Oliver Wight Integrated Business Planning Survey reveals Australian executives are stuck in the short term
Business improvement specialists, Oliver Wight have published the results of an Integrated Business Planning (IBP) survey conducted at their inaugural IBP conference, entitled ‘Integrated Business Planning for High Performance Organisations’.
104 senior managers from 54 companies were polled on their own experiences of IBP and S&OP at the two-day conference held in Melbourne on 24-25 February 2015. The survey was conduced at the end of day two following presentations given by some of the region’s best-known companies on the lessons learned and successes enjoyed from Integrated Business Planning.
The survey highlights that although sales and operations planning has been around since the late 1980s – and its latter-day incarnation, Integrated Business Planning (IBP), for almost ten years - organisations are failing to gain from its full potential or are mistakenly using it for short-term planning. In particular, the survey reveals that despite the lessons of the global financial crisis, none of the study’s respondents are planning beyond the 24-month horizon and 10 percent have no formal planning process at all.
“Today, the most successful businesses are typically planning 24-36 months ahead. Anything less than 24 months doesn’t allow the organisation to identify and respond to performance gaps soon enough, which leads to continual firefighting,” says Stuart Harman, Partner at Oliver Wight Asia Pacific.
These findings are highlighted throughout the report, which analyses results surrounding the implementation of IBP and S&OP, the planning horizon and gaps and opportunities in the planning process. Harman notes “We were delighted with the response to the survey and it has given us great insight into companies’ real IBP challenges, as well as getting a broader perspective on the use of IBP in the Australian market.”
Based on the results, Harman summarises what the future may mean for many organisations. “The experience of the global financial crisis should have taught us some lessons and it is concerning that many organisations have yet to respond. If recession struck again, the future of many could be at risk unnecessarily.”
To read the full survey report, download it here
For more information:
Oliver Wight AP
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About Oliver Wight
At Oliver Wight, we believe sustainable business improvement can only be delivered by your own people; so, unlike other consultancy firms, we transfer our knowledge to you. Pioneers of Sales and Operations Planning and originators of the fundamentals behind supply chain planning, Oliver Wight professionals are the acknowledged industry thought leaders for Integrated Business Planning (IBP).
Integrated Business Planning allows your senior executives to plan and manage the entire organisation over a 24-month horizon, while Oliver Wight’s extended Supply Chain Planning and Optimization ensures your supply chain is designed and structured to deliver best-in-class customer service with minimal costs. Using the Oliver Wight Maturity Model to pursue our globally recognised Class A standard for best practice will determine a tailored improvement journey for you to develop your organisation’s processes, and reach and sustain excellent business performance. With a track record of more than 40 years of helping some of the world’s best-known organisations, Oliver Wight will help you define your company’s vision for the future and deliver performance and financial results that last.