IBP+ represents the top in business planning. IBP reviews monthly what decisions need to be made with a 3 to 4 month horizon. In IBP+ the scope is both longer and wider. Longer, because the horizon is extended to 24 months. Wider, because scenario planning is fully integrated.
The IBP+ process is characterized by the following elements:• The starting point is the company’s strategy
• The horizon is 1-24 months, where the hot spot is 4-6 months
• Every month the likely scenario is reviewed and for the most probable alternative scenario’s responses are formulated.
• The IBP+ process focusses on the long-term value increase of your organization.
What does it contribute?
The benefits of IBP+ are mainly driven by the focus of the entire organization on 1 long term strategy and the increased readiness to deal with changes in the plans:
• Increased mobility in response to internal or external factors
• No surprises or ‘last-minute’ decisions
• Product introduction is an important driver for long term ambition
• New product introduction is faster and more effective
• Only shared KPI’s
• Short, middle and long-term strategies are interconnected
What else do you notice?
Besides these hard and tangible results, organizations will notice changes in the way the organization operates:
• No longer collaboration, but harmony is the norm; the management team runs the IBP process as a team.
• The company is steered proactively on a tactical and strategic level.
This means alternative scenarios are prepared systematically, that can be activated on-demand in the execution. This also means all decisions are made with the long-term strategy in mind, where the individual contribution of each decision is clear.
• The increased level of readiness for alternative scenarios creates an atmosphere in the organization that allows to focus on long term value increase.
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