Last week’s news that David Bowie had passed away was not only sad, but also surprising. And it made me wonder what you do in business when an unexpected event occurs?
Contingency planning and disaster recovery, (particularly with regard to IT) are often talked about. But what do you do in practice?
Clients find it really useful to work through with us exercises such as:
- Scenario planning
- Risk analysis
- Strategic SWOT
In respect of scenario planning, the logic is that you have a business plan, but ask “is it robust enough to deal with whatever happens?” So we test your plan against different meaningful scenarios and weigh up the consequences.
In respect of risk analysis, we use a model called FMEA to define, identify, prioritise and eliminate risk, which clients find powerful when considering general business risks, (such as the loss of a key person), growth and succession/acquisitions planning. By the end of the exercise, clients have generated actions to mitigate risk they’ve identified.
Finally, clients use part of the strategic SWOT exercise to create plans should threats to their business become real whist they still have weaknesses.
And they repeat such exercises annually: because we all know everything always changes.