As MDM Publisher Tom Gale said a little over a year ago: You can build a plan based on what has happened in the past. But another option is to admit just how much uncertainty there is, and find the best way to manage unpredictability and gain an edge on your competitors.
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Despite strong growth for many distributors, recent economic data has shaken confidence for some, adding uncertainty back into the equation.
One way to manage that: scenario planning.
How can scenario planning help? Adam Fein in Scenario Planning Basics for Distributors says scenario planning can help identify potential threats to your market positions, as well as identify external changes that are causing you to lose market share or margin.
Here are a few other ways that distributors have used scenario planning:
- Make sure that your company's management does not incorrectly assume that the future will be 'business as usual.'
- Help senior management to identify and comprehend possible threats.
- Identify growth strategies for your company.
- Test the success of your company's current strategy in various possible futures.
- Understand and correctly react to new customer buying behavior.
