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Last Updated on April 19, 2021

Why You Need a Contingency Plan If You Want To Succeed

Why You Need a Contingency Plan If You Want To Succeed
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A contingency plan doesn’t sound like what you would discuss with friends over cake and coffee, but it’s an essential part of any actual plans you make. You may need one (or more) for your business, school project, or even a family vacation. The biggest problem with making a contingency plan is that people often aren’t sure about what to include in it. Here is a handy guide for you to make a comprehensive one.

What is a contingency plan?

A contingency plan is a set of actions that you will take when something unexpected happens. Think of it as a backup plan, or a Plan B. It should have instructions that you can follow when your original plan doesn’t work out due to changes in the situation.

A contingency plan prepares you to deal with any future troubles you may encounter, and gives you some sort of escape route out of any accident.[1]

What happens if you don’t have a contingency plan?

If something goes wrong with your Plan A unexpectedly, or if accidents force you to change your current plan, chances are you will panic. Especially if you’re not well prepared to deal with contingencies, you probably can’t think straight enough to come up with the solution you need at that moment. You won’t know what to do.

What’s worse, until you’re able to get the situation under control, business can’t go back to normal. You’ll have to fix the trouble and make new plans.

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What if the contingency plan is a bad one?

Don’t think making a contingency plan is a simple task. A contingency plan should be comprehensive, which requires lots of careful consideration. Otherwise, it is not helpful.

For instance, you may be prepared for the wrong kinds of accidents. And when your plan doesn’t work out as expected, you won’t be organized enough to handle the crisis. That is, you’ll panic.

How can a contingency plan benefit you?

For instance, a contingency plan allows you to deal with accidents quickly and effectively.[2] In a business scenario, it can even help you save time and cost in repairing the situation.

Also, a contingency plan helps minimize the negative consequences or losses caused by the unexpected event. It guides you to start dealing with the situation as soon as something goes wrong and keeps you safe.

After all, having a contingency plan ready is reassuring, because you won’t have to worry about making new plans in a rush.

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You may think that accidents are unlikely. You may think that your Plan A is perfect. However, you should keep in mind that the future is uncertain until it becomes the present, and that we as human beings can’t control 100% of what happens. You don’t want to regret not having a contingency plan when it’s too late!

How to write a good contingency plan?

There are basically 5 steps:[3]

    We’ll now go through them one by one:

    1. Identify

    As a contingency plan has to do with what’s unexpected, you have to first try and predict the risks:[4]

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    • What could possibly go wrong?
    • How likely it would go wrong?
    • What’s the impact and consequences of the contingency?
    • What should be your reaction or solution?
    • How can you prepare for it in advance?

    2. Prioritize

    Using what you’ve written down in Step 1, rank your risks by their possible impact and likelihood. The more likely the risk will happen and the more serious the impact will be, the higher it should rank.

    You have to decide how much weighting to put on each risk according to your situation.

    3. Plan

    The next step is to actually write your contingency plan. Keeping in mind the resources available to you, design solutions to the risks you want to cover in the plan. Be realistic about your needs: perhaps some issues have to be dealt with before some others, or perhaps you have to take actions within a certain time frame, etc.

    It is also important to give clear and simple instructions, so that you won’t forget what you’ve written months later, or that someone will misunderstand them.[5]

    4. Execute

    If your contingency plan involves other people, say, your colleagues or your family members, talk it through with them. Let them know what they’re supposed to do when certain things happen.[6] Prepare them.

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    Then, if your plan includes actions to prepare for future accidents, execute them. This can help you lower the risks you may have while goal setting.

    5. Review

    Changes happen all the time. For your contingency plan to be practical, you should review it and make adjustments regularly. Evaluate the items in your plan. Over time, some risks may become more or less likely, or may bring about different outcomes. Learn your situation well, and update your solutions accordingly.

    If your plan is about large-scale risks such as natural disasters or server failures, conducting drills is very helpful to identifying any weaknesses of the plan, as well as making sure the people involved will be prepared to act according to the plan when they have to.

    Some concrete examples to put things into perspective:

    Example 1: Contingency plan for an outdoor exhibition

    • Potential risk: Rain
    • Who will be affected: Exhibitors, visitors, organizers and crew members
    • Action 1: Secure exhibit items
      • Who will take action: On-site crew members
      • Preparation: Rain-proof covers for exhibitors’ stalls, email exhibitors with weather forecasts 3 days in advance
    • Action 2: Lead visitors to sheltered areas
      • Who will take action: On-site crew members, security guards
      • Preparation: Mark designated areas as no-parking areas, waterproof jackets for crew

    Example 2: Contingency plan for delivering a speech to a big group of audience (co-workers)

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    • Potential risk: The projector or the computer doesn’t work
    • Who will be affected: Me
    • Action: Write outline and key points on whiteboard as I speak
      • Who will take action: Me
      • Preparation: Notes in hard copy, 3 colored markers, printed handouts

    Featured photo credit: Flaticon via flaticon.com

    Reference

    More by this author

    Leon Ho

    Founder & CEO of Lifehack

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    Last Updated on July 21, 2021

    17 Traits That Make a Successful Person Stand out from the Crowd

    17 Traits That Make a Successful Person Stand out from the Crowd
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    If you are like most people, you probably have big goals and dreams that you would like to succeed in — you want to be the top in your career, live a healthy lifestyle, or flourish in your relationships.

    Everyone dreams of a positive future, but most people don’t realize the secret to a truly successful life:

    You determine your future in the way you spend your everyday moments. If you want to be a successful person, you must consistently develop good daily habits. As Aristotle pointed out:

    “We are what we repeatedly do. Excellence, then, is not an act, but a habit”.

    Building positive daily habits is a huge challenge, but can you imagine the amazing things you could accomplish with just a little commitment and determination?

    Creating lasting, healthy habits is the real key difference between people who are successful in life and those who are unsuccessful.

    You might be wondering which specific habits make the biggest difference. Not to worry, I’ve compiled a comparison list to help you get a jump start on a successful future.

    1. Successful people embrace change. Unsuccessful people fear change.

    Change is a constant for all of humanity, and it is important that you develop a positive relationship with it.

    When unexpected or unwelcome changes arise, ask yourself how you can embrace it instead of running away. A few practical ways to reverse a change-fearing mindset include:

    • Take a moment to recognize and address any fears associated with the upcoming change.
    • Communicate with a person you trust about your negative feelings toward change.
    • Practice positive thinking, which you can read about in the next section.

    2. Successful people exude joy. Unsuccessful people think, say and do negative things.

    A joyful, positive disposition can seem like a distant reality in today’s cynical world, but it may be easier to achieve than you think. All you have to do is notice the good things around you and practice being thankful.

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    Mindfulness and gratitude are not just buzz words – choosing a positive attitude can honestly change your life. Many studies have found that thankfulness leads to greater happiness. Furthermore, research indicates that gratitude may even have a lasting positive impact on the brain and overall mental health.[1]

    3. Successful people forgive others. Unsuccessful people hold grudges.

    As a human being, you have likely been offended or hurt by others plenty of times. Don’t give in to the temptation to hold a grudge. Let it go.

    Note that forgiving someone does not equate to giving up your boundaries (which are very important) or even admitting that the offending party is right. You should choose to let go for your own peace of mind.

    4. Successful people track progress. Unsuccessful people just criticize.

    Some kinds of criticism, such as constructive criticism, are good for personal and professional development. The kind of criticism I’m talking about is the pessimistic, nagging, unhelpful variety. This is the kind of criticism in play when you are unfairly harsh to yourself or others.

    Toss unfounded criticisms aside and consider tracking your “wins” or your progresses, no matter how small. Take mental notes or keep a progress journal.

    If you have a solid sense of what you have achieved, you will be less tempted to be hard on yourself.

    5. Successful people share information, data and ideas. Unsuccessful people hoard.

    If you have useful information or generate brilliant ideas on the regular, your first instinct may be to keep it all to yourself for personal gain and solo recognition.

    Instead of hoarding bright ideas, share them with your team. Your talents will be on display for the team, and the team will be able to support you and make your ideas a reality.

    6. Successful people are humble. Unsuccessful people talk more than they listen.

    Humility is key. The ability to listen to other people, really listen and understand, is essential to success in both work and relationships — and to listen you have to be humble.

    Everyone has experienced the frustration of being in a one-sided conversation. When someone approaches you with a question or concern, put your own world aside for just a moment and give them the kindness of your full attention.

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    7. Successful people take risks. Unsuccessful people take the easy way out.

    The next time your heart is racing and you want to walk away, consider embracing the risk. You never know what might happen if you take a chance.

    Embracing risks looks like accepting the speaking engagement even though it seems a little scary. Success takes the courageous route, not the easy route.

    8. Successful people learn, improve and read every day. Unsuccessful people stop learning.

    Instead of binge-watching a show tonight, save an hour before bed to read a book and expand your mind.

    Unsuccessful people are afraid to be flexible – they don’t challenge themselves to learn new things. Avoid this pitfall by exposing yourself to new thoughts and ideas every day.

    9. Successful people handle problems well. Unsuccessful people act before they think.

    The next time you run into a problem or even an emergency, try to work through your initial panic reaction with a few deep breaths.

    Instead of acting rashly, think through your next actions as quickly but as logically as you can.

    Learning to handle problems thoughtfully is an absolutely essential tool in the successful person’s toolbox (that’s you!).

    10. Successful people accept responsibility for their failures. Unsuccessful people blame others.

    Along with a previous tip about humility, this is one of the hardest things you’ll ever learn to do – but also the most rewarding. When you’ve failed, you must fight the urge to pass the blame. Successful people are able to fail honestly and gracefully.

    And, hey, don’t feel bad about failing. Some of the most successful people in the world have failed too many times to count. It’s all a part of the process.

    You can check out this article for more tips on how to fail well:

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    How Failure Helps You To Succeed and Grow

    11. Successful people work with passion and commitment. Unsuccessful people have a sense of entitlement.

    A short and sweet lesson for you:

    You should never expect to achieve the things you want without working hard.

    Follow your passion and stay committed to pursuing it. Work hard and stick to your habits every day. You’ll earn your reward.

    12. Successful people spend time with the right people. Unsuccessful people think they already know it all.

    A lot of people miss out on useful relationships and information sharing because they think they can do it all alone.

    Spend time with people who inspire you, spur you to be a better person, and remind you that you can’t go it alone.

    13. Successful people make to-do lists and maintain proper life balance. Unsuccessful people waste their time.

    Ah, time management. Unsuccessful people never master the art of organization and planning.

    Here are a few tips for you when it comes to time management:

    • Make to-do lists. Seriously, this will help you. Make time to do it every morning, evening, or whenever you are able.
    • Keep track of your time. Are you happy with the way you are currently balancing things? What changes can you make?
    • Keep a calendar full of your long-term goals (see next tip).

    14. Successful people write down goals and think long term about their burning desires. Unsuccessful people get distracted every day.

    Why is it so important to keep a long-term goal calendar? Here’s the deal:

    The things you are passionate about today need a backbone.

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    Give your passionate ideas sustainability by writing down goals and staying on task instead of succumbing to distraction.

    15. Successful people compliment others. Unsuccessful people try to bring others down to their level.

    There is no greater confidence than saying “no” to sudden jealous or envious feelings and choosing to sincerely admire someone’s talents instead.

    Unsuccessful people live in a world driven by competition, but successful people know that building people up is far more rewarding than bringing them down.

    16. Successful people want others to succeed. Unsuccessful people secretly hope they fail.

    In the same vein as the point above, this tip is all about good intentions.

    Care for the people around you. Encourage them toward their successes. Hoping that others fail will not help you at all.

    17. Successful people know their purpose and mission. Unsuccessful people don’t know what they want to be.

    The last thing that differentiates successful people from unsuccessful people is one of the most important:

    Keep your mission in mind.

    Don’t be swayed to and fro by passing emotions and events. Know who you are and pursue your dreams wholeheartedly.

    Final thoughts

    Above all, stay confident. Truly believe that you can be and are successful. Strive to prove it in your day-to-day habits and activities!

    What are you waiting for? Choose one of the habits above and get started today.

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    Featured photo credit: Unsplash via unsplash.com

    Reference

    [1] Berkeley University of California: How Gratitude Changes You and Your Brain

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