In a rapidly changing environment, businesses that are able to anticipate and quickly react to threats and opportunities are likely to be more resilient and successful.
The implications of the COVID-19 pandemic for economies around the world are starting to become clear, and as businesses move on from their initial fire-fighting period, attention should be starting to turn to how they can survive and then emerge from the crisis to thrive. They should be looking at how they can best leverage high-quality market intelligence and analytics to inform future strategy and decision-making.
Scenario planning has been proven to be one of the most effective management tools in well-governed businesses. Businesses who are able to learn and react at a greater pace than their competitors to the change impacting their customers, suppliers, people and investors, will have a core competitive advantage. Scenario planning has a vital part to play in ensuring that organisations in every sector of the global economy are well placed to overcome the array of possible challenges that lie ahead, while also being able to move quickly to take advantage of growth opportunities.
While scenario planning exercises are highly useful when trading conditions are benign, they come into their own during periods of uncertainty.
Management teams that can effectively anticipate and plan for the most likely potential scenarios when their businesses are operating in highly volatile environments give themselves the greatest possible chance of being ready to adapt to changing conditions faster than their rivals.
Underpinning this agility is likely to be a carefully planned, systematic, data- and evidence-driven approach to decision-making, rather than a reliance on ad hoc predictions and the kind of assumptions that the ongoing pandemic may rapidly be rendering obsolete.
Grant Thornton’s scenario planning framework takes a step-by-step approach to helping businesses build this much-needed resilience:
For many businesses, the current downturn in economic activity means scenario planning is more critical than ever.
A successful scenario planning exercise is not just about identifying threats and new ventures: it also provides practical solutions that allow businesses to mitigate risks, or ensure they are in the right shape to take advantage of those opportunities the moment they emerge.
By working with Grant Thornton’s advisors, businesses can draw on expert guidance and cross-industry insight in areas ranging from cash flow management and debt restructuring to regulatory compliance and operational agility.
For more information please on scenario planning speak to your local Grant Thornton advisor.