Why has H-E-B been so well prepared for the unexpected?

[tasmih1234]

It has solid strategic planning practices that incorporate simulation, scenario planning, and contingency plans. Furthermore, H-E-B’s approach includes an emergency management division, responsible for staying cognizant of the external environment and potential risks and incorporating new lessons from similar situations into their response plans. This team has incorporated learnings from disasters like the Hurricane Rita and H1N1 outbreaks with multiple scenarios to test and identify best fit solutions. For example, in the beginning of the pandemic the team studied the Chinese government’s response to extrapolate best ways to implement plans for social distancing protocols, managing sick employees, and ensuring supply chains could keep stores stocked.

Previous research on organizational agility found that scenario planning has a positive impact on an organization’s ability to quickly respond to disruptions or opportunities in their business environment. This is because scenario planning is a methodology that some organizations use to develop flexible long-term strategies. It requires organizations to:

collect inputs (e.g., social and market trends, political or regulatory dubai mobile numbers list changes, and financial or operational performance data),
draft scenario situations around potential opportunities or risks,
disseminate the scenarios to the participants,
facilitate a discussion on the various scenarios,
pinpoint the scenarios’ implications, and create outputs (e.g., scenario triggers and mitigation or action plans).
Strategic Planning Supports Strategic Responsiveness

Scenario planning, by its very nature, supports strategic responsiveness. It’s a structured practice that ensures that decision makers, such as the emergency management division at H-E-B, look at future opportunities and risks, assess them against the organization’s needs, identify early warning triggers, and develop contingency plans they can execute quickly.

In many ways the COVID-19 pandemic has been a wake-up call that organizations need to ensure their organization is prepared for the next “unprecedented” event and bolster the flexibility of their decision-making practices and responsiveness to the implementation of new initiatives. APQC is conducting a research project to explore strategic planning practices and identify the key characteristics that drive organizational agility.

[yadaysrdone]

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