What if an organization would know what are the pain points of its future customers, which are emerging competitors and partners, what type of ecosystems organization should be part of, what type of legal, social or political issues are arising, what is going to be next industrial trend, how to disrupt the industry? “What if” is one of the most important questions in futures thinking. It enables stretching our thinking and imagine possible futures.
Minna Koskelo, futures designer had a presentation about “What is futures thinking” on Waffle Wednesday at Wonderland in February 2020. According to Koskelo “you can’t control the future but you can have a sense of control if you do understand more the drivers that are affecting the future. “ We don’t know the future but futures thinking gives us a mindset and offers a systematic approach that combines, methods, and tools to explore alternative futures which can support organizations to make right decisions. Koskelo’s presentation made me think about how well organizations are actually aware of the powerful mindset of futures thinking and its methods? Organizations are doing customer insight, business insight but how systematically and continuously companies are conducting future-oriented insight a.k.a. futures thinking? Feels like many organizations are focusing more on what is already visible instead of investing on what is about to come. Research shows that future-prepared firms outperform the average by a 200% higher growth and were 33% more profitable than average!
From where to start Futures Thinking?
When talking about the future there are certain terms that we need to understand. These terms are: megatrends, trends, signals.
Megatrend is a dominant long-term phenomenon with a global impact. Megatrends can change slowly. Examples of megatrends are climate change, senior citizens, digitalization, and circular economy. Koskelo mentioned that many times it is said that companies shouldn’t focus on megatrends when finding business innovation because megatrends aren’t bringing any competitive advantage. Then again we could also ask how many companies are today actually tackling on helping senior citizens?
Trends are changes in people’s behavior, attitudes, and values locally and globally. They have an impact on the culture, society or business sector. Trends indicate which direction development is going. Trend has a lasting impact, but the impact is smaller than megatrends’ impact.
Signal is a phenomenon, the first expression of change or a new trend. Signal might be a weak signal that is very surprising and weird that forces companies to challenge current assumptions. So if a company would spot a weak signal and tries to develop it to a trend, it might offer a competitive advantage.
Tools for exploring the future
The more aware organizations are of the opportunities that the future holds, the more future-proof decisions can be made. There are various tools for supporting in future decision making. Four of them are described below.
What if an organization would get a holistic view of opportunities and obstacles in its future environment? It feels like organizations focus their future view heavily on technology and ignore other important trends. But in order to get a more holistic view, an organization could utilize a framework called STEEPLED that is an acronym for: Social, Technology, Economic, Environment, Political, Legal, Ethical, Demographics. STEEPLED offers a checklist for exploring external factors that might have an impact on the organization’s success – the organization could find signals that might turn into trends!
What if organization could really reach their vision? Backcasting would be the tool to be used in this case. In backcasting the organization defines first its desirable future and from there works backward to identify the critical steps necessary to achieve the desired future, the vision.
What if organization would be able to anticipate its future customers? By using future personas the organization would provide insights of future customers, anticipate what motivates them and what are their future needs.
What if organization would recognize the direct and indirect consequences of a decision, trends and events that might have an impact on the organization’s ecosystem? Futures wheel is a visual tool that supports to create a structured map of the future. When working with the futures wheels a particular trend will be put in the center after which the primary, secondary and tertiary impacts of the trend will be explored in a structured way.
Six business benefits of Futures Thinking
Based on Minna Koskelo’s presentation and my earlier studies in futures thinking I would sum up futures thinking benefits as below.
1. offers a safe space to consider and discuss unthinkable options,
2. encourages to think beyond the company’s current value proposition and reveal new business opportunities,
3. offers new innovative ways for decision-making processes and enhance decision making under uncertainty,
4. enables test ideas before translating them into business or innovation strategies,
5. helps to align the whole organization working towards a common vision in their daily work practices,
6. offers a roadmap for navigating complexity and reaching the vision.
Future does not just happen, it depends on today’s choices and is created through interaction and collaboration. What if we start to influence our future today?
You might be interested in below links:
Megatrends 2020, Sitra
Futures Day 2020
From signals to future stories
Ojasalo, Koskelo and Nousiainen. 2015. Foresight and Service Design Boosting Dynamic Capabilities in Service innovation. In: Agarwal, R., Selen, W., Roos, G. & Green, R. (ed.) The Handbook of Service Innovation. London: Springer. 193-212.
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