Checklist for an S&OP mindset

Some companies run their Sales & Operations Planning (S&OP) process with great effectiveness. However, too often S&OP maturity and performance stalls, even when the S&OP processes and supporting systems are properly implemented. Niels van Hove, consultant with 20 years of experience in supply chain and business planning in Australia, and Supply Chain Movement have put together this checklist to assess the right mindset for an effective S&OP process.

An S&OP decision making process should result in balanced demand, supply and inventory, periodic visibility in the gaps to budget, and the review of strategic projects and resources across the enterprise. Participating teams solve issues pro-actively across functions, they are agile, accepting for change and committed to goals. But to prevent this process from stalling organizational mindset and behaviours are required to sustain effective S&OP.

Mental Toughness

Mental Toughness is called ‘the mindset of the winner’ by Jim Loehr, a sport psychologist who first coined the term. Mentally tough individuals and teams have the mindset to perform at the best of their abilities, regardless the circumstances. Through his research, professor Peter Clough found four attributes that make up Mental Toughness; Commitment (“I promise to do it”), Control (“I really believe I can do it”), Challenge (“I’m driven to do it”) and Confidence (“I believe I have the ability to do it”), also called the 4 C’s.

S&OP is an enterprise wide business planning process that can only be effective and sustainable when it is supported by the right mindset and behaviours. Individuals and teams with a superior mindset will increase S&OP effectiveness and are proven to perform better and show increased well-being. However, it is unlikely that there is a critical mass of these behaviours in every company that implements S&OP. The following 10 questions which are related to the 4 C’s, provide insight if your S&OP process is supported by an effective organizational mindset.