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Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge, Prediction, Forecasting A QRLHE Mutual Learning Workshop Bucharest, Romania November 20, 2010

Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

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Page 1: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Support for Scenario Statements

Dr. Peter Bishop

Futures Studies

University of Houston

Expert Knowledge, Prediction, Forecasting

A QRLHE Mutual Learning Workshop

Bucharest, Romania

November 20, 2010

Page 2: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

The Problem• Know how to support statements of fact (declarative

mood), of which predictions are statements about the future

• But futurists deal in statements of possibility/plausibility (subjective mood)

• How to support statements of plausibility, statements within scenarios, such as U.S. war with China, double-dip recession, global warming

– We can line up evidence for and against; if decent evidence for both, then there are two alternative futures

– But only good for yes/no, true/false, happens/doesn’t happen

– Can we support more substantive and interesting scenarios, scenarios that state alternative futures rather than just the negation of predictions?

• At stake is the credibility of strategic foresight as a professional discipline

Page 3: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Words and Probabilities

Term… Means…Impossible = 0%Possible > 0%Plausible >> 0%Probable, likely > 50%Certain = 100%Most certain = ~0% or ~100%Most likely (expected,

surprise-free, official, baseline)

= more likely than any other, but is usually << 50%

Most uncertain = ~50%Wildcard = ~0%, but with high

impact if it does occur

Page 4: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Evidence

Assumptions

Conclusion

Evidence

Assumptions

Conclusion

Socrates is a man

All men are mortal

Socrates is mortal

Inference IllustrationsInference Illustrations

Every time I flipped the switch, the light came on.

Nothing about the light has changed since the last time I turned it on.

Therefore, the next time I flip the switch, the light will come on.

InductionDeduction

Page 5: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Inference ModelRelations

Inference ModelRelations

InferenceInference

Evidence

Evidence

EvidenceEvidence

Evidence

Assumption Assumption Assumption

Unobservable

Observable

Page 6: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Critical ThinkingLogic

Critical ThinkingLogic

Evidence

+ Assumptions

= Inference, Point, Conclusion, Interpretation

Alternative Evidence

+ Their Assumptions

= Alternative Conclusion

Same Evidence

+ Alternative Assumption

= Alternative Conclusion

Page 7: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Critical ThinkingProcess

Critical ThinkingProcess

Inference, Point, Conclusion, Interpretation

Evidence

Assumptions

Alternative Evidence

Alternative Conclusion

Alternative Assumption

Alternative Conclusion

or

Page 8: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Learnings I

1. The support for all inferences rests on evidence (observations or inferences taken as observations)– Criteria for good evidence = true, relevant, and sufficient,

attributes that are usually present

– “Truth” in this case is more group consensus than metaphysical certainty reality.

2. Every piece of evidence requires at least one assumption to be used in support of an inference – a warrant to use the evidence in support of the inference– Data does not interpret itself.

– No inference is “obviously” true without some doubt or uncertainty, no matter how small.

Page 9: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Learnings II

3. The quality of the support for an inference is a function of the quantity and quality of the evidence and the quality of the assumptions associated with that evidence.

4. The quality of the assumptions (the warrants) is usually the most problematic part of the support, more so than the quality of the evidence.

• Or, in other words, the assumptions required to use the evidence in support of the inference are more often what limits the quality of the evidence.

Page 10: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Learnings III

5. All doubt vs reasonable doubt– Support for an inference is weaker in the presence of

reasonable alternative assumptions -- alternative assumptions for which there are reasons to believe that they might be true.

– Reasonable alternative assumptions support statements of plausible futures rather than just possible futures.

6. Statements about the future use the same logical structure that statements about the past and the present (science) do.

Page 11: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Knowing Different Times

History

VisionsEvents

Trends

IssuesImages

DrawingsWritings

Artifacts

StructuresBones

Assumptions

Forecast

Assumptions

Present

Evidence

Page 12: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

7. Assumptions in Trend Extrapolation

Business School Enrollment, UH-Clear LakeDeseasonalized

80

85

90

95

100

105

110

115

120

80-1 81-1 82-1 83-1 84-1 85-1 86-1 87-1 88-1 89-1 90-1 91-1 92-1 93-1 94-1 95-1 96-1 97-1 98-1 99-1 00-1 01-1 02-1 03-1 04-1

Page 13: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Process• Is it possible to support statements of plausibility (scenarios)

in the same way that one can support statements of fact?

• Not directly, but indirectly – as plausible alternative inferences to statements of fact. In other words, as alternative scenarios to factual predictions.

• Therefore, the support for statements of plausibility (scenarios)…

1. …begins with the support for the corresponding statement of fact (prediction)

2. …discovers plausible alternative assumptions within that support (critical thinking)

3. …uses those plausible alternative assumptions as the basis for alternative inferences (scenarios)

• Provided that the original inference (prediction, expected future) has some support, which it usually does, the complete set of scenarios includes that inference and all the plausible alternatives (scenarios).

Page 14: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

A Toy Example

• Prediction: There will be an actual military conflict (some type of war) between the U.S. and China within the next 20 years.

• Evidence -- – Major powers often engage each other in war,

particularly between incumbent and emerging powers.

– China has been building up its military over the last decade.

– China has stated that it intends to bring Taiwan under mainland control.

Page 15: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Analysis of AssumptionsEvidence Assumption Alternative

assumption Reasons for the alternative

a. Historical wars among major powers

Present is like the past. Present is not like the past.

Economies are more integrated than in the past.

b. Recent build-up of Chinese military

China believes that it has strength to challenge the U.S. military sometime in next 20 years.

China does not believe that.

China chooses not to spend as much on military as the U.S. has; sees that level of military -up as irrelevant money in an economically integrated world.

c. China’s stated intention to re-integrate Taiwan

Integration is seen as the best or the only way to benefit from Taiwan.

Strong trade relations might be better than integration.

War would destroy much of the country; economic vs political calculation.

Page 16: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Statement of Scenarios

1. An actual military conflict (some type of war) between the U.S. and China within the next 20 years. (Prediction)

2. China only interested in regional, not global hegemony with the U.S. allowing China hegemony in East Asia. (Assumptions a and b)

3. De facto economic integration with a politically independent Taiwan. China rates economic benefits more important than political ones. (Assumption c)

Page 17: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Benefits

• Provides a way to develop scenarios through the discovery of alternative assumptions in the support for an original prediction

• Provides support for each scenario in the reasons for the alternative assumptions

• Opens a discussion about assumptions that can be critically evaluated by others

• Allows interested parties to study and monitor the reasons for the alternative assumptions as indicators each scenario becoming more or less plausible

• Ultimately rests the scenarios and their support on a transparent process that is based on evidence and judgment, more than just creativity and intuition

Page 18: Peter Bishop, Futures Studies, University of Houston Support for Scenario Statements Dr. Peter Bishop Futures Studies University of Houston Expert Knowledge,

Peter Bishop, Futures Studies, University of Houston

Dr. Peter BishopEducator, Facilitator, Futurist

Dr. Peter BishopEducator, Facilitator, Futurist

For Additional Information For Additional Information

• Phone +1-281-433-4160

• E-mail [email protected]

• Web houstonfutures.org