Scenario planing is the process of visualizing what future conditions or events are probable, what their consequences or effects would be like and how to respond to or benefit from them. Scenarios are data-driven stories about the future that help organizations make informed decisions in the present.
- Creates more sustainable long-term strategy
- Makes strategic decisions under conditions of uncertainty
- Continuously innovates in anticipation of the market
- Develops an organization’s flexible and creative thinking
- Aligns key stakeholders in support of a shared vision
- Fosters a continual assessment of strategic action
- Enhances the competitive advantage of a business
Scenario planning provides organizations the means for ordering perceptions about what the future may bring and helps business leaders decide what strategic decisions they make today provide the best chance of future success.
Scenario planning encourages decision makers to reconsider its assumptions about its industry and revisit a broader scope of possibilities about what lies ahead in your industry’s future. This examination provides a broader and innovative snapshot about future opportunities and risks.
It’s worth noting that the purpose of scenario planning isn’t to predict the most probable future, but rather develop and test strategic choices under a variety of possible futures. Scenario planning strengthens an organization’s ability to recognize, adapt and take advantage of industry changes over time.
Additionally, scenario planning promotes high level leaning and collaboration. This high level learning and collaboration is not inherent in other strategic practices. Scenario planning enhances your organization’s competitive position and its ability to adapt to an ever-changing global environment.