Actionable Intelligence by Keith B. Carter

Author:Keith B. Carter [Carter, Keith B.]
Language: eng
Format: epub
Published: 2014-08-15T02:51:45+00:00

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a c t i o n a b l e i n t e l l i g e n c e

delivery of the required goods, and what the targeted top and bottom

lines for the year will be.

Companies can be more effi

cient when they go back to where they

started from: having all the business teams in the same room to optimize

business performance.

Let us go back to that original situation all companies begin in. When

a company fi rst started, the founder has the passion and the strategy. The

sales team is in the same room as operations, and manufacturing or services

is also nearby. As the company expands, sales moves out to a fancy offi

ce

somewhere else; operations stays with the plant. Sometimes diff erent sales

and operation plants are set up in various locations, but the founder is still in the headquarters.

As the company grows, communication becomes more siloed, and

security controls are put in place to prevent knowledge from leaving the

company. The same security controls block people in the company from

sharing information that would help them make better decisions. This

marks the end of sales and operations sitting together and the beginning

of a very siloed business. For the past 20 years, Oliver Wright highlighted

collaborative business planning as a best practice that demanded that

companies go back to putting business functions in the same room, and

back to sharing important information, resulting in signifi cant perform-

ance gains. To make this happen we need actionable intelligence.

What Is Collaborative Business Planning?

Collaborative business planning is a regularly executed process that brings

all business function plans into one integrated plan that is reviewed by the management from an aggregate level. It reconciles demand and supply plans

at detail and aggregate level and links to the operating plan. The process usually covers the business plans over an 18‐month horizon to help with

the allocation of resources and the execution of business plans and strategy.

Aligning all of a company’s plans nets some very signifi cant results.

Most important, it will make the company much more effi

cient by

making management responsible for reconciling all the diff erent plans

and optimizing the diff erent goals in the company for the best end result.

This effi

ciency can result in shorter lead times, less stock‐outs, better

forecasts, and less excess inventory. See Table 6.1 for sample benefi ts.

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