Operational Master Planning

Goal Alignment - Generic

Business Strategies
and Functional Objectives
Agenda

Objectives

Introduction to Operational Master Planning (OMP)

OMP development process

OMP at different levels

Key messages
Agenda

Objectives

Introduction to Operational Master Planning (OMP)

OMP development process

OMP at different levels

Key messages
 Objectives

Understand why OMP is important

Learn what is an OMP

Practice how to build an OMP

Know how to develop, communicate and manage the

OMP
Agenda

Objectives

Introduction to Operational Master Planning (OMP)

OMP development process

OMP at different levels

Key messages
Operational Master Planning will align and prioritize
on team efforts

1. ALIGN AND
PRIORITIZE
Operational Master
Planning
3. DELIVER
CONSISTENT
RESULTS
Goal 2. REVIEW
Basic Problem Alignment PERFORMANCE
Solving
Performance
Standard Measures
Routines Operational
Reviews
 Why is Operational Master Planning important?

Company Model – every year

• 5%-6% Organic Growth
• Margin & EPS growth
• Improving Capital Efficiency
• Market Leadership

• To align and prioritize team efforts in order to deliver the

Company model

• To ensure execution of Business strategies and Functional

objectives

• To enhance discipline in planning, focusing on few priorities

that make a difference in achieving our objectives
 What is Operational Master Planning?

A process to share, align and translate Business

strategies and Functional objectives into
engaging focused priorities and activities to be
executed
A well defined Operational Master Plan consists of:

Key Priorities to deliver Business strategies and Functional objectives

Drivers that contribute to the Key Priorities

Measures* and targets to track the progress of the Drivers

Activities that will impact the Measures

Capability Building required to deliver the OMP Key Priorities

* OMP Measures provide input to the PE
 OMP focuses on execution of strategies

High Level GS / ZBS

Strategies
GBS (SBU/GMB)

Corp. Functional OMP

Operational Master Plan

MBS

Operational
Market OMP
Strategies
ICP

Current Results/Practices

Compliance & LDv gaps

“We have a clear vision and a strong strategy (…). We will have to be
extremely flexible, disciplined and focused on swift, flawless execution.”
Paul Bulcke
Agenda

Objectives

Introduction to Operational Master Planning (OMP)

OMP development process

OMP at different levels

Key messages
 Operational Master Planning development process for
a Function

1 2 3 4 5 6
Understand Understand Define Build a plan Validate &
Business and current Key Priorities Implementation
to achieve the Communicate
Functional situation & Reviews
Key Priorities the OMP
needs

Gather and Reflect on the Agreement on As a team, break Agreement on Execute activities
understand reality in terms of 3 to 5 Key down Key OMP. Develop and and perform
Business current results Priorities that Priorities into execute a regular reviews.
strategies and and ways of will make a Drivers, define Communication OMP actively
Functional working difference Measures to track Strategy used as a
objectives progress and management
Activities to tool.
execute

• BEMs
• BEMs
• Functional • Functional Head
WHO

• Functional Head
Head • Management Team members
• Management Team members
• Function GA • Function GA Pillar Leader
• Function GA Pillar Leader
Pillar Leader

Note: This process is an example that applies to build a Functional OMP on Market level
 Step 1 - Gather and understand Business and Functional
needs

1 2 3 4 5 6
Understand Understand Define Build a plan Validate &
Business and current Key Priorities Implementation
to achieve the Communicate
Functional situation & Reviews
Key Priorities the OMP
needs

Guiding Questions
What are the 3 big issues / opportunities / OMP Key
Priorities and Drivers within the Business?

What are the Business needs relevant to the function? (1)

What are the OMP Key Priorities for the Function in the
next three years? (Corporate, globally)(2)

(1) For more guiding questions refer to Business Alignment Survey

(2) For a Function in the Market they will gather Key Priorities from the Function globally, for a Unit within a Function in
a Market they gather Key Priorities from the Function OMP
 Implementing Step 1

• GBS/ZBS
What we • MBS and Market OMP
need • Corporate Functional OMP
• Business Alignment Survey

• Awareness meeting: interaction between Function

Head and BEMs to understand Business needs
• Gather all inputs and define the Business needs
What we relevant to the Function and the Functional needs
do • Alignment meeting: interaction between
Function Head, BEMs and other key stakeholders

• Business and Functional needs

What we (Relevant to the Function/Unit)
get
 Step 1 - Summary

Strategic
inputs (Some Examples of Business and Functional needs)
• Accelerate Growth in Premium segment
• Innovation & Renovation as growth driver
Awareness • Ensure profitability in the Business Unit
meeting with • Best in class execution in the POS
BEMs and other
relevant • Win with Customers
Stakeholders • Become the preferred supplier of our
customers
• Retain best performing people by creating a
Alignment great place to work
meeting with
BEMs and other Agreed Business and Functional needs
relevant
Stakeholders
 Step 2 - Reflect on our reality in terms of current results
and ways of working

1 2 3 4 5 6
Understand Understand Define Build a plan Validate &
Business and current Key Priorities Implementation
to achieve the Communicate
Functional situation & Reviews
Key Priorities the OMP
needs

Guiding Questions
What are our current results?
What are we doing well and what can we do better?
How flawlessly are we executing our processes and
functional best practices?
Do we have the capabilities and the conditions to achieve our
goals?
 Implementing Step 2

• Business and Functional needs from Step 1 Employee Survey

• Current results (e.g. Function KPIs, NSAT, relevant
external information)
What we • Execution of current processes
need • Execution of best practices (e.g. MBP, ICP, NPDI, Globe)
• Current initiatives
• Compliance & Leadership Development Self-assessment
• Audit results

• Share agreed Business needs relevant to the Function

• Review all inputs
What we • Perform SWOT analysis

do

Internal
Strengths Weaknesses

• SWOT analysis

External
What we • Agreement on areas to be focused
Opportunities

Positive
Threats

Negative

get considering the Business and Functional needs

 Let’s perform the SWOT!

STRENGTHS WEAKNESSES
 What do you do particularly well?  What do you not feel as comfortable doing?

 What do you do that is unique in the “marketplace”?  What needed resources, staff, or skills

 What do your customers/ clients/ patrons ask for you to do do you lack?

over and over again?

 What do you have right tools/resources to accomplish?

 Are there new situations coming down the road that you can  Who is your competition and what do they offer that you

take advantage of (new programs being offered, new faculty can’t do as well or at all?
joining the department, new tools available to you)?  Are there “environmental” changes or situations that could

 Are there gaps in the “market” that you can fill? cause problems for you and your programs?

 Are there partnerships that might be fruitful?  What other roadblocks are being thrown

in your path?

OPPORTUNITIES THREATS
Step 2 - Summary

Analysis of our current results and

relevant external information

Internal
Strengths Weaknesses

External

Opportunities Threats

Positive Negative

Analysis of how well we execute current Agreement on areas to be focused

practices and processes considering the Business needs
 Step 3 - Agreement on Key Priorities that
will make a difference

1 2 3 4 5 6
Understand Understand Define Build a plan Validate &
Business and current Key Priorities Implementation
to achieve the Communicate
Functional situation & Reviews
Key Priorities the OMP
needs

Guiding Questions
What are the main focus areas to support the Business and
Functional needs?
What can we as a Function improve to contribute to the
Business needs?
FOCUS, FOCUS, FOCUS – What are the 3 to 5 Key Priorities
that will make a difference in the next three years?
 Implementing Step 3

• Agreed Business and Functional needs

What we (from step 1)
need • Agreed areas to focus
(from step 2)

• Brainstorm and agree as a Team on the 3 to 5

Key Priorities for the next three years
What we
do

• Agreed 3 to 5 Key Priorities

What we
get
What makes a good Key Priority?

•Is an area requiring focus in order to support the Business /

Key Functions in delivering their objectives
•It should be a positive business-based statement
Priority •Each Key Priority is broken down into Drivers

A good Key Priority clearly states the “What” and “Why”

Key Priority
From To
Brand Awareness Increase brand awareness
Invest in communication to become category reference brand

“What” refers to what are we going to improve

“Why” refers to the link to the next level above (MWB, Market/SBU Key
Priority)
Let’s agree on the OMP Key Priorities!
 Step 3 - Summary

Business and
Functional Current Situation
& Opportunities Key Priorities
needs

Some Examples of Key Priorities

• Increase brand awareness to become category
reference brand
• Dominate point of purchase to increase Market
share
• Develop a High Performance Organization to
continuously deliver the Company Model
• Improve people competences and managerial
skills to sustain a high performance
organization
• Provide quality and timely information to
support delivering the Company Model
• Ensure being brilliant at the basics to be fully
compliant with the function
 Step 4 - Develop a draft OMP

1 2 3 4 5 6
Understand Understand Define Build a plan Validate &
Business and current Key Priorities Implementation
to achieve the Communicate
Functional situation & Reviews
Key Priorities the OMP
needs

Guiding Questions
What are the main areas of improvement that will contribute to the
achievement of the Key Priorities?
What initiatives are currently in progress linked to our Key Priorities?
How can we evaluate if we are being successful on achieving the Driver?
What are the activities that need to be executed to achieve the target?
What are the capabilities our people need to develop to support the
successful execution of the OMP?
 Implementing Step 4

• Key Priorities (from step 3)

What we • Current situation (from step 2)
need

• Identify Drivers, measures, baselines and

targets
What we • Define activities, milestones and timeline
• Review and prioritize activities
do • Plan Capability Building
• Construct a visual OMP Draft on a board

• Well constructed draft of OMP Board

What we
get
What makes a good Driver?

• Prioritised areas that contributes to the achievement of a Key

Priority
Drivers • Drivers are tracked by a Measure
• Each Driver is broken down into Activities

A good Driver clearly states the “What” and “Where”

Driver
From To
Communication Invest in communication
Engage consumers in Kit Kat Brand

“What” refers to what are we going to improve

“Where” refers to an specific area of improvement (Department, Category,
Brand, Area, Region, Customer)
Tips & traps when defining the Drivers

Tips Traps
• Phrase them in business terms
reflecting specifically the purpose,
(what are we going to improve and
where)
• Ensure Drivers are areas of • Drivers not to be confused with
opportunity, which if addressed, will activities, projects, tools or
ensure achievement of Key Priorities practices, since these can be a
• Remember the importance of having mean to achieve a Driver
translated Drivers, relevant for the • Assign high level measures to
level and not only do and force a Drivers, in that case reflect if the
copy/paste right Driver has been identified and
• Ensure to prioritize if you have initially the team can influence it
identified many Drivers; Focus on few
but impactful Drivers
• Aim for 1 Measure per Driver
• Use tools to generate Drivers such as
Pareto and contributor analysis
 Important to understand the purpose to
have all OMP Elements
• Quantitative or qualitative indicator to keep track of performance; it shows
Measures weather we are achieving the Driver or not

Baseline • Current state or starting point of the measure and is used as a point of reference

• Desired future state of a measure after the completion of the related activities
Target • A quarterly/annual target should be defined for every measure

• Team efforts that have a clear deliverable, responsible and defined deadline to
Activities be accomplished
• They will impact the measure defined for the Driver

Milestone • The point that marks the completion of a set of activities or a phase

Capability • Development actions to enable people to successfully execute the OMP activities
Building
There are different ways to represent an activity
in the OMP

Activity or Milestone:
Specific activities to be
performed or Milestones to be
achieved. Easy to know what
to review every month

Long term activity: For

projects that take more than
one month. To manage
details of the activity a
separate tracking system can
be used.
Tips & traps when defining the activities

Tips Traps
• Be clear on the improvement
we want to achieve • Avoid activities that reflect
• Focus on improving our routine work
execution of current practices • Avoid repetitive activities
and processes (doing what we • Avoid activities that will have
do, better) low or no impact on the
• Challenge if the activity will measure
have an impact on the • Watch out for vague
measures wording, make it relevant
• Aim for projects, actions or and meaningful
breakthrough tasks, which will • Avoid long term activities
impact the measure without clearly defined
• Ensure the activities are within milestones
control of the team
• If you have data, you can use it
to define a target for the activity
Let’s build our draft OMP!
Step 4 output is a well constructed 3
year OMP draft on a board
3 Year Horizon

Measures, baseline and targets

Measure assigned per Driver with
Key Priorities targets set over 3 years (broken
Focus on 3-5 Key down by quarter for the first year )
Priorities

Drivers Activities and Milestones

Drivers per Key Clear description and
Priority (up to 5) person responsible
 Step 5 - Agreement on OMP and communicate

1 2 3 4 5 6
Understand Understand Define Build a plan Validate &
Business and current Key Priorities Implementation
to achieve the Communicate
Functional situation & Reviews
Key Priorities the OMP
needs

Guiding Questions
Will this OMP deliver the expected results?

Has the OMP been presented and validated with the relevant
stakeholders?

What is our communication strategy?

Is the OMP properly communicated throughout the Function?

 Implementing Step 5

• 3 year Draft OMP with Key Priorities,

Drivers, Measures, Capability Building,
What we Activities (Step 4)
need • Potential communication forums

• Confirm whether the OMP will deliver the

expected results
What we • Share OMP to get Management agreement
• Sign off OMP with Line Manager
do • Establish and agree on Communication Strategy

• Validated OMP
What we • Professionally visualized OMP
get • Agreed Communication Strategy
• Everyone understands Key Priorities
 Validated, visual and professional OMP

3 Year Horizon

Measures, baseline and targets

Key Priorities Measure assigned per Driver with
Focus on 3-5 Key targets set over 3 years (broken
Priorities down by quarter for the first year )

Drivers Activities and Milestones

Drivers per Key Clear description and
Priority (up to 5) person responsible
The OMP must be communicated...
...in a way that engages people

Some ways to communicate

✓ A3 format to communicate the OMP story

✓ Printed materials: Handouts, banners, posters

✓ Internal communication: Intranet, e mails,

newsletters, sessions

✓ Special Events: Conventions, monthly

meetings, launching event type, periodic brief
 A3 format paper to communicate OMP

A3 BENEFITS: Step 1
Business and Functional needs
• Communicate “OMP & context
story” in a visual
and concise way Step 4
High level plan
which everyone Step 2 Incorporate a Gantt chart or similar diagram
Current Situation
can understand Show the current issues &
that shows Key Priorities, Drivers,
measures, targets, as well as main activities
opportunities visually by using charts,
• Provide a high level graphs, drawings, maps, etc.
summary of OMP
with elements of the
first 5 steps
Step 3
• Standard Key Priorities
Communicate aligned and agreed
communication Key Priorities in a visual way
Step 6
Communicate progress
across all levels Update after every QOR to show quarterly relevant
results and main challenges in the achievement of
the OMP activities

Step 5 Sign off from Line Manager

A3 Good Example: F&C Iberian Region
 Step 6 – Execute, review and use OMP as a
management tool

1 2 3 4 5 6
Understand Understand Define Build a plan Validate &
Business and current Key Priorities Implementation
to achieve the Communicate
Functional situation & Reviews
Key Priorities the OMP
needs

Guiding questions
Is there a regular review structure in place?

What is the status of our activities in the Operational Master Plan?

Have we achieved the milestones?
Are we meeting the targets or do we need to add further activities?
Have we communicated the changes in OMP Key Priorities and
Drivers to other levels?
 Implementing Step 6

• OMP validated and professionally visualized

What we • Communication Strategy in place
need

• Track OMP monthly and Review OMP quarterly

(re-confirm Key Priorities, Drivers, measures and
activities)
What we • Update OMP with any changes
do • Apply OMP Guidance Tool
• Communicate changes in the OMP

• OMP actively used as a management tool

What we and integrated into MOR / QOR structure
• Successful execution of strategies,
get generating expected results
 How to manage an activity in the OMP

Activities:
Create competency matrix for 6 expansion line TPM (A)

Measure : Target : Actual :

Self sessesment
Achieved?
Activity or Milestone: 100% 90%
Specific activities to be Delayed?
PIC: Start Date Due Date Start Date Due Date
performed or Milestones to be Orig Plan Status Revision Status Orig Plan Status Revision Status Three red marks?
achieved. Easy to know what AAA Challenge if it’s important
to review every month to keep it or change
What to do if we have an overdue
Long term activity: For activity…
projects that take more than • Define action to recover delay
one month. To manage Achieved? • Ask what support is needed, what is
details of the activity a stopping us?
Delayed? • Challenge if this activity is important
separate tracking system can
or if we need a different one
be used. • Redefine timing and reflect if next
milestone and quarterly target will
be affected
Agenda

Objectives

Introduction to Operational Master Planning (OMP)

OMP development process

OMP at different levels

Key messages
Where can we develop an OMP?

We start with the

Management OMP level
Management Team
In addition, other levels might Operational Master Plan

see a value to create their

own OMPs

Middle Management Middle Management Middle Management

OMP OMP OMP

Team A Team B Team C Team D

OMP OMP OMP OMP
 How do we cascade OMP Key Priorities and
Drivers to the next level?

A B C
Management Key Other
Priorities Function/Business
OMP

1. During Cascading, ensure

Middle Mgmt. Business Unit OMP Key Priorities
Key Priorities A B C B C X B Y Z A C W are clearly reflected to Middle
Mgmt. and Teams OMP

2. For Key Priorities not relevant to a

level, a new Priority can be
defined specific to the Function or

b O P
linked to a Corporate Function
Team Key Priorities a b c b c L b M N
3. Middle Mgmt./Teams should
clearly understand the link with the
OMP Key Priorities above

Questions to answer when cascading Key Priorities to next level:

• What are the Management Key Priorities and which ones can we
influence?
• How can we contribute?
• Are they actionable for us?
• What are we going to do?
Agenda

Objectives

Introduction to Operational Master Planning (OMP)

OMP development process

OMP at different levels

Key messages
 OMP Development Process Quiz

1 2 3 4 5 6
Understand Understand Define Build a plan Validate &
Business and current Key Priorities Implementation
to achieve the Communicate
Functional situation & Reviews
Key Priorities the OMP
needs

Gather and Reflect on the reality Agreement on 3 to 5 As a team, break Agreement on OMP Execute activities
WHAT WE DO

understand Business in terms of current Key Priorities that down Key Priorities Develop and execute and perform regular
strategies and results and ways of will make a into Drivers, define a Communication reviews
Functional working difference Measures to track Strategy Update and
objectives progress and communicate
Activities to execute changes in the
OMP

• Business and • SWOT analysis • Agreed 3 to 5 Key • Well constructed • Validated and • OMP actively
WHAT WE GET

Functional needs • Agreement on Priorities draft of OMP Board Professionally used as a

(Relevant to the areas to be visualized OMP management tool
team) focused • Communication • Successful
Strategy execution of
strategies,
generating
expected results

• BEMs • BEMs
• Functional Head
WHO

• Functional Head • Functional Head

• Management Team members
• Function GA Pillar • Management Team members
• Function GA Pillar Leaders
Leaders • Function GA Pillar Leaders

* example for a Function OMP on Market level

 Different tools can be used during each step

1 2 3 4 5 6
Understand Understand Define Build a plan Validate &
Business and current Key Priorities Implementation
to achieve the Communicate
Functional situation & Reviews
Key Priorities the OMP
needs

Gather and Reflect on the Agreement on As a team, break Agreement on Execute activities
understand reality in terms of 3 to 5 Key down Key Final OMP. and perform
Business current results Priorities that Priorities into Develop and regular reviews.
strategies and and ways of will make a Drivers, define execute a Cascade OMP
Functional working difference Measures to track Communication Key Priorities and
objectives progress and Strategy Drivers to all
Activities to relevant levels
execute
Tools
60 100%
90%
DF Accuracy
50 80%
70% OP 1
40 Accuracy OG
60% Accuracy
Driving ONE
30 50% number principle
40%
20 30% Sales Mix
20% Over optimistic
10 volume forecast Wrong Trade
10% Spend
Internal

0 0% allocations
Lack of Visibility
of
A B C D E F G H I Stock- in-Trade
Strengths Weaknesses Lack of
Challenge in
tegic? / MSR
/ More Stra
High Priority Split Stock- in -Trade
High Simplify or analysis
Do It!
P1
P3
External

P2 P7
P6
Impact

Opportunities Threats Drop

no
Execute if
rities
other prio
P4
P5
Positive Negative
High
Low
Low Effort

- Business - SWOT - Brainstorming - Pareto - OMP template - OMP Coaching Tool

Alignment Survey - Brainwriting - Contributor Analysis - OMP A3 template
- Impact x Effort
Key messages

Operational Master Planning helps ensure that the Strategy is

executed at all levels of the Organization

The process to create the OMP is as important as the output to

ensure buy in and alignment

OMP is not to manage routine work, it is improvement work

The real value of an OMP is perceived when it becomes a living

document, tracked on a monthly basis

OMP reviews are fundamental to guarantee its still relevant and it

impacts on the Business and Functional needs