posted response to continuing BLOG discussion on S&OP vs. IBP
Well all fascinating dialog … seems like we all agree there is not enough clarity or attention / education to business leaders of S&OP ?
Seems to me best way to reign in the 90% of business leaders / excecs to S&OP is to speak in their business value measurement terms !
That is why I sort of 100% believe the real value of S&OP is an alternative financial system that is more simple, not easily financial engineered and forward projecting not historical in its design.
I had quite the busy week but will reach out to a few university engineering / supply chain programs for interest ! What I have found in the states is the following paralax with university programs as they look to “follow the money” not do real research.
1. Proper home for alot of this is in an Industrial Engineering program but very few think enterprise let alone extended enterprise ? Hau Lee at Stanford does a Don Ratliff used to at Georgia Tech ?
2. MBA programs are to focused on financial engineering vs value creation. Finance junkies get it cold but want to go to leveraged finance not operations ?
3. Supply Chain programs for most part are 90 percent focused on warehouses, and transportation sort of teaching the basic skills to work in these fields and S&OP just to “intergalactic” for them to comprehend.
So in my experience speaking to about 20 programs about interest is you need a two part sponsor
1. An MBA finance Wharton type focus on the need an education on how to evangelize the need… sell it to the top down owners / shareholder fiduciaries etc.
2. A partner engineering program into algorithms with IE or manufacturing / Systems engineering to run the program… manage the tools and train the bottom up users
S&OP is to much for most professionals to handle singularly as requires both the top down finance skills and lingo and bottom up operational clarity and integrity as well as the analytical skills as well unflappable mental toughness to persevere through the obstacles that are thrown at you.
Probably more reason why a “clear” definition of S&OP in terms of metrics and process will help many?
Jon Kirkegaard
www.sopbook.com