Scenario planning.docx - Definition Scenario planning(sometimes called \u201cscenario and contingency planning\u201d is a structured way for organisations to

Scenario planning.docx - Definition Scenario...

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_ 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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