Using Scorecards for

Improving and Sustaining

the S&OP Process
By Todd Dunn

E X E C U T I V E S U M M A R Y | Many organizations have a Sales & Operations Planning process in place but face the
challenge of maintaining the compliance and active engagement of participants within the process. Visibility and formal
review of the processes within S&OP is critical to strengthen the value that S&OP brings to the organization. This article
provides insight to the tools and initiatives that can be implemented to improve and sustain the S&OP process.

T O D D D U N N | Todd Dunn is currently the Director of Supply Chain at Catalent Pharmaceutical. He has
held several management positions within Supply Chain during his 28 years of manufacturing experience.
He has facilitated the pre-S&OP and executive S&OP meetings for over 15 years. He holds a BSc degree
in Business Management and obtained the Michigan Certificate from the Ross School of Business at the
University of Michigan. Todd is a regular speaker at Supply Chain and Demand Planning events. He is a
Certified Professional Forecaster (CPF) and has CPIM designation.

T
he Sales & Operations Planning meetings. There are some tools we have measure the effectiveness of the process,
(S&OP) process meetings are implemented within the S&OP process and take steps necessary to further
critical in an organization to that have helped to keep the process improve it. The tools can be applied to
achieve business and strategic plans. An robust. We have found that the use of a all S&OP meetings including Demand
organization may have implemented the scorecard is very valuable in maintaining Review, Supply Review, Pre-S&OP, and
S&OP monthly cycle for several years, but and strengthening its sustenance. Executive S&OP to understand what is
it can be a challenge to keep participants The benefits of focusing on con­ working and what is lacking.
actively engaged in the process. Stake­ tinuous improvement in the S&OP The S&OP meeting scorecard
holders and participants may have a process are numerous. It reduces the identifies critical elements of the process
good understanding of the purpose of time required for participants to collect such as attendance by participants, input
S&OP, but, at times, meetings go astray and organize the information required information gathered and prepared for
and the intended agenda is lost. in the process. It also increases the value the meeting, and completion of action
We have implemented various perceived by the stakeholders. The key items decided in the previous meeting,
techniques for driving continuous to continuous improvement is the use as well as meeting the current agenda.
improvement in the S&OP process, and of tools such as scorecards and a critique In a nutshell, it tracks compliance of the
addressed various gaps encountered in form. They enable the facilitator to S&OP process meetings. A sample of a

12 Copyright © 2018 Journal of Business Forecasting | All Rights Reserved | Fall 2018 | www.ibf.org
scorecard is laid out in Table 1. Table 1 | Sample S&OP Meeting Scorecard
The scorecard is a very good tool for
Meeting Minutes Input Slides Meeting Attendance
managing compliance to expectations Complete on Time Complete on Time in S&OP Meetings
in the process meetings. It gives a strong
Participant A Yes Yes Yes
message when a participant has a category
denoted as not complete, implying he or Participant B Yes Yes No
she did not fully comply with what was
expected. For compliance to work, one Participant C Yes No Yes
person should be made responsible for
Participant D Yes Yes Yes
gathering information from all meetings
including Demand Review, Supply Re­
view, Pre-S&OP, and Executive S&OP, and to the Executive S&OP meeting. The report be needed if the plan gets off track.
report to the leader of the S&OP process. should show gaps and actions needed to The presentation of these plans to the
The leader, when needed, can bring correct them. Table 2 gives a sample of a Executive S&OP meeting forum must be
any noncompliance to the attention scorecard critique form along with critique thoroughly reviewed to gain confidence
of participants at the beginning of a sections. and proposed actions to meet the
meeting. It is important to have an open One section in the critique form business objectives.
discussion prior to implementing the is the business plan management. The meeting facilitator collects the
scorecard so that participants know their Here participants are asked to indicate completed critique forms at the end
responsibilities, and what is expected whether the business plan was fully of each process meeting, and then
from them. The noncompliance report documented, risk mitigation strategy calculates the average score of each
must be made available to the leader prior was outlined, and what action would section. The score may be subjective

Table 2 | Sample of S&OP Meeting Critique Report

PROCESS MEETING CRITIQUE

Aspect Detail Score Comments
Performance Metrics: Available on time.
Sales/ Finance/ Well understood.
Operations/Quality Pareto analysis is available.
Metrics are predictable and those at risk are communicated.
Meeting Facilitation Provide scores and feedback related to the facilitation of the pre-S&OP meetings.
Business Plan Business plans are documented, and risks are identified along with supporting
Management mitigation strategies.
Remedial plans are available if the plan is off track.
Empowerment and Attendees (or delegates) come to the meeting fully prepared, and empowered to
Attendance make decisions.
Attendees (or delegates) come on time, and remain present throughout the
meeting.
Other Critiques are completed on time.
Critiques are used to improve the meeting.
Meeting venue and tools are adequate.
Any other comments.

Scoring Key PROCESS MEETING Date:

1 Bad—No attempt to use the system as designed.
2 Poor—Some depts. use as designed, but most are not.
3 Progressing—Most depts. are on board, but some lag behind.
4 Good—System is working, but needs improvement.
5 Excellent—All depts. are using the system as designed.

14 Copyright © 2018 Journal of Business Forecasting | All Rights Reserved | Fall 2018 | www.ibf.org
but it does provide a handle on the meant to improve the process. After the meeting begins, there may
perspective of participants about each The facilitator can track the overall not be any time left to cover it. Also,
meeting, information that can be used to scores of each of the S&OP meeting time must be set aside for participants
improve the process and, consequently, components, and then highlight the to provide open feedback on the
increase the value S&OP meetings. actions required. The action plan can process.
Table 3 provides a sample of a be reported annually unless something The S&OP meeting is very critical
completed critique form of two sections. requires immediate action. Next are some in making decisions and then im­
The scores of the critique form become of the recommendations to consider. plementing them. If done correctly,
an overall average. An objective may • The critique forms should be com­ the organization will get the most
be defined to increase the trend in the pleted at the end of the meeting benefit from the time spent by different
results if measured on an annual basis before participants leave the room; participants. For that, participants must
based on feedback from the participants. otherwise, the form may not be believe that S&OP adds value to the
Another important element of completed because other priorities organization and help them achieve
the critique form is the feedback on often get in the way. their own objectives.
each section. The participants need • Gain as much insight as possible We have seen great success when
to be encouraged to provide specific from the scores and comments, and we used the scorecard in the imple­
comments, and actions required to exclude personal comments related mentation of S&OP. It provided many
improve them. The meeting facilitator to participants. good ideas, with topics ranging from
may have to seek clarification of • Meet with the chair of the meeting meeting structure to the meeting
comments, and filter them when they prior to implementation to gain the forum. In one case, we learned from
have a negative impact on the meeting. necessary support for the tool to be participants that the process becomes
The meeting facilitation section is used to improve the meeting process. more robust if we split slides into two
designed to obtain feedback to improve • Before finalizing the critique form, sections—one with main slides, and the
the skill of the meeting facilitator. It is meet with participants to review the other with backup slides with detail for
certainly a challenge for the facilitator form, as well as to let them know why any recommendation. The backup slides
to keep participants focused only on it is important. will be shown if needed. This proved to
topics outlined in the agenda, and then • The action plan should be jointly be very effective.
let them come up with an appropriate developed and agreed to. Whatever The ongoing desire to improve the
recommendation for each issue under is decided must be implemented; S&OP process can go a long way toward
consideration. The feedback can easily otherwise, participants won’t trust motivating participants and arriving at
be taken personally. To prevent that, the purpose of the critique process. right decisions, which are the foundation
there must be an open and positive • Whenever the critique results need of a sustainable and successful monthly
attitude to accept the feedback. It is to be reported, it must be the first S&OP process.
not meant to attack anyone; rather, it is agenda item in the S&OP meeting. —Send Comments to: [email protected]

Table 3 | Sample Critique Form and Feedback Summary

Aspect Score Score Score Score Average Score Participant Comments Summary Comments/Actions

Good work on metrics, Detailed action plans

Performance Metrics:
but require due dates for should be detailed in the
Sales/ Finance/ 3 3 3 4 3.3
actions for metrics that are back up slide to improve
Operations/Quality
identified below target. metrics below target.

Aspect Score Score Score Score Average Score Participant Comments Summary Comments/Actions

Meeting ran off track, Set clear timelines for each

and didn’t get through all topic on agenda at pre-
Meeting Facilitation 4 3 4 4 3.8
items with sufficient detail S&OP meeting.
in pre-S&OP meeting.

Copyright © 2018 Journal of Business Forecasting | All Rights Reserved | Fall 2018 | www.ibf.org 15
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