DSpace at Khazar University
DSpace at Khazar University
DSpace at Khazar University
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Too many organiz<strong>at</strong>ions discard altern<strong>at</strong>ive str<strong>at</strong>egies not selected for<br />
implement<strong>at</strong>ion, when the work devoted to analyzing these options is valuable<br />
inform<strong>at</strong>ion. Altern<strong>at</strong>ive str<strong>at</strong>egies not selected for implement<strong>at</strong>ion can serve as<br />
contingency plans, in case the str<strong>at</strong>egy or str<strong>at</strong>egies selected do not work.<br />
When str<strong>at</strong>egy-evalu<strong>at</strong>ion activities reveal the need for a major change quickly,<br />
an appropri<strong>at</strong>e contingency plan can be executed in a timely way. Contingency plans<br />
can promote a str<strong>at</strong>egist's ability to respond quickly to key changes in the internal and<br />
external bases of an organiz<strong>at</strong>ion's current str<strong>at</strong>egy. For example, if underlying<br />
assumptions about the economy turn out to be wrong and contingency are ready, then<br />
managers can make appropri<strong>at</strong>e changes promptly.<br />
In some cases, external or internal conditions present unexpected opportunities.<br />
When such opportunities occur, contingency plans could allow an organiz<strong>at</strong>ion to<br />
capitalize on them quickly. Lineman and Chandran report th<strong>at</strong> contingency planning<br />
gives users such as Du Pont, Dow Chemical, Consolid<strong>at</strong>ed foods, and Emerson Electric<br />
three major benefits: it permits quick response to change, it prevents panic in crisis<br />
situ<strong>at</strong>ion and it makes managers more adaptable by encouraging them to appreci<strong>at</strong>e just<br />
how variable the future can be. They suggest th<strong>at</strong> effective contingency planning<br />
involves a seven-step process as follows:<br />
a. Identify both beneficial and unfavorable events th<strong>at</strong> could possibly derail the<br />
str<strong>at</strong>egy or str<strong>at</strong>egies.<br />
b. Specify trigger points. Calcul<strong>at</strong>e about when contingent events are likely to<br />
occur.<br />
c. Assess the impact of each contingent event. Estim<strong>at</strong>e the potential benefit or<br />
harm of each contingent event.<br />
d. Develop contingency plans. Be sure th<strong>at</strong> contingency plans are comp<strong>at</strong>ible<br />
with current str<strong>at</strong>egy and are economically feasible.<br />
e. Assess the counter impact of each contingency plan. Th<strong>at</strong> is, estim<strong>at</strong>e how<br />
much each contingency plan will capitalize on or cancel out its associ<strong>at</strong>ed contingent<br />
event. Doing this will quantify the potential value of each contingency plan.<br />
f. Determine early warning signals for key contingency events. Monitor the early<br />
warning signals.<br />
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