In midst of these uncertainties, how do C- Level can ensure the Businesses are sustainable and deliver performance as promised to the shareholders. There is no silver bullet or nobody knows how the future is going to look like in days to come.
As the adage goes, nothing will change in next few days but very soon everything will change.
Given above, how do one plan develop those Business strategies which is sustainable and resilient enough to situations which are not within our control.
Let’s now look how Scenario Planning can help in addressing this situation.
Scenario Planning should combine the hindsight and insights, thinking that no business today operates in isolation and it’s all connected world.
Why: The main reason has been given: the future is not predictable, but we need to make plans nevertheless. But there are other reasons for developing a set of alternative scenarios.
- Possible – “Might Happen” (Future Knowledge)
- Plausible – “Could Happen” ( Current Knowledge)
- Probable – “ Likely to Happen” ( Current Trends)
- Preferable – “Want to Happen” ( Value judgement)
What: Scenario planning” is a strategic approach for making long-term flexible decisions or plans.
- Scenarios are possible views of the world, described in narrative form (stories) that provide a context in which Managers can make decisions
- By seeing the range of possible worlds, decisions will be better informed and a strategy based on this knowledge and insight will be more likely to succeed
- Scenario do not predict the future, but they illuminate the drivers of Change. Understanding them can only help managers to take great control of their situations
Check out this video on Harry Potter Book to understand the basics of Scenario Planning
Click HERE to download the Scenario Planning Data Sheet
How: Scenario Planning has traditionally been conducted via workshop with no tools in place to monitor the SIGN POSTS and take Corrective Action.
We are launching an “Scenario Planning & Execution” App using Anaplan Platform to allow Businesses to perform Scenario Planning
About the Authors:
WOODY WADE heads Wade & Co., a management consultancy focused on business foresight, and frequently speaks on the topic of future trends. With an MBA from Harvard Business School, he has more than thirty years of business experience, specifically in international marketing and strategy development. He has worked for two Swiss private banks; served as a member of the executive board of the Geneva-based World Economic Forum; and was the marketing director of the world-renowned Ecole Hôtelière de Lausanne.
Umesh Biyani has 15 years of work experience in Enterprise Performance Management and Analytics. He holds a Masters degree from IIT Roorkee, and prior to Anaplan worked as Partner and Client Director for EPM Consulting Organization based out of Singapore. He specialized in working with CFOs and finance organization to define their EPM vision. Besides work, Umesh enjoys the gym and meditation.