Scenario Planning | Chief Executive

In a few of my posts the past six weeks, I covered the topic of scenario planning (SP) and how it is a vital component of strategic workforce planning. And while not limited to strategic workforce planning (SWP), SP enables organizations to envision various-plausible (but uncertain) futures and to determine possible responses. These scenarios are based on a set of assumptions related to how certain factors (that impact business conditions) might play out, such as technological advances, new competitors, changing regulations, and successful product launches-to name a few. If the scenario unfolds, a good SP process will have already outlined how an organization will respond. In essence, this preparation enables an organization to critically determine and evaluate responses before the scenario occurs, allowing it to implement responses with speed and at scale–all of which provide an advantage. Within the context of SWP, it is essential to factor in how different business scenarios will result in differences or similarities in how many workers are needed, type of workers (e.g. contingent, full time, etc.) where, when, at what cost, and with what skills, to name a few. This article provides a few insights into what scenario planning is and how organizations can incorporate it into strategic discussions. As HR leaders and talent strategists, we should understand the different business scenarios of our organizations and be able to articulate the workforce implications of those scenarios.