With much of the unfolding events related to COVID-19, have you considered how your business would fare in a ‘worst case’ scenario? That’s an uncomfortable thought that many would rather avoid – especially when you may feel ‘under-the-pump’.

But scenario planning can actually improve your optimism and outlook, as once you look worst-case scenarios directly in the face, you discover the limit to which a bad situation can play out. That’s good because it’s no longer a subconscious knot in your stomach, but simply an environment that is external to you that you can plan and overcome. Scenario planning isn’t just good business practice, it removes potential stress and takes some of the guessing and fear out of your head.

Disaster Scenario Planning is a vital strategic tool business leaders must consider if your wish to survive and thrive amid crisis. Not only are their threats that can harm your business, but there could be significant opportunities available to those willing to invest the necessary time into good planning.

Have you considered…

Do you have a plan if cash flow dries up for a few months? Could you reduce wastages that leach crucial capital from your business? Can you shift your distribution into more secure markets?

Are your supply chains at risk of being impacted/limited?

Will your operations be impacted if employees must remain home for a few weeks? Can you enable some employees to work remotely? What technology is needed to accomplish this?

Do your workers travel internationally or make regular face-to-face meetings? Could you use video and conferencing call tech to reduce risk?

With so many unknowns, it’s important to evaluate where your business is vulnerable to external factors and how that will impact you if the crisis should escalate. We recommend scenario planning because we can see how the factors should impact you when the level of crisis is low medium or extreme. It can be had to think about worst-case scenarios because it’s too scary. But good planning can go a long way to ensuring the effects of a disaster are well mitigated.

 

DISASTER SCENARIO PLANNING OVERVIEW

Aim: Equip Business leaders with strategic planning tools to survive and identify opportunities amid a coronavirus crisis.

Scope: Identify which planning tools to use at each of the three stages NOW, WHERE and HOW.

Method: Sit down with a Business Improvement Specialist to develop a tailored strategy for the 3 key stages for their business.

NOW

• Diagnostics. Using Growth and Profit Solutions (GPS) Business diagnostic to pin-point the key strengths and weaknesses of your business in relation to your success factors.
• Key Challenges
• Concerns
• Opportunities

WHERE

Scenario Planning. Using the PESTLE method, we evaluate the external landscape that impacts your business Political, Economic, Social, Technological, Legal and Environmental to devise two main conditions subject to change. Analysis of these conditions is done in levels of Low, Medium and High severity to forecast the level of exposure your business could land in.

HOW

From there we link the work in the previous two steps to build a one-page business plan. This plan should be tested against different scenarios to evaluate how robust the business plan is.

• Risk Assessment.
• Waste/Profit Audit
• Growth Plan

We will examine the key aspects of a durable disaster scenario plan examining the current weaknesses and opportunities, your organizational mission and goals, and evaluate how we could move toward that in best and worst-case scenarios. The outcome of this forecasting should illuminate how your current operations will ‘hold up’ under various levels of external environmental pressure, and what you can do to strengthen your position to be robust amid a crisis.

You don’t want to lose what you’ve worked so hard to build. So let’s make sure your business is prepared for best, medium and worst-case scenarios.

Our experts will work with you to undertake a thorough evaluation of your position in the market and build a plan to secure what you value. We’re here to help – so talk to one of our Business Specialists Partners today.

 

Lauren Steinheuer: L.Steinheuer@uhyhnseq.com.au

Malcolm Barkle: M.Barkle@uhyhnseq.com.au

Dean Vane: D.Vane@uhyhnseq.com.au

 

 

GENERAL ADVICE WARNING

This content has been prepared to provide you with general information only and has not taken into account your personal objectives, financial situation or needs. It does not contain and it is not to be taken to contain Personal Financial Advice. Before making any financial or investment decisions, you should seek advice from an appropriately licenced or authorised financial advisor.

The content was prepared by UHY Haines Norton. AFS Licence No. 483056

FACTUAL INFORMATION WARNING

This content has been prepared to provide you with factual information only and has not taken into account your personal objectives, financial situation or needs. It does not contain and it is not to be taken to contain Personal Financial Advice. Before making any financial or investment decisions, you should seek advice from an appropriately licenced or authorised financial advisor.

The content was prepared by UHY Haines Norton. AFS Licence No. 483056