DefineModellingPlatform-enabled

Scenario Development

The construction and comparison of plausible futures — baseline, conservative, ambition-led, growth, portfolio-reduction and culture-led — with their spatial, financial and risk consequences.

Which plausible futures should this organisation compare, what does each cost and risk, and by which criteria will it choose?
Why this matters

A single-future strategy is a bet presented as a plan. Scenario Development replaces the bet with a governed comparison: coherent alternative futures, each built from explicit assumption sets, each carrying quantified spatial and financial consequences, risks and trade-offs. Its purpose is not prediction but decision quality — leadership choosing between futures whose costs and exposures are visible, with decision criteria agreed before preference hardens. The scenario not chosen remains on the shelf, regenerable, because conditions change and strategies should not have to start over when they do.

When to use it
  • At the close of Define, once the demand model and assumption register exist
  • When leadership factions hold different futures — scenarios convert the dispute into a structured comparison
  • Before major portfolio commitments, where the cost of the wrong future is highest
  • Re-run in Recalibrate when assumption breaches invalidate the selected scenario
Who should participate
  • Strategist and analyst constructing scenarios
  • Finance co-building the financial dimension of each scenario
  • Leadership team agreeing decision criteria and making the selection
  • CRE for portfolio consequences; HR for workforce and policy consequences
Inputs
  • Demand model from Taxonomy Alignment
  • Assumption register with volatility grading from Calibration
  • Strategic tension register and vision framework
  • Financial constraints and portfolio context
  • Hybrid presence logic and its capacity implications
What happens
  1. Define the scenario set from the organisation's actual uncertainties: baseline (current assumptions hold), conservative (growth and change appetite reduced), ambition-led (the vision framework realised), growth, portfolio-reduction, and culture-led where the tension register warrants it. Hybrid-presence variants overlay where attendance is the dominant volatility.
  2. Build each scenario as a coherent assumption set — internally consistent, sourced from the register, not a single-variable tweak. A growth scenario changes headcount, presence rhythm, adjacency pressure and financial envelope together.
  3. Regenerate the demand and capacity models per scenario: settings, capacities, ratios, footprint, and the resulting spatial gap against current supply.
  4. Attach the financial dimension: capex, opex, cost per employee, portfolio consequences per scenario — built with Finance, not presented to Finance.
  5. Make risks and trade-offs explicit per scenario: what each future sacrifices, which assumption breaches would kill it, what its reversal cost is.
  6. Agree decision criteria with the leadership team before revealing scenario preferences — criteria chosen after preference are rationalisation.
  7. Facilitate the structured comparison and record the selection with its reasoning; archive the unselected scenarios as regenerable alternatives with their trigger conditions.
What to look for
  • Straw-man scenarios built to make a predetermined choice look inevitable
  • Single-variable scenarios sold as futures — internal coherence is the test
  • Financial dimensions bolted on after spatial modelling, guaranteeing a second round with Finance
  • Criteria negotiated after preferences formed
  • The unexamined scenario: the future nobody modelled because nobody wanted it (usually the conservative one)
Outputs
  • Scenario set with coherent assumption structures
  • Regenerated spatial and financial models per scenario
  • Risk, trade-off and reversal-cost analysis per scenario
  • Agreed decision criteria and recorded selection reasoning
  • Archived alternative scenarios with regeneration triggers
How the output is used

The selected scenario becomes the basis for Develop: Workshops III and IV design within it, Sharing Ratio and Stacking and Blocking quantify it, and the Workplace Strategy documents it with its reasoning. Archived scenarios and their triggers live in Living Workplace Outputs; when Assumption Recalibration detects a breach, the relevant alternative regenerates instead of the strategy restarting.

Human judgement required

The platform regenerates models per assumption set; humans decide which futures are worth modelling, whether each scenario is honest, and ultimately which future to commit to. Scenario selection is the highest-stakes judgement in the methodology — a values decision about risk, ambition and organisational identity that quantification informs and cannot make.

Common mistakes
  • Producing three scenarios where the middle one was always the answer
  • Confusing sensitivity runs with scenarios
  • Modelling spatial consequences and hand-waving financial ones
  • Discarding unselected scenarios, so a changed world means a new project
  • Presenting scenarios without reversal costs — the option to change course has a price, and leadership should see it
Practical example

A pharmaceuticals firm facing a lease break modelled five scenarios. Leadership's initial preference was portfolio-reduction (30% footprint cut). The comparison showed its reversal cost: re-acquiring equivalent space in that submarket within five years would exceed the savings if growth resumed — and the growth scenario's trigger conditions were already half-met. The selection landed on a phased-reduction hybrid with an explicit regeneration trigger; eighteen months later the trigger fired, and the growth variant regenerated from the archive in a week.

45 methods in the library.