The Five Components of Contingency Planning
I have worked with several clients to develop contingency plans. With some, that is a precise set of conditions and instructions; with others it is a general awareness of the issue and intent to communicate about it. Despite the differences based on the companies’ styles and cultures, there are five common components that contingency plans should have:
Information
Boundary Conditions
Levers
Decision Process
Scenarios
As I mentioned, every company will approach contingency planning differently based on their culture and team. There are some general recommendations that I’d make, though, including:
If you have not actively thought about contingency planning, take at least 30 minutes to think about what yours would look like, and 30 minutes to discuss it as a Management Team. That way, you and your team won’t be starting completely from scratch if you’re faced with a contingency. Preparation is always easier and less costly than repairs...
For a more in-depth reading of my thoughts on contingency planning, check out the full blog post here.