Scenario planning, also sometimes referred to as scenario thinking, contingency planning or scenario analysis, is a strategic planning method many enterprises use to make flexible long-term plans. Scenarios provide alternative future predictions. Building and using scenarios can help you and your organization investigate what the future may be like.
Scenario planning challenges organizations to reconsider industry assumptions and examine a broader range of possibilities about what the future holds. The goal of scenario planning isn’t to predict the most accurate future, but to develop and test strategic decisions under a variety of plausible futures.
Incorporating scenario planning in your organization promotes higher levels of discovery as well as synergy that generally are not profoundly present in other strategic practices.
- Provides the ability to perceive assumptions again about how and why your organization or industry may evolve differently from conventional thinking.
- Identifies new growth opportunities before they become general practice.
- Creates participant buy-in.
- Utilizes established information.
- Promotes creativity and critical thinking.
Incorporating scenario planning in your organizational framework will help enhance your organization’s competitive stance and its ability to adapt to changing global environments. Additionally, scenario planning will help foster a continuous assessment of strategic actions your organizations should take. Scenario planning is an invaluable tool for gaining immediate impact and a long-term advantage.