Economy Insight

Scenario Planning

Armenia 2020

What could Armenia be like in 2020?

Scenario Planning – Armenia 2020 (pdf version)

It Depends

  • It could be better
  • It could be the same
  • It could be worse
  • It could be better in some ways, worse in others, the same in others.
  • Without making an unfounded prediction – it will probably be different

Depends on what or whom?

  • Actors
    • Armenians in Armenia
    • Government
    • Private Sector
    • Diaspora
    • Companies
    • Other countries
    • Others?
  • Circumstances
    • Conditions Armenia or Armenians can influence
    • Global trends
    • Events beyond Armenia or Armenians’ control
    • Others?

Actions depend on

  • Values
  • Mental Models
  • Accurate information
  • Assessments of the future
  • Collective action

Can’t do it alone

  • Group deliberation
  • Shared understanding of situation
  • Ability of the group to read the signs of the times
  • Need to understand the choices and likely consequences of those choices, critical pre-conditions

Scenario Conversation

  • Logical – facts, not value judgments
  • Open & Informal – telling a story
  • Inclusive and Holistic – all aspects – social political, economic, cultural, ecological
  • Elicits choice and options – future can’t be predicted – map of possible paths to possible futures
  • Constructive – don’t stop thinking about tomorrow

Scenarios are used to:

  • Avoid being caught off guard
  • Challenge conventional mental maps about the future
  • Recognize signs of change
  • Test strategies for sustainability in different circumstances

Successful scenario planning

  • Understand the present
  • Identify the predictable elements
  • Identify plausible possible pathways into the future
  • Be ready for critical turning points – forks in the road
  • Take cognizance of divergent views

South Africa 2002

  • Ostrich
  • Lame Duck
  • Icarus
  • Flight of the Flamingos

Ostrich

  • Ostrich – Stuck in the Past
    • the ostrich does not want to see, cannot fly, but is forced lift its head in the end.

Lame Duck

  • no matter how hard it tries, it cannot get off the ground, and thus has an extremely uncertain future.

Icarus

  • noble origins and good intentions, but pays insufficient attention to economic “tries to achieve too much too quickly”
    • “Perhaps our greatest error, if it can be called an error . . . is that we believed we could do more than was possible in this period . . .”
    • “There are a lot of things we see much more clearly now. Number one, in determining how much you can try to accomplish, you just have to look at what your capacity is, your managerial capacity, your capacity to organize. And we were frankly over-enthusiastic. We just tried to do too many things and we stretched the whole system further than it could go.” Jamaican president.

Flight of the Flamingos

  • Inclusive democracy and growth – Flamingos characteristically take off slowly, fly high and fly together.
  • “While it is impossible to meet all people’s demands immediately, once people are convinced that there is light at the end of the tunnel, their demands become tempered with ” Vincent Maphai – UWC.

Build a community that can build the future

  • “a coherent set of individual actions which are supported as a set by a self-sustaining critical mass of opinion in the organization.”
  • critical mass of people who can make sense of the situation and respond in a coordinated way
  • Below critical mass there are only unrelated individual actions, which lead to individual rather than organization Without consensus or shared meaning individual actions will not cohere and the organization will fragment and, if left in this state, ultimately disintegrate.

Between Scylla & Charybdis

  • Fragmentation & Group Think

Fragmentation

  • Fragmentation: “critical mass of consensus is not This divergence of view can become a self-enforcing process, with lack of consensus leading to divergent action, divergent experiences, and a further erosion of the common view. This positive feedback loop spirals downwards. When an organization drops below the critical mass of consensus, it will not overcome the problem without conscious action to move the team back over the minimum consensus threshold.”

Groupthink

  • Groupthink – too much alignment, not enough differentiation, stagnation, insufficient adaptation to environmental changes => extinction

Getting the ball rolling

  • Respected coordination team
  • Open-ended, inclusive process
  • Representatives of all important perspectives on the issue – Any stakeholder must be able to see their point of view represented by someone on the team.

Process Overview