Scenario planning 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. Scenario planning offers a way for ordering perceptions regarding how the future may unfold and deciding what course of action may offer the highest future success.
Scenario planning pushes organizations to reexamine its assumptions regarding its industry and think about a broader range of possibilities regarding where the organization’s industry may head in the future. This examination yields innovative insight regarding future opportunities and risks.
Scenario planning does not aim to predict the future. Conversely, it aims to develop and test decisions under multiple possible futures. Scenario planning enhances a businesses’ propensity to identify, adapt and take advantage of changes in their industry. Additionally, scenario planning facilitates higher levels of learning, engagement and collaboration.