David Peacock
Knowledge Services & E-Learning Manager

• What is Strategy?
• PEST / PESTLE. A tool to analyse the organisations external environment.
• SWOT. A tool to determine the organisations resources and competencies.
• Analysing the best fit: Using PESTLE and
SWOT analysis tools to aid strategic decision making.

“Strategy is the direction and scope of an organisation over the long term , which achieves advantage in a changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations .”
- Johnson, Scholes and Whittington.

What do we want to accomplish?
What are your capabilities?
Mission
Strengths
& Weakness
Capabilities & Resources
The Fit
Best course of action
Opportunities & Threats
•Needs of customers & stakeholders
•PEST Forces
•Competitors and allies
What is needed and feasible?
B.W.Barry

PEST / PESTLE -Analysing the
External environment

• P - Political / Legal
• E - Economic / Financial factors
• S – Socio-cultural factors
• T – Technological
• L – Legal
• E - Environmental
What environmental factors are affecting the organisation?
Which of these are the most important at the present time? Which will be in the next few years?

The main DOH policy initiatives…..
• World class Commissioning/ Practice Based
Commissioning
• Darzi review
• Role of independent contractors/social enterprises
• Partnership links to Local Government /
Social care
• Joint Strategic Needs Assessment
• Integrated Care Pilots

• WCC
• Practice based commissioning
• PBR and the “internal market”
• Impact of Independent sector provision
• Local overspends & deficits
• Operating framework from 2010/11
• PFI developments
• Economic conditions –levels of deprivation

PEST (Socio-cultural factors)
• Changes to the main populations demographics: adults, children, young people, disadvantaged groups, ethnic minority groups, older people, people with disabilities, people with learning disabilities, people with mental health problems
• Consumerism & growth of choice
• Development of expert & informed patients
• Involving patients in the commissioning process
• Growing obesity and poor diets
• Lifestyle changes
• Changes to family structure – singletonism

• NPFiT/CfH
• ESR and additional functionality
• Multi-purpose mobile devices
• Digital TV
• E-learning and m-learning
• Tele-medicine
• Computer Mediated Communication (CMC)
• Web 2.0 technologies

• EU procurement law
• Changes to contract law
• Data sharing within the JSNA
• Competition law
• Judicial review

• Housing issues
• Transport issues
• Pollution issues
• Organisations carbon footprint
• Impact of extreme weather

• Strengths
• Weaknesses
• Opportunities
• Threats

• market developments;
• competitor vulnerabilities;
• political, economic, social and technological trends;
• Unique Selling Points;
• new services; new partnerships;
• and new distribution channels.

• political, economic, social and technological trends;
• competitor strengths and intentions;
• new technologies, services, ideas;
• changing customer/client demand;
• sustaining internal capabilities;
• and new obstacles.

• Service/ product (what are we selling/delivering?)
• Process (How are we delivering/selling it?
• Customer/Client (Who are we delivering
/selling it to?)
• Distribution (How does it reach them?)
• Finance/resources (What are the resources, costs and investments required?)
• Administration (and how do we manage all this?)

Analysing internal strategic capability
• Strategic capability – the resources and competencies of an organisation needed for it to survive and prosper.
– SWOT

• Capabilities; resources, assets, people?
• Reputation and presence?
• Experience and knowledge?
• Marketing – reach, distribution, awareness?
• Location and geography?
• Value, impact and quality of service?
• Processes, systems, IT?
• Cultural, attitudinal and behavioural issues?

SWOT analysis
Opportunity
Threat
How do these strengths take account of these opportunities
How do I overcome these weaknesses to take account of these opportunities
How do I use these strengths to reduce the likelihood of these threats
How do I overcome these weaknesses to ensure these threats do not become a reality
Strength Weakness

SWOT analysis (adapted from
Opportunity
McLaughlin et al).
Attack
“Go for It”
Beware
“Don’t do it”
Explore
“If you have time”
Project
“Watch yourself”
Threat
Strength Weakness

TASK 1: Undertake a PESTLE for your organisation and /or your service
TASK 2: Undertake a SWOT for your organisation and /or your service
• Complete a flip chart for each task
• Identify a spokesperson to feedback