Did you hear about the company that planned to sell 10,000 units but they only made 3,000? Or the firm that was launching their new product in January but the packaging wasn’t arriving until March? How about the company that did launch their fantastic new product on time with full availability but the cost of the product meant they lost money on every single sale?
It would be funny if it wasn’t true.
These are the type of scenarios that organisations find themselves in when there is a mismatch between what they are planning to do and what actually happens. Everybody thought they knew what was supposed to happen but in the end something went wrong and now the blame game starts.
But why is it so difficult to get these seemingly basic things right? Fundamentally, organisations are complex entities made up of individuals & departments all with different objectives and priorities. It’s easy to make a local decision that benefits the individual without thinking of the wider implications for the rest of the organisation. People don’t often think ‘are we all pulling in the same direction?’ and they tend to focus on achieving their own targets as ultimately that is what they are measured on.
Think of a symphony orchestra. Each musician or section can be playing to perfection, but unless they are all following the same score, the result would be horrendous.
Over the next few weeks I’ll be publishing a series of short blog posts that explore these challenges and the steps that organisations can take to address them with Integrated Business Planning (IBP). These posts will cover the ‘What, Why & How’ of IBP to provide insight as to how you can transform the performance of your organisation.