon and not get lost in detail. The S&OP leader may also spearhead technical initiatives to enhance data analysis, such as implementing planning software, and be a passionate advocate for data integrity.

Keenly perceptive and intuitive, this person must also be articulate enough to mediate as necessary.

Skills Required To Be S&OP Manager

Not just anyone can be successful in this pivotal role. It requires exceptional communication and inter-personal skills. This person has to be a chameleon as they work across the organization and understand what motivates and matters to each team. This will earn respect of team members and build trust necessary to break down the silo walls.

A strong intellectual curiosity is needed, along with the tenacity to keep digging until the root cause is exposed. Keenly perceptive and intuitive, this person must also be articulate enough to mediate as necessary. With so many people involved and watching, it is imperative that the leader is organized and follows up in a timely manner. Finally, this role requires a person who can think both strategically at a high level and tactically as well.

The S&OP Manager Must Command Respect

In addition to these “soft skills”, the S&OP leader must have professional credibility. They must have an excellent understanding of the S&OP process including all aspects of Demand and Supply Planning. Certifications from IBF and APICS are the best way to demonstrate that this leader has a firm grasp of essential knowledge. General business acumen is also required.

It is often preferable to promote someone from within who has good handle on your business. However, it is better to find someone with the soft skills and abilities mentioned here and teach them your business rather than the other way around. Not everyone is able to develop this high level of emotional intelligence, and the success of your S&OP process is too important to gamble on an unproven leader.

Invest The Time & Resources In This Crucial Role

It may seem more expedient and cost effective to assign the role of S&OP Leader as if it were just another project. I implore you to resist that temptation and create a dynamic role that focuses on proactive planning and collaboration instead. Devote the necessary resources to maximize the effectiveness of both demand and supply planning. Remember that “2-in-1 shampoo” will most likely not give you the results you are seeking, and in this case you are risking much more than just a bad hair day.

[Ed: For S&OP Manager jobs and other roles in Forecasting and Demand Planning, visit IBF’s jobs board.]

Demand Planning and Forecasting is about people, process, and technology. Unfortunately, the people element is often forgotten. As supply chains evolve to become more demand-driven, the Demand Planning role also needs to evolve – and that means that companies must focus on creating and maintaining a talent strategy. What we need to do is hire ‘artists’ and ‘scientists’. We must define their roles and responsibilities, give them the right training and opportunities, and measure their performance.

For the demand planning function to succeed, organizations must have in place:

• • Strong talent based on core competencies
  • Right career-path culture and visibility within the organization
  • Proper training and development
  • True performance-based management

Give Up Trying To Find The Demand Planning Unicorns

Demand Planning and Forecasting roles are not created equal. A good Demand Planner will have strong analytical and critical thinking skills and a broad understanding of end to-end supply chain functions, while excelling in a core competency, or holding subject matter expertise. According to a survey conducted by Supply Chain Insights, a Demand Planner is the second hardest supply chain role to fill in an organization, followed closely by Director of Supply Chain Planning, Manager of S&OP, and Supply Planner. The reason for this is pretty straightforward; historically, organizations have looked for an individual who is analytically minded yet can still deal with ambiguity and relate to people. They seek that rare unicorn who has the seemingly contradictory ability to make sense of the data, then sit in front of Sales and Marketing and speak their language.

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That is not an easy combination to find. What they end up with is the Jack of All Trades but Master of None. An organization may be better off building a team of focused individual skillsets that complement each other. Understanding the needs of the department and skills of the people allows us to structure roles to around the expertise of each individual and better serve the needs of the department.

Master of Science (Demand Analyst)

This could be a more centralized role in many companies where one would generally be responsible for generating a statistical baseline forecast. People in this role are mostly analytical with less interaction and inputs required to create a final forecast output. A such, they are capable of managing more SKUs. The Demand Analyst may be the go-to person to provide ad hoc analysis in support of other functional areas with deeper statistical analysis. Many companies that are creating Centers of Forecasting Excellence are staffing primarily with analysts as opposed to traditional planners.

Master of Art (Demand Planner)

The goal here is to refine a statistical baseline forecast. This person would be less reliant on statistical skills but has a deep understanding of interdependence. Demand Planners can work with the commercial teams, running ‘what if’ simulations to adjust the forecasts based on data, analytics, and domain knowledge. The ideal planner asks the right questions at regular meetings with Sales and Marketing and instils a sense of partnership with them. As supply chains and companies evolve, specialized roles may be introduced to the Demand Planning function. For example, companies at higher stages of maturity may create a more senior role tasked with representing Demand Planning in broader supply chain transformation initiatives. The advancement of an S&OP process may require the leadership and support of an S&OP coordinator. Product Lifecycle Management (PLM) could require either deep analytics to support other areas in the organization or a Launch Leader (Product Innovation Planner) role that is highly collaborative.

Measure Accuracy And Performance

We all know or have heard that forecasting is a brutal job. There is a perception that Demand Planning is the punching bag of the S&OP process. How often have we heard that Demand Planners are always wrong?! And in reality, the closer they are to getting it right, the more likely it is that somebody else will take credit for those results. With this in mind, Demand Planning leaders should expand the scope of criteria that planners are evaluated against. This should really go back to the core competencies of the planner and the value they add to the forecasting process.

One way many leading organizations are measuring this is with Forecast Value Add (FVA%). The FVA% concept is designed to determine which, if any, steps in the forecasting process – particularly those steps conducted by practitioners – improve forecast accuracy, and which do not. This can be used to evaluate an analyst-generated statistical baseline model against a naïve forecast or the effectiveness of a planner’s overrides to that baseline. This helps the individual practitioner to better understand their individual impact on the collaborative process and provides feedback on their contribution so they can improve. This helps the company to better identify the drivers to forecast accuracy and measure the inputs and process rather than just the variability. Performances metrics should include effective collaboration with stakeholders, oral communication and conceptual thinking. [Ed: See this article on incorporating FVA analysis in your organization]

Build Pathways For Demand Planners

Leading companies also understand the importance of people and do a really nice job in creating a career path for their employees. When a new employee joins the organization, they meet with that individual to not only identify the expectations of the role over the short term, but they also discuss the individual’s long-term goals. Often these goals include the individual’s interest to move up or across the organization. Leading managers look for opportunities to get the individuals exposure to their interests through cross-functional projects or by encouraging participation in relevant meetings. That way, when the role does open up, the individual is ready. When done correctly, the individuals are incentivized to deliver results in order to prove they are ready for the next step, and the company continues to groom leaders. When done properly, with talent based on core competencies, the right culture, proper training, and performance-based management, companies become their own ‘recruiting factory’. They constantly produce top talent and improve its forecasting ability and accuracy.

This article first appeared in the Journal of Business Forecasting Spring 2016 issue, written by Eric Wilson CPF and Jason Breault. To gain access to the Journal Of Business Forecasting and a host of other benefits, become an IBF member today.

So you’ve been tasked with implementing or improving S&OP or IBP. Where do you start? What does the Commercial function really need from S&OP? What must Demand Planners and Forecasters do to drive value across the whole business? Luckily for anyone implementing S&OP or IBP, the critical success factors (CSFs) are well codified. Here is a quick-start guide on how to implement S&OP.

Process: A robust S&OP process description which is deployed with discipline and consistency.

Systems: Providing effective and well-integrated systems to facilitate execution of a regular monthly planning cycle.

People: Building capability across the enterprise functions and creating the organizational structures and teams to leverage this capability.

Mindsets & Behaviours: Creating alignment on the goals of the S&OP process and sustaining the engagement of all the various cross-functional stakeholders to drive an impactful enterprise process.

Lesson 1: Demand Planners And Forecasters Need To Be More Than Back Office Number Crunchers

Discussion on the role of demand forecasters and planners in delivering these CSFs is almost always limited to the first three themes. These key positions are often perceived as technical specialist, back-office roles. It is clearly correct that demand forecasters have a key role in providing process expertise, leveraging the value of IT systems and bringing individual analytical capability to the S&OP process. However, they have the potential to have a much broader impact on enterprise S&OP/IBP.

A confident and robust forecasting capability can have a very significant effect on one of the most challenging requirements for great S&OP/IBP – strong cross-functional engagement.  A key reason for failing to deliver this engagement is the perception (most often in the commercial function) that S&OP is an administrative, back-office process to manage the supply chain. Forecasters and planners have an important role to play in changing both the perception and reality of this situation through their interaction with other functions and the breadth of their contribution.

When operating at the top of their game, the forecaster needs to be able to challenge their commercial counterparts.

The 4 Things Demand Planners And Forecasters Must Deliver

As a commercial leader I experienced a very similar context with market research and business analysis teams and their relationship with marketing and sales teams. They were frequently seen as ‘number-crunchers’ providing data in response to a specific question or need but lacking the broader business insight. This reduced their potential to add value to business decision-making, resulting in sub-optimal decisions. In order to address this, I developed a simple description of the expectations of market researchers and analysts and I present this below, along with a brief explanation tailored to the case of demand forecasters and planners in S&OP/IBP:

Figure 1 – Four Levels of Delivery for the Demand Forecaster/Planner

The 4 requirements of Demand Planners and Forecasters are underpinned by technical knowledge but any number crunching must facilitate proactive discussion and decision making.

Level 1: Accuracy

This is the foundation for the forecasters’ contribution. Basic confidence and credibility is built upon regular, reliable provision of accurate data. This is sometimes seen as the limit of what forecasters can or should do.

Level 2: Insight

Once accurate and reliable data is provided, a key role for the planner is to turn the data into insight. This requires a good understanding of the business context, its key drivers and how the data fits with these. A forecaster that provides compelling context and narrative in addition to the data will engage cross-functional partners much more readily.

Level 3: Proactivity

A key next progression for the forecaster or planner is to proactively apply their insight and business awareness in order to ask ‘what if’ questions and be prepared to address these. By thinking through what the likely commercial reaction will be to provision of some core data, it is likely that the forecaster can pre-empt these questions through further analysis. Driving a discussion with the commercial team armed with this preparation positions the forecaster as a key partner, not a reactive back-office number-cruncher.

Level 4: Challenge

Perhaps the most difficult step in this model beyond Proactivity is to bring challenge to cross-functional partners in the S&OP process. This is, however, a critical capability in order to build credibility and genuine partnership. When operating at the top of their game, the forecaster needs to be able to challenge their commercial counterparts (who are often at more senior grade levels in the business). This applies most often to the process of agreeing a consensus forecast in the demand review stage of S&OP.

The 4 Capabilities Demand Planners & Forecasters Need

So what does this mean for the capability requirement for demand forecasters and planners?  In order to meet the expectations outlined above, there are four key areas of development:

1. Functional Expertise

The foundational technical skills for a forecaster or planner include analytical and numerical skills, statistical techniques and systems knowledge, and the judgement to select the most appropriate of these to overcome problems in supply chain and the broader organization. This is, of course, a critical foundation but broadening capability beyond this functional expertise is critical in order to pursue the higher levels of business value (see levels 2-4 shown in Figure 1).

Without the understanding of business context, the output generated by the forecaster can only ever be provided as data.

2. Business Understanding

This is the awareness and understanding of the business strategy and how this translates to the specific goals of not only supply chain, but also those of the commercial (Sales and Marketing) function. This understanding then enables the forecaster to interpret data and analysis in terms of its business significance. This is the starting point for creating Insight (Level 1) – without the understanding of business context, the output generated by the forecaster can only ever be provided as data. Higher levels of capability in business understanding allow the forecaster to add more and more value to the enterprise process, culminating in the ability to proactively explore other relevant areas of analysis or to challenge cross-functional stakeholders in their interpretation and application of forecasting and planning inputs.

3. Mindset & Leadership Behaviours

These are the mindset and behaviours needed to leverage the functional expertise and business understanding outlined above. From a mindset perspective, this includes having a strong conviction in the value of the supply chain in driving business success and the need to work as an equal partner with cross-functional stakeholders to realise this. Proactively acting on a positive mindset in these areas is much more likely to lead to enhanced cross-functional working than waiting to be invited to influence decisions in forecasting and planning. On leadership behaviours, key elements are skills in challenging and influencing and also in ‘storytelling’ (creating compelling narratives with clear recommendations). These higher-level mindsets and behaviours are essential for Level 4 delivery outlined in Figure 1. They allow the forecaster to greatly leverage the more traditional functional skills and to be seen as an invaluable enterprise resource in the development and execution of company strategy.

4. Building Networks

These are the ability to develop and leverage both internal and external networks to add value to the forecaster’s contribution. Examples of external networks would be to gather best practice from outside the organization and to use this insight to enhance current and future practice. This can help the forecaster or planner to develop capability across all four proposed levels of delivery. Internal networks provide an excellent opportunity not only to maintain consistency on process execution but also to drive continuous improvement. This is often used to share learning and form communities of practice around particular processes or systems in use in an organisation. However, further value can be created when forecasters share learning and facilitate each others’ development in the softer, behavioural aspects of their role (how to build productive relationships with commercial colleagues, how to challenge senior staff in forecasting discussions etc.).

Bottom Line: Every Function & Process Must Support Cross-Functional Collaboration

So what does this mean for businesses wanting to leverage the contribution of forecasters and planners? As outlined above, these roles can deliver value, not only for their traditional narrow role in providing data and analysis, but more broadly in proactively providing the great insight and proactive challenge that creates a great cross-functional S&OP/IBP process. In order to tap into this great enhancement route for S&OP/IBP, development programmes are required that go beyond the traditional boundaries of technical skills.

This requires broader recognition of the enterprise value created by the highest level of professional capability in forecasting and planning. This recognition then needs to be backed with investment in the targeted development of forecasters and planners in leadership behaviours and mindsets and in the creation of internal networks, underpinned by a supportive culture and appropriate reward and  recognition structures. Organizations that invest in this capability will not only create a competitive advantage in today’s market but will also start to build the key competencies required to fully exploit the various technological enablers for forecasting being explored in supply chain digitalization.

A common feeling amongst those leaving university is the sense of “what next?” And when you graduate with a degree as vague as mine (BA in Arts & Humanities) this feeling is particularly acute. Nothing I studied at university suggested a Supply Chain or Demand Planning career, but 20 years after saying goodbye to my scholarly life, that is where I am as Supply Chain Manager for Goodyear. The question is, how did I get here?

How A Book Shop Opened Up a Career in Demand Planning

When I arrived at my current place of employment, 12 years after leaving university, I had never heard of Demand Planning, but I had taken a serious liking to the Supply Chain side of business. Supply Chain seemed to be a place where logic and reason could be applied and where reliability was valued above showmanship – it was my kind of place.

I discovered Supply Chain as a direct result of my first full time job, a retail assistant in a book shop. I was quickly put in charge of processing stock deliveries which involved a lot of lifting and restocking the shelves. For several weeks I saw books arrive that we didn’t need, while we waited for books to arrive that we did need but never came. Curious about this obvious problem, I asked the manager how we created our stock deliveries. I was told that we didn’t. It turned out the weekly deliveries were based on new releases and excess stock that the warehouse needed to shift. I was no supply chain whiz kid , but it was clear to this English graduate there was something wrong in how we approached this. Every book we didn’t sell took up valuable shelf space and had to be returned, at a cost. The books customers wanted but couldn’t find in our store were missed sales opportunities. Not a great way to run a business.

I stumbled across supply chain by accident because all I wanted to do was work with books.

Developing My First Forecasts

Shortly after this conversation, I started sending the manager lists of items that needed replenishment based purely on customer demand. Without really knowing it, I was creating our first forecasts.

I spent 5 years working for the book company, ending up as Manager of the London branch. By the time I left, I was already aware of how much money could be generated if the shop held items that the customers wanted and how much could be saved if we didn’t have to return non-selling items back to the warehouse or sell them off cheap. It may sound obvious, but I still think some companies are yet to fully grasp the importance of this concept.

I don’t do things on a whim, I do things based on analysis of facts and educated assumptions.

My First Job In Demand Planning

When I started work for my current employers, Goodyear Dunlop, they were just beginning to take forecasting seriously. After a year of using a bespoke in-house system for capturing forecasts, I was called into my manager’s office. I was told that the UK had been chosen to pilot a new method of forecasting, called Demand Planning, and that I had been chosen as the UK associate to support this project. After many weeks of testing, discussing and re-testing in a windowless office in Hanau, Germany, we were ready to launch and I had never been so motivated.

Demand Planning was logical, and in its purest form it was a process built to eradicate bias and deliver a robust and realistic forecast. It took a lot of work to convince Sales of the difference between a forecast and a target, but promises of increased levels of availability silenced most of the loudest opponents.

Telling the Story Behind the Numbers

However, Demand Planning by itself is not sufficient. Statistical reasoning and trend analysis isn’t enough in itself to best predict the future. Internally, you also need the background story, the plans, the promotions, the new product info, the plans for obsolete stock, etc. Externally you need market trends, socio-economic factors, the predicted price of raw materials, new legislation etc. And to capture this, you need more than a database, you need S&OP.

If you’re not up for a good fight and a few knock-backs then there’s no point stepping in the ring.

S&OP ticks every box for me. Again, logic is required. Understanding and knowledge is rewarded and ‘gut-feelings’ and forecast bias are exposed. Assumptions can be tracked and variances are the starting point of corrective actions rather than accusations.

As Demand Planning and S&OP were rolled out, it soon became clear that even if all the data and intelligence suggested a reduction in a forecast, the decision may still be to keep forecasts where they were. Initially, this was a disappointment and seemed to undermine the whole process. However, this wasn’t true at all. Demand Planning and S&OP are there to provide guidance; it is up to the management teams whether they adopt the suggestions or not. If they don’t, then we track the results, understand the root cause of the variance and go again, this time with even stronger arguments. To be in Demand Planning you need to find a perfect line between collaboration and bullishness. If you’re not up for a good fight and a few knock-backs then there’s no point stepping in the ring.

Demand Planning Fits My Personality Like A Glove

Demand Planning appeals directly to who I am as a person. I don’t do things on a whim, I do things based on analysis of facts and educated assumptions. I’m drawn to findings trends within data and I’m driven to expose hyperbole and unrealistic forecasts. I like a good, well-reasoned debate. I like to see logic and reasoning triumph. But above all, I like to see the work I do add real value to a company’s bottom line.

An Unlikely But Serendipitous Career in Demand Planning

People who are drawn to data and logic aren’t generally the most emotive of people, but Demand Planning and S&OP gave me a career that I hugely enjoy and the IBF showed me that I wasn’t alone.  I will always be grateful to both. Do Demand Planning and S&OP have anything to do with my degree? No. I stumbled across supply chain by accident because all I wanted to do was work with books. I guess the lesson is that opportunity is around every corner, you just have to keep walking.

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The S&OP Unplugged video taken from IBF’s Best Practices Conference is now available for free download – available in full for a short time only. This special recording features thought leaders in the Forecasting , Demand Planning and S&OP fields, and reveals critical issues such as the imminent (and dangerous) skills gap, finding the ‘hidden gold’ in unstructured social media data, and rethinking product exits. This first episode focuses on the skills gap and solutions to hiring and retaining talent. Below are some of the key highlights and special guests sharing knowledge.

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The Thought Leaders

Special guests featured in the video are:

Sara Park, VP Planning and Logistics Capabilities, Coca-Cola

Mark Covas, CPF, Director of Consumer Demand Planning, Johnson & Johnson

Eric Wilson, CPF, Director of Planning, Escalade Sports

Todd Gallant, ACPF, VP, Integrated Planning, Deckers Brands

Joe Eschenbrenner, ACPF, Director of Demand Planning, PUMA Group

On Confronting The Skills Gap in S&OP Before It’s Too Late

One of the key issues discussed is the critical issue of a skills shortage in forecasting and demand planning – one that is set to bite sooner rather than later. As volatility and uncertainty become standard features of today’s markets, greater importance is being placed on the forecasting and planning functions. That means more investment in planning teams, and subsequently more job openings.

ERIC WILSON: “A lot of the baby boomers who didn’t leave in the recession are leaving now and we have supply chain jobs that are coming in and nobody to fill them. It’ll be a 4:1 ratio in the next few years. It will definitely become an issue because we see a workforce leaving.”

A lot of different functions want the skillsets we have: Marketing, Finance and Sales…I just lost one to Sales.

On Retaining Talent

Talent retention remains a key concern, with companies keen to develop the careers of young supply chain professionals and provide opportunities for growth to stop them from leaving. Providing a pathway for them to succeed, however, is proving difficult:

ERIC WILSON: “A lot of different functions want the skillsets we have: Marketing, Finance and Sales…I just lost one to Sales. How we retain the skillsets we need without just being a feeder for other functions?”

TODD GALLANT: “How do we the keep managers advocating for them, and making sure they’re bringing up young people into the executive level, when they [managers] don’t fully understand the profession yet?”

JOE ESCHENBRENNER: “You need career fulfilment, a career vision, and a career path that’s defined. You need to be a positive organization that creates a positive, fun atmosphere, because we work really hard. When people want to come to work on Monday, it’s harder to leave that organization, and when you create the opportunity to move up in the organization, that’s your opportunity to retain them.”

JOE ESCHENBRENNER: “The stress and pressures at a certain level are different depending on the company, and they’re also not always visible to the rest of the organization.”

MARK COVAS: “You have to show there’s a way to move forward and up…where you show all these wonderful opportunities that exist based on the capabilities we’re building in you. The fear I have seen is ‘I’m going into a black hole, is there a path out of here?’”
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They may not have that knowledge today, but they have that ability to learn. Maybe they didn’t go to school for it, but they have the intellect for it.

On Developing Existing Talent Within The Company

The session revealed a need to bring in and develop people within the company but outside of the forecasting and planning functions. The absence of graduates coming into the role forces companies to train staff from the Customer Service and Finance departments to fill the skills gap. Whilst the need was made clear, there were doubts surrounding how that development would happen:

TODD GALLANT: How do you develop the talent you already have, taking people from Customer Service roles and Finance, what do you do with them? The thing I like about the Customer Service people we brought in is that they’re eager, and they have communication skills, know how to read people, and influence. But honestly out of the 8 or so people, [brought in from Customer Service] 2 or 3 are really struggling with the analytics.”

JOE  ESCHENBRENNER: “They may not have that knowledge today, but they have that ability to learn, maybe they didn’t go to school for it, but they have the intellect for it.”

 If I had to pick between analytics capability and communication, I’ll take communication – if they have learning agility.

On Changing Demand Planning and Forecasting Into a Dual Role

Analytics skills are in short supply, with companies facing great difficulty in finding people with both the analytical and communication skills required for the role. There is potential for natural communicators and collaborators who are not trained in analytics to learn it, given sufficient cognitive ability. However, it’s more challenging for quantitative mindsets to learn the collaborative and communicative aspects:

MARK COVAS: “If you do break up those roles, where do you find the talent? It’s difficult to find people with the capabilities – the analytical capabilities and social capabilities and team building ability. Is that a dual role? Do you have an analytical type of person and bring in a salesmanship capability type of person to sell the forecast?”

TODD GALLANT: “We had one guy who came to us with a lot of analytical capabilities – half the team cannot understand what he says but he’s learning from them in terms of how to sell a forecast, and they’re learning from him.”

ERIC WILSON: “Back against the wall, If I had to pick between analytics capability and communication, I’ll take communication – if they have learning agility.”

MARK COVAS: The technology now also allows people who have strong communication and collaboration [and not analytical capability] to succeed in that role. On the other hand, I am trying to fill a statistical forecasting role right now, and I found someone who is very competent in analytics, but doesn’t have the competencies to collaborate. Putting him that role would be setting him up for failure.”

Stay tuned for episode 2, featuring insight on Demand Planning and Big Data.

This recording was taken at IBF’s Demand Planning and Forecasting Conference in Orlando, FL.. To attend our upcoming events, see the 2018 schedule for demand planning and forecasting conferences.

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