STEP 1 Framing the challenge
There are many reasons why an organization would turn to scenario planning to help it assess how the future could develop and to better understand what its options are. All of these reasons are likely to be related in some way to its strategy, but it’s possible to apply scenario planning at a number of different levels in order to gain insight to different kinds of challenges.
The most general and wide-ranging application for scenario planning is simply to reveal insight into future opportunities (and threats) that would affect the organization’s overarching mission:
Industry association. What are the possibilities for the future of our industry?
An organization may want to explore the scenario that would be relevant only to a specific project or goal:
A health food company. How can we introduce our best-selling product in a new geographic market?
A sporting goods manufacturer. What are our options for maintaining our number one position in the UK?
Another reason scenario planning could make sense would be to search for solutions to a particular crisis situation:
An airline. A low-cost competitor just launched a service on our most profitable route. How should we respond?
Any number of situations can readily justify the use of scenario planning to explore alternative outcomes so that an organization can define the most flexible strategies and pragmatic solution. The key is to frame the exercise to try to answer questions such as those in the preceding lists. The outcome of a scenario planning exercise called”what could we do about this problem we are facing?” will yield much more practical insights than one called “The future: Aren’t you just dying to know what it will be like”
Another important aspect of framing the problem to be explored is to define the time horizon.Be sure to choose a time scale in which the strategic solutions and plans you develop can fully be implemented and show results
It might also be useful to define the stakeholders involved, both in the challenge and in the solution. They may or may not be participants in the process,but you wil be able to frame the challenge more comprehensively if you clearly understand their stake in it.
Last, even at this early stage of the process (especially at this early stage),a little shock value can pay dividends in focus, motivation,and later,creativity. Don’t hesitate to frame the challenge in a negative way,as in the following examples.
Living with our undersized airport: where will this leave Nowheresville in 2025?
The 2020 banking landscape under the new regulatory framework: what if the big boys come to town?
Get the attention of the participants and stakeholders
STEP 1 Framing the challengeThere are many reasons why an organization would turn to scenario planning to help it assess how the future could develop and to better understand what its options are. All of these reasons are likely to be related in some way to its strategy, but it’s possible to apply scenario planning at a number of different levels in order to gain insight to different kinds of challenges.The most general and wide-ranging application for scenario planning is simply to reveal insight into future opportunities (and threats) that would affect the organization’s overarching mission: Industry association. What are the possibilities for the future of our industry?An organization may want to explore the scenario that would be relevant only to a specific project or goal: A health food company. How can we introduce our best-selling product in a new geographic market? A sporting goods manufacturer. What are our options for maintaining our number one position in the UK? Another reason scenario planning could make sense would be to search for solutions to a particular crisis situation: An airline. A low-cost competitor just launched a service on our most profitable route. How should we respond?Any number of situations can readily justify the use of scenario planning to explore alternative outcomes so that an organization can define the most flexible strategies and pragmatic solution. The key is to frame the exercise to try to answer questions such as those in the preceding lists. The outcome of a scenario planning exercise called”what could we do about this problem we are facing?” will yield much more practical insights than one called “The future: Aren’t you just dying to know what it will be like”Another important aspect of framing the problem to be explored is to define the time horizon.Be sure to choose a time scale in which the strategic solutions and plans you develop can fully be implemented and show resultsIt might also be useful to define the stakeholders involved, both in the challenge and in the solution. They may or may not be participants in the process,but you wil be able to frame the challenge more comprehensively if you clearly understand their stake in it.Last, even at this early stage of the process (especially at this early stage),a little shock value can pay dividends in focus, motivation,and later,creativity. Don’t hesitate to frame the challenge in a negative way,as in the following examples. Living with our undersized airport: where will this leave Nowheresville in 2025?The 2020 banking landscape under the new regulatory framework: what if the big boys come to town? Get the attention of the participants and stakeholders
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