Online Training for Water Utilities | WUCA
This training course for water utility managers and consultants, developed by the Water Utility Climate Alliance (WUCA), covers methods for including climate science in water supply planning processes.

Decision-Making Under Deep Uncertainty (DMDU)

The video is a recorded presentation delivered in May 2019 as part of a two-day technical training course held by the Water Utility Climate Alliance (WUCA) in Tampa, Florida. The course was attended by drinking water and wastewater utility managers and consultants from across the United States.

Watch the whole video, or browse the content by section below. Click any section title to jump directly to that content in the video. All slide images were provided by the presenter.

Instructor
Rob Lempert, PhD; & Michelle Miro, PhD
47:00 minutes

Introduction

Deep uncertainty occurs when decision makers and stakeholders do not know or cannot agree on the likelihood that different future scenarios may occur. This happens if there’s a lack of agreement, knowledge, or confidence in the future scenarios and/or when decision makers or stakeholders do not agree or do not know what consequences could result from their decisions. Tools and methods, such as Decision Making Under Deep Uncertainty (DMCU), exist to help water managers make confident decisions under deep uncertainty. The DMDU methods are intended to augment risk management by including the impact of a changing climate. Key parts of the method include:

  • Planning should consider multiple futures.
  • Robust plans perform well over multiple futures.
  • Plans that are flexible and adaptive perform better.
  • Computer analytics can explore multiple futures.

Key Points

  • Uncertainty about the future and how to make decisions for an uncertain tomorrow can challenge even the most seasoned water manager. The most important step is to get started.
  • Decision Making Under Deep Uncertainty (DMDU) is a method available to help water managers make confident decisions under deep uncertainty.
  • Robust Decision Making (RDM) and decision scaling are iterative processes that involve extensive stakeholder input.
  • It is essential to recognize that there are many possible future conditions, each of which would necessitate different decisions. Describe those futures then evaluate the decisions planners would make if any one of them becomes reality.
Innovating Decision Making
0:03:13
0:08:43
(5.5 minutes)

Under the traditional model—called here “predict-then-act”—a planner makes a prediction of what future conditions will be, and, based on that prediction, they make a decision. This can be thought of as an optimization method, creating the maximum benefit for the minimal cost. These types of methods work well when uncertainties are small.

Predict then Act matrix

 

When uncertainties are deep, “predict-then-act” methods can break down. If decision makers develop their own form of “tunnel vision,” focusing on some concerns and motivations without seeing the big picture, they may fail to consider uncertainties in the future. This can lead to decision-making gridlock or unexpected outcomes.

Rather than seeking confidence in a specific model, under DMDU a planner is seeking confidence in a decision. DMDU begins with a proposed strategy and continues with stress tests of that strategy using multiple model runs to understand how it would perform under a range of plausible future conditions. Stress tests identify conditions under which a proposed strategy performs well or poorly, which then informs revised strategies that fill gaps. The process can be used iteratively to test new proposals until decision makers are confident that they have a set of robust options. Rather than seeking confidence in a specific model, under DMDU someone is seeking confidence in a decision. In this approach, important questions about deep uncertainty are asked to bolster confidence and investment in the decision and to eliminate a narrow view of the future:

  1. Can a robust and flexible strategy perform well under a range of future conditions?
  2. What uncertainties are most important?
  3. What actions do we need to take now?
  4. What actions can we postpone to the future?
Methods in DMDU
0:08:43
0:10:44
(2 minutes)

Humans naturally tell stories, imagine each other’s experiences, contemplate potential explanations, and reflect on moral dilemmas. Shared experiences or novel insights can provide perspective and help us anticipate, prepare for, and respond to challenging situations, such as water supply interruptions. The remainder of this lesson briefly introduces major concepts in DMDU, namely Scenario Planning, Adaptive Pathways, Robust Decision Making, and Decision Scaling.

Prehistoric man and current day man communicating.
Scenario Planning
0:10:45
0:12:10
(2.5 minutes)

Scenario planning is a widely used method of envisioning possible future conditions. The process involves four components:

  1. Identify a decision challenge;
  2. Identify factors over which you have no control and which bring uncertainty to the decision;
  3. Develop narratives describing scenarios; and
  4. Use scenarios to develop a robust adaptive plan.

For example, climate and economy could evolve across two gradients that define the four quadrants in the figure below. In the top right quadrant, under the best possible conditions, planners describe a “green and growing” future. The bottom left quadrant depicts a hot climate and weak economy and is labeled “The Big Ugly.” Mathematical models can encapsulate essential characteristics of each scenario and evaluate impacts to a system of interest.

Climate Scenarios grid
Adaptive Pathways
0:12:11
0:18:58
(6.5 minutes)

Adaptive pathways, as a methodology, involves walking decision makers through contingency plans so that decisions can be made at critical points as conditions change in the future. One can build a timeline of critical decisions that need to be evaluated prior to tipping points when system performance would be compromised by factors such as climate, economy, demand, etc. which themselves will continue to change in the future.

Robust Decision Making
0:18:59
0:34:19
(15 minutes)

Robust Decision Making (RDM) and decision scaling are iterative processes that involve extensive stakeholder input. These methods emphasize three features:

  1. Stress test strategies over many plausible paths into the future.
  2. Use the resulting database to identify conditions where strategies fail.
  3. Use this information to identify more robust strategies.

IMAGE REQUIRES SOURCE INFORMATION

Robust Decision Making process

 

Simulation is used to evaluate possible decisions under unique combinations of uncertainties, levers, and relationships. This is known as a vulnerability analysis or a stress test. By evaluating a range of strategies, planners can identify strategies that perform well over the broadest range of scenarios. That set of strategies is then considered “robust.”

Decision Scaling
0:34:20
0:41:33
(7 minutes)

Decision scaling focuses vulnerability analysis or “stress testing” on the climate components of a potential decision. Historic, observed conditions are typically used for one set of simulations. If a reliable statistically downscaled dataset is not available for evaluating climate change, planners can evaluate possible future climate conditions, such as warm, hot, dry, wet, and any combination of those or other factors. The potential future climate time series data allow planners to quickly evaluate the potential influence of climate change on system performance. Decision scaling provides a climate vulnerability analysis, without relying on extensive climate modeling.  The figure below shows how planners can use decision scaling to quickly evaluate model performance under different climate scenarios. 

Decision Scaling

 

Considering multiple futures, seeking robust plans, making plans flexible and adaptive, and using analytics to explore multiple futures can all be great ways to start bringing DMDU principles into practice in organizational planning.

Online Training for Water Utilities | WUCA

Chapter 1: Introduction
Unpredictable rainfall, stronger storms, and changes in historic weather patterns are just some of the observed effects of climate change. You can’t afford to be unprepared for emerging conditions and, on the other hand, you can’t be prepared for everything—and it’s not financially feasible to prepare for the worst-case scenario. Developing a plan to assess the vulnerability of your utility is essential for building resilience and ensuring you, and your customers, are prepared for a changing future. This short module provides an overview to get you started on the right foot.
Instructor
Laurna Kaatz
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Developing a plan to assess the vulnerability of your utility is essential for building resilience and ensuring that you, and your customers, are prepared for a changing future. This module provides an overview to get you started on the right foot.
Chapter 2: Understand
You are ready to begin assessing the vulnerability of your water utility. The first steps involve an understanding of climate science, a look at projected future climate scenarios, and an overview of how climate data is collected and applied to your specific project. With these tools in your toolkit, you can move on, with confidence, to planning your assessment.
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Julie Vano, Ph.D
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Chapter 3: Plan
How do we make decisions in light of uncertainties, especially when those decisions will last a long time? The next two lessons will show you how to move into the future with confidence.
Instructor
Rob Lempert, PhD; & Michelle Miro, PhD
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This course module reviews observed and projected climate change as well as many sources of uncertainty, particularly focusing on the southeastern United States.
Chapter 4: Implement
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Wendy Graham, Ph.D.
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Once you plan the work, it's time to work the plan! The two lessons in this chapter show real-life examples of implementation in southwest Florida.
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This course module reviews observed and projected climate change as well as many sources of uncertainty, particularly focusing on the southeastern United States.
Chapter 5: Case Studies
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This course module reviews observed and projected climate change as well as many sources of uncertainty, particularly focusing on the southeastern United States.
Instructor
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This course module reviews observed and projected climate change as well as many sources of uncertainty, particularly focusing on the southeastern United States.