Presentation Transcript
Future Scenarios: : Future Scenarios: The Art of Storytelling
Definitions : Definitions Scenario-based planning is a creative, forward-looking, open-ended search for patterns that might emerge in an industry
At its best, it discovers entirely new patterns that no one else has recognized
Research + data analysis + intuition + thinking + creativity = scenario planning
Scenarios are learning tools
Definitions : Definitions
They are stories that help suspend disbelief in possible futures
Scenarios are a powerful tool for forcing us to abandon previously fixed ideas
Scenario planning is the application of visual dialogue
Early Uses : Early Uses Military Think Tanks
To Influence Public Attitudes
Pierre Wack: The Mystic : Pierre Wack: The Mystic 'To see,' Wack said, 'means not merely being aware of an element of your environment, but seeing through it, with full consciousness.'
Two Schools of Thought : Two Schools of Thought Risk-Reduction School
Revolutionary School
Forms of Strategic Modeling : Forms of Strategic Modeling Trend-impact analysis
Cross-impact analysis
Decision scenarios
Decision Scenarios : Decision Scenarios The rules for success with decision scenarios are few but they are unforgiving if ignored. First, the scenarios must be relevant. Second, the development of the scenarios must be a team effort between operating managers and planners.
What Makes A Scenario Planner? : What Makes A Scenario Planner? Researcher extraordinary
Flexible perspective
A lover of constant education
Need to be aware of the fringes
Intuitive
A collaborator
Inspirator
Committed and passionate about the work
The Process of Creating : The Process of Creating Identify the focal issue or decision
Identify the driving forces
Predetermined elements
Critical uncertainties
Writing the scenarios
The Process of Creating : The Process of Creating Interviews
Feedback
Workshops
How Many Scenarios? : How Many Scenarios? It all depends on the company you choose to use, but make make you have a base case.
Some use two because they believe the use of two scenarios is a tactic to make them easier to implement.
GBN tends to use four scenarios.
NCRI has used as many as eight business models but they are paired sets of alternatives.
Communicating Scenarios : Communicating Scenarios Opening remarks should describe the uses of scenarios, or offer a success story
Clearly present the question under investigation
Use vivid names and glossy booklets
Interesting story lines, names, and a memorable timeline
A process by which the scenarios can be used by the organization to decide what to do next
Why Invest Time In Scenarios? : Why Invest Time In Scenarios? Scenario planning can help overcome the tendency to interpret new information in terms of old beliefs
Scenario-based planning allows managers to deliberately try to break the rules of their business
Scenarios are a way of practicing under a variety of circumstances with minimal risk
Why Invest Time In Scenarios? : Why Invest Time In Scenarios? Decisions are rooted in mental models, but our mental modes are not always good.
Scenarios can help by legitimizing a dialogue, challenging convention wisdom, initiating wide-spread discussion, and creating the possibility of genuine transformation.
Managers must make lots of decisions, and some are tougher than others.
Why Invest Time In Scenarios? : Why Invest Time In Scenarios? Business success often depends upon sensing what is coming in the future earlier than the competition. Scenarios increase this capability.
Scenarios allow management to get beyond the question of 'What future is most probable?' to more powerful questions like 'What future do we fear the most?' and 'What future do we want to create?'
Key Management Benefits : Key Management Benefits Anticipation and leveraging of change
A more alert and competitive organization
Stimulation of various mental modes; introduction to multi-future thinking
Reduction of future risk
Developing a consistent framework
The development of strategy and the translation into action
A wider and more realistic shared basis for decision making
Problems and Pitfalls : Problems and Pitfalls Lack of decision focus
Lack of decision makers’ involvement and commitment
Scenarios become the product of the exercise
Scenarios are not ‘planning friendly’
Scenarios are difficult to use
Problems and Pitfalls : Problems and Pitfalls Wishful thinking and denial
Lack of intuition on the part of the facilitators
Ignoring basic driving forces and feedback loops
Management feels best when decisions are data-based
Decisions are rooted in mental models
Problems can arise when members of the senior team are not able to share their mental models
How Can You Make Them Work? : How Can You Make Them Work? Somehow reaching the part of the managers’ minds that harbor their perceptions; good scenarios can help change mental models.
Develop a receptive culture
Target the opportunity
Develop a strong communications program
How Can You Make Them Work? : How Can You Make Them Work? Create explicit links to the rest of the strategic management process
Fit the scenario to the task
The scenarios must be internally consistent
Once you have the scenarios, ask yourself what the scenarios really mean for the company
How Can You Make Them Work? : How Can You Make Them Work? The scenario must resonate in some way with what the managers already know, giving them the ability to re-perceive the world.
Make sure that observations from the real world are built into the process
Make sure that everyone can recognize the truth in a scenario
Success Stories : Success Stories Telephone Industry
Investment Decisions
Do Scenarios Have the Power to Change the World? : Do Scenarios Have the Power to Change the World? The South African Success Story
Canadian Scenarios : Canadian Scenarios Starship
Titanic
HMS Bounty
Windjammer
Precautions : Precautions Scenarios are complementary management tools
Scenario planning is not a substitute to traditional or classical approaches to change management
The emphasis for planners must move from forecasting to foresight
Many types of scenario facilitation are very expensive
Scenarios Connection to KM : Scenarios Connection to KM Future scenarios are stories aimed at helping people break past their mental blocks and consider unthinkable futures. That is also what a comprehensive knowledge management system will do for you.
'We each design our own future behaviour, and the behaviour of our organizations in ways that we are not fully aware of. That is why it is so important not just to recognize our mental models but to actively try to change them.' -- A. Kleiner
Top Scenario Players : Top Scenario Players Battelle’s Basics
Computer-Driven Simulations
The European Commission
Northeast Consulting Resources, Inc.
NCRI
Schriefer Management The French School
The Futures Group
Global Business Network
The Copenhagen Institute for Future Studies
SRI
Centre for Generative Leadership
Commentary : Commentary Ultimately the power of scenario planning is that it can prepare us; help us to understand the uncertainties that lie before us, and what they mean; help us to rehearse our responses to those possible futures; and help us to spot them as they begin to unfold.
Acknowledgements : Acknowledgements Peter Schwartz
Peter Feltham
Howard Rheingold
Art Kleiner
David Mason
Norman E. Duncan
Lucia L. Quinn
Gill Ringland Audrey Schriefer
Lawrence Wilkinson
Kees van der Heijden
Adam Kahane
Pierre Wack
Herman Kahn
Steven Rosell
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