MORE IDEAS FROM THE ARTICLE
It aims to define your critical uncertainties and develop plausible scenarios in order to discuss the impacts and the responses to give for each one of them. If you are aware of what could happen, you are more likely to deal with what will happen.
It involves identifying a specific set of uncertainties, different “realities” of what might happen in the future of your business.
While providing a set of scenarios, four is a good number to showcase a rich set of plausible futures.
Finance has its own heuristics in a time of uncertainty.
Companies should use data and information technologies to regularly run scenarios to review and challenge economic, business, and sales projections.
Once a strategic plan is set, resources must be aligned to focus on that contribution. Great strategic executives know how to use data to generate new insights about how they and their industries make money. Examining patterns of performance over time — financial, operational, customer, and competitive data — will reveal critical foresight about future opportunities and risks and allow proper resource management.