Scenarios for all
McKinsey’s Charles Roxburgh offers nicely practical advice on the use and abuse of scenarios. In the process he points out that the latest crisis many firms find themselves in, like previous ones, was foreseeable and even preventable if management had done this work professionally. And remember scenarios are not just useful for the big firms – any competent management team should be asking itself what range of things could happen, both to exploit incipient opportunities and anticipate new challenges.
The balanced scorecard
A large Management Development community I track has been discussing how we could have prepared people better for the current troubles, and some have advocated the Balanced Scorecard [BSC]. I have used BSC in strategy teaching for some years, and come across BSCs in many companies. My impression is that, whilst it is a valuable extension to standard financial reporting systems, it has some limitations as a tool for managing strategy – limitations that the down-turn has exposed quite sharply.
More on strategic responses to the downturn
More from McKinsey on this, including a review on some useful thinking from last time. Read more
Smart airline strategy for the melt-down
Seeing the sector is anticipated to lose $5bn this year, and more in 09, who managed strategy well over the last 5 years? .. which of course would include anticipating and planning for the inevitable down-turn? Competent strategic management for most firms would imply Read more