align human energy with s&op and conflict resolution...• it is a multi-step process involving...
TRANSCRIPT
10/21/2013
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Stewart [email protected]
Align Human Energy with S&OP
and Conflict Resolution
Agenda . . . • Intro – who are we & what we are up to
• S&OP designed to raise conflict
• People / process / technology
• Litany of our story – how we got together
• S&OP process overview
• Conflict resolution process overview
• Our integration – how we are working
• Potential benefits - our results
• Questions
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Bob Stahl’s Background . . . • 40+ years in manufacturing companies
• Started as Schedules Coordinator
• With help of Oliver Wight, certified Class A success (1979)
• Became an associate of Oliver Wight – 1981 (passed in 1983)
• Have worked with some of the best companies in the world
• Today = eS&OP coach, educator, author
• Has written six books with Tom Wallace –– three have been used for APICS Certification
• Past S&OP editor and columnist –– for the IIF’s Journal of Forecasting - Foresight
• Head up consulting services for TFWallace & Company
• ““““Retired”””” = choices
Stewart Levine’s Background . . . • 10 Years of legal practice
• 6 Years managing sales team at AT&T
• Developed models as a divorce mediator
• Thirty years of work with organizations – soft skills as educator, keynote, facilitator and intervener
• American Management Association Instructor & SME
• Three published books and numerous articles
• Business bestseller: Getting to Resolution: Turning Conflict Into Collaboration (text for various courses)
• Clients Include Fortune 100, government agencies and NGO
• Adjunct Faculty: U Cal Berkeley Law School; Dominican University Graduate School of Business
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Executive S&OP (eS&OP) is . . .APICS Dictionary, 13th Edition, October 2010
• The executive portion of the overall sales and operations planning set of processes.
• It is a decision-making activity involving the leader of the business (president, general manager, COO, managing director), his or her staff, and a number of middle managers and specialists.
• Its mission is to:
1. balance demand and supply at the aggregate level,
2. align operational planning with financial planning,
3. link strategic planning with day-to-day sales and operational activities.
4. Be a forum for disciplined discussion about setting Policy, strategy, risk, budget changes
• It is a multi-step process involving demand planning, supply planning, and middle and top management meetings for decision-making and authorization
Top Management’’’’s Handle on the Business
Executive S&OP – does the
proper prior planning to
allow the routine things in
the short term to be done
routinely!
Making eS&OP Successful . . .
The hard stuff (tools, techniques,
processes) is easy
The soft stuff (relationships,
behavior, culture) is hard
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eS&OP Raises Conflict . . .
Executive S&OPExecutive S&OPA process to raise and reconciledisagreement, & communicate
THE company game plan
Sales/Marketing(Units or $ by Family)
Operations(Units/hours/Material)
Finance(Currency)
R&D -- Product Dev.(New Product Issues)
President
eS&OP Success . . .
• not only allows disagreement, to work it
promotes and requires disagreement
• Learning how to disagree without being
disagreeable is paramount to success
• Gaining collaborative consensus from this
disagreement makes for best decisions
• Without a comfortable process to resolve
disagreement/conflict, organizations will avoid
it – “put the moose under the table”
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Conflict Resolution * . . .
• Disagreement has two parts:
– Substantive issue
– Emotion behind that issue
• Disagreement becomes conflict when emotion is
not completely addressed
• Lasting conflict resolution must deal with both
elements of disagreement
• Doing that effectively can be learned:
– With a motive to do so &
– A framework on which to work “Getting to Resolution” Stewart Levine
How we got together . . .
• Mutual colleague made introduction
• Both looking for innovation /contribution
• Bob presented his model for S&OP
• Stewart asked the question about conflict
• Exchange of material & respective framework
• Co-authored column
• Currently working with clients
• Blending our practices
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Evolution of Imperatives . . .(People / Process / Technology)
Oliver Wight(circa 1975)
• A = People
• B = Data/process
• C = Computer/
software
Today
• Behavior/ culture
change
• Process
improvement
• Technology
Market Research . . .
Success with Executive S&OP is:
60% = Behavior/culture change
30% = Process improvement
10% = Technology*Lora Ceceri
Altimiter/AMRBoston, Sept 2010
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Volume
Mix
•How much?•Rates•The big picture•Families•Strategy/policy/risk•Monthly / 18 - 36 Mos•Executive Resp.
•Which ones?•Timing/sequence•The details•Products/SKU’s/orders•Tactics/execution•Weekly/daily 1-3 Mos•Middle Mgt. Resp.
Demand Supply
BalanceVery different, separate,
& distinct practices
but integrated!
Executive S&OP . . .
ProActive Behavior
ReActive Behavior
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The eS&OP Process . . .
Step #1Data
Gathering
End of Month
Decisions &Game Plan
Step #5ExecutiveMeeting
Conflict Resolution, Recommendations &Agenda for Exec. Mtg.
Sales Actuals, Statistical Forecasts
&Production Actuals
Step #2DemandPlanning
Step #4Pre-S&OPMeeting
Capacity constraints2nd-pass spreadsheets
Management Forecast1st-pass spreadsheets
Step #3Supply
Planning
Heavy
Lifting
Creates a Creates a Disciplined Rhythm
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Where does Executive S&OP Fit?
Strategic planning
Detailed planning,
scheduling & execution
Business planning
Disconnect!!!Executive S&OP
Turning
disconnected
knobs?
Where
Executives
live
Where
Executives
live
Where
Mid-Mgt.
lives
Where
Mid-Mgt.
lives
Top Management & Executive S&OP
Need to be Hands-On with the Executive S&OP Process
Stewardship & Leadership(Manager/Trustee & Guide/Command)
President
VPOperations
VPSales/Mktg
VPFinance
VPR&D
Done Properly . . .
It takes Top Management between
1 & 2 Hours per Month
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Overcoming the Catch 22 of Implementation
• If you don’t get top management involved
from the start, you won’t address the cultural
or behavioral changes that are required.
• If you do get top management involved form
the start, they realize that success does not
come from doing what you do better, but from
doing things differently to be better. That
translates to personal and/or organizational
discomfort and risk for those in charge –
resulting in reluctance to implement.
Glossary . . .
• Difference: not seeing the same thing
• Conflict: breakdown impeding progress
• Resolution: condition healed, no scars
• Agreement: mind and heart aligned, covenantal relationship
• Culture: relationships reflecting values, and implicit and
explicit agreements
• Emotional intelligence: self awareness, etc.
• Conscious communication: mindfulness, self-editing
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Cycle of Resolution . . . Glossary . . .…an ongoing CYCLE of Collaboration
FactsEmotions
Future
Talking
Model
Collaborate or die . . .
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Direct costExpert help
Productivity costTime lost, reduced capacity, opportunity cost
Continuity costLosing someone
Emotional costStress related disease
Co$t$ of Conflict . . .
Conflict Resolution Framework PEOPLE FEAR CONFLICT: • No mental model
• No way out
• No tools
• Culture of nice
• No practice
• Never made a choice
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FACTS…FACTS…
• CONFLICT is natural, neither positive nor negative. It is!
• CONFLICT is an interference pattern of energies.
• Nature uses CONFLICT as a motivator for change, creating beautiful beaches, canyons, mountains and pearls.
1. Observations
2. Interpretations
3. Feelings
4. Needs
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Source: Impact of Collaboration on Business Performance by Frost & Sullivan | sponsored by Microsoft and Verizon
High Value of Collaboration . . .
Audience centric
Emotionally intelligent
Conscious communicator
Valuing collaboration
Resolutionary thinking
Crafting agreements for results
Choosing to change behavior
What it asks of YOU?What it asks of EVERYONE?
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Self-knowledge
Self-awareness
Self-regulation
Self-motivation
Empathy
Social skills
Becoming Emotionally . . .
INTELLIGENT
Communication Toolbox . . .
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Abundance
Creativity
Open
Feelings
Learning
Efficiency
Foster resolution
Long-term
Disclosure
Responsibility
A New Mindset . . . Resolutionary
thinking
Essential Elements forNew Agreements . . .
• Intent and vision
• Roles
• Promises
• Time | value
• Measurement of satisfaction
• Concerns and fears
• Renegotiation | dissolution
• Consequences
• Conflict resolution
• Agreement ?
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What is your ATTITUDEtoward Conflict?
• Where did it come from?
• Is it serving you?
• Did you ever make a choice about it?
Culture is a “fuzzy” word…a more focused understanding:
Organizational relationships reflect and embody the culture. The sum of relationships is the culture!
Relationships reflect web of implicit and explicit agreements that are the organization
Organizational Culture
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How we are working togetherExecutive briefing
Developing pilot
Crafting team agreements
Weekly / bi-weekly meetings
Coaching / consult as needed
Develop high performance team
Being the change / discovering the confluence
Parallel Paths . . .
Run the Business todayRun the Business todayAA
Business ExcellenceBusiness ExcellenceBB Projects to support Projects to support ‘A’
Executive S&OPExecutive S&OPXX
Collaboration/Conflict Resolution FrameworkCollaboration/Conflict Resolution FrameworkYY
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Representative Hard Benefits* . . .
Benefit Range Average
On-Time Del’y Up 10 to 40% Up 25%
Inventory Levels Down 12 to 70% Down 41%
Mfg. Downtime Less 20 to 50% Less 35%
Plant Efficiency Up 2 to 33% Up 17%
Transport. Cost Down 5 to 30% Down 17%
* “ Sales & Operations Planning: Best Practices -- ” Dougherty & Gray -- 2006
Sustainable 5% improvement; not possible
Sustainable 50% improvement; very possible
Conclusion . . . Challenge: Manufacturing environment…
No place for the “soft stuff”
Careful client selection
• 1 + 1 = 3
Two powerful teachable systematic methods
• Verve (vigor) / holistic
• Organizational culture change
• Eye on the prize!!!
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Powerful CollaborationsBuilding High Performance Teams
Taking S&OP to the next level: Aligning human energy through conflict resolution
Accomplishment Accomplishment
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Thanks for Listening . . . Good Luck . . .
Stewart Levine510-777-1166
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