Aggregate Planning – How to Overcome the Mindset and Perils of Detail Dysfunction by Robert Hirschey

New White Paper – Aggregate Planning: How To Overcome the Mindset and Perils of Detail Dysfunction

“Execution should not drive strategy and tactics. Strategy and tactics should drive execution, but all three need to be tied together,” Robert Hirschey writes.

In the white paper, Hirschey describes how reliance on detailed performance data can send companies in the wrong direction for solving performance issues. He describes the differences between aggregate and detail planning.

He also explains how the skills and mindset for aggregate planning must be developed among the leaders of a company. When the mindset and skills are lacking, company leaders experience detail dysfunction. They lose sight of the “big picture.”

“This big picture should be the alignment of current business priorities and activities with longer-term strategic objectives,” Hirschey writes.

Hirschey cites a case example where detailed information misled a company year after year. He tells how the company used aggregate planning over a multi-year planning horizon to evaluate the vitality and sustainability of the business.

Hirschey describes how to use multiple-level planning to combat detail dysfunction. He explains the fundamentals of aggregate planning and the role of Integrated Business Planning in performing aggregate planning.

Multiple-level planning helps to align the type of information and the nature of the discussion so that the right people make decisions at the right level. Ultimately the decisions made at the strategic and tactical levels should drive what is made and sold at the execution level.

“Execution should not drive strategy and tactics. Strategy and tactics should drive execution, but all three need to be tied together,”…

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