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Strategize Your Organization’s Future: Perform a Killer Pest Analysis Danette Shepard, MPA D.R. Shepard Consulting and Services, LLC
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PEST Analysis Plays an important role in creating opportunities Completely External –(local, regional, state, federal levels) An exercise in totally being aware –Political –Economic –Social –Technological
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Uses for PEST Analysis Strategic planning Service or product development Marketing Evaluation Personal Development Planning
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Political Funding, grants and initiatives Lobbying limitations Wars and conflict Government terms Elections Inter-governmental relationships Terrorism Political Stability Political trends Governmental leadership Safety
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Economic Home economy Economic trends Nonprofit status and taxation Interest Rates & Monetary Policies Do more with Less Consumer Confidence Job growth and unemployment Consumer confidence index Cash flow
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Social Demographics, –Population Shifts –Age –Social Mobility –Work/career/attitudes –Tipping Points –Health Conscious –Living condition –Media Views –Advertising and publicity Fads Immigration Role models Attitudes Earning capacity
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Technological Core technologies Industry focus New inventions Knowledge transfer Life cycle technological obsolescence Energy use and costs Licensing Research and evaluation Information Technology Internet Mobile Technology Equipment Collaboration tools
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Don’t Throw the Baby Out with the Bath Water!
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Variation - PESTLE Analysis Political Economic Social Technological Legal Environment
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Legal Current legislation Future legislation Regulatory organization processes Employment Law Industry specific regulations Competitive regulations
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Environmental
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Ecological Environmental issues Consumer values Staff attitudes Management style Staff morale Staff engagement
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Ethical Ethical beliefs Shared values Equitable healthcare Conflict of interest Lobbying Advocacy Nepotism
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Variation - SLEPT Social Legal Economic Political Technological
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Variation - STEEPLE Social/demographic Technological Economic Environmental (natural) Legal Political Ethical
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PESTLE Analysis A simple technique which can be used in a fairly sophisticated way, particularly when combined with Risk Analysis, SWOT Analysis, an Urgency-Importancy Grid and expert knowledge about the organization and its external factors
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Personal Development Planning Brainstorm and identify 5-10 things which, based on existing knowledge, may change or are likely to change over the short term, medium term and long term.
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Assess and Evaluate Impact Affect Relevance Importance on/to/for you.
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Mind Mapping PESTL FACTORS
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High Mission Impact Low Viability (Keep, but contain costs)
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High Mission Impact High Viability (Continue and growth)
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Low mission Impact Low Viability (Discontinue or give away)
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Low Mission Impact High Viability
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Narrowing Down the Odds… the PEST Analysis
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Identify an Action Plan THEN –TAKE »ACTION
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