-: For companies today, nothing is as costly as inaction.
Failing to undertake scenario-planning
is not about failing to predict the future.
It's about thinking about opportunities,
and risks that might lie ahead.
So, what's the secret of success for good scenario-planning?
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Navigating today's unprecedented complexities
requires leaders to develop scenarios
on how their operations, the economic context,
might evolve, and most importantly,
understand the opportunities, and the risk
that these scenarios present to their organisations.
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Concrete action obviously depends very much
on your starting point.
Well-prepared companies who are in
a strong, fortress position,
might be looking into proactive moves like
anti-cyclical M&A in order to benefit
from relatively low evaluations
to build their competitive positioning.
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Well-prepared companies might also use these times
to leapfrog competition by trying out new business models,
investing into their innovation and tech agendas,
by driving ESG forward, and investing into HR.
However, at-risk companies should clearly focus
on achieving a full transformation
to regain financial resilience,
in order to be able to reinvest
into the mid- and long-term again.
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