Key Client Issue: Visionary Scenario Planning
The future is inherently unpredictable, forcing companies to conduct strategic planning in the face of great uncertainty. Many companies struggle to plan for long-term threats and opportunities, while balancing critical short-term priorities. Scenario planning is a structured approach and set of methodologies that allows you to explore, and plan for, a series of high-impact, uncertain—yet plausible—future states. This in turn enables you to make decisions today that will make your company more profitable and competitive in future.
- Developing contingency plans that take effect when pre-established “triggers”—indicating a scenario is coming to fruition—are identified
- Changing your current investment decisions to address potential challenges and opportunities your company may face in the future
We believe that scenario planning is most effective when it (1) focuses on no more than four high-impact but uncertain scenarios, and (2) involves the senior executives who are responsible for implementing the decisions prompted by scenario planning.
Frost & Sullivan first helps clients better understand the technological, economic, regulatory, and social forces that drive the current business environment. Then we work with the client organization to understand how these forces could shift in the future and develop together a series of uncertain but plausible scenarios that could take place in the next decade. Exploring these scenarios helps our clients devise multiple plans for the future, which they put in place when they see signs of a certain scenario coming to pass.