How do companies prepare against uncertainties? How do companies test crucial business scenarios? finally
“How to plan scenarios effectively?”
The following article talks about approach used by a high-tech company to tackle global downturn effectively.
The high-tech company used effective scenario planning approach to understand the state of mind of competitors and stakeholders. The company ran a war game which helped them understand the complexity of the situation before deciding to leap into the M&A fray, protect its core business, minimize low-end loses, etc. The scenario planning exercise also helped the company de-bias the decision-making process.
The article also raises few important questions- Why this approach is not widely used? Why don’t companies learn much from it? Why do companies rely heavily on standard practices?
The article also talks about key aspects like what kind of games should companies play, who should design it and how often should they play it. Strategic games unlike tactical needs a lot of interaction and attention.
It is very important to translate needs into reality. It could be pointless, in some cases, to run a game to test same uncertainties with same participants and on the other hand, it could be beneficial to repeat a game for organizational alignment. Thus, how often should a company play a certain game is also specific to its need.
At KNOLSKAPE, we believe that scenario planning is essential for good decision making. We help companies cut through the maze of uncertainties and bring the best decisions in sharp focus.