Wednesday, 15th March 2023
Whether originally intended as a blessing or a curse, we are most certainly living in interesting times. Brexit, global pandemic, overnight digital and workplace transformation, war, cost of living crisis, looming recession, endless strikes all contribute to uncertainty. And uncertainty complicates organisational planning processes.
It is widely recognised that better planning and business decisions begin with information, and that data driven decision making ensures consistency, increases agility, spots patterns and identifies gaps. Decision makers may instinctively seek increased amounts of data in response to uncertainty, but may do so without a clear understanding of relevant data selection or effective use of this additional information.
Data helps reduce risk
Uncertainty is the absence or dearth of knowledge, information, or understanding. Good data is always required for accuracy. The right data is crucial to ensure relevancy. The right data at the right time can reduce the risks associated with uncertainty. The selection of data utilised in planning and decision making during times of uncertainty needs to be as fluid and changeable as the circumstances creating the uncertainty.
Strategic planning is still crucial
There are many temptations to defer planning and decision making during times of uncertainty. Planning may seem futile and decisions may seem overwhelming or even impossible. However, without a plan in place, your organisation will be driven by circumstances rather than managed by rationale. In fact, it is imperative that organisations continue strategic planning even when that means building added flexibility into those plans.
Adapting the planning process for current circumstances
Uncertain times mean exceptional challenges, unknowns, and even opportunities. The status quo from reliable cycles may no longer function. Traditional strategic planning makes assumptions about reliability, predicting that next year will follow a well established pattern. Scenario planning focuses on constructing multiple strategies to manage possible events. By conceptualising future scenarios, it is possible to envision the factors that will drive circumstances and in turn inform better decision making.
During periods of uncertainty it is easy to focus exclusively upon all that is uncertain. This can lead organisations to manoeuvre reactively rather than proactively. Agile strategic planning, alongside the incorporation of the right data at the right time to reduce uncertainty, will help ensure organisations survive and even thrive during these interesting times.