Scenario planning:
Scenario planning is identifying a specific set of uncertainties, different “realities” of what might happen in the future of your business.
Scenario planning is a strategic planning method designed to:
Explore uncertainties.
Work out how to protect the business from their worst consequences.
How to exploit any opportunities that might present themselves.
Possible approaches to scenario planning:
Identify possible trends and issues.
Consider possible scenarios.
Identify the most likely scenarios.
Plan responses.
Capitalise on possibly beneficial scenarios.
Risk assessment.
Possible scenarios:
1. Natural disasters.
Multinationals are likely to be more exposed to the risk of natural disasters.
Why?
However, small businesses may also have to react to natural disasters.
Think flooding or COVID19:
2. IT systems failure including cyber attacks.
3. Loss of key staff.
Planning for risk mitigation:
Risk mitigation plans identify, assess and prioritise risks.
Approaches to risk mitigation are given in (b) in the advice from the exam board at the top of the page.
1. Set up in locations not vunerable to flooding or other potential natural hazards.
2. Ensure buildings meet construction codes.
3. Take out adequate insurance cover including 'business interruption cover'.
4. Ensure data is backed up and secure.
5. Organise back up power.
6. Ensure valuable assets are secure.
7. Ensure that there is access to emergency funding.
8. Ensure adequate communication channels are set up.
9. Produce a business continuity plan.
How to get the business 'up and running' again.
2. Formulate recovery strategies.
Find alternative premises / facilities.
Contracting out work.
3. Plan strategies.
Think about recovery teams.
4. Testing and training in the plan.
Business continuity planning website. Details here.
Succession planning:
How should a business should replace a 'leader' who leaves, retires or dies.
Should you appoint from inside the organisation?
What would be the advantages or disadvantages of doing this?
Likely stages in sucession planning for a new 'leader':
Identify the characteristics a successor should possess.
Decide how the successor will be found.
A business may use the (expensive) services of a 'headhunting' consultancy.
Click on the picture:
Undertake a rigorous selection process.
Make the decision.
What are the deciding factors for hiring a CEO? By Rajive Johri:
For more junior positions work shadowing, job rotation or job enrichment may allow a colleague to step in if someone leaves.
When succession goes wrong. Details here.
How should a business should replace a 'leader' who leaves, retires or dies.
Should you appoint from inside the organisation?
What would be the advantages or disadvantages of doing this?
Likely stages in sucession planning for a new 'leader':
Identify the characteristics a successor should possess.
Decide how the successor will be found.
A business may use the (expensive) services of a 'headhunting' consultancy.
Click on the picture:
Undertake a rigorous selection process.
Make the decision.
What are the deciding factors for hiring a CEO? By Rajive Johri:
For more junior positions work shadowing, job rotation or job enrichment may allow a colleague to step in if someone leaves.
When succession goes wrong. Details here.
