Now that you are convinced of the importance of scenario planning, you’re probably wondering on how to get started. A few steps to consider:
Look for triggers: If you want to improve your scenario forecasting, start by brainstorming business factors that can impact your bottom line. These include customer desires and expectations, supply chain issues, cost variables, and capital availability. For best results, consider a wide range of factors from the common to the less expected.
Check your data: Your scenario planning is only as accurate as the quality of your data. If you want to ensure your forecasts are based in reality, it’s crucial to gather up-to-date, reliable information from multiple sources. The most agile leaders collect a wide range of information from management accounts, market research, government sites, press accounts, and more.
Build an adaptable strategy: Of course, identifying scenarios is only the beginning. Your ultimate goal is to create detailed, agile strategies that you can adapt to whatever life brings your way. When building your strategies, aim to adjust current policies and procedures based on your findings. If you start changing policies, be sure to monitor the effects in real time so your team can continue making changes. When done correctly, these strategies will act as insurance policies so you aren’t caught by surprise in the event of either negative outcomes or positive opportunities for your business.