Scenario Planning

Thinking Tools3.4 Facts About the FutureAlso known as Shell Scenario Method, Scenario Analysis

Developed by Herman Kahn (The Year 2000, with Anthony J. Wiener, 1967), Pierre Wack at Shell (Scenarios: Uncharted Waters Ahead, 1985), and Peter Schwartz (The Art of the Long View, 1991).

Builds a small set of distinct, internally consistent futures from the two most uncertain forces, then tests a strategy against each of them.

When to reach for it

Planning depends on a future nobody can forecast with confidence, and the organization is betting everything on one version of it.

How it runs

  1. Set the focal question and the time horizon.
  2. List the forces that will shape the answer.
  3. Rank them by impact and by uncertainty.
  4. Cross the two most uncertain, high-impact forces into four futures.
  5. Write each future as a coherent story.
  6. Test the strategy in each and note early warning signs.

Where it sits in SOLVE eX

Go to the source

  • The Year 2000: A Framework for Speculation, 1967
  • Scenarios: Uncharted Waters Ahead, Harvard Business Review, 1985
  • The Art of the Long View, 1991

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