what is Scenario Planning?
Scenario planning is a planning tool used to make flexible long-term plans to deal with major, uncertain shifts in the organization’s environment. It is a structured way for an organization to identify and gain a deeper understanding of the underlying major drivers of change, think about how those potential changes may impact an organization, determine what is required for the organization to succeed and develop the strategy accordingly.
Benefits of Scenario Planning :
There is no doubt that companies can gain benefit from scenario planning, and here are the several strengths of scenario planning.:
- System Thinking : the “scenario planning” can provide manager a preventive mechanism , before problems occur, manager can deduction the possible scenarios based on a series of logic and empirical facts through the business acumen and the immediate perception. In addition, through scenario planning, managers can use systems thinking, take into account the various factors which they think will influence the decision to make a overall well-depth analysis, and to avoid narrow personal bias.
- Optimal Allocation of Resources : companies can predict the possible future scenarios, so that managers can be more aware of the external environment and their company’s status and future directions therefore they can match internal resources to external environment to allocate the resources more effective and rational.
- Risk Reduction : Scenario planning help us understand today better by imagining tomorrow , it is good to help organizations deal with the future uncertainties by aware of the ‘weak signals’ and let them get better prepare to handle new situations to keep business alive and flourishing.
The Outcomes of Scenario Planning
Our foundational outcomes will help your organization to support your vision of success:
- Build an Articulated Plan : The obvious place to start during the planning process is building a plan. It’s the foundation that articulates where your organization is going and why.
- Focus on Strategic Differentiation : We Build a plan that’s focused on your strategic differentiation. A generic plan that matches your competition isn’t going to do you a bit of good. We Focus our plan on what you’re best at, how you’re going to play, and what you’re going to do to win. We’ll complete research from a competitive, market, and customer perspective to complete this outcome.
- Align Your Organization: We Align your organization begins by taking the big ideas in your strategic plan, the big priorities you’re focusing on, and breaking them down through the organization.
- Agility and Organizational Transformation : For planning to reach its ultimate outcome, we put a process around managing it so it doesn’t just sit on the shelf. we make it dynamic by putting a rhythm in place. We recommend a monthly or quarterly review process to talk about progress against plan, make adaptations, and feed it throughout the organization.
Each outcome from the planning process builds upon the previous. Having an articulated plan that focuses on your strategic differentiation, aligning your organization around your priorities, and driving the ongoing execution process will transform your organization.