What is scenario planning?

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Imagining possible futures with scenarios

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Scenario planning is a disciplined method for imagining possible futures.

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It allows individuals to engage in strategic discussions, which in turn, encourages an organisation’s leadership to continually learn and make sound strategic decisions for multiple possible futures.

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Scenario planning also assists organisation’s in anticipating how future events will impact their business in a multitude of ways that might otherwise be unforeseen.

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Scenario planning has alerted the Shell leadership team in advance about some of the most confounding events of their times including:

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👉the 1973 energy crisis

👉the collapse of the oil market in 1986

👉the fall of the Soviet Union

👉the increasing pressure to address ESG challenges

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Scenario planning allows Shell to anticipate and prepare for potential changes in the market and industry.

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Read more here about Shell's scenario planning.