Leaders typically follow these steps to conduct Scenario Analysis:
Identify the focal issue: Determine the key question or challenge that the analysis aims to address. Gather data and identify trends: Collect relevant information and understand the current trends and uncertainties. Develop scenarios: Create a set of diverse scenarios that cover a range of possible futures. Analyze implications: Assess how each scenario could impact the business and its goals. Develop strategies: Formulate strategies and action plans for each scenario to ensure preparedness.