Strategize Your Organization’s Future: Perform a Killer Pest Analysis

Danette Shepard, MPA

D.R. Shepard Consulting and Services, LLC

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

Uses for PEST Analysis • Strategic planning• Service or product development• Marketing • Evaluation • Personal Development Planning

Political• Funding, grants and initiatives• Lobbying limitations• Wars and conflict• Government terms• Elections• Inter-governmental relationships• Terrorism• Political Stability• Political trends• Governmental leadership• Safety

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

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

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

Don’t Throw the Baby Out with theBath Water!

Variation - PESTLE Analysis• Political• Economic• Social• Technological• Legal• Environment

Legal• Current legislation• Future legislation• Regulatory organization processes• Employment Law• Industry specific regulations• Competitive regulations

Environmental

Environmental• Ecological• Environmental issues• Consumer values• Staff attitudes• Management style• Staff morale• Staff engagement

Ethical• Ethical beliefs• Shared values• Equitable healthcare• Conflict of interest• Lobbying• Advocacy• Nepotism

Variation - SLEPT• Social• Legal• Economic• Political• Technological

Variation - STEEPLE• Social/demographic• Technological• Economic• Environmental (natural)• Legal• Political• Ethical

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

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.

Assess and Evaluate• Impact• Affect• Relevance• Importance on/to/for you.

Mind MappingPESTL

FACTORS

High Mission Impact Low

Viability

(Keep, but contain costs)

High Mission Impact High

Viability

(Continue and growth)

Low mission Impact Low Viability(Discontinue or give away)

Low Mission Impact High Viability

Narrowing Down the Odds…

the PEST Analysis

Identify an Action Plan• THEN

–TAKE

»ACTION