Page 7 - Growth and Contingency Planning Toolkit

GROWTH & CONTINGENCY PLANNING GROWTH & CONTINGENCY PLANNING

What is Contingency Planning?
contingency plan is a living document, and is meant to be revised or updated on at least a biannu-
At The Great Game of Business, we define contingency planning in business as the proactive pro- al basis.
cess of planning for both the short-term and long-term security of a company. Contingency plan- By making contingency planning a regular part of your planning procedure, you ensure that you
ning is sometimes known as the “Plan B,” and is most often used in risk management, business are always prepared to respond to crises and mitigate the damage from everything from small
continuity, and strategy. problems to worst-case scenarios. Once supported by your overall business planning process, a

What would you do if your company suddenly lost 10 percent of its revenue? That scenario may rock-solid contingency plan helps ensure growth and sustainability.
seem unlikely, but unexpected events and outcomes are almost a guarantee in business. So, the
question becomes, “How can we use our insights and historical data to better foresee these sur-
prises?” 4 High-Involvement Planning Templates

Too many businesses get into trouble because they don’t have well-designed contingency plans, or
perhaps don’t have any plans at all. Those that do have a business planning process in place often x
focus only on things like sales projections and ignore potential negative events that they’d rather o x
not think about. Contingency planning is a powerful tool because it helps uncover weaknesses
so that they can be proactively addressed, which ensures that a company can rally quickly when
things go off course. Sales & Marketing Strategy for Financial Plan Succession
Template Growth Template Template Planning Template

What Does a Contingency Plan Look Like?
Strategy for Growth Template
We define contingencies as products or services that have been researched, developed, and x
cost-justified, and are ready to be activated on very short notice. Based on this definition, consider Purpose | 10+ year focus
what you would do if one of our biggest customers suddenly went out of business? o x
A contingency plan to deal with this possibility might include anticipating this risk, exploring op- Vision | 10+ year focus
portunities for revenue replacement, or identifying company-wide changes that can soften the B.H.A.G. | 10+ year focus
impact of a significant revenue loss. Values | 10+ year focus Long Term
A contingency plan works to support the broad goals and future direction of the organization. The Financial Objectives | 3-5 year focus
business planning process is an integral part our open-book management structure. However, we Strategic Theme | 3-5 year focus
do things a bit differently than everyone else. Our High-Involvement Planning process taps into
the collective knowledge and experience of an organization by involving employees at all levels. Value Proposition | 3-5 year focus
While this may seem unnecessary or impractical, our process has been proven time and again to Objectives | 3-5 year focus
engage employees and produce positive results. Goals | annual focus
Contingency planning is just one component of the sales and marketing process, and it actually
complements strategic and financial planning. Without a backup plan in place, all the hard work Strategies | 3-6 month focus
put into future plans can get derailed. Measures | weekly focus
A contingency plan is typically activated when revenue drops unexpectedly. However, a plan may Focus on The Critical Number
also be used for more positive growth situations. These might include incorporating a contingency Act on the Right Drivers
plan into next year’s sales growth plan or activating the plan in response to a sudden increase in
customer demand or new market opportunities. MiniGames™ Short Term
The process of developing contingency measures takes you out of reactive mode and puts your Growth & Contingency Plan
organization into a proactive stance. In fact, contingency planning can be a source of innovation Follow the Action & Keep Score
with many of the contingency plans contributing to the ongoing growth of the business.
Provide a Stake in the Outcome
Once a contingency plan is activated, you must define another one to take its place. Remember, a

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