“Creating Value TOGETHER”
JOINT BUSINESS PLANNING
INDUSTRY REPORT SPONSORED BY:
NACDS & The Partnering Group
APRIL, 2014
JBP ToolKitHELPFUL TOOLS
JBP ToolKitHELPFUL TOOLS
2
Key JBP Meeting Agendas• Leadership Approach• Advanced Approach• Foundation Approach
JBP Output Templates• Insights Summary• Core Finacncial• SWOT Analysis• Scorecard• Scorecard Build• Joint Initiative Prioritization• Initiatives Summary• Plan on the Page• Plan Implementation
This report contains diagrams and templates copyright of TPG. © 2014 The Partnering Group Inc. For a copy full JBP Report please contact:
• Managing Director -Manufacturer
Mike Holcomb Peter Leech
• Managing Director -Retail Practice
**This report, its recommendations and its toolkit are provided for information purposes only and their use offers no guaranteed financial or business outcomes.
Creating Value Together
3
J B P T O O L K I T
JBP ToolKitHELPFUL TOOLS
JointBusinessPlanningLeadership level Key Meetings/Sessions
Creating Value Together
FirstKickOffMeeting #1example “Working Agenda”
4
J B P T O O L K I T
JBP ToolKitHELPFUL TOOLS
Creating Value Together
DiscoveryMeeting #2example “Working Agenda”
5
J B P T O O L K I T
JBP ToolKitHELPFUL TOOLS
Creating Value Together
InitiativeplanningMeeting #3example “Working Agenda”
6
J B P T O O L K I T
JBP ToolKitHELPFUL TOOLS
Creating Value Together
QuarterlyreviewMeeting #4example “Working Agenda”
7
J B P T O O L K I T
JBP ToolKitHELPFUL TOOLS
Creating Value Together
JBP–KeymeetingsAdvanced level
8
J B P T O O L K I T
JBP ToolKitHELPFUL TOOLS
Session 0 Discovery, Planning
Preparation
Session 1.5 Initiative,
Scorecard Updates
1. Discover,Initiative Planning • Information sharing• SWOT Discussion• Key Opportunities• Finalize Strategies• Finalize Initiatives• Finalize Joint Scorecard
Monitor & Renew • Review of executionplans • Due dates• Review of results andadjustments
Manufacturer Internal
Joint Sessions & Deliverables
Session 0 Discovery, Planning
Preparation
Session 1.5 Initiative,
Scorecard Updates
Retailer Internal
Files Shared for Pre-
Read
Strategy &
Initiative List for
Pre-Read
Meeting #1 Bi-Annual Meeting
Creating Value Together
Discover,initiativeplanningmeeting #1 Advanced levelexample “Working Agenda”
9
J B P T O O L K I T
JBP ToolKitHELPFUL TOOLS
Topic Objectives Format Duration
Introductions / Meeting Purpose
Introductions Review objectives for meeting
Introduction/Objectives By Retailer
15 minutes
Marketplace Landscape Review
Industry Landscape/Economics Key Trends / Business Drivers Marketplace Assessment – Category
Dynamics
Presentation by Manufacturer
15 minutes
Vision & Objectives Current State Assessment
Scorecard Review Review business by category
Category Vision / Objectives (Retailer * Manufacturer)
Current State Assessment 15 minutes
Strategies / Initiatives
Review Category Strategies and Initiatives presented by both Retailer and Manufacturer (to include Shopper Marketing)
Gain Alignment of Strategies & Initiatives – Assign Initiative Ownership
Presentation By Manufacturer Facilitation Workshops to flush out ideas Initiative Ideation & Build Out Initiative Planning & Roles 3hrs
Open Items and Next Steps
Discuss open items Align on next steps Secure next Meeting Date and Location
Wrap up and Close
15 minutes
Creating Value Together
Bi-annualreviewmeeting #2 Advanced levelexample “Working Agenda”
10
J B P T O O L K I T
JBP ToolKitHELPFUL TOOLS
Topic Objectives Format Duration
Introductions / Meeting Purpose
Introductions Review objectives for meeting
Introductions/Objectives By Retailer
10 minutes
Initiative Review
Update on Initiative Results to Date Scorecard Metrics What’s working/ not working? Issues that need to be resolved Help needed from the Team Recommended changes to the Initiative Plans
Finalize Implications: Changes toFinancials and Timing
Presentation by Initiative Owners(shared between Manufacturer andRetailer)
2 Hours
Initiative Prioritization
Discuss any changes needed to theprioritization of each Initiative (ByCategory, Across Categories )
Manufacturer & Retailer Collaboration
30 Minutes
Open Items and Next Steps
Discuss open items Align on next steps
Wrap up and Close
15 minutes
Creating Value Together
JBP–AnnualToptotopmeetingFoundation level
11
J B P T O O L K I T
JBP ToolKitHELPFUL TOOLS
Session 0 Discovery, Planning
Preparation
1. Discover, Initiative Planning,Align• Information sharing• SWOT Discussion• Key Opportunities• Finalize Strategies• Finalize Initiatives• Finalize Joint Scorecard• Gain Alignment
Manufacturer Internal
Joint Sessions & Deliverables
Session 0 Discovery, Planning
Preparation
Retailer Internal
Files Shared for Pre-
Read
Annual Top to Top Meeting
Creating Value Together
JBP–AnnualToptotopmeetingFoundation level
12
J B P T O O L K I T
JBP ToolKitHELPFUL TOOLS
JBP Single Meeting Execution
Topic Objectives Format Duration
Introductions / Meeting Purpose
Introductions Review objectives for meeting
Introduction/Objectives By Retailer5 minutes
Brief Marketplace Landscape Review
Industry Landscape/Economics Key Trends / Business Drivers Marketplace Assessment – Category
Dynamics
Presentation by Manufacturer10 minutes
Strategies / Initiatives
Review Category Strategies andInitiatives presented by both Retailerand Manufacturer (to include ShopperMarketing)
Gain Alignment of Strategies &Initiatives – Assign Initiative Ownership
Presentation By Manufacturer Facilitation Workshops to flush out
ideas Initiative Ideation & Build Out Initiative Planning & Roles
2 hours
Open Items and Next Steps
Discuss open items Align on next steps Secure next Meeting Date and Location
Wrap up and Close10 minutes
Creating Value Together
Insights Summary
13
J B P O U T P U T T E M P L AT E S
JBP Workbook
Creating Value Together
JBP–AnnualToptotopmeetingFoundation level
14
J B P O U T P U T T E M P L AT E S
JBP Workbook
JBP Core Financials
Creating Value Together
SWOT
JBP Workbook
15
J B P O U T P U T T E M P L AT E S
Additional Templates
Creating Value Together
Scorecard (Example)
JBP Workbook
16
J B P O U T P U T T E M P L AT E S
Joint Business Scorecard
Manufacturer X at Retailer Y
Supplier $$ Market Share %
Index vs PY
Retailer $$ Market Share %
Index vs PY
$$ Sales Index vs PY
Unit Sales Index vs PY
$$Trade/ Shopper
Marketing Spend Index vs
PY
% Cost Index vs PY
Days of Supply Index vs PY
Inventory to Payables Ratio
Index vs PY Fill Rate
Shopper Satisfaction
Score (for major
department) 13 14 YTD 13 14 YTD 13 14 YTD 13 14 YTD 13 14 YTD 13 14 YTD 14 YTD 13 14 YTD 13 14 YTD 13 14 YTD
Category x (3.5%) 5.8% (4.5%) 7.8% (4.5%) 7.8% (1.1%) 12.4% (1.1%) 12.4% (1.1%) 4.9% 2.6% (3.3%) 14.2% 88.8% 88.0% (7.1%) (4.2%) Category x (12.1%) (10.0%) (14.1%) (11.0%) (14.1%) (11.0%) (12.0%) (10.7%) (12.0%) (10.7%) (17.3%) (14.5%) (5.1%) (13.6%) (11.3%) 88.8% 88.0% 4.9% 2.6% Category z (0.6%) (1.1%) (0.6%) (1.1%) (0.6%) (1.1%) 4.1% 1.6% 4.1% 1.6% (7.1%) (4.2%) 39.0% (0.0%) (6.6%) 88.8% 88.0% (14.5%) (5.1%)
Region or Banner (4.5%) 7.8% (4.5%) 7.8% (4.5%) 7.8% (1.1%) 12.4% (1.1%) 12.4% (1.1%) 4.9% 2.6% (3.3%) 14.2% 88.8% 88.0% - - Region or Banner (14.1%) (11.0%) (14.1%) (11.0%) (14.1%) (11.0%) (12.0%) (10.7%) (12.0%) (10.7%) (17.3%) (14.5%) (5.1%) (13.6%) (11.3%) 88.8% 88.0% - - Region or Banner (4.5%) 7.8% (4.5%) 7.8% (4.5%) 7.8% (1.1%) 12.4% (1.1%) 12.4% (1.1%) 4.9% 2.6% (3.3%) 14.2% 88.8% 88.0% - -
Total Direct to Consumer (0.6%) (1.1%) (0.6%) (1.1%) (0.6%) (1.1%) 4.1% 1.6% - - (7.1%) (4.2%) 39.0% (0.0%) (6.6%) - - - - Total Stores (14.1%) (11.0%) (14.1%) (11.0%) (14.1%) (11.0%) (12.0%) (10.7%) - - (17.3%) (14.5%) (5.1%) (13.6%) (11.3%) 88.8% 88.0% 88.8% 88.0%
TOTAL BUSINESS (11.0%) (12.0%) (11.0%) (12.0%) (10.7%) (12.0%) 4.1% 1.6% 4.1% 1.6% (12.0%) (10.7%) (12.0%) (10.7%) (17.3%) 88.8% 88.0% - -
Creating Value Together
Scorecard BuildEnsuring the joint initiatives build to close scorecard gaps
JBP Workbook
17
J B P O U T P U T T E M P L AT E S
Initiative Plan #3
Creating Value Together
18
J B P O U T P U T T E M P L AT E S
Retailer Financial Estimate
(2014 $ Revenue)
Consumer & Shopper Benefit
(Top-Middle-Bottom)
Retailer & Manufacturer
Financial Benefit
(Top-Middle-Bottom)
Probability Of Success (Top-Middle-
Bottom)
Initiative “A”
Initiative “B”
Initiative “C”
Initiative “D”
Joint Business Plan (JBP) Planning Phase Prioritizing the joint Initiatives
JBP Workbook
Initiative Plan #2
Creating Value Together
JOINT BUSINESS PLAN - Initiative Summary Page
Initiative Plan #2
JBP Workbook
19
J B P O U T P U T T E M P L AT E S
Creating Value Together
Plan on a Page
JBP Workbook
20
J B P O U T P U T T E M P L AT E S
Creating Value Together
Plan Implementation
21
J B P O U T P U T T E M P L AT E S
JBP Workbook
**This report, its recommendations and its toolkit are provided for information purposes only and their use offers no guaranteed financial or business outcomes.