futures-wheel

What Is The Futures Wheel? The Futures Wheel In A Nutshell

The futures wheel was invented in 1971 by Jerome C. Glenn while he was studying at the Antioch Graduate School of Education.  The futures wheel is a brainstorming framework for visualizing the future consequences of a particular trend or event.

AspectExplanation
Methodology OverviewFutures Wheel is a strategic planning and foresight tool used to explore and visualize the potential consequences and impacts of a particular event, trend, or decision. It is a versatile technique employed in futures studies, scenario planning, and decision-making processes to better understand the interconnectedness of various factors and their implications for the future. The Futures Wheel is a visual representation that resembles a wheel, with the central event or idea at its core and multiple spokes branching out to explore related factors and consequences.
Key Components– The Futures Wheel consists of the following key components: 1. Central Event/Idea: The core of the wheel represents the central event, decision, or trend under consideration. 2. Spokes: Radiating out from the central event, each spoke represents a potential consequence or impact. 3. Secondary Consequences: On each spoke, secondary consequences or effects are listed, further branching into tertiary and quaternary consequences if necessary. 4. Relationships: Arrows or lines are used to indicate relationships between consequences and factors, showing cause-and-effect or influence connections. 5. Weights or Importance: Some versions of the Futures Wheel assign weights or importance levels to consequences to indicate their significance.
Process– The process of creating and using a Futures Wheel involves the following steps: 1. Identify the Central Event: Clearly define the central event, decision, or trend that you want to explore and understand better. 2. Brainstorm Consequences: Brainstorm potential consequences or impacts of the central event and list them on the spokes of the wheel. 3. Explore Secondary Consequences: For each consequence, further explore and list secondary consequences or effects. 4. Visualize Relationships: Use arrows or lines to indicate the relationships and connections between consequences. 5. Assess Significance: Optionally, assign weights or levels of importance to consequences to prioritize them. 6. Analyze and Strategize: Analyze the Futures Wheel to gain insights into the potential future developments, and use this information for strategic planning, decision-making, or scenario development.
Applications– Futures Wheels are applied in various contexts, including: 1. Strategic Planning: Organizations use Futures Wheels to anticipate the consequences of strategic decisions or market changes. 2. Scenario Planning: They are a valuable tool for developing scenarios to explore alternative futures. 3. Risk Assessment: Identifying potential risks and their cascading effects. 4. Policy Analysis: Governments and policymakers employ Futures Wheels to analyze the implications of policy changes. 5. Innovation: Exploring the consequences of new technologies or innovations.
Benefits– Futures Wheels offer several benefits: 1. Holistic Exploration: Provides a structured approach to exploring a wide range of consequences and their relationships. 2. Visualization: Visual representation enhances understanding and communication of complex future scenarios. 3. Decision Support: Helps decision-makers anticipate and prepare for potential future developments. 4. Creativity: Encourages creative thinking and the consideration of diverse factors. 5. Risk Mitigation: Identifies potential risks and allows for proactive risk mitigation strategies.
Challenges– Challenges in using Futures Wheels include potential oversimplification, biases in consequence identification, and the need for skilled facilitation to ensure a comprehensive and unbiased exploration of consequences.

Understanding the futures wheel

Fundamentally, the futures wheel is a simple framework providing a model of the future based on the consequences of an event or trend.

It is subjective, qualitative, and relies on the expertise or knowledge of several participants.

Put differently, the futures wheel helps the organization move from linear, hierarchical thinking to something more organic, complex, and network-oriented.

The structure of the wheel itself is based around a central event, with direct and indirect consequences radiating outward and linked together where appropriate. 

While its low complexity avoids a need for formal training, the futures wheel does require a deep understanding of the problem in question.

Only then can the generated future model be as accurate as possible.

Principles of the Futures Wheel

  • Holistic Analysis: The Futures Wheel promotes a holistic analysis of potential impacts, considering direct and indirect consequences.
  • Systemic Thinking: It encourages systemic thinking by examining how changes in one area can ripple through various interconnected aspects.
  • Continuous Learning: The Futures Wheel is a dynamic tool that evolves as new information becomes available or as scenarios change.
  • Action-Oriented: It is designed to identify actionable insights and strategies for managing or capitalizing on future developments.

Constructing a futures wheel

Here is a simple approach to constructing a futures wheel:

Identify the trend

Identify and then write the trend, problem, event, or potential solution in the center of a piece of paper.

Identify direct, first-order consequences

What are the direct consequences of the trend?

To stimulate ideas, it can be helpful to consider the trend as a form of change.

Write each consequence in a circle and connect it to the central trend with an arrow.

At this stage, all consequences should be listed – regardless of their likelihood of occurring.

Identify indirect, second-order consequences

What are the potential second-order consequences of each of the direct, first-order consequences?

Add them to the diagram in the same way.

Repeat the process

This step identifies third and fourth-order consequences, and so on.

Teams may use a different color for order level to better understand the relationship between each and delineate the different “spokes” of the wheel.

In general, the more strategic an event is, the greater the number of orders it will require.

Evaluate implications

One important advantage of the futures wheel is that it may identify lower-level consequences that reinforce or cause higher-level consequences.

This helps the team evaluate unexpected reinforcement mechanisms that enhance certain consequences or at least make them more likely to occur.

An evaluation may involve weighting the various implications for their likelihood of occurrence and estimated impact level. 

Prioritize and plan

The list of implications should then be sorted according to those worth responding to immediately, those worth planning for, and those worth monitoring.

Consider how each group may affect future strategy planning and make useful recommendations to key personnel.

Negative consequences require risk mitigation, while positive consequences are opportunities ripe for exploitation.

Advantages of the Futures Wheel

  1. Enhanced Foresight: It enhances foresight and helps organizations prepare for various future scenarios.
  2. Holistic Understanding: The tool provides a holistic understanding of the potential impacts of an event or trend.
  3. Strategic Decision-Making: The Futures Wheel aids in strategic decision-making by identifying opportunities and risks.
  4. Collaborative Engagement: It promotes collaboration and engagement among stakeholders and experts.

Challenges of the Futures Wheel

  1. Complexity: Analyzing multiple layers of consequences and their interconnections can be complex and time-consuming.
  2. Data Availability: The accuracy of the Futures Wheel depends on the availability of reliable data and expert insights.
  3. Subjectivity: Different individuals or groups may have varying interpretations of the potential consequences, introducing subjectivity.
  4. Resource Intensive: Conducting in-depth Futures Wheel analysis may require significant resources, particularly for complex issues.

When to Use the Futures Wheel

  1. Strategic Planning: It is valuable for strategic planning and long-term decision-making.
  2. Scenario Analysis: When exploring alternative scenarios and their implications.
  3. Innovation: For innovative thinking and identifying opportunities for future developments.
  4. Risk Management: To assess and mitigate risks associated with specific events or trends.

What to Expect from Using the Futures Wheel

  1. Comprehensive Insight: Expect to gain comprehensive insights into the potential consequences and impacts of a central event or trend.
  2. Strategic Options: Identify strategic options and actions that can be taken to leverage opportunities or mitigate risks.
  3. Informed Decision-Making: It informs decision-makers about the broader context in which decisions will unfold.
  4. Collaborative Solutions: Promote collaboration and collective problem-solving among stakeholders.

Long-Term Impact of the Futures Wheel

  1. Informed Strategy: Organizations that regularly use the Futures Wheel are better equipped to develop informed and adaptive long-term strategies.
  2. Proactive Decision-Making: It fosters a culture of proactive decision-making and future thinking.
  3. Resilience: By anticipating and preparing for potential future impacts, organizations become more resilient in the face of uncertainty.
  4. Competitive Advantage: A focus on future-oriented analysis and strategy provides a competitive advantage in dynamic markets.

Key takeaways

  • The futures wheel is a brainstorming framework for visualizing the future consequences of a particular trend or event. It was developed by former student Jerome C. Glenn in 1971.
  • The futures wheel helps the organization move from linear, hierarchical thinking to something more organic, complex, and network-oriented. It is a simple framework to use but does rely on quality input from suitably qualified participants.
  • The futures wheel encourages teams to identify first, second, third, and fourth-order consequences of an event, trend, or solution. These can be then weighted to evaluate their likelihood of occurrence and potential impact.

Key Highlights

  • Origin and Creator:
    • Jerome C. Glenn invented the Futures Wheel in 1971 while studying at the Antioch Graduate School of Education.
  • Concept of the Futures Wheel:
    • The Futures Wheel is a brainstorming framework that aids in visualizing the potential future consequences of a specific trend, event, or decision.
    • It provides a model of the future based on the cascading effects of an event or trend, helping to move from linear thinking to a more complex, network-oriented perspective.
  • Structure and Approach:
    • The framework is subjective and qualitative, relying on the expertise of participants.
    • It features a central event, with direct and indirect consequences radiating outward and interconnected as necessary.
    • Though simple to use, constructing an accurate model requires a deep understanding of the problem or topic in question.
  • Construction Process:
    • Identify the Trend: Place the central trend, event, problem, or potential solution in the center of the diagram.
    • Direct Consequences: List direct consequences of the trend, considering it as a form of change. Connect them with arrows.
    • Indirect Consequences: Identify second-order consequences for each direct consequence, and add them to the diagram.
    • Repeat for Higher Orders: Continue this process for higher-order consequences, using different colors to distinguish levels.
    • Evaluate Implications: Identify reinforcing mechanisms between lower-level and higher-level consequences. Weigh implications for likelihood and impact.
    • Prioritize and Plan: Sort implications into categories of immediate response, planning, and monitoring. Mitigate negative consequences and exploit positive ones.
  • Benefits and Use Cases:
    • The Futures Wheel helps teams anticipate the long-term effects of decisions, trends, or events.
    • It aids in evaluating the potential impact of consequences and identifying both risks and opportunities.
    • The framework encourages thinking beyond the obvious, exploring the ripple effects of actions or changes.

Comparison’s Table

FrameworkDescriptionKey Features
Scenario PlanningA strategic foresight method that involves creating multiple plausible future scenarios based on different combinations of critical uncertainties.– Identifies key drivers of change and uncertainties. – Develops multiple scenarios to explore various future outcomes.
Trend AnalysisExamines current trends and extrapolates their potential future impact, considering factors such as technology advancements, demographic shifts, and economic changes.– Identifies and analyzes trends shaping the future. – Forecasts potential future developments based on current trends.
Delphi MethodInvolves gathering input from a panel of experts through multiple rounds of structured questionnaires or interviews to reach a consensus on future trends or events.– Solicits expert opinions and insights on future developments. – Iteratively refines forecasts through consensus-building among experts.
Horizon ScanningSystematically scans the external environment to identify emerging trends, disruptions, and weak signals that may impact future scenarios.– Monitors a wide range of sources for early indicators of change. – Identifies potential future challenges and opportunities based on emerging trends.
BackcastingStarts with a desirable future outcome and works backward to identify the steps needed to achieve that goal, considering potential barriers and uncertainties.– Defines a desired future state or goal. – Determines actions and strategies required to achieve the desired outcome, considering potential obstacles.
Cross-Impact AnalysisExamines the interdependencies and interactions between different factors or variables to understand how changes in one area may influence others.– Maps out relationships and dependencies between various factors. – Assesses how changes in one factor may impact others and vice versa.
Trend Impact AnalysisAssesses the potential consequences and implications of specific trends or events on various aspects of society, the economy, or specific industries.– Identifies key trends or events likely to have significant impacts. – Evaluates the potential consequences and implications of these trends or events.

Connected Analysis Frameworks

Failure Mode And Effects Analysis

failure-mode-and-effects-analysis
A failure mode and effects analysis (FMEA) is a structured approach to identifying design failures in a product or process. Developed in the 1950s, the failure mode and effects analysis is one the earliest methodologies of its kind. It enables organizations to anticipate a range of potential failures during the design stage.

Agile Business Analysis

agile-business-analysis
Agile Business Analysis (AgileBA) is certification in the form of guidance and training for business analysts seeking to work in agile environments. To support this shift, AgileBA also helps the business analyst relate Agile projects to a wider organizational mission or strategy. To ensure that analysts have the necessary skills and expertise, AgileBA certification was developed.

Business Valuation

valuation
Business valuations involve a formal analysis of the key operational aspects of a business. A business valuation is an analysis used to determine the economic value of a business or company unit. It’s important to note that valuations are one part science and one part art. Analysts use professional judgment to consider the financial performance of a business with respect to local, national, or global economic conditions. They will also consider the total value of assets and liabilities, in addition to patented or proprietary technology.

Paired Comparison Analysis

paired-comparison-analysis
A paired comparison analysis is used to rate or rank options where evaluation criteria are subjective by nature. The analysis is particularly useful when there is a lack of clear priorities or objective data to base decisions on. A paired comparison analysis evaluates a range of options by comparing them against each other.

Monte Carlo Analysis

monte-carlo-analysis
The Monte Carlo analysis is a quantitative risk management technique. The Monte Carlo analysis was developed by nuclear scientist Stanislaw Ulam in 1940 as work progressed on the atom bomb. The analysis first considers the impact of certain risks on project management such as time or budgetary constraints. Then, a computerized mathematical output gives businesses a range of possible outcomes and their probability of occurrence.

Cost-Benefit Analysis

cost-benefit-analysis
A cost-benefit analysis is a process a business can use to analyze decisions according to the costs associated with making that decision. For a cost analysis to be effective it’s important to articulate the project in the simplest terms possible, identify the costs, determine the benefits of project implementation, assess the alternatives.

CATWOE Analysis

catwoe-analysis
The CATWOE analysis is a problem-solving strategy that asks businesses to look at an issue from six different perspectives. The CATWOE analysis is an in-depth and holistic approach to problem-solving because it enables businesses to consider all perspectives. This often forces management out of habitual ways of thinking that would otherwise hinder growth and profitability. Most importantly, the CATWOE analysis allows businesses to combine multiple perspectives into a single, unifying solution.

VTDF Framework

competitor-analysis
It’s possible to identify the key players that overlap with a company’s business model with a competitor analysis. This overlapping can be analyzed in terms of key customers, technologies, distribution, and financial models. When all those elements are analyzed, it is possible to map all the facets of competition for a tech business model to understand better where a business stands in the marketplace and its possible future developments.

Pareto Analysis

pareto-principle-pareto-analysis
The Pareto Analysis is a statistical analysis used in business decision making that identifies a certain number of input factors that have the greatest impact on income. It is based on the similarly named Pareto Principle, which states that 80% of the effect of something can be attributed to just 20% of the drivers.

Comparable Analysis

comparable-company-analysis
A comparable company analysis is a process that enables the identification of similar organizations to be used as a comparison to understand the business and financial performance of the target company. To find comparables you can look at two key profiles: the business and financial profile. From the comparable company analysis it is possible to understand the competitive landscape of the target organization.

SWOT Analysis

swot-analysis
A SWOT Analysis is a framework used for evaluating the business’s Strengths, Weaknesses, Opportunities, and Threats. It can aid in identifying the problematic areas of your business so that you can maximize your opportunities. It will also alert you to the challenges your organization might face in the future.

PESTEL Analysis

pestel-analysis
The PESTEL analysis is a framework that can help marketers assess whether macro-economic factors are affecting an organization. This is a critical step that helps organizations identify potential threats and weaknesses that can be used in other frameworks such as SWOT or to gain a broader and better understanding of the overall marketing environment.

Business Analysis

business-analysis
Business analysis is a research discipline that helps driving change within an organization by identifying the key elements and processes that drive value. Business analysis can also be used in Identifying new business opportunities or how to take advantage of existing business opportunities to grow your business in the marketplace.

Financial Structure

financial-structure
In corporate finance, the financial structure is how corporations finance their assets (usually either through debt or equity). For the sake of reverse engineering businesses, we want to look at three critical elements to determine the model used to sustain its assets: cost structure, profitability, and cash flow generation.

Financial Modeling

financial-modeling
Financial modeling involves the analysis of accounting, finance, and business data to predict future financial performance. Financial modeling is often used in valuation, which consists of estimating the value in dollar terms of a company based on several parameters. Some of the most common financial models comprise discounted cash flows, the M&A model, and the CCA model.

Value Investing

value-investing
Value investing is an investment philosophy that looks at companies’ fundamentals, to discover those companies whose intrinsic value is higher than what the market is currently pricing, in short value investing tries to evaluate a business by starting by its fundamentals.

Buffet Indicator

buffet-indicator
The Buffet Indicator is a measure of the total value of all publicly-traded stocks in a country divided by that country’s GDP. It’s a measure and ratio to evaluate whether a market is undervalued or overvalued. It’s one of Warren Buffet’s favorite measures as a warning that financial markets might be overvalued and riskier.

Financial Analysis

financial-accounting
Financial accounting is a subdiscipline within accounting that helps organizations provide reporting related to three critical areas of a business: its assets and liabilities (balance sheet), its revenues and expenses (income statement), and its cash flows (cash flow statement). Together those areas can be used for internal and external purposes.

Post-Mortem Analysis

post-mortem-analysis
Post-mortem analyses review projects from start to finish to determine process improvements and ensure that inefficiencies are not repeated in the future. In the Project Management Book of Knowledge (PMBOK), this process is referred to as “lessons learned”.

Retrospective Analysis

retrospective-analysis
Retrospective analyses are held after a project to determine what worked well and what did not. They are also conducted at the end of an iteration in Agile project management. Agile practitioners call these meetings retrospectives or retros. They are an effective way to check the pulse of a project team, reflect on the work performed to date, and reach a consensus on how to tackle the next sprint cycle.

Root Cause Analysis

root-cause-analysis
In essence, a root cause analysis involves the identification of problem root causes to devise the most effective solutions. Note that the root cause is an underlying factor that sets the problem in motion or causes a particular situation such as non-conformance.

Blindspot Analysis

blindspot-analysis

Break-even Analysis

break-even-analysis
A break-even analysis is commonly used to determine the point at which a new product or service will become profitable. The analysis is a financial calculation that tells the business how many products it must sell to cover its production costs.  A break-even analysis is a small business accounting process that tells the business what it needs to do to break even or recoup its initial investment. 

Decision Analysis

decision-analysis
Stanford University Professor Ronald A. Howard first defined decision analysis as a profession in 1964. Over the ensuing decades, Howard has supervised many doctoral theses on the subject across topics including nuclear waste disposal, investment planning, hurricane seeding, and research strategy. Decision analysis (DA) is a systematic, visual, and quantitative decision-making approach where all aspects of a decision are evaluated before making an optimal choice.

DESTEP Analysis

destep-analysis
A DESTEP analysis is a framework used by businesses to understand their external environment and the issues which may impact them. The DESTEP analysis is an extension of the popular PEST analysis created by Harvard Business School professor Francis J. Aguilar. The DESTEP analysis groups external factors into six categories: demographic, economic, socio-cultural, technological, ecological, and political.

STEEP Analysis

steep-analysis
The STEEP analysis is a tool used to map the external factors that impact an organization. STEEP stands for the five key areas on which the analysis focuses: socio-cultural, technological, economic, environmental/ecological, and political. Usually, the STEEP analysis is complementary or alternative to other methods such as SWOT or PESTEL analyses.

STEEPLE Analysis

steeple-analysis
The STEEPLE analysis is a variation of the STEEP analysis. Where the step analysis comprises socio-cultural, technological, economic, environmental/ecological, and political factors as the base of the analysis. The STEEPLE analysis adds other two factors such as Legal and Ethical.

Activity-Based Management

activity-based-management-abm
Activity-based management (ABM) is a framework for determining the profitability of every aspect of a business. The end goal is to maximize organizational strengths while minimizing or eliminating weaknesses. Activity-based management can be described in the following steps: identification and analysis, evaluation and identification of areas of improvement.

PMESII-PT Analysis

pmesii-pt
PMESII-PT is a tool that helps users organize large amounts of operations information. PMESII-PT is an environmental scanning and monitoring technique, like the SWOT, PESTLE, and QUEST analysis. Developed by the United States Army, used as a way to execute a more complex strategy in foreign countries with a complex and uncertain context to map.

SPACE Analysis

space-analysis
The SPACE (Strategic Position and Action Evaluation) analysis was developed by strategy academics Alan Rowe, Richard Mason, Karl Dickel, Richard Mann, and Robert Mockler. The particular focus of this framework is strategy formation as it relates to the competitive position of an organization. The SPACE analysis is a technique used in strategic management and planning. 

Lotus Diagram

lotus-diagram
A lotus diagram is a creative tool for ideation and brainstorming. The diagram identifies the key concepts from a broad topic for simple analysis or prioritization.

Functional Decomposition

functional-decomposition
Functional decomposition is an analysis method where complex processes are examined by dividing them into their constituent parts. According to the Business Analysis Body of Knowledge (BABOK), functional decomposition “helps manage complexity and reduce uncertainty by breaking down processes, systems, functional areas, or deliverables into their simpler constituent parts and allowing each part to be analyzed independently.”

Multi-Criteria Analysis

multi-criteria-analysis
The multi-criteria analysis provides a systematic approach for ranking adaptation options against multiple decision criteria. These criteria are weighted to reflect their importance relative to other criteria. A multi-criteria analysis (MCA) is a decision-making framework suited to solving problems with many alternative courses of action.

Stakeholder Analysis

stakeholder-analysis
A stakeholder analysis is a process where the participation, interest, and influence level of key project stakeholders is identified. A stakeholder analysis is used to leverage the support of key personnel and purposefully align project teams with wider organizational goals. The analysis can also be used to resolve potential sources of conflict before project commencement.

Strategic Analysis

strategic-analysis
Strategic analysis is a process to understand the organization’s environment and competitive landscape to formulate informed business decisions, to plan for the organizational structure and long-term direction. Strategic planning is also useful to experiment with business model design and assess the fit with the long-term vision of the business.

Related Strategy Concepts: Go-To-Market StrategyMarketing StrategyBusiness ModelsTech Business ModelsJobs-To-Be DoneDesign ThinkingLean Startup CanvasValue ChainValue Proposition CanvasBalanced ScorecardBusiness Model CanvasSWOT AnalysisGrowth HackingBundlingUnbundlingBootstrappingVenture CapitalPorter’s Five ForcesPorter’s Generic StrategiesPorter’s Five ForcesPESTEL AnalysisSWOTPorter’s Diamond ModelAnsoffTechnology Adoption CurveTOWSSOARBalanced ScorecardOKRAgile MethodologyValue PropositionVTDF FrameworkBCG MatrixGE McKinsey MatrixKotter’s 8-Step Change Model.

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