The Oliver Wight Integrated Business Planning (IBP) model is a comprehensive framework designed

to align an organization's business processes and functions to achieve seamless collaboration,

improved decision-making, and the integration of strategic, operational, and financial planning. The
model is designed to bridge gaps between traditional siloed approaches to planning and create a
holistic, cross-functional approach. Below, I'll outline the key components of the Oliver Wight IBP
model in detail:

1. Foundation:

- Executive Leadership Commitment: The leadership team commits to driving the IBP process,
setting the tone for cross-functional collaboration and alignment.

- Governance: Establish a cross-functional governance structure to oversee the IBP process and
resolve issues.

2. Process Integration:

- Demand Review: Collaboratively develop an accurate demand forecast based on market insights,
sales data, and other relevant factors.

- Supply Review: Evaluate the organization's production capabilities and supply chain constraints to
ensure alignment with the demand forecast.

- Pre-IBP: Prepare inputs, data, and analyses for the executive IBP meeting.

3. Executive Integrated Business Planning (IBP) Meeting:

- Preparation: The executive team reviews the demand and supply data before the meeting.

- Meeting: The leadership team meets to review and align on the integrated plan, discussing key
issues and decisions that require resolution.

- Decision Making: Critical decisions are made during this meeting to address imbalances between
demand and supply.

4. Business Plan Review:

- Financial Integration: Integrate the operational plan with the financial plan to ensure alignment of
business goals and resources.

- Portfolio Review: Evaluate the performance and alignment of products and services with the
business strategy.

- Risk and Opportunity Assessment: Identify risks and opportunities that could impact the business
plan.

5. Integrated Reconciliation:

- Demand-Supply Reconciliation: Resolve discrepancies between demand and supply plans through
collaborative decision-making.

- Financial Reconciliation: Align financial projections with operational plans to ensure consistency
and feasibility.
6. Management Business Review:

- Performance Review: Evaluate actual performance against the integrated plan and identify
deviations.

- Action Plan Review: Assess progress on action items defined in previous meetings.

- Scenario Planning: Discuss and evaluate "what-if" scenarios to anticipate potential challenges or
opportunities.

7. Performance Management:

- Key Performance Indicators (KPIs): Define and track KPIs that measure the effectiveness of the IBP
process and overall business performance.

- Continuous Improvement: Regularly review the IBP process and identify opportunities for
improvement.

8. People and Behavior:

- Behavioral Alignment: Foster a culture of collaboration, accountability, and open communication

across functions.

- Training and Development: Provide training to team members involved in the IBP process to
enhance their skills and understanding.

9. Technology and Tools:

- Information Systems: Implement or enhance technology solutions that support data sharing,
scenario analysis, and real-time visibility.

- Analytics: Utilize data analytics to gain insights and support decision-making within the IBP
process.

The Oliver Wight IBP model emphasizes cross-functional collaboration, continuous improvement,
and a structured approach to aligning strategic and operational plans. It aims to break down silos,
improve communication, and enable agile decision-making based on a unified view of the
organization's performance and objectives. Remember that the model may be adapted to fit the
unique needs of each organization, and successful implementation often involves the guidance of
experienced consultants familiar with the methodology.