Because if you don’t get tactical planning right, you cannot align cross-functionally, as pointed out in a post over on Supply Chain Shaman by Lora Cecere who said Enough!
So how do you get tactical planning right? According to Laura, you need to address four attributes:
Tactical planning aligns functions beyond the enterprise with market drivers and insights using outside-in thinking. It goes beyond a corporate silo.
The team must be knowledgeable and have the authority of line management to act.
Companies need to have access to the right data model and recognize the different value networks because one model does not fit all supply chains. The appropriate risks and opportunities are only identified when tactical options for a strategy are evaluated against market drivers.
Analysis needs to happen within a finite window of actionability.
Then you have to understand the success requirements. According to Laura, to be successful you need to first answer three questions:
- What is the goal?
Good tactical outcomes cannot be reached if the company is not aligned on the strategy. The goal has to be well understood.
- What does good look like?
How are incentives aligned cross-functionally to achieve the goal? The answer is more than rewarding organizations for the same-old same-old.
- What are our risks and opportunities?
Has a proper sensitivity analysis been performed? Has the right data been used?
Once you have the answers, you can start proper planning. Until then, the questions need to be addressed and re-addressed until they are understood.