Cracking the code of S&OP II

We’re are still on our quest to crack the code of S&OP before the IE group S&OP summit ‘Cracking The Code of S&OP’ next week in Boston. Like symbologist Robert Langdon in the ‘Da Vinci Code’ we have to solve complex puzzles, cryptic messages and overcome hurdles and change to unlock the code to one of the most important business processes of our time: S&OP!

We learned in the last episode https://supplychaintrends.wordpress.com/2011/07/07/cracking-the-code-of-sop/ about major roadblocks to implement S&OP. In a recent S&OP survey, https://supplychaintrends.wordpress.com/2011/07/31/sop-pulse-check-2011-results/  61% out of 140 S&OP practitioners from over 30 countries indicated that senior leadership support is the biggest roadblock to implement S&OP.

Whilst cracking the S&OP code you might come across hurdles from consultancies that tell you about research which shows that companies with advanced S&OP are twice more likely to have higher forecast accuracies, lower working capital etc. The question is if these so called higher performers are total business high performers or are they just supply chain high performers? Don’t let their riddles confuse you on your quest to unlock the S&OP code, as there is other insight available.

In his book ‘Good to great’ Jim Collins describes companies that made it from good to greatness. Great companies showed an average return of 6.9 times greater then the market. Now we’re talking about outperforming! One of the features of these great companies is that change comes automatically to them. The culture in these companies is one of discipline and change. Furthermore these companies were build to last; they had a strong purpose in which the employees believed.

The secret code about S&OP is that the leadership support must be both in the S&OP process as in the creation of an effective S&OP culture.This is similar what Collins suggests about great companies. Great S&OP will have leaders that not only support the S&OP process but also lead in being disciplined, collaboration, empowering people, providing and accepting feedback and practicing constructive conflict resolution. Furthermore these leaders will provide an S&OP purpose that goes beyond the process.

Therefor the real code to crack in S&OP is to have leaders that will lead in constructive behaviours, who will stimulate trust and collaboration across functions and who will create an effective S&OP culture that is there to stay.

On the website http://www.theiegroup.com/SOP_Boston/Overview.html you can checkout the impressive list of speakers. Will they unlock the S&OP code? Be ready for some great insight and discussions on S&OP processes, enabling technology en maybe even some S&OP culture!

2 thoughts on “Cracking the code of S&OP II

  1. The secret to cracking code is finding the simple things that drive complexity. We know that just 92 elements created the universe we live in. We also know that just 4 DNA elements created the billions of species that exist and have existed on earth. Well it turns out that just 6 process elements drive all the complexities of end-to-end network processes.

    Through a simple process of trial and selection each of these examples drive non-linear dynamics that combine,bifurcate and recombine to create emergent outcomes.

    So, in the case of S&OP like any other cross functional dynamic process; you get a
    sequenced set of parallell events that cascade, interact, cycle and feedback.
    S

    Sound complex, well it is

  2. Thanks, interesting perspective
    Maybe S&OP can find comfort in the chaos theory

    Chaos theory shows us that seemingly chaotic non-linear dynamics
    created by feedback loops,
    have deterministic parts to it.
    Once understood, it is not as complex as it seems
    Once pictured, it has unbelievable beauty

    cheers,
    Niels

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