How Scenario Planning Influences Strategic Decisions

Scenario planning can obviously help leaders make smarter long-term decisions, but effective scenario planning requires a great deal of legwork and research. Committing to it can be extremely beneficial and it is recommended but it is a time- and resource-consuming effort. The authors' studies...

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Bibliographic Details
Published in:	MIT Sloan management review Vol. 57; no. 4; p. 24
Main Authors:	Phadnis, Shardul, Caplice, Chris, Sheffi, Yossi
Format:	Journal Article
Language:	English
Published:	Cambridge Massachusetts Institute of Technology, Cambridge, MA 01-08-2016
Subjects:	Confidence Credit unions Decision making Executives Influence Infrastructure Investment Judgment Leadership Long term planning Strategic management Strategic planning Workshops United States > US
Online Access:	Get full text
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Summary:	Scenario planning can obviously help leaders make smarter long-term decisions, but effective scenario planning requires a great deal of legwork and research. Committing to it can be extremely beneficial and it is recommended but it is a time- and resource-consuming effort. The authors' studies provide objective evidence that the use of scenarios influences executives judgments about long-range, strategic decisions. But their study does not provide a comprehensive picture of the efficacy of scenario planning. Their results pertain to the effect of a onetime use of scenario planning on long-term decisions. However, the researchers did not examine whether the continual practice of scenario planning would help executives improve when it comes to their long-term decision-making skills.
ISSN:	1532-9194