_ Definition :
Scenario planning (sometimes called “scenario and contingency
planning”) is a structured way for organisations to think about the
future. A group of executives sets out to develop a small number of
scenarios—stories about how the future might unfold and how this
might affect an issue that confronts them. The issue could be a
narrow one: whether to make a particular investment
_ Driver :
Driver-based planning is an approach that focuses on a set series of
KPIs and drivers that actually matter. Once these drivers are
identified, models are created around them. The models are tied into
the overall operational strategy and used to analyze and predict
future performance.
Implementing a driver-based planning system will not only
streamline your budgeting process, but will also help with strategic
planning over the long run.
External drivers:
• GDP growth
• Demographic change
• Market size and growth
• Commodity prices
• Consumer spending patterns
• Rate of technological innovation
• Inflation
• Exchange rates
_ Purpose :
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- Fall '19
- Management, Forecasting, Qualitative Research
