Black Swans & Black Ash - Scenario Thinking is Key to Strategic Planning & Management

Black Swanspredictive analysis skills are up to the task in a
Any discussion of new directions for strategiccrisis situation. Qualitative intelligence can be added
planning and management must inevitably addressto an organization by taking a Systems View of
the growing debate around the accuracy of thethe Organization, published previously by this
forecasting models used as the basis ofauthor. Do expect qualitative intelligence to play a
decision-making.bigger role alongside quantitative analysis in
organizational management in the future.
One of the authors Nassem Nicholas Taleb - theBlack Ash
analyst who forged new ground in risk analysisA common theme in our research is that
and decision making by focusing on how to turn astrategic management is being drilled down deeper
lack of information and understanding intointo organizations. As a result, coaching and group
decision-making - is set to release an updatedfacilitation of middle and senior managers, to
edition of his best-selling book the Black Swan thisdevelop specific strategic management skills such
month, in which he plans to tell us how toas strategic thinking, which includes scenario
operationalize this lack of knowledge. Rather thanthinking, is becoming more common.
building more complex models, to faceThe airline crisis created by the Icelandic volcanic
globalization, he will argue for making ourash highlighted the need for scenario thinking
structures less complex.planning capability at all levels of an organization to
Qualitative Intelligencecope with crisis situations. Lots of 'what ifs' were
Along the same lines of thinking, a Harvardraised during the grounding of European planes,
Business Review case study in May's editionbut not everyone had the tools to assess the
argues that qualitative intelligence is needed tooptions and their impact. Risk managers are now
manage in a world of an "ambiguous system oftalking about preparing for "black ash" events,
systems."In Beyond the Numbers: Building Yourclearly a play on "black swan," or low probability
Qualitative Intelligence, Roger Martin salientlyevents that are hard, if at all possible, to predict.
questions whether our quantitative models and