Scenario planning is a tool that is used a lot in strategy formulation, but can be very useful as part of a project’s risk management process. By producing a series of future possibilities as a result of a structured and logical process, you can identify risks and test strategies for eliminating or mitigating them.
Some of the advantages of scenario planning include reducing the risk of groupthink or concentration on a single most likely outcome. It also helps with contingency planning, because it forces “what if?” considerations of a situation. There’s also value to be gained from the process itself, because there’s a focus on learning and understanding rather than problem solving.
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