{"id":76264,"date":"2022-08-09T10:54:00","date_gmt":"2022-08-09T14:54:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=76264"},"modified":"2022-08-22T16:03:22","modified_gmt":"2022-08-22T20:03:22","slug":"plan-for-the-worst-hope-for-the-best","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/plan-for-the-worst-hope-for-the-best\/","title":{"rendered":"Plan for the Worst, Hope for the Best: The Power of Plan B"},"content":{"rendered":"\n<p>Do you always have a plan B? Why is it important to plan for the worst and hope for the best, as the popular adage goes? <\/p>\n\n\n\n<p>Most of us tend to underestimate the likelihood of the worst-case scenario, thinking that the chances of it coming to pass are slim to none. As a result, we fail to make contingency plans, and if the worst does come to pass, panic ensues because we&#8217;re not prepared to face it.<\/p>\n\n\n\n<p>Here&#8217;s why you should always plan for the worst-case scenario, no matter how unlikely it seems.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-make-contingency-plans\"><strong>Make Contingency Plans<\/strong><\/h2>\n\n\n\n<p>When we plan for the worst and hope for the best, we ensure that the worst-case scenario won\u2019t be devastating and that we\u2019ll be more prepared for the success of the best-case scenario.<\/p>\n\n\n\n<p>For example, consider a woman who decides to quit her job and open a food truck. First, she imagines a worst-case scenario and makes a plan for it.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Worst-case scenario: An accident totals her food truck.<\/li><li>Plan: She guards against this outcome by purchasing insurance.<\/li><\/ul>\n\n\n\n<p>Next, she imagines a best-case scenario and makes a plan to be ready for it.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Best-case scenario: A food critic\u2019s rave review doubles her number of customers.<\/li><li>Plan: She contacts several friends who work in food service. She tells them that if her demand starts to double, she\u2019ll offer them a job to join her in the kitchen.<\/li><\/ul>\n\n\n\n<p>(Shortform note: This strategy is similar to Annie Duke\u2019s technique of <a href=\"https:\/\/www.shortform.com\/app\/book\/thinking-in-bets\/chapter-4\">\u201cscenario planning:&#8221;<\/a> an exercise in which you imagine every potential outcome of your decision. Duke adds a step, however: After you imagine each outcome, estimate its likelihood. Duke claims that this exercise helps you make a more rational decision. In contrast to the Heath brothers\u2019 strategy, Duke intends for <a href=\"https:\/\/www.shortform.com\/blog\/future-scenario\/\">scenario planning<\/a> to happen <em>before<\/em> the decision is made. Therefore, these two strategies could <em>both<\/em> be worked into a <a href=\"https:\/\/www.shortform.com\/blog\/methods-of-decision-making-crucial-conversations\/\">decision-making<\/a> process: Scenario planning could serve as a tool to inform a decision, and the Heath brothers\u2019 contingency planning strategy could serve as a tool to prepare for its outcomes.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-prepare-for-the-unexpected\"><strong>Prepare for the Unexpected&nbsp;<\/strong><\/h3>\n\n\n\n<p>When it\u2019s challenging to accurately predict a decision\u2019s worst-case outcomes, we can still prepare for the unforeseeable. The authors argue that <strong>even though our hubris will cause us to underestimate the worst-case scenario, we can negate that hubris by working \u201csafety factors\u201d into our predictive calculations. <\/strong>A safety factor is a cushion we can add to our prediction of the worst-case scenario. If it turns out that the worst-case scenario was too optimistic, then the safety factor helps us avoid disaster.&nbsp;<\/p>\n\n\n\n<p>For instance, imagine that the food truck owner estimates her business expenses. She multiplies those estimated expenses by a safety factor of 1.5. That way, if it turns out her estimate fails to account for unexpected costs, she avoids draining her bank account.<\/p>\n\n\n\n<p>(Shortform note: The Heath brothers present their safety factor strategy as a way to avoid worst-case scenarios, like a \u201crainy day fund.\u201d If you\u2019re <a href=\"https:\/\/www.verywellmind.com\/the-incentive-theory-of-motivation-2795382\">someone who\u2019s motivated by positive incentives<\/a>, you could reframe this strategy as a \u201csunny day fund.\u201d For example, consider the cushion budget that the food truck owner calculates by multiplying her estimated budget by a safety factor of 1.5. She could motivate herself to save the money by making this a \u201csunny day fund\u201d: telling herself that if she doesn\u2019t use this budget, she can spend it on something else, such as a vacation.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you always have a plan B? Why is it important to plan for the worst and hope for the best, as the popular adage goes? Most of us tend to underestimate the likelihood of the worst-case scenario, thinking that the chances of it coming to pass are slim to none. As a result, we fail to make contingency plans, and if the worst does come to pass, panic ensues because we&#8217;re not prepared to face it. Here&#8217;s why you should always plan for the worst-case scenario, no matter how unlikely it seems.<\/p>\n","protected":false},"author":7,"featured_media":46220,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7,9,43],"tags":[721],"class_list":["post-76264","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","category-psychology","category-self-improvement","tag-decisive","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Plan for the Worst, Hope for the Best: The Power of Plan B - Shortform Books<\/title>\n<meta name=\"description\" content=\"Do you always have a plan B? 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