On our latest episode of The Future of the Firm podcast, Fiona Czerniawska, CEO of Source, caught up with Emma Carroll, our Head of Content, to discuss how the volatile environment is shaping client futures, and what that means for firms' scenario planning.

Fiona shared her insights on the following matters and more:

Using Source's proprietary data, clients (and by extension firms) have been categorised into three groups: undecided, frightened, and determined. These are defined by their approach to strategy and investment in an unpredictable market.

While many firms engage in scenario planning, its value diminishes after a certain point. To keep the scenarios relevant, they must be converted into credible strategies that empower people to take confident steps in an uncertain world.

This episode discusses two major challenges for professional services firms in their own scenario planning:

- Leading with a narrative: It's difficult for firms to convince their teams and clients to believe in a strategic direction when there's no visible, concrete path forward. Business leaders must build "an invisible staircase" to help their people move forward with confidence.

- The rise of AI: AI introduces uncertainty about how to price services and deliver value.

Given the unreliable global environment, it is crucial for firms to prepare for worst-case scenarios. Having a clear plan can help them navigate uncertainty and respond effectively.

Value creation is seen as a crucial concept that underpins all the scenarios. Firms need to shift their focus from pricing based on inputs to pricing based on outputs, or the value delivered to the client.

If you enjoyed this conversation, don't miss our sister podcast, Business Leader's Voice. In a recent episode, we talked to Husayn Kassai, CEO and Founder of Quench.ai, about AI adoption and how you can move beyond the hype to achieve success.

How volatility is shaping client futures, and what that means for firms