TABLE OF CONTENTS Metrics are one of the most important drivers within the S&OP process. Topmanagement planning processes that do not put the proper amount of attention on the measures often miss one of the biggest opportunities to drive excellence. The metrics are the dashboard indicators for efficiency, learning, and effectiveness. In the case of the S&OP process, the metrics are few but critical. They are business planning accuracy, demand planning accuracy, and operations accuracy. Additionally, metrics like deliver on time or data accuracy are often solid indicators of performance and can be made visible without taking a lot of additional time from the meeting.
When the S&OP meeting first gets off the ground in an organization, often the use of measures to drive activity is a new concept. If this is the case, it is important not only to focus on the performance metrics but also to link them to the required actions. For example, when the meeting starts, the first agenda item is typically the financial performance, or business planning measure. If, for example, the performance is in the 90 percent range, many might feel that the performance is adequate, especially if the actual percentage number is not discussed. If, for example, the discussion drifted away from the percentage and focused on other factors only, different conclusions could be reached. Here is a possible scenario:
The performance for customer service is good and no customers are complaining enough to be heard at the top-management level.
