Six questions to ask any decision intelligence vendor, including us.
Planning, automating and deciding are different jobs.
Ask these on your own data, not the vendor's.
1. What happens to what we cannot control?
2. Whose number does it optimize?
3. Where does protection come from, and what does it cost?
4. When does it act, and when does it leave the plan alone?
5. Who sets the limits, and can the system change them?
6. In six months, will we know why we decided?
Planning for one future versus planning for the range.
Single-future planning treats every driver as one number and finds the best plan for that one imagined future. It is precise about a future that will not arrive exactly as drawn.
Planning for the range treats the same drivers as the ranges they are and asks which plan holds up across the futures that could arrive. The work is harder; the answer is one a board can defend.
A plan is numbers for one future. A policy is what leadership wants and will not accept.
When the forecast moves, a plan goes stale and the next one quietly undoes the last one's commitments.
A Decision Policy states the objective, how protective to be and who approves what; the rules beside it state the service promises and limits to honor. Decisions are re-made inside it as the future arrives, so the posture stays consistent while the numbers change.
Judge decisions in the currency the CFO reports.
Many planning tools maximize a service level, a fill rate or forecast accuracy. None is the number the business is judged on.
Economic profit (EVA), profit after a charge for the capital it ties up, puts revenue, cost, working capital and expedites in one currency. Leadership then decides how much weight to give the average year and how much the bad years.