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8 Businessexcellence January 08 Integrated business management means managing all of the business resources via the sales and operations planning process. The final part of John Schorr’s series of six articles deals with the management business review proven The path

January 08 Businessexcellence 9 The management business review (MBR) is the final step in the sales and operations planning (S&OP) process (Figure 1). Each senior manager should receive an S&OP information packet at least twenty-four hours before the scheduled meeting. The packet contains the performance measures which, in effect, are a report card of how the business is performing. It also includes the business and departmental assumptions, and the key issues raised from the individual product review, demand review, supply review, and integrated reconciliation meetings. All of the family spreadsheets, roughcut capacity plans, new product and new activities summaries, business project summaries, and the financial projections are also a part of the S&OP packet. Key strategic issues requiring direction and decisions will also be included. With all of this data and information it is time for the senior management team to make the appropriate decisions and provide the necessary direction that will guide the business into the future. Sales & operations planning is an integrated business management process through which the executive/ leadership team continually achieves focus, alignment and synchronization among all of the functions of the organization. The monthly S&OP plan is reviewed by senior management and the output of the process is a definitive statement of what the company plans to do over the next twenty-four months. The attendees at the management business review meeting are the executive management team—the president and all direct reports. The president is the owner of this meeting. Other participants who may regularly attend include the new product coordinator, demand manager, supply manager, and the finance manager/S&OP coordinator. These are the individuals who have facilitated the collection of all the data in the packet and participated in creating the various scenarios that will be presented in the S&OP meeting. They are there to answer questions or clarify issues which may arise during the meeting. The management business review meeting should be a crisp, clear decision-making meeting, which will usually take between two and four hours, depending upon the maturity of the S&OP process. If major strategic issues are to be addressed, these may be the subject of an extension of the normal two to four hours. The MBR meeting includes all the information that is required to make the necessary decisions in the S&OP/MBR packet. The senior managers must review the S&OP information packet prior to the meeting to assure that a focused management business review meeting can take place. The MBR is not meant to be a “discovery” meeting, but rather a decision making and direction setting meeting. The meeting typically begins with a review of the outstanding action items from the previous month. This is followed by a presentation of the decisions that are required to be made this month, along with decisions that may be necessitated in the future. This helps to focus the meeting on what needs to be decided over the next few hours. After reviewing the decisions that Strategicmanagement “The output from the management review meeting is the approved plan, defining the decisions made and the agreed actions to be taken”