In his recent blog (“Thrive in Chaos: Predicting the future of Brexit and the UK Economy”), Decision Inc. CEO Nicholas Bell wrote that trying to predict the future in an uncertain world is a massive challenge. Just turn to Brexit to see this in action. Virtually every commentator has a different view on what might happen, by how much the UK economy will be affected, how much debt will be incurred, and whether the technology exists to create a frictionless border.
According to the British Chamber of Commerce, there is a concerning high number of companies that are unprepared for these developments with two thirds not having even conducted a Brexit risk assessment. Considering a scenario plan is there to provide a long-term view of the corporate strategy and model the key factors that might impact it, it is frustrating to think how few are doing it in terms of Brexit.
And this is where Decision Inc. can help. The organisation has a wealth of experience in helping organisations construct, manage, and interpret their scenario plans. Rather than relying on cumbersome spreadsheets with outdated formulae, Decision Inc. delivers solutions that take the guesswork out of planning. Different scenarios can quickly and easily be planned for, helping the board make informed and timely decisions.
Decision Inc. can assist with:
• Identifying and accessing the data required for the scenario model(s);
• Cleansing the data as it is often not in the right state to be used;
• Building the models needed for the various scenarios; and
• Assisting with the interpretation of the results and making further refinements to the models.
When building scenario models, companies might want to consider the following:
• Which costs are likely to fluctuate?
• Which costs can be pass on to customers?
• What is the impact of currency fluctuations on revenue and costs?
• What is the likely threat on staffing levels?
• What will staffing requirements likely be over the next two to three years?
• Will funding issues impact and cause gaps in the cashflow?
Here are some examples of scenario models Decision Inc. has built for organisations to help them make informed decisions:
• Resource planning;
• Projects planning;
• Operational planning;
• Cashflow planning;
• Treasury and cash forecasting; and
• FX simulation of forecasts and long range plans.
The myth of the ostrich putting its head in the sand to hide springs to made. It does not matter if it is true or not, but this is clearly reflected in those companies that have undertaken little or no Brexit scenario planning.
Fortunately, it is not too late for them to get their heads out of the sand and do effective Brexit planning. Decision Inc. has the tools and knowledge to help all companies of all sizes, irrespective their industry sector.
If help is required, just reach out by contacting Decision Inc.