What is SIPOC?

SIPOC stands for Suppliers, Inputs, Process, Outputs, and Customers. It is a high-level process mapping tool utilized mainly to map out what goes in and out of a given process, and how the key steps to run the process are described. It also defines the suppliers as well as the customers related to this process. It is not meant to dive into the very details but rather, to give the improvement team a 30,000-ft view of the key components of the process being studied.

Using SIPOC in Mergers & Acquisitions

The SIPOC tool can easily and quickly provide an M&A team with great insights. In fact, there is probably no better tool to be used when it comes to defining the high-level map of any given process. M&A managers (or sometimes call integrators) are often looking for synergies between the acquiring and the acquired organization, and using a simple SIPOC can help.

Breaking Down a SIPOC for M&A

1. Suppliers (S): who are the providers of raw materials, information, utilities necessary to run the business, and human resources? When looking for synergies, create a list of all providers of any specific input to the process.

2. Inputs (I): what are the specific inputs originated from the suppliers list? How are these inputs sourced and how are they delivered to the process? These are questions to provoke the discussion on inputs however the goal is to simply create a list of inputs.

3. Process (P): what are the key steps in the process? List and number them and ensure that this is not a highly detailed standard operating procedure but rather, a high-level description of the main steps.

4. Outputs (O): what are the products and/or services being created by this process? This includes tangible and intangible items, for example information (in the form of reports) or digital documentation that is to be passed downstream and onto the customer.

5. Customers (C): who are the recipients of these outputs?

The Overall Process

Normally, a SIPOC is created by starting with the Customers list to focus the team on customer needs, then moving backwards to outputs, process, inputs, and suppliers. However, this is a preference not a rule as sometimes a team may find it more intuitive to map the high level process first. As well, it is common to see suppliers and customers being on both sides of the SIPOC. For example, an HR department that provides basic information might receive a final report as a customer.

How Adonis Can Help

SIPOC is an important and easy-to-use process mapping tool that creates a high-level view of any given process. Here at Adonis, we provide training and ongoing support that will help your M&A efforts go smoothly, starting with the understanding of specific key process by the proper deployment of a SIPOC map.