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Preparing Your Business for Continuity

Preparing Your Business for Continuity: The Importance of Pressure-Testing Assumptions and Scenario Planning

In the wake of the COVID-19 pandemic, many businesses have experienced disruptions and uncertainty, which have forced them to adapt quickly or risk failure. The importance of business continuity has never been more apparent, and pressure-testing assumptions and scenario planning are crucial steps in ensuring that businesses are prepared for potential future scenarios.

Business continuity involves developing plans and strategies to ensure that critical business operations can continue in the event of an unexpected disruption. This may include natural disasters, cyber attacks, pandemics, or other unexpected events that could impact the business's ability to operate normally. By pressure-testing assumptions and scenario planning, businesses can better prepare for potential disruptions and ensure that they can continue to operate even in the face of uncertainty.

A strategic plan is only as good as the assumptions it is based on. These assumptions may include the state of the economy, the behavior of customers, the availability of sales channels, the level of competition, the cost of inputs, talent, and other factors that could impact the business's success. However, given the current climate of uncertainty, it is crucial for businesses to take a step back and examine these assumptions more closely.

Pressure-testing these assumptions involves looking at them critically and considering alternative scenarios that could arise in the future. By playing out a few of the more plausible future scenarios and establishing how the business would pivot in response, businesses can better prepare themselves for potential disruptions and uncertainties.

For example, businesses may consider the impact of a prolonged labor shortage on their operations. This could affect their ability to execute their strategy and their customers' ability to do the same. How would it impact their "jobs to be done" and their product-market fit? How might the relative attractiveness of their customer segments shift, and would that dictate a change in the allocation of marketing and sales resources?

The first step in pressure-testing assumptions is to identify the key assumptions underlying the business's strategic plan. This may involve examining the assumptions made about the economy, the competition, customer behavior, input costs, talent, and other factors that could impact the business's success. Once these assumptions have been identified, the business can begin to consider how they might change in different future scenarios.

The next step is to develop several potential future scenarios that could impact the business's assumptions. These scenarios should be plausible and based on current trends and data. For example, one scenario might involve a sudden economic downturn or the spread of a new pandemic. By examining these scenarios, the business can begin to identify potential threats and opportunities that may arise in the future.

Once the scenarios have been developed, the business can begin to examine how each scenario would impact its key assumptions. For example, if a new pandemic were to occur, how would this impact the business's ability to execute its strategy? How would it impact its customers' ability to do the same? By examining these questions, the business can begin to identify potential weaknesses in its strategic plan and develop contingency plans to address them.

The final step is to develop contingency plans for each scenario. This may involve revising the strategic plan or developing new strategies altogether. For example, if a new pandemic were to occur, the business might need to consider alternative hiring practices, remote work options, or investing in technology to automate certain tasks. By developing contingency plans for each scenario, the business can be better prepared to respond to potential disruptions in the future. 

In addition to pressure-testing assumptions and developing contingency plans, businesses must also prioritize resilience in their operations. This means building redundancies into their supply chains, investing in cybersecurity measures to protect against potential cyber attacks, and maintaining a healthy cash flow to weather any unexpected challenges. By prioritizing resilience, businesses can better withstand potential disruptions and emerge stronger on the other side.

Finally, businesses must be willing to take calculated risks. While it is important to have a solid strategic plan and contingency plans in place, businesses must also be willing to explore new opportunities and innovate. This may involve launching new products, entering new markets, or experimenting with new business models. By taking calculated risks, businesses can position themselves for growth and success in the long run.

To ensure business continuity, businesses must also invest in their talent pool. This means not only attracting and retaining top talent but also investing in ongoing training and development to ensure that employees are equipped with the skills and knowledge needed to succeed in an ever-changing business landscape. By investing in talent, businesses can better position themselves to adapt to new challenges and opportunities as they arise.

Staying up-to-date on market trends and data is also critical for business continuity. This means regularly monitoring industry news, keeping track of changes in customer behavior, and staying informed about technological advancements that could impact the business. By staying informed and aware of these trends, businesses can better anticipate potential disruptions and adjust their strategies accordingly.


In conclusion, business continuity is essential for the long-term success of any business, especially in the face of unexpected disruptions and uncertainty. By pressure-testing assumptions, scenario planning, prioritizing resilience, investing in talent, and staying informed about market trends, businesses can better prepare for potential disruptions and ensure that critical business operations can continue even in the face of unexpected challenges. By doing so, businesses can position themselves for growth and success in the long run, regardless of what the future may hold.

Ready to pressure-test your assumptions and ensure business continuity? Schedule a discovery call with Kevin Keefe at Mahdlo to learn how we can help.