Organisational Analysis Understanding the Organisation Session 6 Organisational Analysis Jane Collings and Pete Watton Welcome to this Understanding the Organisation module. These module resources have been developed by Pete Watton and Jane Collings from the Plymouth University. This introductory pack provides an overview of the module

Module Aims Objectives to support the learner in identifying and reviewing how organisations are structured and managed to facilitate exploration of the learners’ immediate and wider work context in order to promote professional development Objectives By the end of this session you will be able to: conduct a Stakeholder analysis for your own organisation conduct a PESTLE analysis of your own organisation conduct a SWOT analysis of your own organisation Click to add notes

Organisational analysis Organisations need to regularly reflect on who are their stakeholders and the external ,internal factors and influences that impact on their operation. The findings from these analyses are then used to review and inform the organisational planning process Without this analysis organisations cannot ensure their future direction is based on evidence. This session is going to use three analyses:- Stakeholder – to identify who are they and what are their interests PESTLE – to examine external factors SWOT – to examine internal factors Successful organisations are constantly assessing both external and internal influences so they are constantly horizon scanning so as far as practical be prepared for changes and can act accordingly Organisations also need to analyse their stakeholders and the associated risks and influences

Stakeholder Analysis Who are the stakeholders? – Anyone who has an interest in the success of organisations including:- A stakeholder analysis is used to identify the key persons, groups or organisations with an interest in the organisation It can provide an overall picture of involvement It identifies their relationship and interests e.g. a customer, supplier etc It can identify potential conflicts Customers Staff Local community Government Creditors Suppliers Stakeholders include a huge range of people e.g for a Primary school - pupils - teachers – support staff – parents – the community – future parents – local nurseries and pre schools– Local Authority –Department for Education – suppliers – service providers such as grounds maintenance, HR ,school meals service etc

Stakeholder Analysis The steps Draw up a stakeholder table/diagram identifying who the stakeholders are. Assess each stakeholder's importance and their relative power/influence. Identify risks and assumptions which will affect the success of the organisation Many different methods are used including :- Stakeholder Importance Relative influence Risks/ assumptions Action There are many different formats you could use when analysing stakeholders – organisations chose a format that suits - the key is to analyse the importance , the influence and the risks

Stakeholder Analysis – different methods www.nhsemployers.org/EmploymentPolicyAndPractice/EqualityAndDiversity/e-d-in-practice/get-there/Pages/StakeholderAnalysis-views.aspx This analysis shows the inner hub being actively involved in changes and the outer hub being interested

Stakeholder Analysis – different methods This analysis shows the interest areas of the stakeholders in the different departments

Stakeholder analysis – different methods http://commons.wikimedia.org/wiki/File:Stakeholder_%28en%29.png This analysis looks at internal and external stakeholders but not the impact of the, on the organisation http://commons.wikimedia.org/wiki/File:Stakeholder_%28en%29.png Accessed: 05/07/2011 Created by Grochim

Example stakeholder analysis – Community Cafe Importance Relative influence Risks/ assumptions Action Volunteers and Trustees High Will we have enough to staff the cafe Ensure we motivate, train and care for our volunteers Customers / community They will want to use the cafe Other cafes will become more popular We need to consult & survey them on a regular basis Suppliers Medium Low We need goods at a competitive prices We need to constantly seek new & different suppliers Local Authority Environmental health High as they can close us We need to pass all the inspections Rigorous hygiene standards Paid cafe manager The manager will leave Ensure we motivate, train and care for our paid staff This is an example from a fictitious community cafe it examines importance – influence risks and actions required to move forward

 Activity 1 Stakeholder analysis Undertake a stakeholder analysis of your organisation or department / section Ensure you consider both internal and external stakeholders and consider the impact, influence and potential risks they have on your organisation/department/section

PESTLE and SWOT Analysis In order for organisations to plan for the future they need a clear idea of the external and internal environments they are operating This can be carried out through using the PESTLE and SWOT tools for analysis http://howtomanagehumanresources.blogspot.com/2008/01/swot-analysis-strategic-planning-tool.html These analysis will offer organisations a view of both the external and internal view of their business These can be conducted by a range of different people to gain triangulation in the analysis It is most important it is a candid and honest analysis

T- Technological How does technological changes affect you PESTLE Analysis An analysis of external influences that impact on an organisation can be carried out using the PESTLE tool P- Political what is the effect of current or anticipated government policy E – Economic how does the economic climate affect the organisation – is the market/demand expanding or contracting S- Socio – Cultural How do attitudes beliefs ethical standards affect your organisation what makes people want what you offer – will changes in demography affect you ? T- Technological How does technological changes affect you L – Legal How does the law and changes to the law affect your organisation E – Environmental How does the environment and sustainability issues impact on your organisation Consideration needs to be given against all six criteria

Example PESTLE analysis – Community Cafe Political Economic Sociocultural Local Authority support Tax relief for not for profit organisations Rules for social enterprise Food costs Fuel costs Wage costs Insurance Customer income Attitudes to volunteering Unemployment Attitudes to community Healthy Eating Leisure time Technological Legal Environmental Availability and cost of WiFi Environmental health law H and S laws Employment law VAT Energy consumption Waste disposal Using the example of the fictitious community cafe the PESTLE offers a useful analysis to analysis and agree the influences that are and will effect the organisation

 Activity 2 PESTLE analysis Undertake a PESTLE analysis of your organisation or department / section Ensure you consider the impact of these external influences they have on your organisation/department/section

A SWOT analysis is an excellent tool for an internal analysis of your organisation/department/section http://www.flickr.com/photos/jeanlouis_zimmermann/3055831696/

Example SWOT analysis – Community Cafe Strengths Weakness Good volunteer base Trustees commitment Customer base Strong local community Lots of other cafes Location not high street Pricing levels Profit margin to pay for manager Opportunities Threat Adult education, health and training Community garden Use of young people on work experience Funding from health Price of food Legislation Council tax Using the community cafe example The SWOT starts to focus the objectives of an organisation

 Activity 3 SWOT analysis Undertake a SWOT analysis of your organisation or department / section To complete this analysis ensure you consider your organisation/department/section objectively

References Drucker, P. (1995) Managing at a Timer of Great Change. Butterworth-Heinemann.  Investors in People website www.investorsinpeople.co.uk Accessed 14th February 2011 Images Click to add notes

References Images Examples: Kolb, D. (1984) 'Experiential Learning: Experience as the Source of Learning and Development. New Jersey: Prentice-Hall JISC OER IPR Support Project (2010) OER IPR Starter Pack. http://www.web2rights.com/OERIPRSupport/starter.html Accessed 31st January 2011. Images For further information see: University of Plymouth Learning Development (2008) University of Plymouth Guide to referencing. University of Plymouth. https://exchange.plymouth.ac.uk/intranet///refman/Public/Ref_guide_2006_content/How%20to%20reference.doc Accessed 31st January 2011. Click to add notes

©University of Plymouth, 2010, some rights reserved This resource was created by the University of Plymouth, Learning from WOeRk project. This project is funded by HEFCE as part of the HEA/JISC OER release programme. This resource is licensed under the terms of the Attribution-Non-Commercial-Share Alike 2.0 UK: England & Wales license (http://creativecommons.org/licenses/by-nc-sa/2.0/uk/). The resource, where specified below, contains other 3rd party materials under their own licenses. The licenses and attributions are outlined below: The name of the University of Plymouth and its logos are unregistered trade marks of the University. The University reserves all rights to these items beyond their inclusion in these CC resources. The JISC logo, the and the logo of the Higher Education Academy are licensed under the terms of the Creative Commons Attribution -non-commercial-No Derivative Works 2.0 UK England & Wales license. All reproductions must comply with the terms of that license. Author Jane Collings, Pete Watton Institute University of Plymouth Title Organisational Analysis Description PowerPoint Presentation Date Created 31st March 2011 Educational Level Level 4 Keywords UKOER LFWOERK UOPCPDWBL Learning from Woerk WBL Work Based Learning CPD Continuous Professional Development Creative Commons License CC-BY-NC-SA ©University of Plymouth, 2010, some rights reserved Back page originally developed by the OER phase 1 C-Change project