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Missing Executive Sponsorship
IBP without sustained executive involvement doesn't fail dramatically. It just slowly becomes irrelevant.
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The Pattern
A supply chain leader — typically a VP or director — recognizes the need for cross-functional planning and launches an IBP process. The first few cycles have energy: peers attend out of curiosity or obligation, decisions get made, and progress feels real.
Then reality sets in. The sales VP skips a month because of a customer crisis. Finance sends a delegate because month-end close overlaps. Marketing never fully engaged in the first place. Within 6 months, the "IBP meeting" is attended by supply chain and a rotating cast of proxies who can't make commitments. The process limps along as a supply chain planning exercise — useful, but not integrated.
Eventually, someone asks "why are we doing this?" and nobody has a compelling answer. The meeting gets canceled or downgraded to a biweekly ops review. IBP is declared "tried and failed."
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Why It's Tempting
- Supply chain sees the need most clearly. They live with the consequences of disconnected planning — expediting, excess inventory, missed shipments. It's natural for them to drive the initiative.
- Asking the CEO to own a recurring meeting feels like a big ask. Especially early on, when the process is unproven and the value is theoretical.
- "Let's prove the concept first." The logic goes: run a few cycles, show value, then elevate. In practice, without executive authority from the start, you never generate enough value to justify elevating.
- Peer-level sponsorship seems sufficient. A VP of supply chain should be able to convene peers. In theory. In practice, peer-level requests compete with every other priority, and attendance becomes optional.
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Why It Fails
No single function can force cross-functional participation. IBP requires sales to share pipeline data, marketing to commit to promotional plans, finance to reconcile numbers, and operations to expose capacity constraints. No VP-level peer can compel all of that.
Without executive authority, conflicting priorities always win. When the sales VP has to choose between a customer meeting and an IBP meeting, the customer wins. That's the right call for sales — but it breaks the IBP process. Only a boss above all functions can make IBP attendance non-negotiable.
Decisions require authority above the functional level. The most valuable IBP decisions are trade-offs between functions: accept lower margins to capture volume, invest in capacity at the expense of short-term profit, allocate constrained supply away from one channel to protect another. These decisions require someone with authority over all functions — typically the GM, BU leader, or CEO.
The process can't self-correct. When IBP falters — bad forecast accuracy, poor meeting discipline, missing data — it needs someone with authority to diagnose and fix. Without a sponsor, problems get worked around rather than resolved.
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What To Do Instead
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Secure the right sponsor before launching
The IBP executive sponsor should be:
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What the sponsor actually does
The executive sponsor's role is not to run the IBP process — that's the process owner's job. The sponsor's role is to:
- Chair the executive meeting — Make decisions, resolve trade-offs, approve the plan.
- Enforce attendance — VP-level peers attend in person, not via proxy.
- Remove obstacles — When the process stalls (bad data, lack of participation, missing resources), the sponsor intervenes.
- Model the behavior — If the CEO treats IBP as important, the organization follows. If the CEO skips, the signal is unmistakable.
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If you can't get a sponsor
Be honest about what you're building. Without executive sponsorship, you can run a useful supply chain planning process — but don't call it IBP. Calling it IBP sets expectations for cross-functional integration that you won't be able to deliver, and the resulting disappointment makes it harder to launch properly later.
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Warning Signs
You might be in this anti-pattern if:
- The most senior regular attendee at the IBP meeting is a director
- VP-level peers routinely send delegates instead of attending
- IBP is described as "a supply chain thing" or "an operations initiative"
- Decisions made in the IBP meeting get overturned in bilateral conversations afterward
- The process owner spends more time selling the meeting than running it
- There's no executive scorecard — because no executive is asking for one
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Further Reading
- Governance & Decision Rights — The RACI framework and escalation paths that depend on executive sponsorship.
- Management Business Review — What the executive meeting should look like when sponsorship is working.
- KPIs & Metrics — The executive scorecard that gives the sponsor a reason to stay engaged.