Scenario Based Decision Making

The world of business today is fraught with uncertainty and ambiguity; so much so that managers in their diurnal life require contending with the rapidly changing trends. The information they painstakingly gather is rendered obsolete within no time. Such scenarios are critically affecting the manner in which organizations approach their planning process. 
 
Every organization and manager could either be successful or unsuccessful based on the decisions they take. The fact that situations are fluid in nature, necessitates actions to be taken to back the decision making process in the organization. Scenario based decision making can prove to be one of the endeavors in preparing oneself for unpredictable situations.
 
Scenario based decision making is basically a process where you see managers drawing up the possibilities of events/scenarios that can occur in the short, medium or long term. It is the process of projecting a story against which strategies/ideas can be tested. 
 
How does scenario-based decision making help?
 
  • Enhances Critical thinking

The scenario based decision making method offers employees an opportunity to apply their best judgments which are the results of the critical thinking they apply. In the process of discovering issues or solving problems they tend to engage in deep thinking that potentially leads to positive outcomes. 

 
  • It provides Foreground
In simulated situations Employees gets a practical experience of being in tough situations even before they actually get into it in real life. This makes learning more effective. They learn to overcome the hurdles on their own. This makes it rather easier for employees to deal with uncertain events.
 
  • Rectification
The errors that happen with the occurrence of uncertain events can be rectified in advance through the scenario based decision making method. This can augment the possibility of a successful decision. Rectification of errors makes decisions more reliable.
 
  • Interrogative Approach
This method of practicing decision making offers an interrogative approach i.e. people who practice it tend to be involved in critical thinking which makes them curious for what is coming next. They tend to be more involved and active in situations.
 
  • Innovation
Scenario based decision making gives you a chance to come up with all your creative ideas and experiment it. This increases the chance of being occupied with more and more innovative ideas. This will not only aid the individual’s development; it also has a salubrious effect on the organization’s growth. 
HR Leadership Workplace Decision making scenario based decision making Talent Effective decision making