Reading the Future

No one can see what is to come,

Strategy is simple: just work out what the world will be like in five years and organize your resources and competencies to achieve a match. However, this raises the vital question -- how do you know what the world will look in five years? No one can see what is to come, but there are techniques that will help you visualize and plan for the future.

Analysis tools, such as SWOT, PESTLE, and Porter's 5 forces, are excellent for describing your current market(s) and business environment. Extrapolating beyond the present, however, is far more difficult, but is nonetheless essential when planning strategy. Two useful tools -- forecasting and scenario planning -- can help with this task.

ACTION POINT: Understand where you currently are and then look ahead to visualize and plan for the future.