Scenario Planning: Opportunities for Mid-Market Firms
Scenario planning captures uncertainties in ways that traditional forecasting cannot. While forecasting may work well in the short term (6–12 months), it assumes that the immediate future is much like the recent past and therefore trends can be extrapolated. However, over the medium term—four to five years out, depending on the industry—the prevailing conditions that shape the short-term environment may change, creating a whole new, totally unfamiliar playing field for companies. Scenario planning helps companies better prepare for the uncertainties and unknowns of the future.