We use the following tools for strategic and management analysis to evaluate the potential of new businesses or ventures – SWOT, Porters 5 and PEST analysis.
Within an organisation are people who have heart, imagination, ideas and enthusiasm. This can flow strong or low depending on their own personal situation, managers interaction and leadership, alignment of their own goals with the organisational goals and opportunity to contribute ideas.
When meeting people in an organisation, sometimes more can be learned about its culture and whether that organisation may meet it’s aspirational objectives by talking with those who are involved in the day to day operations
– PUN (Purposeful Useful Notions) – meaning that everyone in an organisation has at least one vague idea or notion so I must remember to get with each pe
rson one on one and draw their thoughts out),
– the HUM score (Happy Unfettered Motivated) – which is kind of my measuring stick for picking up on how well an organisation is humming – i.e. morale. Do individuals seem happy (meeting their personal goals, enjoying work), unfettered (working in an environment where they can own their job, feel trusted by management, flourish in it confidently) and motivated (thinking ahead, keen to bring more value to their role, enthusiastic) ….so each of those out of 10 adds up to the HUM morale score out of 30 x number of people divided by 100 = percentage, which then tells me if the whole organisation is humming well or could do with more hum!
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SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture.
PEST analysis stands for “Political, Economic, Social, and Technological analysis” and provides a framework tool to look at external factors that impact on an organisations’ strategy, helpful when conducting market research. Some add Legal (making SLEPT), or insert Environmental factors (creating PESTLE), or extend it to STEEPLE, which includes Ethics and Demographic factors. This strategic tool helps us understand where market growth or decline is happening and how the business is positioned for potential growth. With the rise in ‘green’ and energy/environmentally conscious business practice, it would seem that an updated version of PEST to include that would be encouraged. STEER analysis systematically considers Socio-cultural, Technological, Economic, Ecological, and Regulatory factors.
Porters 5 Forces considers the threat of new competition, the threat of substitute products or services, the bargaining power of customers, the bargaining power of suppliers and the intensity of competitive rivalry on a business or venture.
