{"id":20014,"date":"2022-07-26T09:37:00","date_gmt":"2022-07-26T14:37:00","guid":{"rendered":"https:\/\/blog.planview.com\/?p=20014"},"modified":"2022-11-09T18:14:56","modified_gmt":"2022-11-10T00:14:56","slug":"dynamic-planning-in-the-face-of-uncertainty","status":"publish","type":"post","link":"https:\/\/blog.planview.com\/dynamic-planning-in-the-face-of-uncertainty\/","title":{"rendered":"Dynamic Planning in the Face of Uncertainty"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"580\" src=\"https:\/\/blog.planview.com\/wp-content\/uploads\/2022\/07\/dynamic-planning-cvo-cropped-1024x580.jpg\" alt=\"\" class=\"wp-image-20016\" srcset=\"https:\/\/blog.planview.com\/wp-content\/uploads\/2022\/07\/dynamic-planning-cvo-cropped-1024x580.jpg 1024w, https:\/\/blog.planview.com\/wp-content\/uploads\/2022\/07\/dynamic-planning-cvo-cropped-300x170.jpg 300w, https:\/\/blog.planview.com\/wp-content\/uploads\/2022\/07\/dynamic-planning-cvo-cropped-150x85.jpg 150w, https:\/\/blog.planview.com\/wp-content\/uploads\/2022\/07\/dynamic-planning-cvo-cropped-768x435.jpg 768w, https:\/\/blog.planview.com\/wp-content\/uploads\/2022\/07\/dynamic-planning-cvo-cropped.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>We thought we knew about uncertainty. Market disruptions by startups; sure. Shifting consumer behaviors? Part of the job. But then the pandemic happened, creating a domino effect of disruptions that we are learning to accept as part of daily life. The only thing certain about our futures, it seems, is that we have an extremely limited ability to predict what they will hold.<\/p>\n\n\n\n<p>But humans are a resilient bunch: We have found ways to adapt to this new normal. We\u2019ve learned to write our plans in pencil, and to keep our erasers nearby. We have all been taking a crash course in <em>dynamic<\/em> <em>planning<\/em> \u2013 being ready for, hypothetically, anything: Finding ways to minimize losses and maximize opportunities while moving forward into the unknown.<\/p>\n\n\n\n<p>In business, dynamic planning is more complicated \u2013 but no less essential, especially in times of sustained economic uncertainty. Dynamic planning has moved from a \u201cnice to have\u201d that might be conducted as part of an annual planning cycle, to an absolute essential part of daily operations.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.planview.com\/resources\/articles\/strategic-initiatives-dynamic-planning\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">Read Next:<\/a><\/strong> Meeting Strategic Initiatives with Dynamic Planning<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/blog.planview.com\/dynamic-planning-in-the-face-of-uncertainty\/#%E2%80%9CFailing_to_plan_is_planning_to_fail%E2%80%9D_%E2%80%93_Benjamin_Franklin\" >\u201cFailing to plan is planning to fail.\u201d \u2013 Benjamin Franklin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/blog.planview.com\/dynamic-planning-in-the-face-of-uncertainty\/#The_problem_with_%E2%80%9Cpeanut_buttering%E2%80%9D_cost_reductions\" >The problem with \u201cpeanut buttering\u201d cost reductions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/blog.planview.com\/dynamic-planning-in-the-face-of-uncertainty\/#A_more_informed_approach\" >A more informed approach<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/blog.planview.com\/dynamic-planning-in-the-face-of-uncertainty\/#Plan_for_tomorrow_today\" >Plan for tomorrow, today.<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-failing-to-plan-is-planning-to-fail-benjamin-franklin\"><span class=\"ez-toc-section\" id=\"%E2%80%9CFailing_to_plan_is_planning_to_fail%E2%80%9D_%E2%80%93_Benjamin_Franklin\"><\/span>\u201cFailing to plan is planning to fail.\u201d \u2013 Benjamin Franklin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Right now, every CFO on earth is trying to find answers to questions like:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>What if revenue is down 20% next quarter?<\/li><li>What if renewals are 10% lower next quarter?<\/li><li>What if customers are unable to pay us on time, or at all?<\/li><li>Do we have money to pay our debt obligations, employees, or vendors, in the face of those scenarios?<\/li><\/ul>\n\n\n\n<p>Meanwhile, managers are bracing themselves for the inevitability of budget cuts: If we had to keep going with 10% less budget, or 20% less, what would that look like? What would we cut? What impact would that have?<\/p>\n\n\n\n<p>The answers to these questions, and others like them, are rarely conclusive, because they are based in a hypothetical reality. But failing to plan for that reality could come at the risk of jeopardizing the activities, people, and processes that are holding your business together.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-problem-with-peanut-buttering-cost-reductions\"><span class=\"ez-toc-section\" id=\"The_problem_with_%E2%80%9Cpeanut_buttering%E2%80%9D_cost_reductions\"><\/span><a><\/a>The problem with \u201cpeanut buttering\u201d cost reductions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Allow me to share a likely relatable example: At the beginning of the pandemic, in the face of much uncertainty, many companies chose to pull the \u201ceasiest\u201d lever to quickly save money \u2013 letting go of all contractors, effective immediately. Sound familiar?<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>What many companies learned is that \u201ccutting all contractors\u201d is not the same as cutting \u201cunnecessary\u201d expenses.<\/p><\/blockquote>\n\n\n\n<p>This approach does not consider that some of the business\u2019 most vital work might be performed by contractors, or that there might be ongoing, business-critical initiatives that rely on the work of contractors to see them through.<\/p>\n\n\n\n<p>This example underscores the fundamental flaws with the \u201cpeanut butter\u201d approach to cost reductions: Spreading budget cuts equally across projects or business functions.<\/p>\n\n\n\n<p>This approach fails to connect initiatives to future business outcomes, making it impossible to see how adding or removing funding from different ones might affect the business down the road. When faced with the question of what impact a given resource reduction will have on the future, it\u2019s anybody\u2019s best guess.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-more-informed-approach\"><span class=\"ez-toc-section\" id=\"A_more_informed_approach\"><\/span><a><\/a>A more informed approach<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>But there is another way: By tying resources to initiatives and initiatives to business outcomes, and using software designed to <a href=\"https:\/\/www.planview.com\/products-solutions\/solutions\/strategic-portfolio-management\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">enable dynamic planning<\/a>, managers can make intelligent decisions about how to reduce costs with the least adverse impact to business outcomes.<\/p>\n\n\n\n<p>Armed with the knowledge of how funding relates to specific initiatives and how those initiatives are tied to specific business outcomes, managers have the ability to plan for different scenarios in real time, with real data to inform decisions.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.planview.com\/resources\/case-study\/the-volvo-group\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">Read Next:<\/a><\/strong> The Volvo Group Drives Transformation in Enterprise Portfolios to Support the Global Business<\/p>\n\n\n\n<p>But how? First, rather than seeing dynamic planning as a separate exercise, perhaps conducted annually, Lean-Agile businesses conduct dynamic planning on a continuous basis \u2013 both more frequently scheduled and ready on-demand. Second, by conducting scenario planning in the same tools your teams use every day (and I\u2019m not talking about PowerPoint, Excel, or Gmail).<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Effective scenario planning isn\u2019t just adjusting key assumptions based on external factors, but also learning from your company\u2019s own delivery, velocity, and flow metrics.&nbsp;<\/p><\/blockquote>\n\n\n\n<p>All managers are familiar intuitively with the Plan-Do-Learn-Act framework.&nbsp; But Agile businesses apply this more frequently (dynamically) and learn from their own delivery performance to inform their next actions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-plan-for-tomorrow-today\"><span class=\"ez-toc-section\" id=\"Plan_for_tomorrow_today\"><\/span><a><\/a>Plan for tomorrow, today.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Building dynamic planning, including scenario planning, into your recurring operations can help you prepare for the inevitability of unplanned resource reductions, budget cuts, market shifts, and other disruptions. Although we will never truly know what awaits us around the corner, we can use the information we have to make informed decisions and adjust our actions at every step to drive the best outcomes possible.<\/p>\n\n\n\n<p>Need to get started with dynamic planning? <a aria-label=\" (opens in a new tab)\" href=\"https:\/\/info.planview.com\/dynamic-planning-ebook-_ebook_prm_en_reg.html\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"ek-link\">Read this eBook<\/a> to discover the five steps you need to take to rapidly replan, reprioritize, and effectively execute on your company strategy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We thought we knew about uncertainty. Market disruptions by startups; sure. Shifting consumer behaviors? Part of the job. But then the pandemic happened, creating a domino effect of disruptions that we are learning to accept as part of daily life. The only thing certain about our futures, it seems, is that we have an extremely&#8230;<\/p>\n","protected":false},"author":137,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":3,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[7549],"tags":[],"class_list":["post-20014","post","type-post","status-publish","format-standard","hentry","category-strategic-planning"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Dynamic Planning in the Face of Uncertainty - Planview Blog<\/title>\n<meta name=\"description\" content=\"Plan confidently for inevitable disruptions by building dynamic planning, including scenario planning, into your recurring operations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blog.planview.com\/dynamic-planning-in-the-face-of-uncertainty\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dynamic Planning in the Face of Uncertainty\" \/>\n<meta property=\"og:description\" content=\"Plan confidently for inevitable disruptions by building dynamic planning, including scenario planning, into your recurring operations.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blog.planview.com\/dynamic-planning-in-the-face-of-uncertainty\/\" \/>\n<meta property=\"og:site_name\" content=\"Planview Blog\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/www.facebook.com\/pages\/Planview-Inc\/89422974772\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-26T14:37:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-11-10T00:14:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blog.planview.com\/wp-content\/uploads\/2022\/07\/dynamic-planning-cvo-cropped-1024x580.jpg\" \/>\n<meta name=\"author\" content=\"Cameron van Orman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@CWvanOrman\" \/>\n<meta name=\"twitter:site\" content=\"@Planview\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cameron van Orman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/blog.planview.com\\\/dynamic-planning-in-the-face-of-uncertainty\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/blog.planview.com\\\/dynamic-planning-in-the-face-of-uncertainty\\\/\"},\"author\":{\"name\":\"Cameron van Orman\",\"@id\":\"https:\\\/\\\/blog.planview.com\\\/#\\\/schema\\\/person\\\/ffc0e215616e4486086bd055ec919454\"},\"headline\":\"Dynamic Planning in the Face of Uncertainty\",\"datePublished\":\"2022-07-26T14:37:00+00:00\",\"dateModified\":\"2022-11-10T00:14:56+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/blog.planview.com\\\/dynamic-planning-in-the-face-of-uncertainty\\\/\"},\"wordCount\":821,\"publisher\":{\"@id\":\"https:\\\/\\\/blog.planview.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/blog.planview.com\\\/dynamic-planning-in-the-face-of-uncertainty\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/blog.planview.com\\\/wp-content\\\/uploads\\\/2022\\\/07\\\/dynamic-planning-cvo-cropped-1024x580.jpg\",\"articleSection\":[\"Strategic Planning\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/blog.planview.com\\\/dynamic-planning-in-the-face-of-uncertainty\\\/\",\"url\":\"https:\\\/\\\/blog.planview.com\\\/dynamic-planning-in-the-face-of-uncertainty\\\/\",\"name\":\"Dynamic Planning in the Face of Uncertainty - 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