Scenario planning is a structure for organizations to think about the future. This activity is typically undertaken by leadership teams to develop varying scenarios – stories about how the future might unfold and how this might affect their business or a key business decision (e.g., investment decisions, commodity strategies). Should a retailer invest millions into more out-of-town megastores and their attendant car parks, or should it invest in secure websites and a fleet of vehicles to make door-to-door deliveries? The scenarios could be even broader, in the case of electric vehicle and high-technology original equipment manufacturers (OEMs), for instance, contemplating the need for quick and efficient mobility in dense cities and the attractiveness of air taxis. Will the higher cost of air travel be counterbalanced by the time burden of commuting in dense cities?
Scenario planning is an established tool for developing strategies that deal with inherent uncertainty. Scenarios are possible worlds, not predictions. By blending the known and the unknown into plausible views of the future, the Ricardo Strategic Consulting (RSC) team can help your organization test the robustness of its long-term strategies. It can also help stretch the organizational thinking and plan for disruptive new products and services. In each project, the RSC team use our in-depth technical background in conjunction with world-leading industry understanding, to:
- Build 2-4 scenarios, each describing alternative views of the future
- Consider the implications of each scenario for your organization
- Help the client organization formulate strategies for future products and services that are robust to these scenarios