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What is Scenario Planning?

Writer's picture: Arpit ChaturvediArpit Chaturvedi


Scenario planning is a method used to identify and analyze possible future events or outcomes. It involves creating a number of plausible scenarios that reflect different assumptions about how the future might unfold. This can be a useful tool for organizations to use in order to better understand the potential risks and opportunities that they may face and to make more informed decisions about how to respond to these. In order to conduct scenario planning, it is typically necessary to first identify the key factors that could impact the organization, and then to consider how these factors might interact with one another in different ways to create different possible futures. The organization can then evaluate the implications of each scenario and use this information to inform their decision-making process.



Scenario planning can be a useful tool for accelerating progress towards the Sustainable Development Goals (SDGs) and exploring new pathways to the 2030 Agenda for Sustainable Development. These goals and targets provide a global framework for addressing a range of economic, social, and environmental challenges, and achieving them will require the development of innovative and transformative policy solutions. Scenario planning can help policymakers and practitioners to anticipate and prepare for potential future challenges and opportunities, and to identify strategic options and actions that can help to accelerate progress towards the SDGs.


By developing a range of alternative scenarios based on different assumptions about key drivers of change, scenario planning can help to identify key trends and uncertainties and to identify the most promising pathways for achieving the SDGs. In addition to identifying strategic options and actions, scenario planning can also help to build awareness and understanding of the SDGs and the 2030 Agenda, and to engage a wide range of stakeholders in the policy-making process. This can be especially important for promoting inclusive and sustainable development, and for building support for the necessary policy and institutional changes.


Delphi Method




In conducting scenario planning our organization specializes in drawing upon systems thinking and game theory. We also often use the Delhi method, originally developed by the Rand Corp. The Delphi method is a structured group decision-making process that is designed to elicit and integrate the collective knowledge and insights of a group of experts or stakeholders.


It is often used in scenario planning and other strategic planning processes to help organizations to anticipate and prepare for future challenges and opportunities. The Delphi method is typically conducted in several rounds, with participants responding to a series of questions or prompts through anonymous written or online surveys. The responses are then compiled and analyzed, and a summary of the results is provided to the participants in the next round. This process is repeated until a consensus is reached or the desired level of convergence is achieved.


One of the key advantages of the Delphi method is that it allows experts or stakeholders to contribute their insights and knowledge without the influence of group dynamics or hierarchy. This can help to mitigate biases and ensure that the final recommendations are based on a balanced and informed perspective.


The Delphi method can be particularly useful in scenario planning because it allows organizations to gather and synthesize a wide range of expert opinions and insights about the future. It can help to identify key trends and uncertainties, and to generate a range of alternative scenarios or stories about the future. The Delphi method can also be used to assess the likelihood and impact of different scenarios, and to identify strategic options and actions that can help an organization to adapt and thrive in an uncertain and rapidly changing world.


The Delphi method is often used when it is difficult to obtain reliable data or when there is a need to make predictions about the future. It can be an effective way to tap into the collective wisdom of a group of experts and to reduce the impact of individual biases on the forecasting process.




Futures Wheel

A futures wheel is a graphical tool used to explore the potential consequences of different future events. It is a visual representation of how different factors or events might interact and influence one another over time.


To create a futures wheel, you would first identify a central issue or theme that you are interested in exploring. You would then brainstorm a list of potential future events or developments that could impact that issue. These events or developments would be placed around the outer ring of the wheel, with the central issue at the center. You would then draw lines between the events or developments on the outer ring to show how they might be connected or influence one another.


Futures wheels can be used in a variety of settings, including by organizations to understand the potential impacts of different future scenarios, or by individuals as a creative thinking and planning tool. They can be a useful way to visualize and understand the potential consequences of different future events and to identify potential areas of risk or opportunity.





There are several advantages to using the futures wheel method:


· It is a visually accessible map to explore complex systems and their potential futures.


· It can help to identify and understand the interconnectedness of different factors and how they might influence one another over time.


· It can be used to identify potential areas of risk or opportunity and to think creatively about potential solutions or strategies.


· It can be a useful tool for groups to use in brainstorming sessions or strategy meetings, as it allows everyone to contribute and explore different ideas in a visual way.

· The futures wheel method can be seen as a tool for applying systems thinking, as it helps to identify and understand the interconnectedness of different factors and how they might influence one another over time. This can be useful for organizations looking to anticipate and respond to changes in their environment and make more informed decisions about the future.



Backcasting




Backcasting is a method used to identify the steps that need to be taken in the present in order to achieve a desired future state. It involves working backwards from the desired future state to the present, identifying the key milestones or events that need to occur in order to reach that future state.


Backcasting can be a useful tool for organizations looking to set long-term goals and develop strategies for achieving those goals. It can help to identify the key challenges and opportunities that will need to be addressed and to develop a roadmap for how to overcome those challenges and capitalize on those opportunities.


In order to conduct a backcasting exercise, it is necessary to first define the desired future state in detail. This should include a clear vision of what the future will look like, as well as specific goals and objectives that need to be achieved in order to get there. Next, you would identify the key milestones or events that need to occur in order to reach the desired future state, working backwards from that state to the present. You can then develop a plan for how to achieve each of those milestones, taking into account the resources, skills, and other capabilities that will be needed.


Backcasting can be a useful way to think about the long-term future and to develop strategies for achieving specific goals or outcomes. It can be particularly useful in situations where the future is uncertain and there are many different possible paths that could be taken.




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