- The objective of the S&OP culture is to create leadership and organisational culture favourable for successful S&OP implementation and requires commitment, trust, top management acting as a role model, a collaborative spirit, empowerment, constructive engagement, and competence in dealing with conflict.
It contributes to improved strategy execution and company performance; it can influence company culture and employee engagement, well-being and performance of employees, and above all, influences company culture for the better. For S&OP implementation to be most effective, it requires a positive, growth-oriented, mentally tough mind-set, as well as a constructive behaviour, and requires that executives lead and endorse behavioural change. When achieved these type of employee benefits, is considered to be S&OP Transformational.
S&OP coordination framework with six elements:
- Formal organisational S&OP structure.
- Formal and standardised process for conducting S&OP.
- Processes and tools for capturing, sharing, storing, and refining data needed for S&OP decision making.
- Measurement and optimising of firm performance.
- Alignment of company strategy, operational planning, reinforcing the reaching of the company’s targets.
- Culture and leadership required to support and enhance S&OP.
To lead an organisation in values and behaviours that are favourable for successful S&OP, executive leaders require both Capability and Williness; capability to have emotional and behavioural competence and the ability to act as role models to build trust, empower and lead in effective S&OP behaviours. Leaders need the willingness to display, nurture and lead in establishing effective S&OP behaviours.
For S&OP to be transformational, leaders require one other element: AUTHENTICITY. The authentic S&OP leader takes willingness and commitment a step further, has a deep believe that the underlying S&OP principles are values and behaviours one should live by; there is an intrinsic motivation to set the standard and lead the way to behavioural excellence to support S&OP. There is a desire to coach and help other people.
CONCLUSIONS: Only with an authentic believe in these favourable S&OP behaviours, leaders have the energy to stay committed over a long period, overcome resistance, remove obstacles and keep working tirelessly to build a company culture that has favourable S&OP behaviours at its core. Therefore, only with authentic leaders can S&OP seriously influence a company culture for the better and become transformational.
Dave Food