The Pharmaceutical Strategist

Scenarios are tools for ordering perceptions about alternative future environments in which today's decisions might be played out. In practice, scenarios resemble a set of stories, written or spoken, built around carefully constructed plots. The benefits of scenario planning are great, but the process is demanding and challenging and requires a strong commitment by senior management to be effective. The following are some of the many benefits of scenario planning.

anticipate and leverage change

Scenarios can help you identify surprises and discontinuities in every area of your business, from customer demand and adoption of new technologies to changing market and regulatory environments. You can uncover competitive shortfalls and identify potential new markets and opportunities for growth.

Stimulate "out-of-the-box" thinking

By encouraging management to stretch beyond traditional problem-solving approaches, scenario planning can help break old paradigms and prompt big moves rather than incremental change.

reduce risk

Scenarios allow you to evaluate and select new ventures or acquisitions long before you make investments. Your company can avoid bad investments by recognizing warning signals early and evaluating unfolding developments.

develop a consistent framewrok

Scenarios can give your company a common framework and language for discussing and dealing with complex conditions.

Translate strategy into action

Integrating scenarios into the strategic-planning process ensures that your company will focus on future growth and renewal.