Since 2008, the global business community has been operating under extraordinary circumstances. After years of crises, extreme volatility and unforeseen events, the extraordinary has become the ordinary, and the previously unthinkable has become reality. Companies that once prepared detailed, long-range plans- Âwith budgets based on a stable view of the future- now operate in an environment that presents new and unforeseen challenges every day, week and month.
Many companies are facing the challenge by moving to what Accenture calls scenario-based enterprise performance management (EPM), in which scenarios are incorporated into processes for managing the business on an ongoing basis. Scenario-based EPM can:
Assist not just in strategic planning, but in business planning, forecasting, reporting and analysis
Provide the foundation for risk mitigation strategies
Enable the integration of early warning measures into performance management Scenario-based EPM can help firms transform their planning and reporting process from a reactive, accounting-based activity - a rear-view mirror - into a value-centric capability focused on shaping and managing optimal outcomes. This capability can help pre-empt the competition, by enabling companies to seize opportunities quicker and to make faster, more confident decision in the face of uncertainty, volatility and complexity.