Our world today is one of continuous, unpredictable change. It seems likely to stay this way for an unpredictable length of time. But managing a business requires some ability to see what’s ahead – to predict. How can you predict well enough for managing a business or organization in such an unpredictable world? Here are a few ideas.
Action must generally be based on a solid understanding of the situation. Winging it is not generally considered to be good management practice. Study, plan, and then act seems to be the standard formula. In the good old days, things were always changing but in a stable, understandable manner. No longer. Action increasingly happens based on little or no real understanding.
High fixed cost businesses – airlines, restaurants, medical services, hotels – can be great money-makers when times are good but almost instant disasters when a major downturn or economic instability strikes. Such businesses require a stable, predictable business environment for survival. How can you manage one of these through the storm and insulate against a future repeat?
