Scenario-based Strategy
Scenario-based strategy
City executives need to have a planning time horizon of 20–25 years to anticipate discontinuities in the contextual environment. This relatively long time horizon reflects the time span of discretion, the length of time that it takes for a decision at director level to be seen as correct. A shorter planning time horizon will result in decisions that do not fit with the organisational context 25 years hence. Scenario-based strategy was developed by its founders to do precisely that – enable thinking that is comprehensive and which provides insights into the future that are novel compared to commonly held assumptions about the future. Modelling using the SD methodology is applied to develop a causal loop diagram which reflects the critical causal relationships within specific dynamics. SD models complement scenarios and assist in forming an idea of the future organisational context. SD modelling can support decision makers to penetrate this planning time horizon. A systemic study can also eliminate unintended consequences following policy decisions. Stress-testing strategic priorities for robustness across well-researched scenarios will remove most unintended consequences of the risks that surface during the stress-testing process, aka wind-tunnelling.
Scenario-based strategy tests strategy across the scenarios for robust-ness beforecommitting resources to the plans. Evidence-based choices are preferred as they prevent plans and strategies which are not proven, based on outcomes, from being put in place.
The unfortunate truth is that policymakers formulate policy based on their intentions while citizens judge a policy by the results it delivers in their day-to-day lives. The foundation of policy and politics has to be economics. Unless policy is based on evidence-based economic sense, it should not be adopted.
Collaborating and building common purpose provides an anchor and true north for policy implementation. The national shared vision is usually contained in the agreed national or federal constitution, and for cities and towns the law can be found in the legislation guiding city and town government.
Organisation Capability Assessment