Managing Uncertainty : Harnessing the Power of Scenario Planning

The competitive dynamics for many firms are rapidly changing, with industry after industry being reshaped and resized by numerous disruptive forces in the form of new digital technologies, deregulation, new business models and the threat of new competitive entrants. A dynamic competitive environment represents a daunting challenge to senior executives and strategic planning teams who have responsibility for the strategic development of the firm, particularly in terms of the future direction, scope and the strategy required to deliver on corporate objectives. With rapid change and uncertainty, there is increased scrutiny on the strategic planning tools that are used to undertake a rational and comprehensive analysis of the competitive dynamics that inform strategy formulation. As such, firms need to consider a critical question when developing their Corporate Level Strategy, that is, ‘how can some long-term certainty in their strategic approach be gained in an uncertain future environment?' An underpinning principle in attempting to answer this question lies in the fact that some strategic planning tools are better equipped to deliver strategic insight than others