Under such circumstances let’s look at few uncertainties which has happened in recent times:
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
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