Integrated Business Planning

The real value of integrated business planning (IBP) is the ability to establish credible plans that enable the business leadership to make the appropriate tactical and strategic decisions that aligns with the business’s ambitions over the long-term horizon.   To accomplish this, the IBP process requires transparency of bottom-up plans with credible assumptions that can be financialized that leadership trusts.   Unfortunately, integrating finance into the IBP process can be challenging for an array of reasons that often result in financial leaders becoming frustrated.  This frustration is recognized when you hear comments such as, “the business doesn’t know how to plan”, or…

On Monday at 8:07 a.m., the war room smelled like dry-erase and coffee. Ravi, the supply planner, clicked his laptop shut with a little flourish. “Good news,” he said. “I bumped the plan eight percent. Bit of a stretch, but it’ll light a fire.” Maria, who ran the bottleneck filler line, raised an eyebrow. “We have one filler,” she said. “It runs at one filler speed.” “Totally,” Ravi said. “But if we aim higher, we’ll get more. People step up.” By noon the “stretch” had turned into schedule musical chairs. To hit Ravi’s number, the plan jammed in two extra…