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Key Takeaways
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- Discover why the annual operating plan (AOP) continues to be a manual, spreadsheet-driven process.
- Consolidate the AOP into a single system, enabling better coordination and adjustments.
- Employ workforce planning, which is key to understanding how the AOP should change to meet future resource needs.
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The annual operating plan (AOP). Just the words can evoke feelings of dread, exhaustion, and spreadsheet-induced eye strain. For many organizations, the AOP process is a laborious, manual exercise involving hundreds of spreadsheets, countless iterations, and a whole lot of frustration.
The spreadsheet struggle
Each department or business unit creates its own staffing plan, estimates its expenses, and then engages in a back-and-forth with finance to reconcile everything. By the time the final plan is approved, it's often based on outdated assumptions and may not accurately reflect the organization's current priorities.
The myth of inevitability
The biggest misconception is that this is just how AOP has to be. That it's an inherently painful process with no easy solutions. But there's a better way.
Consolidation and coordination
The key is to consolidate the AOP process into a single, integrated system. Here are the keys to making this happen:
- Centralized data: Bring all your staffing data, expense budgets, and strategic goals into one place.
- Real-time visibility: Gain a clear view of your organization's overall resource allocation and financial plans.
- Streamlined collaboration: Facilitate communication and collaboration between departments and finance.
From data to insights
This centralized system should also leverage your existing data to provide these actionable insights:
- Demand forecasting: Analyze historical demand data to predict future resource needs.
- Skills gap analysis: Identify areas where you lack the skills to support your strategic goals.
- Resource optimization: Optimize resource allocation to maximize productivity and efficiency.
The value that these systems offer is insights, which give management teams a fighting chance at being successful.
Stop running your business like separate franchises
Is your organization truly aligned, or is it operating like a collection of independent franchises? Would senior management even move people between business units if they wanted to? An integrated AOP process can help you break down silos and ensure that everyone is working towards the same goals.
Taking control of your AOP
Here are some keys to optimizing your AOP:
- Invest in the right tools: Implement an SPM solution that supports integrated AOP and workforce planning.
- Embrace data-driven decision-making: Use data to inform your staffing and budget decisions.
- Foster collaboration: Break down silos and encourage communication between departments.
The AOP doesn't have to be a painful process. By consolidating your planning, leveraging data-driven insights, and fostering collaboration, you can transform your AOP from a burden into a strategic advantage.
