Scenario planing is the process of visualizing what future conditions or events are probable, what their results or effects would be like and how to react to or benefit from them. Scenarios are data-driven stories about the future that help organizations make informed decisions in the present.
Scenario planning enables organizations to investigate and prepare for multiple possible future possibilities. It examines outcomes an organization may encounter under a variety of operating strategies and economic conditions.
Scenario planning does not aim to predict the future. Conversely, it aims to develop and test decisions under multiple possible futures. Scenario planning enhances an organization’s ability to identify, adapt and take advantage of changes in their industry. Furthermore, scenario planning facilitates grater levels of learning, engagement and collaboration.
Incorporating scenario planning in your organization promotes higher levels of discovery as well as synergy that typically is not present in other strategic practices.