The Pursuit of Growth: Is Your Sales and Operations Planning (S&OP) "Glocal" Enough? [Part 2]

The Pursuit of Growth
Is Your S&OP ‘Glocal’ Enough
Chris Turner
StrataBridge

© StrataBridge 2013
2012

Some Structure & Thought-Provokers

Going Global –"
Everybody’s Doing It…

Cognitive Traps and
Unintended Consequences…

Putting the Pieces Together –"
Some Principles…


Underneath it All"
3 Fundamental Laws that have shaped the StrataBridge approach; all of
which are compounded by ‘going global’/international expansion…

The Law of CHANGE
No matter how hard you resist or deny it, things are
going to change, often unpredictably so

The Law of PERSPECTIVE
It all depends on ‘where you are coming from’

The Law of ENTROPY
Unless energy is expended to counter it, things become
random, break-down, over time


Globalisation – How is it for you?

•  Is your company pursuing a strategy of Yes No
globalisation/international expansion?" 93% 7%

•  If yes, what are the primary drivers of this
strategy?"

•  Access to new customers
74%
•  Pursuit of cost reduction
46%
•  A Result of outsourcing/off-shoring
20%
•  The result of Joint Ventures or Mergers & 36%
Acquisitions

2012

Globalisation - Some of the BIG DRIVERS…

•  Shifting Demographics
and Economic Dynamics
The Pursuit of
•  Outsourcing & Growth
Off-shoring
The Pursuit of"
•  1’s and 0’s
Cost Reduction
•  Telecomms
•  The Internet

2012

Globalisation – There is no escape…
Trading Places…
Developed Economies
Emerging Economies
Share of "
World
Imports
%

80.00
80.00

70.00
70.00

60.00
60.00

50.00
50.00

40.00
40.00

30.00
30.00

20.00
20.00

‘90
‘91
‘92
‘93
‘94
‘95
‘96
‘97
‘98
‘99
‘00
‘01
‘02
‘03
‘04
‘05
‘06
‘07
‘08
‘09
‘10
‘11
‘12

Sources: World Trade Organisation, The Economist:
The World in 2012

2012

Stable
Volatile
Predictable
Uncertain
External Environment - Competitor, Customer, Consumer More Uncertain
More Volatile

Consistent ‘Rules’
Changing ‘Rules’
Landscape & Behaviour - & Macro Trends Changing ‘Rules’
New

Efﬁciency Agility
Productivity
Performance Beliefs… Adaptability

C Hierarchical
and Centralised
Organisational Construct
and Location of Power…
Flat, Networked
and Distributed

o Analytical Exercise
Fixed Destination/
Direct Route
Approach to Strategy…
Systemic Intervention
Overarching Direction/
Course Correction
G
n
Mechanical
Formulaic
Wanting Answers
1+2=3
Decision-making
Routines…
?! Organic "
Dialogue-based
Asking Questions
r
o
Data-driven
Supporting Insight-driven

t
Numbers based
Assumptions based
Information Focus…

Results Driven

r
Process (People are there
to ‘enact the process’)

Obedience
Through…
People (Process provides
‘enough structure’)

Creativity
w
Talent Hired For…
t
Compliance
Stretch
Competence
Passion

o Automate the
Processes
Technology used to…
Enable the
People

l Consistency"
Learning, Competitive Change
h
Standardisation" Advantage & Results Innovation
Proceduralisation
Experimentation
fuelled by…

2012

‘glocalisation’

WT…..?


What’s in a name?


Some of the biggest Cognitive Traps and Biases in
‘Going Global’…

•  A reluctance to admit complexity


Decision-Making Domains, Leadership Responses –"
No One Size Fits All

Effect
Cause = Effect
Cause Effect
Cause

Simple
Complicated
Complex

•  Lack of common understanding of the distinctions
between these domains, the available responses and the
implications for our planning and decision-making routines
•  Blindness to the limits of prevailing mindsets, processes,
techniques and tools, as we move along this spectrum
•  Increased susceptibility to an range of traps, distortions
and deceptions in the face of complexity



•  The desire to ‘jump to ‘Algorithm’’


Different Challenges; Different Modes of Thinking and Acting
Choosing where to focus and how to drive Learning-Action-Results

Mystery

Heuristic

Algorithm

 

Repeatable/

Reliable/

Formulaic

Principles/ 

Rules of 
Hunches/
Thumb
Adapted from Roger Martin

Questions/ 
Paradox


•  Mechanistic approach


“The terms ‘hard facts’ and
‘the soft stuff’ used in
business imply that data
are somehow real and
strong while emotions and
relationships are weak and
less important.”
—George Kohlrieser, Hostage at the Table"
(Kohlrieser is a hostage negotiator and professor of management)



•  Mechanistic approach
•  The ‘Duplication’ Trap


Putting the Pieces Together – Some Principles…

•  Clarity of Strategic Choices is Critical
•  Strategy – Decisions – Accountability


Strategy Execution – Top 5

1.  Everyone has a good idea of the decisions and actions
for which he or she is responsible
2.  Important information about the competitive
environment gets to headquarters quickly
3.  Once made, decisions are rarely second-guessed
4.  Information ﬂows freely across organisational boundaries
5.  Employees have the information they need to
understand the bottom-line impact of their day-to-day
choices
Key:
Decision Rights & Accountabilities
Information Flow

Source:
Booz
&
Company
Research
–
June
2008

17
Fundamental
Traits
of
Successful
Strategy
Execu9on



•  Design the Process to Support Decision Making –
Decision Scope, Decision Rights and Information
Flow


Design the Process to Support Decision-Making – Ensure Coherence with
Organisational Design and Accountabilities, Decision Scope and Decision Rights…
GLOBAL

Innovation
Supply
Optimisation
Direction

Finance
CLUSTER

Portfolio" Optimisation
Direction
Portfolio"
Management
Management
Finance

Optimisation
Direction
Optimisation
COUNTRY

Demand
Direction
Optimisation
Direction
Demand
Optimisation
Demand
Finance
Direction
Demand
Finance
Finance
Finance
SUPPLIER
POINT/3RD
SUPPLY

PARTY

Supply



•  Design the Process to Support Decision Making –
Decision Scope, Decision Rights and Information
Flow
•  Take an ‘Organic’ Approach – Balance People and
Process…
•  Leverage Technology – Enable the People,
Accelerate the process (don’t just ‘aggregate’ it)


A Brief Introduction…
…StrataBridge

StrataBridge is a boutique consulting ﬁrm that specialises in advising fast-moving, brand led
organisations on strategy, innovation and operations.

StrataBridge help create and develop the relevant thinking, processes, capabilities and
behaviours to allow organisations to bridge the gap between where they are and where they
want to be.

In short, we connect the dots between hard and soft organisational issues to create the bridge
between a client’s real world and their ideal world.

…Chris Turner

Co-founder of StrataBridge, Chris works with a range of clients worldwide, across industry
sectors, on strategy development, innovation and joined-up decision-making.

A highly respected facilitator, Chris has a unique ability to understand and simplify complex
business issues and opportunities and translate these into action. He has worked with
leadership teams around the world, helping them to create, articulate and realise their strategies
through insightful diagnosis, joined-up decision-making and capability building.

Chris’s long-term client relationships are built on his ability to balance the delivery of fast results
with sustainability, and Chris’s clients include Anheuser-Busch, Bakehouse, Coca-Cola,
Compass Minerals, Mars, Mass Mart SA, PZ Cussons, SC Johnson, Shell.

Chris can be reached at:

e | chris.turner@stratabridge.com
m | +44 7802 252 003
o | +44 1277 633 433
w | www.stratabridge.com


Chris Turner

mobile: +44 7802 252 003
e-mail: chris.turner@stratabridge.com
web: www.stratabridge.com


The Pursuit of Growth: Is Your Sales and Operations Planning (S&OP) "Glocal" Enough? [Part 2]

Recommandé

Recommandé

Contenu connexe

Similaire à The Pursuit of Growth: Is Your Sales and Operations Planning (S&OP) "Glocal" Enough? [Part 2]

Similaire à The Pursuit of Growth: Is Your Sales and Operations Planning (S&OP) "Glocal" Enough? [Part 2] (20)

Plus de Steelwedge

Plus de Steelwedge (20)

Dernier

Dernier (20)

The Pursuit of Growth: Is Your Sales and Operations Planning (S&OP) "Glocal" Enough? [Part 2]