Rod Hozack - Integrated Tactical Planning: Respond to Change, Increase Competitiveness, and Reduce Costs

1. Chapter 1
2. Chapter 2
3. Chapter 3
4. Chapter 4
5. Chapter 5
6. Chapter 6
7. Chapter 7
8. Chapter 8

ROD HOZACK, STUART HARMAN, TODD FERGUSON, AND DAWN HOWARTH

Copyright 2021 by Oliver Wight International. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress CataloginginPublication Data

Names: Hozack, Rod, author. | Harman, Stuart, author. | Ferguson, Todd, author. | Howarth, Dawn, author.

Title: Integrated tactical planning : respond to change, increase competitiveness, and reduce costs / Rod Hozack, Stuart Harman, Todd Ferguson, Dawn Howarth.

Description: Hoboken, New Jersey : Wiley, [2021] | Includes index.

Identifiers: LCCN 2020046413 (print) | LCCN 2020046414 (ebook) | ISBN 9781119784753 (hardback) | ISBN 9781119784777 (adobe pdf) | ISBN 9781119784760 (epub)

Subjects: LCSH: Business planning.

Classification: LCC HD30.28 .H699 2021 (print) | LCC HD30.28 (ebook) | DDC 658.4/012dc23

LC record available at https://lccn.loc.gov/2020046413

LC ebook record available at https://lccn.loc.gov/2020046414

COVER DESIGN: PAUL MCCARTHY

COVER ART: GETTY IMAGES | HIROSHI WATANABE

We have long believed that Integrated Tactical Planning is the 21st century's greatest management secret in that best of companies simply execute all the time without stopping to think about whether they are doing the right thing at the right time. Our experience and observations suggest there is scant evidence of consistent methods and standard terminology to define best practices and that many companies do not know what these practices look like. In writing this book, we have been able to release some of the great practices we have deployed when we were in the industry ourselves and, more recently, some of the stunning successes we have had engaging with our clients. One of the standout findings through our research is that every Oliver Wight consultant would insist that there is a weekly replanning process deployed to support a company's monthly management process. Full stop. This may sound simple and reasonable, but where is the background literature to support how this is best achieved? Even when speaking with our software alliance partners, there is some functionality designed within the application, but it is nonstandard terminology and typically a silo functional view at best. We intend to make Integrated Tactical Planning an industry standard term and elevate its understanding from ad hoc to defining something that all companies can, and indeed, should be doing. Most important, we would like to share the benefits realized by clients who have embarked on the Integrated Tactical Planning journey to offer a perspective on how it might help your organization and improve the lives of customers whom you ultimately serve.

Who is this book for? This is intended as an executive synopsis of Integrated Tactical Planning for senior executives to understand the fundamentals so they can inspire their teams with the knowledge of its effectiveness and maybe identify the missing ingredient in truly freeing up management's time to spend more of it on strategy and other valueadd activities. People who are in planning roles will also find it useful, especially if they are frustrated and struggling to get crossfunctional buyin to what they know needs to be improved. This book will reveal concepts that have been shown to work across a range of industries and sizes of organization.

The sales and operations planning (S&OP) process has had a massive impact on business since Oliver Wight first introduced it in the 1980s. In the early days, S&OP was designed to align the Sales outlook with the Production plan and resulting inventory. As one consultant back then was noted saying, It is designed to stop the blood on the conference room floor caused by the misalignment and misunderstanding of perspectives, when sales and operations people get together to prioritize plans.

S&OP has become the standard for defining a robust monthly management framework that brings together oftencompeting plans, perspectives, and goals. The fundamentals introduced by Oliver Wight, such as, one set of integrated plans and numbers, being the decisionmaking forum for the business, management by exception, and bad news early is better than bad news late, have stood the test of time.

More recently S&OP has evolved to be known as Integrated Business Planning, which is designed to include all other plans and functions that were not initially included in S&OP. It now truly does integrate all plans and functions in a business and is seen as the management process for running a business, big or small. It includes product and portfolio management, financial evaluation of the plans, and, most important, alignment with strategy. Indeed, you could argue that the modern version of Integrated Business Planning is designed to operationalize strategy.