Strategy and analysis

Scenario Planning

Compare strategies and actions across different possible future conditions. Useful for long-term planning, resilience, uncertainty management, and strategic foresight.

What the framework is

Scenario planning prepares an organisation for several possible futures, instead of betting on one forecast. You pick the uncertainties that matter most, build a few plausible futures from them, and test your plans against each. Shell made the method famous in the 1970s, when its scenarios helped it respond to the oil shocks faster than its rivals.

What the result looks like

EXAMPLE
Which actions hold up best in each future?

Optimistic Future

Win rate
01
Invest in growth
83%
20 Wins · 4 Losses
02
Build partnerships
42%
10 Wins · 14 Losses
03
Expand the team
25%
6 Wins · 18 Losses

Resource-Constrained Future

Win rate
01
Cut fixed costs
71%
17 Wins · 7 Losses
02
Share services
50%
12 Wins · 12 Losses
03
Focus on core customers
29%
7 Wins · 17 Losses

Climate Stress Future

Win rate
01
Adapt sites
63%
15 Wins · 9 Losses
02
Diversify suppliers
54%
13 Wins · 11 Losses
03
Insure key assets
33%
8 Wins · 16 Losses

High-Regulation Future

Win rate
01
Strengthen compliance
79%
19 Wins · 5 Losses
02
Engage regulators early
46%
11 Wins · 13 Losses
03
Simplify products
25%
6 Wins · 18 Losses

When it earns its place

Use it for long-range strategy, large investments, or when the environment is shifting and forecasts disagree. Groups argue most about which uncertainties and scenarios deserve the work. This template ranks the step after that: which responses suit each scenario. The trap is the "best case, worst case, middle case" trio. It collapses into one forecast with error bars, and plans get tested against nothing new.

How to run it with a group

  1. Collect the forces of change first; a PESTLE is a good source.
  2. Read the four scenarios the template sets out, and adapt their wording to your situation.
  3. For each scenario, list four to six responses you could make.
  4. Participants work through the scenarios one at a time. In each, they compare the responses two at a time. Participants do not need an account to respond.
  5. Look for responses that rank high in every scenario: those are robust, so start them now. A response that wins in only one scenario is a contingency; note the early signal that would trigger it.

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