In other words, strategy under uncertainty is critical for coming out the other side successfully. In this article, we’ll discuss why businesses should still engage in strategic planning despite the uncertainties of tomorrow, next month, or even next year, and what you need to do for best results.

The hallmark of companies that chart the right course through turbulence is that they embrace uncertainty; they don’t try to fight it. They focus on the vital few uncertainties that matter, lay out the possible scenarios that could develop, and identify the critical trigger points or signposts that signal swings in direction.

Planning or capital-budgeting processes that require point forecasts force managers to bury underlying uncertainties in their cash flows. Such systems clearly push managers to underestimate uncertainty in order to make a compelling case for their strategy.