Calling all Foxes. Clem Sunter

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      Introduction

      The title of this book reflects the remarkable shift that has taken place in the last few years around the way companies approach the future. Before the great financial crash of 2008, they were loath to consider any other future than that assumed in their strategic plan. Looking at alternative scenarios was viewed as a waste of time, given that their forecasts were relatively accurate and their plans were pretty much on track. They brushed aside any uncomfortable information that might be in conflict with their vision. Focus was the name of the game. Don’t allow yourself to be distracted.

      Against this fairly hostile background, Chantell Ilbury and I developed a technique of strategic thinking which was aligned to the mind of a fox. Always be on the alert for surprises beyond your control. Be proactive in grabbing opportunities and countering threats that arise through exceptional circumstances. Never bet the whole shop on a single future. Rather assess the different scenarios, flags and probabilities and make decisions that are resilient under a range of possibilities. Above all, be prepared to adapt to changes in the environment surrounding your business, as that one quality is the primary reason for corporate longevity. Our entire model is now contained in a single book entitled The Fox Trilogy.

      Calling all Foxes, on the other hand, is a collection of columns that I have written over the past 18 months for the News24 website. It follows Foxy Futurists which featured my first set of columns. An underlying theme in both books is that we have moved from the age of information to the age of intelligence where survival and growth are determined by the extent to which a company (and indeed a nation) has an entrepreneurial skills set. Life has got a whole lot tougher since 2008: offering value for money and being original are prerequisites for success. Outfoxing the competition is essential.

      The wonderful response we are now obtaining for our message on foxes from large and small enterprises alike – here in South Africa and beyond the country’s border – indicates an acceptance that the game has changed forever. If you are a fox, your time has truly come. There is no substitute for being bright-eyed and bushy-tailed and having a radar system second to none.

      I would like to thank Aneeqa Emeran at News24 who assists me every week in publishing my articles and Gerhard Mulder for the production of this book. May the fox be with you both!

      The global tightrope

      This article illustrates how Chantell Ilbury and I have developed the scenario-planning technique over the last ten years. We feel that instead of just listing different scenarios as some consultants do, it is much better to present them in a matrix like the one depicted in the article. This allows people to visualise the logical connection between the different scenarios, have a debate around which quadrant the world is in and whether the world is about to move to another quadrant.

      Obviously, the choice of the two axes that form the basis of the matrix is crucial. Our advice is that you should list all the key uncertainties surrounding the topic covered by the matrix and then ask yourself which are the ones that are the real driving forces for different futures and which are the ones that people are most interested in. In this case, we felt that the two key issues on people’s minds are whether or not the world economy is going to experience a short-term recovery; and secondly, whether or not the world will stay relatively united in overcoming existing problems or fall apart.

      The other two modifications we have made to the scenario process are to identify the flags which we believe indicate movement towards a specific scenario; and then, based on the disposition of the flags, attach a subject probability to the scenario. We have found that our clients are as interested in the flags as they are in the scenarios themselves. We watch the flags all the time and, as you will see later on in the book, adjust the probability of a scenario as soon as we detect a shift in a flag’s position.

      In other words, the matrix is dynamic in the way that we interpret it; and of course, over a period of time, we replace the axes with new driving forces and the quadrants with new scenarios. That is what is so fascinating about the future. It is like driving along a road where the countryside gradually alters but occasionally undergoes a sudden transformation. For this reason, no presentation on the future can ever get stale. You are always talking about different surroundings.

      If Ben Bernanke were in the circus rather than chairman of the US Federal Reserve Bank, he would be a tightrope walker. On the one hand, he has done everything to stop the Great Recession turning into the Great Depression with his monetary stimulus measures. On the other hand, he wants to avoid stagflation – a condition of low economic growth but rising inflation and hence rising interest rates. In other words, he does not want to repeat the mistake made by Alan Greenspan earlier this century which contributed to the Crash of 2008.

      Let us analyse the tightrope on which he is precariously perched in terms of scenarios, flags and probabilities: