What are the six basic steps of scenario planning?

The six steps in formulating a scenario plan are the following: (1) choose the target issue, scope, and time frame that the scenario will explore; (2) brainstorm a set of key drivers and decision factors that influence the scenario; (3) define the two dimensions of greatest uncertainty; (4) detail the four quadrants of …

What is the process of scenario planning?

Scenario planning attempts to eliminate the two most common errors made in any strategic analysis – Overprediction and Underprediction of the company’s future. But due to that success, they started over predicting the future. Scenario planning will help us draw a line between over and under predictions.

What are the 7 steps of strategic planning?

Seven steps of a strategic planning process

• Understand the need for a strategic plan.
• Set goals.
• Develop assumptions or premises.
• Research different ways to achieve objectives.
• Choose your plan of action.
• Develop a supporting plan.
• Implement the strategic plan.

What is the first step in the planning process?

Stages in the Planning Cycle

1. Define objectives. The first, and most crucial, step in the planning process is to determine what is to be accomplished during the planning period.
2. Develop premises.
3. Evaluate alternatives.
4. Identify resources.
5. Plan and implement tasks.
6. Determine tracking and evaluation methods.

How do you build a future scenario?

To use Scenario Analysis, follow these five steps:

1. Define the Issue. First, decide what you want to achieve, or define the decision that you need to make.
2. Gather Data. Next, identify the key factors, trends and uncertainties that may affect the plan.
3. Separate Certainties From Uncertainties.
4. Develop Scenarios.

What is the purpose of scenario planning?

In the context of a business, scenario planning is a way to assert control over an uncertain world by identifying assumptions about the future and determining how your organization will respond.

What is effective strategic planning?

Effective strategic planning refines the vision for where the organization is going (or not going). It provides focus and direction for how the organization intends to achieve its vision, while managing the implementation of its plan.

What are the four steps of strategic planning?

The 4 Steps of Strategic Planning Process

• Environmental Scanning. Environmental scanning is the process of gathering, organizing and analyzing information.
• Strategy Formulation.
• Strategy Implementation.
• Strategy Evaluation.

What is the role of scenario planning in a world of uncertainties?

Instead of starting with a view of all the possible trends impacting your organization, identify the major issue or decision you’re facing, such as siting of a new plant, entering into a global alliance, entering a new market, or revamping product distribution channels.

What is the definition of a critical uncertainty?

A critical uncertainty is an uncertainty that’s key to the decision you focused on from Step 1. Sometimes phrasing these uncertainties as questions can help you clarify them.

How to plan for a world of uncertainties?

Establish a clear-cut decision focus. Instead of starting with a view of all the possible trends impacting your organization, identify the major issue or decision you’re facing, such as siting of a new plant, entering into a global alliance, entering a new market, or revamping product distribution channels.

What is the goal of our scenario approach?

The goal is to cluster the relevant factors that we identified during the Perception Analysis into secondary elements, trends, and especially critical uncertainties. Critical uncertainties have a high impact on a firm’s future success and are highly uncertain.