Scenarios Are Critical for Successful Enterprise Planning
The business world is far too complex to have a definitive view of what’s going to happen 12 months down the road. In this environment, scenarios can play an important role, but only if they are part of an overall collaborative approach. With a collaborative approach, scenarios become in effect a short story about what might happen. They present a snapshot of a future business environment encompassing the market, competitors, and potential customers. The scenario is the basis for a model that places the organization into this environment with respect to the product and services it could offer, the price target, and volumes likely to be sold. From this, what-if scenarios can be generated by looking at the changes required for the organization to improve the projected figures and how those changes would be funded.
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