The classic form flexes one variable through a range, such as price from minus 5% to plus 5%, and records the effect on an output like EBITDA or cash. Ranking the results shows where the model is fragile: if a one-point change in gross margin moves profit more than a ten-point change in marketing spend, margin assumptions deserve the scrutiny.
Sensitivity analysis differs from scenario planning in scope. Sensitivity moves one input at a time to test the model's mechanics. A scenario changes many inputs together to describe a plausible future. Most teams run sensitivities first, then build scenarios around the variables that proved most powerful.
In software: platforms with live driver models, such as Pigment and Anaplan, recalculate outputs instantly when an input changes, which makes one-variable flexing a routine exercise. Aleph keeps models in the spreadsheet layer while syncing actuals, so analysts run sensitivities with familiar formulas on governed data.
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