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Page 1: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

18/04/23 1

Page 2: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

The world is turbulentFinancial crisis

Systemic forces

No return to Business As Usual

How scenarios help organisations Forecasts and scenarios

Communicating scenarios

Scenarios as part of renewal

Three case studiesPublic engagement

Visioning

Strategy

18/04/23 2

Page 3: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

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Financial crisisDebt

Bank bailouts

Ongoing effects

Page 4: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Commerce

3000

500

1000

1500

2000

2500

1952 1962 1972 1982 1992 2002 ‘09

Consumers

(money of the day: US GDP grew by 8 times in the period)

©Beyond Crisis, Lustig, Ringland, Sparrow, John Wiley 201018/04/23 4

Page 5: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Expenditure $US bn 2008

S&L crisis2009-12 Obama stimulus plan

2008 tranche of the bank bailout

Marshall plan

Louisiana purchase

NASA, less moon shot

Moon shot

Korean warThe New Deal

Iraq war

Viet Nam

©Beyond Crisis, Lustig, Ringland, Sparrow, John Wiley 201018/04/23 5

Page 6: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Banking crisis remain chronic, as does state intervention

The economic situation is completely predicated on the banking crisis

Economic situation develops independently

of the banking crisis

Banking crisis is settled relatively quickly

Japan

India

UK US

Middle income industrialising

©Beyond Crisis, Lustig, Ringland, Sparrow, John Wiley 2010

China

Euro zone

18/04/23 6

Prolonged depression,

growing statist environment

Slow grind to expunge debt;

some deliberate use of monetary

inflation

Business grows as

before

Slow return to health; US consumer

stage centre

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Systemic forces

Population

Demographics

Education

Values

Energy

Environment

Inter-connectedness

Page 8: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

North AmericaEuropeLatin America

Asia

Africa

World population (billions)

3

6

9

1950 1975 2000 2025

3

6

9 Total world population

Secondary education

Graduate-level education

1850 1900 1950 2000 2025

18/04/23©Beyond Crisis, Lustig, Ringland, Sparrow, John Wiley 2010

8

Page 9: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

19881998

2008

AfricaS America

AsiaOceania

N AmericaEurope

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Ratio of people under 16 years to

people over 45

Time

18/04/23©Beyond Crisis, Lustig, Ringland, Sparrow, John Wiley 2010

9

Page 10: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Purity

Authority

Affiliation

Fairness

Harm

Relevance to a moral decision

Decreasing traditionalism

18/04/23©Beyond Crisis, Lustig, Ringland, Sparrow, John Wiley 2010

10

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400

300

200

100

0

Gigajoules per capita

0 10 20 30 40GDP per capita

USA

Europe, Japan, Korea

China, India

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The logarithm of the ratio of the current situation to the probable long term sustainable limit: these have been breached already

0

Carbon dioxide

Species extinction rate

Nitrogen cycle

Phosphorus cycle

Stratospheric ozone depletion

Ocean acidification

Freshwater use

Change in land use

Sustainable limit

©Beyond Crisis, Lustig, Ringland, Sparrow, John Wiley 201018/04/23 12

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1000

100

Per

ceiv

ed im

pact

U

S B

N $

Perceived likelihood in next 10 years

Page 14: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Rich nations 15% world population

90% world wealth

Industrialising nations

25% world population

9% world wealth

Poor nations

60% world population

< 1% world wealth

18/04/23 14©2009 Lustig, Ringland, Sparrow

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18/04/23 15©2009 Ringland

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Scenarios

Forecasts

Scenario planning

How it works

Cycle of renewal

Page 17: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

0

1

2

3

4

5

6

7

8

9

1951 1971 1991 2006 2016

ActualForecast now

1991 forecast

A trend is a trend until it bends18/04/23 17

Page 18: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Trends Range of other uncertainties

Uncertain timing

Single point forecast

Today

18/04/23 18©Beyond Crisis, Lustig, Ringland, Sparrow, John Wiley 2010

Page 19: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Scenario planning attempts to describe what is possible.

The result of a scenario analysis is a group of distinct futures, all of which are plausible.

They are mental models.

FuturePresent

B

C

D

A

Nu

mb

er o

f P

oss

ible

Fu

ture

Wo

rld

s

18/04/23 19

Page 20: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Ingvar, a neurobiologist, found that the human brain is constantly attempting to explore options for the future even while we are

asleep

Mental models of the world provide a context for these explorations“memories of the future” act as a filter to signals.

Scenarios provide several alternative model future worlds for the brain to explore

increases the range of “what we have experienced” and “what is relevant to our future”

increases the ability of the brain to perceive.

.

Source: D. Ingvar, “Memory of the Future”, Human Neurobiology, 4(3), p127-136, 1985

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Page 21: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Scenarios are mental models - artifacts

Communication method depends on audienceEngineers & scientists – comparator tables

Managers – brief

“Public” – visualisation & stories

All audiences helped by early indicatorsNewspaper headlines now if this scenario is developing

Plus

All audiences need discussion time to internalise, eg“What are the implications for me/the organisation? “

“How would I/the organisation manage in this scenario?”

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Road maps

© 2009 Lustig, Ringland, Sparrow18/04/23 22

Audit of capability

Internal scanning

Organisational & leadership development

Horizon scanning

Scenarios

Asset allocation

Policy and strategy

Review Narrative

Innovation

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Public engagement Seattle

Visioning Natural England

Strategy Scotland

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White “flight to the suburbs” leaving SeattleSeattle public schools had problems

Enrolment droppedVoters refused to support education bonds

Schools decayed & staff leavingTeachers Union with GBN set up a project team from a diverse set

of stakeholdersOld/young

Male/femaleWhite/black

Employers/students/teachers Asked questions for the future of the schoolsWill changes to the social fabric be turbulent or healthy?

Will the rate of change be slow/resistant or rapid/embracing?

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Page 26: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Turbulent Healthy

Social fabric

Rapid

Slow/resistant

Rat

e of

cha

nge

Rio Tweaking the

Edges

Mosaic The Change

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Page 27: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

The City agreed with the team after wide consultation and town meetings etc that The Change was the desirable scenario

Schools as community centresUse of ICT

Pre-school & adult educationStudents rather than schools funded

Business took an active roleUnemployed adults as classroom assistants

On the basis of The Change scenario as a vision, Seattle City passed two school bonds to get funding

Revision of governance of schools & teachers seniority rulesUse of ex-military as Headmasters

Seattle became a beacon for educationalists across the US

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Page 29: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Project took from September 2008 to September 2009

Natural England & stakeholders formed team with SAMIFeedback to NE Board and Senior Management Team

3 workshops to develop scenarios50 people at each

Natural England pro-actively involved other agencies

Test with 6 groups of stakeholders & Board experts on uplands, woodlands, marine, ----

Engage with “not the usual suspects” in the public School children, inner city, small business, prosperous rural

Create Vision for the English natural environment

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Head inthe SandHead in

the SandSo Far,

So GoodSo Far,

So Good

Continuingas we are:

present trends extended

Focus on ICT, ignore disruptive effects of social

networking

Focus on consumption, ignore limits

Policy emphases

and dangers

Possible future

outcomes

Backlash

Focus on productivity, ignore

long-range consequences.

Environmental Guardians

Environmental Guardians

Digital people connect to web of

life & leave national power brokers

powerless.

Protect andBe DamnedProtect andBe Damned

Environmental and financial crises

force protectionist worldview.

Global competition forces innovations

for sustainable efficiency.

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Page 35: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Findings “the most important thing we have done” (from a Board member) include:

Importance of marine environment

Young people assume technology will fix the environment

Outside London found great engagement with “Protect and be Damned”

Balance food needs vs “the environment”

The Scenario Report and related documents are onhttp://naturalengland.etraderstores.com/NaturalEnglandShop/NERR31

ditto NECR030

Ditto NECR031

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Page 37: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Scenarios for Scotland (S4S) projectSet models for new devolved administration

Analogies with ? Norway? Finland?

Use of S4S at Napier UniversitySet strategy for new team

Five year plan

Five years laterUse of SAMI global drivers to plan for next 5 years

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Page 38: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Purpose: set agenda for new devolved government – what sort of country should Scotland aspire to be?

Timing as new Scottish Parliament set up10 sponsors, from private sector & Government,

managed by SAMI plus St Andrews and Strathclyde Universities, 1,000 interviews, 50 + focus groups

Launched on St Andrews Day 1999High Road scenario, “can do”

Low Road scenario, “government’s fault”

Used by Scottish Enterprise, Scottish Executive & politicians to formulate policy and strategy

eg focus on entrepreneurs, capacity building and new enterpriseseg attracting students and keeping graduates in Scotland

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Page 39: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

2000 2005 2010 2015

Low Road -“government’s fault” – Business as Usual

Economy and Quality of Life

High Road scenario - “can do”

possible upward triggers between scenarios

Graduate Entrepreneurs Naturaleducation advantages

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Page 40: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

New University Principal and new Senior Management Team (SMT) at Napier University in 2003

Needed to create a common language and strategic planUsed the Scenarios for Scotland to frame a discussion

What scenario for Scotland?Did the University need to share the Scotland scenario?

Two day workshop discussion led to 37 actions and new Strategic Plan

To change from technical college with mostly local, undergraduate engineering students

Target: Use positives of Edinburgh brand to become global

Use positives of Edinburgh Festival to connect with ArtsDevelop Masters courses with global focus

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University

Global

Local

Scotland Low Road High Road

X

?

?

?

Graduate education

New courses,

new students

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Page 42: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

Phone call to SAMI in 2008We’ve done that, met our targets

Will you help us with a plan for the next five years?

Used the SAMI five global drivers of changeGlobalisation

Climate changeRaw materials

TechnologyPeople

Workshop discussion allowed SMT to calibrate what was achievable, desirable, and to set targets for the next five years

Changed name to Edinburgh Napier University.

og

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Page 43: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

The world is turbulentFinancial crisis

Systemic forces

No return to Business As Usual

How scenarios help organisations Forecasts and scenarios

Communicating scenarios

Scenarios as part of renewal

Three case studiesPublic engagement

Visioning

Strategy

18/04/23 43

Page 44: 27/06/2015  1. The world is turbulent Financial crisis Systemic forces No return to Business As Usual How scenarios help organisations

18/04/23 44

Some of this is covered in the book “Beyond Crisis” – there is a sample on the table.

If you would like to get our monthly enewsletter eSAMI ---- please give me your business card!

And if this has whetted yourappetite to learn more thereare flyers with details of Futures Coaching courses that SAMI runs for the Government Office for Science, also on the table.