Benefits of Scenario Planning

By Growth Resources, Inc. (Vistage)

“The goal of scenario planning is opening up the mind to hitherto unimaginable possibilities,” Malherbe says, “while at the same time prompting business leaders to question their own basic assumptions about how the world really works.”

Adds Poppei: “As a result of imagining different scenarios, the organization can more readily recognize warning signs as they unfold. By rehearsing different versions of the future, business leaders are better prepared to handle new situations as they arise. They’ve already examined options for actions that offer effective strategies for the future.”

Other benefits of scenario planning:

  • Inspires a sense of urgency about the future
  • Promotes proactive leadership initiatives
  • Offers a forum for CEOs and senior management to communicate their vision to different stakeholders

“By postulating different views of where your business is headed, you gain a sharper sense of the environment you’re working in now,” Malherbe notes. “It’s a great way to avoid being overly conservative in your thinking. You don’t want to limit your organization’s potential in today’s competitive marketplace.”

Through scenario planning, a business can take these pro-active steps:

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