Happy Earth Day. The day we celebrate this little blue marble we all enjoy living on.
I found this fascinating as I was reading about it this morning — there are so many elements that make up the scenario of a thriving Planet Earth.
Less threats because we’re in the sticks of the Milky Way. The sun is stable and allows us to enjoy a lot of liquid H2O. Earth’s magnetic field helps deflect harmful radiation that would fry us. Our atmosphere traps heat so we don’t freeze to death. Nearby neighbor Jupiter keeps huge asteroids and comets from crashing into us (thanks, Jupe).
Those are some ideal conditions. Change even one of them and life would be much different for you and me.
The thing is, the possibility for cataclysmic events to occur is very real. Unfortunately, there’s not much we could do to prepare for said events (even if sci-fi movies like to make us believe that’s possible).
But there are things we CAN prepare for. Like disasters. We can’t always predict when they’ll happen, but we can plan and build for if they do.
The same goes for your Gulf Coast business. Challenges are inevitable. Take Tesla for example.
Tesla’s stock dropped around 40 percent this year, due to investor concerns that demand for the elite EVs also dropping. Now, Tesla is cutting prices, laying off employees, and recalling some of its vehicles.
This is the type of scenario all business owners fear, isn’t it?
And while you hope it never happens, you can be prepared for IF it does. I’m not sure if Musk’s team already had a plan in place for this type of scenario, but YOU definitely can.
Five Reasons to Take Scenario Planning Seriously in Your Gulf Coast Small Business
“There is very little that can be done with the past, but anything can be done with the future.” – Marianne Williamson
It’s easy to fall into the pattern of playing whack-a-mole with your business. After all, the events of the last four years have provided a steady stream of problems to fix: unprecedented pandemic restrictions on doing business, frustrating supply chain challenges, rising prices from inflation, a new mentality in the workforce further reducing employee longevity.
And that’s when scenario planning becomes relevant. Have you done this recently in your business?
It might feel too time consuming or impractical, considering the other fires you’re fighting right now. But it’s also important to consider that the US military, Apple, UPS, and Shell Oil have utilized scenario planning to weather some pretty significant storms.
Does scenario planning have to be overcomplicated? You’re preparing for a range of possible futures by exploring different uncertainties, identifying potential challenges and opportunities that could arise as a result, and developing strategies to tackle them.
I know, that takes time. But consider its advantages…
You could boost innovation. A study by a leading academic journal found that companies using scenario planning were 25 percent more likely to introduce significant product or service innovations compared to those without.
You could create more buy-in from employees. A report by Deloitte revealed that businesses that actively use scenario planning have 1.5 times more engaged employees.
You could actually be prepared for a crisis for once. Research suggests that companies with a scenario planning practice in place are twice as likely to report feeling well-prepared for a crisis.
Your business could suffer less. A study by Booz Allen Hamilton found that companies that actively use scenario planning reduced the negative financial impact of unexpected events by 30 percent.
You could finally get beyond the one-year business plan. Studies have shown that businesses that engage in scenario planning demonstrate a 33 percent increase in the focus on long-term strategic goals compared to those without.
Scenario planning might seem complex, but there are plenty of resources out there to help you get started. Including me. What challenges do you see on the horizon for your business? Let’s talk about them. I can probably name some that you haven’t thought of yet.
Always looking ahead,
James Thomasson
