1. Darren Blagburn, Institutional Effectiveness blagdarr@isu.edu x1846P L
Darren Blagburn,
Institutional Effectiveness
x1846

2. ISU’s Strategic Planning Process
1. Gather Facts
2. STEEP-L/ SWOT Analysis
3. Review Inputs
4. Define Vision
5. Define Mission
6. Define Core Themes
7. Develop Strategies
9. Complete
Assessments
10. Review & Adjust
8. Develop Measures
This slide simply shows the process the Strategic Planning Working Group followed.
By gathering facts we identified who the Customers, stakeholders, and competitors are.
Defined Strengths, Weaknesses, Opportunities, Threats then used the latter to identify problem statements (review inputs)
Created Vision, Mission and Value Statements
Developed Priority issues, action plans, and matrices to support those issues
Annually evaluate and adjust the action plans if they are not accomplishing the objectives.

3. Today’s Objectives Task: Collect the STEEP-L data, loop and group
End State: A consolidated STEEP-L list
Timeframe: DONE in 2.5 hrs
Definition
STEEP-L (also called PESTLE)- evaluates different external factors which impact an organization. It is essential for every business to consider some external forces before they can take decisions.

4. STEEP-L Analysis S T E P L
strongly associated with the enrollment and retention- In this step, factors such as interest rates, income and reserves, operating costs, availability of positions are considered
can affect education state and federal laws- Factors to be considered include political stability, legislative beliefs, tuition and fee restrictions and SBOE Policy 3z
social developments include factors like go-on rates, demographics, religion, lifestyles, values, and advertising S T E P L
Social
Technology
Economy
Environment
Politics
Legal
focuses highly on technological advancements- It includes factors like innovation, communication, research and development, and life-cycle of products
ecosystem factors such as water, wind, food, soil, energy, pollution and environmental regulations
exerts direct influence on operations and opportunities
legislation, policies, accreditation
requirements

5. Why Is STEEP-L Analysis Important
There is immense pressure to make quick decisions; to act on judgment and instinct instead of conducting careful analysis of the situation
STEEP-L is commonly used to gain an insight into past, current and future of the external environment developments during times of uncertainty, times of information overload and times of disorganization
STEEP-L Analysis is often linked with SWOT Analysis
STEEP-L Analysis looks at "big picture" factors that might influence a decision or a market
SWOT Analysis explores these factors at a business, product-line or product level
These tools complement one another

6. STEEP-L
Social:
An organization’s strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage.
The absence of certain strengths may be viewed as a weakness.
Consider:
Employee competencies
Organizational structure
Facilities and equipment
Fiscal position
Technology
Communication
Culture
Religion
values
Listed here are some areas where you might look for strengths and weaknesses in your organization; for example, employee competencies. Do your employees have the right skills and are they efficient in their use – Yes would indicate a possible strength while no would indicate a weakness.
Organizational structure – is it streamlined – could it be more efficient.
Do you have up-to-date facilities, equipment and technology
Ask class to brainstorm and list in book some other areas where they might specifically look for strengths and weaknesses
OR-B

7. STEEP-L
Technology:
An external environmental analysis may reveal certain new opportunities for mission success and growth.
Consider:
Unfulfilled customer need
Arrival of new technologies
Loosening of regulations
Removal of barriers
Innovation
Communication
Energy
Transport
Research
Ask students what kind of opportunities they see for their organization. Listen closely to responses to clarify whether what they list is a strength (internal) rather than an external opportunity. Discuss the possibility of making new service offerings through change in force structure, establishing training sites like Mistatatuck in IN or The Tunnel in WV. Technology, new missions, revenue sources, etc.
OR-B

8. STEEP-L
Economy:
Changes in the external environment may present threats to the organization.
Consider:
Shifts in customer’s requirements away from how we do things now
The emergence of substitute products
New regulations
Increased barriers
Financing
International economic factors
Taxes
Savings
Inflation
Availability of jobs and entrepreneurship are considered
Threats, like opportunities, come from the outside. For both external factors consider interviewing customers, suppliers, stakeholders for all areas and levels.
Ask students what they see as possible threats to their organization currently.
OR-B

9. STEEP-L
Environment:
Changes in the external environment may present threats to the organization. Consider:
Shifts in customer’s requirements away from how we do things now
The emergence of substitute products
New regulations
Increased barriers.
Threats, like opportunities, come from the outside. For both external factors consider interviewing customers, suppliers, stakeholders for all areas and levels.
Ask students what they see as possible threats to their organization currently.
OR-B

10. STEEP-L
Politics:
Changes in the external environment may present threats to the organization. Consider:
Shifts in customer’s requirements away from how we do things now
Emergence of substitute products
New regulations
Increased barriers
Factors to be considered include political stability
Tax policies
Price regulations
Consumer protection
Threats, like opportunities, come from the outside. For both external factors consider interviewing customers, suppliers, stakeholders for all areas and levels.
Ask students what they see as possible threats to their organization currently.
OR-B

11. STEEP-L
Legal:
Changes in the external environment may present threats to the organization. Consider
Shifts in customer’s requirements away from how we do things now
The emergence of substitute products
New regulations/accreditation requirements
Increased barriers
Threats, like opportunities, come from the outside. For both external factors consider interviewing customers, suppliers, stakeholders for all areas and levels.
Ask students what they see as possible threats to their organization currently.
OR-B

12. Using STEEP-L To Gain Insight
Organization

13. STEEP-L Analysis Step 1: Understand the elements being analyzed
Step 2: Assess the interrelationship between trends
Step 3: Relate the trends to issues
Step 4: Forecast the upcoming direction of issues
Step 5: Derived the implications
Step 1: Understand the elements being analyzed
This step urges the analyst to comprehend the factors of the environment which are being evaluated. Individuals or companies should try to answer questions about the following:
What are the key trends and events within the element and what evidences support these trends?
How have these trends evolved historically?
What is the nature of change in the trends you noticed?
What kind of effects do the trends have on the firm?
Step 2: Assess the interrelationship between different trends
This step entails properly assessing the interrelationship that trends have with the external environment elements. As an analyst, you are expected to find out what the conflicts between the trends are and what the interrelationships between the trends are like.
Step 3: Relate the trends to issues
Analysts should identify the trends which play a significant role in boosting or hindering the company’s process to reach its objectives. It is recommended that the best approach to executing this step is to create a list of possible trends and then gradually shrinking it down to what the main issues are.
Step 4: Forecast the upcoming direction of issues
At this stage, you are expected to take the analysis beyond the information you collected in prior steps. Using your expertise and collected data to determine what the driving forces behind the issues are. Try to identify the causes and symptoms of the trends to find the driving forces.
It is true that this task can be quite time-consuming and even frustrating at times. Yet, when the step is completed it can offer a wealth of insights which will guide the firm’s decision-making process.
Step 5: Derive the implications
Deriving implications is a crucial step. It will provide a unique opportunity to make conclusions or decisions about the external environment. It can help deduce how the factor can affect any present and future strategic initiatives.
Remember, good conclusions will leave your organization with “food for thought” and the implications which should be dealt with when executing a strategic plan.
When external environment factors like downturns in the economy and lack of investment have their toll on a company’s strategic options, the STEEP analysis can help get a better understanding of how each factor affects the planning process. The tool helps take better decisions.

14. The STEEP-L Process
Using your worksheets and breaking into groups, develop a list in each category of ISU STEEP-L data provided on the worksheets.
Eliminate duplicates.
Focus away from individual organization information.
Groups have 1.5 hrs to complete the exercise.
Select one person to brief.
Loop and Group- Eliminating duplicates and consolidating lists under headers

15. STEEP-L Products 1.5 hrs to collect the data
30 mins to review the lists
30 mins to create an affinity diagram- The larger group eliminates redundancy between smaller groups, by looping and grouping categories, then prioritizes for each of the six areas.