Implementation of an Integrated business planning (IBP) process in a large matrix organization is far from short on challenges and even after several years these challenges often persists. Navigating the dynamics of an organization that has deep seated roots lacking transparency, subterfuge, turf guarding and even egocentric behaviors can plague an IBP process often longer than the organization has the patience to endure. How is it possible to integrate different functions in such an environment where supply chain poor performance is often the result of perceived bad forecast, a sales and marketing team that continues to miss sales targets due to supply chain’s inability to deliver, product development is doing their own thing but rarely ever achieves the proposed NPV on projects and finance is routinely frustrated with the quality of information but feels beholden to submit an accurate financial forecast and often believes that they could likely do a better job if they did it on their own all at a top level. Since IBP is a cadence for leadership to make the appropriate decisions to obtain business ambitions it often feels like you would be more successful winning baseball games with Abbott and Costello as head coaches while they explain who’s on first.
Then tragedy struck with a pandemic in 2020, and something changed. As the crisis unfolded something miraculous happened, these same functions came together and united with all cards on the table as the organization reviewed Covid-19’s impact on the organization. Supply chain quickly identified all known supply constraints and identified key assumptions regarding unknown potential constraints. Sales and marketing grappling with uncertainty in the markets had solid debates on the assumptions on what might happen. Is it going to be a U-shaped recovery, is there going to be another lock down in the fall? These assumptions were debated and consensus was achieved, decisions made and alignment established. Product development reprioritized projects based on real value and finance trusted the information and developed appropriate financial forecasts upon which leadership can make the necessary decisions to manage out of this crisis. Some of the assumptions they got right, some were wrong, but there were no finger-pointing, there were no blame game, in its place was a focus on what assumptions changed and discussions were held on what was needed to be done to drive the business forward. No doubt these were painful decisions that had far reaching impact on many people’s lives, but it was a moment that the organization aligned on one plan, one focus with absolute transparency. Covid-19 has allowed the organization during a crisis to show exactly how IBP is meant to work, not just during a pandemic, but all the time. The organization that can develop an IBP process with that level of integration, alignment and transparency every month driving toward its’ business ambition is an organization that will be unstoppable.
