Scenario Planning, Analysis, or Thinking is a technique for probing into possible futures when you are anticipating or overwhelmed by tumultuous challenges. One often starts by examining two factors that have both great Importance and Uncertainty and then considering two extremes of each. For their four different mixtures, you can posit causes, how to recover from bad outcomes, what actions would be favorable for all scenarios, etc. In other words, one can develop related stories about these different futures.
In these slides by authors Steven Weber and Arik Ben-Zvi, the two important and uncertain factors are Public Health and Economics, both affected by the Covid-19 pandemic, and for their initial purposes independent of each other. For public health, the disease could kill far more than estimated (a secondary wave) or kill less (vanish like a miracle). For the economic impact, the toll could be sustained (a long term depression) or the recovery could be relatively quick (v-shaped). So the two factors and their extremes are
- Economic recovery is slow (depression, recession), or fast (v-shaped)
- Health and death toll is worse (than estimates), or better (yay)
The four scenarios that are named are basically
- Economy good, Health good: Americans Win
- Economy bad, Health good: Fractured USA
- Economy good, Health bad: Resilient USA
- Economy bad, Health bad: Coronavirus Wins
and the scenario stories are told with respect to January of 2021 at the next state of the union address. Each of these scenarios are quite detailed and then followed by Insights and Implications for all. Often Scenario Thinking is used for more distant future analysis, but this shows it can be used for a mere nine months as well.