Source: Fortune
Summary
Fortune’s Geoff Colvin writes that CEOs need to adopt a “wartime mindset” and engage in scenario planning to prepare for unpredictable events. This approach, pioneered by Royal Dutch Shell in the 1970s, involves rehearsing multiple plausible futures and deciding on actions before a crisis hits. CFOs can also use financial scenario planning to uncover new opportunities and reduce risk. Gartner research advises defining actions for rapid response and prioritizing moves that apply across multiple outcomes.
Our Reading
The strategy enters a familiar phase.
CEOs are shifting to scenario planning, a practice that’s never more vital than in wartime. Shell pioneered this approach in the 1970s. CFOs are using financial scenario planning to uncover new opportunities. Gartner advises using AI scenario planning models to track key metrics in real time. The goal is to ensure companies can act quickly.
The numbers tell one story, but CEOs are now rehearsing multiple futures at once.
Author: Evan Null
