Walking into the executive S&OP review can feel like walking into the proverbial lion’s den. Your heart races as the lions stare you down and wait for you to move so they can pounce, tear you to shreds, and then pick their teeth with your bones.   At least that was how I felt the first time I lead an executive review meeting. I quickly learned that my fear was limiting my effectiveness, and that I needed to combat that fear with solid preparation. Adopt these 4 principles and you will walk in with confidence! 

1 -Know Your Audience 

Keep in mind that the output of the S&OP process is the product you are creating, and your customer is the executive committee. Creating a process that meets their needs, and that they believe adds value, is pretty much the entire point of S&OP. The first step is to find out who sits on the executive committee and then put on your detective hat and figure out all you can about them. Go beyond what their current role is and any assumptions of what that role may imply.   Research their backgrounds on LinkedIn and talk to others in the company who interact with them regularly. Then set up a time to meet with them individually and start to build a relationship. Inquire about their priorities, motivations, objectives for their area of responsibility and how S&OP can help achieve their goals.

Find out who sits on the executive committee and then put on your detective hat and figure out all you can about them

It would also be helpful to study the basic personality types and use that knowledge to help you communicate more effectively.   Watch for clues in the interaction of the group during meetings as it will help you discern who the real leader is in this process, who may not be the person at the top of totem pole. 

2 -Know Your Stuff 

The best way to build your confidence is to educate yourself on S&OP best practices. Read, read, and read some more. Reach out to thought leaders and connect with them, ask questions, seek advice. This is the continuous part of personal continuous improvement! Embrace your role as artful facilitator, and do not let yourself be perceived as a burdensome task master.

Having a thorough planning playbook not only keeps you organized but also provides transparency and accountability

Having a thorough planning playbook not only keeps you organized but also provides transparency and accountability to the executive committee, and that develops credibility. The playbook should have the S&OP team charter and a RACI matrix to identify clearly what everyone’s role is in the process. Also included in the planning playbook are the data sheets for each planning family. These should be a one or two-page summary of the past three months’ performance to plan, key KPIs, and the horizon forecast compared to financial target and a projected period end inventory plan.  

Personally facilitate or at least attend every S&OP demand, supply, and consensus meeting.  After all, it is difficult to speak to the specifics of what occurred in demand or supply meetings that you have not attended. Your credibility will be damaged if you are perceived not to be in full possession of the facts. When you are in these meetings, think about your customer, the executive committee, and try to anticipate what questions they will ask and what they want to know.     

3 – Bring Solutions… Not Problems 

Showing up to an executive review with a list of problems for them to solve may make them wonder why they need you! The major issues should be resolved through the Consensus meeting (also known as the Pre-meeting) and the outcomes of those collaborative decisions are what is reported. List the constraints that were faced, the problem solving methods used (brainstorming, fish diagram etc.), options explored, and the solutions that were chosen. For those rare issues that go beyond the authority of the S&OP team, it is important to not just present the issue – discuss the pros and cons of each option explored and the team’s recommendation. Offer the team’s recommendations for long term improvements such as capital expenditure for new equipment to increase efficiency, training to improve processes, and talent to elevate team performance.   

4 – Turn the Executive Team Into Stewards Of The Process  

The best way to combat the tendency of the executive team to drift into oversight mode is continual education and feedback. They must understand the “core DNA” of S&OP and keep the focus on the future horizon (not the current month) and stay out of the weeds (volume not mix). It is also important that they have sufficient discipline to not give contradictory directions or set up competing metrics.      

To keep the process healthy and effective, conduct an annual audit with the team and executive committee. Conduct regular education and training sessions to train new team members and provide refreshers for others. It is also a good idea to end every executive review with a request for feedback, and then strive to incorporate it into the process.   

You don’t need to fear walking into the executive review.  Careful preparation is the key to success. You got this!   

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.]