In yesterday’s iBsing pioneers call we focused on decision-making in S&OP.
The decision-making process can be described in 5 steps:
1. 𝐈𝐧𝐢𝐭𝐢𝐚𝐭𝐞 𝐂𝐡𝐚𝐧𝐠𝐞 – typically the change is triggered by a “tension”, when the current perception of the business situation is not aligned with the expectation. We talk about the “Human Sensor Network”, because each employee can recognise such disconnects and initiate a change.
2. 𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝 𝐝𝐫𝐢𝐯𝐞𝐫𝐬 𝐚𝐧𝐝 𝐰𝐨𝐫𝐤 – moving away from emotions and using facts and analysis to understand the vision and target condition for the change
3. 𝐃𝐞𝐯𝐞𝐥𝐨𝐩 𝐨𝐩𝐭𝐢𝐨𝐧𝐬 – identify several options towards the target condition
4. 𝐅𝐢𝐧𝐝 𝐜𝐨𝐧𝐬𝐞𝐧𝐭 – choose one option and make sure there are no valid objections (in conflict with the agreed accountabilities of a department) against the final decision
5. 𝐋𝐞𝐚𝐫𝐧 𝐚𝐬 𝐚 𝐭𝐞𝐚𝐦 – regular governance to reflect on decisions where the current organisational set up showed shortcomings and improve the framework accordingly
We realised, that the first step might be the most difficult one, and 𝐒𝐮𝐩𝐩𝐥𝐲 𝐂𝐡𝐚𝐢𝐧 𝐩𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥𝐬 𝐚𝐫𝐞 often not 𝐭𝐫𝐚𝐢𝐧𝐞𝐝 to master the first step.
Special thanks to all participants and to Timo Bezjak for providing a lot of valuable suggestions how to improve cross-functional decision-making based on Sociocracy 3.0 (https://sociocracy30.org/), a social technology to help organizations build agility and resilience.