Scenario planning: One strategy isn’t enough.

As we navigate the world’s uncertainty and complexity, a single plan for what to do next isn’t enough. The best strategy is to have multiple strategies, to cover multiple different scenarios and timelines.

As in, if X happens, we’ll do Y. But if scenario A emerges—then we’ll execute plan B over here and delay C until we get more revenue.

In the absence of clarity and confidence in what the future brings—both in short supply today—it’s critical to invest in the one attribute that will drive success no matter which category, culture or situation we’re in: Flexibility.

This is about being on the front foot. Moving and morphing so you can make the most of changing circumstances. Instead of reacting as if your business is at the mercy of external forces or hunkering down until things look up, being flexible is about taking a wide, optimistic view and a position of power right now.

Given what’s at play in the world, how might we benefit? How can we actively shape the landscape so it’s one that works for us, rather than against? What opportunities already exist that we’re not seeing—and what new opportunities can we create?

Being strategically flexible isn’t the same as being tactically responsive, however.

While the latter will keep an organization visible and delivering and is important to continue, it’s innovative big picture thinking that has real potential to shift the growth trajectory in a major way. In this, we’re modeling a range of scenarios and strategic plays likely to help your business become more robust, profitable and smarter (not just see it simply survive).

There’s a couple of approaches that will help you do this well. 

 1.    Consider cognitive and skill diversity. 

By bringing together people who think differently and are experts in various, complementary disciplines, you’ll generate creative alchemy. They’ll cook up unexpected ideas that are exponentially better—and identify the opportunities and gaps people focused on single functions can miss. Some companies call these “squads” or “think-tanks.” (Don’t have them stop at thinking though. Action is just as critical.)

 2.    Stay light on your feet. 

Be willing to quickly adjust your strategic moves as things change. Think of strategy as an evolving lens and plan tailored to your organization, situation and the environment. What worked nine months ago may no longer fly now, for example, given shifting consumer behavior, budgets and the competitive landscape. It’s an iterative process of conceptual planning and practical redesigning.

3.    Lean on real-time data.

Extract insights on your business, customers and category—these will be some of your best resources. Use the cues you get to sense where things are headed and rethink how your business might respond to those future scenarios.

There’s no one-size-fits-all strategy.

Every business is different. Some categories are booming while others struggle.

But even if your products and services are currently “discretionary” there are things you can do to move towards the “in-demand” end of the spectrum. 

Mapping multiple strategies for multiple scenarios and flexing to fit what happens next will help you get creative if your business is challenged—or continue riding the wave if demand for what you offer is up.