PESTLE Analysis (PEST analysis) The PESTLE acronym.

Political Economic Social Technological Legal Environmental PESTLE Analysis is a simple technique which can be used in a fairly sophisticated way, particularly when it is combined with is! Analysis, S"#T Analysis, an $rgency%&mportancy 'rid and e(pert !nowledge about the organisation and its e(ternal factors. PESTLE Analysis is normally used to help organisations identify and understand the e(ternal environment in which they operate and how it will operate in the future. & believe that a version of PESTLE Analysis can be used by the individual for personal development planning. Some people will argue that this is a use for which it was never designed and for which it may be inappropriate. )y answer to that is to *try it, it does wor! for P+P,. The shorter version is a PEST Analysis - missing out Legal and Environmental factors. At the end of this document is an e(planation of the use of PESTLE for organisational change. How PESTLE may be used for PDP .or P+P purposes view yourself as being /the organisation0 - an organisation sub1ect to e(ternal factors, and internal factors. 2 .or each of the 3 PESTLE factors brainstorm and identify 4526 things which, based on e(isting !nowledge, may change or are li!ely to change over the short term, medium term and long term.

7 Then assess%evaluate their li!ely impact%affect%relevance%importance on%to%for you.

Then narrow these down and ran! them for

importance%priority - so that each factor has 8 most important or most li!ely changes. Then select%choose the most important or most li!ely 8 changes from across all factors. 9ou may need e(pert !nowledge for this or need to use ris! analysis and%or urgency vs importancy grid. 8 Then identify if a factor and%or its impact will be e(ternal or internal. &e can you control it :internal; or does it control you :e(ternal;. #r can you influence the e(ternal factor< = Then identify an action plan.
Then ta!e action >

The above can be carried out for a short, medium or long term timescales. A number of PESTLE Analysis may be carried out for short term, medium term, internal and e(ternal and combined with is! Analysis used to build up a useful picture of what the future might loo! li!e and what action we may need to ta!e, or what the most important action which we need to ta!e is and when we need to ta!e it. The !ey thing though is to actually ta!e the action.

E(ample of how a simple grid may be used for PESTLE Analysis for your own P+P
/Thing0 which may change Short, )edium or Long term< &mportance or &mpact% elevanc e ?ery @igh @igh, )edium, &nternal :& can control it; or E(ternal :Aeyond my Bontrol; Action & intend to ta!e

Low ?ery Low

Bomplete one bo( in L@S for each /thing0 which may change. Aim for 4526 things for each of the 3 PESTLE factors. This will give you 865 36 things to loo! at further for your own P+P.

The traditional use of PESTLE for organisational change is as followsC 2 List e(ternal PESTLE factors for the organisation 5 may need to brainstorm and have e(pert !nowledge of the organisation and%or the world outside the organisation for this. 7 &dentify the implications of each PESTLE factor for the organisation. 8 +ecide the importance of the implications of the e(ternal factors - ran!s or rate them. Dormally this involves assessing theirC impact over time, impact by type :positive or negative affects; and impact by dynamics :ie is the significance%importance of the implication increasing, decreasing or remaining unchanged;. = ate the importance of the implication to the organisation :eg usingC critical, very impt, impt, significant, unsignificant;. This may be further refined by ran!ing the li!elihood of it happening :eg usingC will happen, e(tremely li!ely, very li!ely, li!ely, unli!ely, remote chance of happening, will not happen;. 4 Scenario building. #r /what if..0 $sed to develop scenarios of different alternative futures for ht organisation.