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Crisis and Contingency Planning Explained

The document discusses the differences between scenario planning, contingency planning, and crisis planning in organizational management. Scenario planning anticipates gradual changes and explores various future outcomes, while contingency planning prepares for sudden events with a structured response plan. Crisis planning is activated during serious issues, relying on contingency plans to manage recovery and communication.

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95 views1 page

Crisis and Contingency Planning Explained

The document discusses the differences between scenario planning, contingency planning, and crisis planning in organizational management. Scenario planning anticipates gradual changes and explores various future outcomes, while contingency planning prepares for sudden events with a structured response plan. Crisis planning is activated during serious issues, relying on contingency plans to manage recovery and communication.

Uploaded by

yessinezouaghi1999
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

TBS-BCOR120-IC CHP05: Managerial Planning And Goal Setting

Planning For A Turbulent Environment

Explaining Scenario planning, Contingency Planning and Crisis


Planning: Similarities and Differences

Both contingency and scenario planning are structured ways for organizations to plan and think
about the future especially when the environment is turbulent. Although the terms sometimes seem
to be interchangeable, contingency planning and scenario planning are different.

-Scenario planning usually anticipates gradual change, such as a loss of revenue over time. An
organization might come up with three or four future scenarios, both good and bad. By studying
imagined positive and negative outcomes, it can make real decisions about the future. To build their
scenarios, organizations relate on data-rich accounts of how relevant external forces (such as the
future political environment, scientific and technological developments, social dynamics, and
economic conditions) might interact and evolve. This provides the organizations with different
challenges and opportunities. Scenarios are than challenging and credible (believable).

-A contingency plan is for a sudden, drastic turn of events. It’s the organization's "Plan B", also called
a business continuity plan. It creates an organized and coordinated set of steps to be taken if any
changes occur. The contingency plan identifies potential threats to any of the critical resources and
sets out a documented action plan to respond to any disaster scenario. The plan also nominates a
team of key individuals with responsibility for different aspects of the response, including
communications, resource allocation and overall management. Contingency planning is done to
avoid or minimize damage, loss or injury, and to ensure that the organization's key operations
continue.

-Crisis planning: Companies move into crisis management mode when a serious problem occurs like
natural disasters (like hurricanes); economic conditions, like a recession... A team takes responsibility
for assessing the problem, preparing and implementing a recovery strategy and communicating with
employees, media, customers and shareholders to explain the plan and reassure them of the
company’s ability to recover. They will rely in their work on the contingency plan, already prepared.

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