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Scenario planning: what is its importance at the current moment and how to create it?

Predicting the future is an impossible strategy. However, you are able to carry out a plan for each particularity that may affect a business. In this analysis, scenario planning is a tool that is very important for business management.

With that in mind, we have prepared an article with all the information for you to understand how to plan scenarios in your organization. Read this content to the end and put the tips into practice!

What are the current challenges of the market?

There is no way to answer this question without mentioning the COVID-19 pandemic. This new disease brought numerous challenges due to its high infection rate and the need for social isolation. As a result, several businesses and sectors of the Brazilian economy had to close down and not serve customers for long periods.

Consequently, the increase of expenses with the reduction of revenue could only lead to a drop in the profits of companies. The phenomenon of mass dismissal of several employees came back to haunt the market. However, as every problem denotes a possibility of solution, we saw a great transition to the digital world.

Companies started to operate in the online market and found new sales channels to overcome the challenges. All of this reveals how scenario planning can be useful in shaping new paths to be taken.

What are the best practices for carrying out scenario planning?

Now that you have learned a little more about the importance of this project, we will list some practices that cannot be left out of your planning. Check it out!

Define an organizational identity

The company must have the 3 main pillars that guide any business: mission, vision and values. The first concerns the reason for the company’s existence. Then, what it intends to be and, finally, the principles that serve as a guide. With this layout, it becomes much easier to follow the path of growth and commercial management.

Focus on high-level determinants

This tip is essential for structuring your planning. A company has several determinants related to its business. But the focus should be on those that actually bring results and are vital for the correct operation of the company.

Ask the right questions

The success of scenario planning is in asking the right questions. From this, the budget assumptions can be set out. That is, it will be possible to know which factors really matter for your business and direct the work demand to these points.

You can run simulations and test different scenarios to prepare for the challenges that are most likely to happen – all of this having the planning as a guide for the entire process.

Throughout this article, you were able to learn a little more about how scenario planning is a very important tool nowadays. Analyze, research and test the most diverse scenarios of your business.

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