To revise its strategic plan for vocational education and training (VTE), the Office of Training and Further Education (OTFE) in the state of Victoria (Australia) conducted a three-stage review of strategic directions of VTE in the state. In stage 1, the internal and external environments were scanned to identify major change factors and themes. Stage 2 involved the preparation of alternative views of the future under different assumptions (scenarios) to give the OTFE the background information needed to develop a vision and strategies, and stage 3 involved the development of strategies for VTE's future. The environmental scan included consideration for the following external and internal forces: recurrent resources, demography, household income, participation in education, the labor force, demand for training, competency-based training, skills transfer, funding sources, capital, staffing, and new technology. The environmental analysis and scan resulted in two scenarios for 10 years from now. According to the "clever country" scenario, the economy's growing complexity and pressures on governments, enterprises, and individuals will result in buoyant training and further education. In accordance with the new balance scenario, the changing nature of work and society will lead governments, enterprises, and individuals to meet their needs through strategies diminishing the demand for formal training and education. (MN)