Our website uses cookies to enhance the visitor experience (what's a cookieCookies are small text files that are stored on your computer when you visit a website. They are mainly used as a way of improving the website functionalities or to provide more advanced statistical data.). Are you happy for us to use cookies during your visits?
Please note: continuing without making a choice equates to giving us your consent, which you can withdraw at any time via our cookies policy page.

ADDING VALUE TO YOUR BUSINESS

Find out more here

Find out more here

 

Pre-mortems: how thinking about the worst outcome can be best for your business

‘A pre-mortem in a business setting comes at the beginning of a project rather than the end, so that the project can be improved rather than autopsied.’ Gary Klein, Research Scientist, in Harvard Business Review

With a few gloomy months behind us and predictions of financial turmoil ahead, the business environment has become increasingly uncertain. Whether or not the doomsayers are correct, it’s worth putting down the rose tinted glasses when it comes to business planning.

Business owners are often too focussed on success to think about failure, but a pre-mortem makes them do just that. In a pre-mortem, a team is told of the catastrophic failure of their business or project and works backwards to look at the problems and pitfalls that led to its imaginary demise.

Instead of looking at what might go wrong at the beginning of a project, a pre-mortem team asks ‘what did go wrong?’

The team writes down every single reason they can think of for the failure, from technological blackouts to excessive regulations to staffing issues. It allows a team to look at the detailed causes of one failure rather than multiple causes of multiple outcomes, avoiding becoming lost in a rabbit warren of what-ifs.

Risk and contingency planning is an obvious thing to do in business, but the pre-mortem has its own distinct benefits. It allows a safe environment for dissenters to bring up issues they may otherwise not feel able to raise, whether they are introverts or are just worried about looking disloyal. It also gives a caution to members of the team who may be over-invested in the project’s benefits.

Bennett Verby CEO, Bernard Verby, said “Openness to the idea of the failure of a business can create a strong management mind-set, where problems are recognised early and can be dealt with by knowledgeable teams.”

Confronting a project’s demise is not something management teams usually relish, but the ‘prospective hindsight’ of a pre-mortem can offer resilience rather than pessimism.

It’s often said that hindsight is a wonderful thing. But prospective hindsight is even better.

For more information on business planning, email Bennett Verby here or give us a call on 0161 476 9000.

Leave a Reply


 

 

Audit

Accounts

Bookkeeping

Tax Planning

Payroll

 

Human Resources

Business Advisors

Corporate Finance

Wealth Management

Corporate Recovery

 

 

PLEASE CLICK ON THE BUTTON BELOW TO ARRANGE A CALLBACK AND WE'LL GET BACK TO YOU

REQUEST A CALLBACK

 

LET US KEEP YOU UP TO DATE
WITH OUR NEWSLETTER

LATEST TAX TIPS & NEWS

 

Seperator