Operationalizing Scenario Planning: Think-Calculate-Embed We propose a three-point framework to “operationalize” scenario planning (customized from base material of Broetzmann and Goetz), viz:. 3. EMBED: Embedding in Performance and Develop Early-Warning Monitoring Systems The three main activities in EMBED are to: • Decide on relevant strategic options and potential adjustments of the business model; • Translate new insights into action plans; and, • Incorporate into long-term strategic planning and the organization’s culture. Through the interaction of participants and the process of iterations, embedding of scenario planning has actually taken place during the THINK and CALCULATE phase. However, to ensure proper closure of the exercise, a plenary is convened to communicate the decisions made on the strategic options and business model adjustments. This plenary is often accompanied by a separate communication management initiative designed for cascading and synchronicity. Conducting scenario planning as an annual exercise requires sensing the organization’s circadian rhythm. As an example, a calendar-year bank that undertakes its corporate planning exercise from September (preparatory) to November (consolidation, plenary and cascade) may conduct its integrated stress testing in August, followed by the corporate planning that now fully integrates scenario planning as a way of thinking.
Posted on: Thu, 31 Jul 2014 00:38:16 +0000
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