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Method

Scenario planning

A method for building several plausible stories of the future and checking which decisions work in all of them.

In Spanish
Planificación por escenarios
Origin
Kahn and Wiener (1967); Wack (1985)
Output
Several plausible stories of the future and the decisions that work in all of them

What it’s for

It helps you decide when the future is uncertain, without betting everything on a single forecast that leaves the plan exposed if it fails.

Key elements

  • Critical uncertainties

    Scenarios start from a few decisive factors about which there is no certainty.

  • Several plausible futures

    Different from each other and believable, not a good, a bad and a normal one.

  • Robust decisions

    Look for what works in every scenario.

An example

An organization decides what to invest in over the next ten years.

A forecasttodayforecast
The most likely forecast is chosen and the plan is made for it alone. Fragile if it fails.
Several scenariosuncertaintyuncertainty
Two key uncertainties are crossed, four futures emerge and a plan is sought that holds up in all of them. More robust.

Scenarios don't predict the future: they prepare you for several.

How it’s done

  1. Choose the critical uncertainties: what matters most and is least known.

  2. Crossing them produces several different, plausible futures.

  3. Each decision is tested in every scenario.

Applications in design

  • When to use it

    Before a big decision that is hard to undo, such as launching a service, when the future depends on factors no one controls.

  • Avoid

    Making a “good”, a “bad” and a “normal” scenario: in the end only the middle one gets looked at.

  • Don’t fall for it

    Test each decision in two to four different scenarios and keep what works in all of them; don’t assign them probabilities without data.

1973

What the research says

Shell was working with scenarios that considered an oil supply disruption before the 1973 crisis; that helped it react when it came (Wack, 1985).

Authors and works

  1. 1967

    Herman Kahn and Anthony J. Wiener

    Used scenarios to explore alternative futures in The Year 2000.

  2. 1985

    Pierre Wack

    Told how Shell used scenarios to prepare for the oil crises.

Sources

Original sources

  • Kahn, H., & Wiener, A. J. (1967). The year 2000: A framework for speculation on the next thirty-three years. Macmillan.
  • Wack, P. (1985). Scenarios: Uncharted waters ahead. Harvard Business Review, 63(5), 73–89. View source: Wack, P. (1985)

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