In my ‘revisiting the classics’ series, I’d like to take a look at PEST analysis. In a nutshell, this is a strategic analysis that looks at a business’s environment from the following angles:
– Political
– economic
– social
– Technological
I don’t think there’s much need to dwell on the issue, the terms speak for themselves… it’s up to the analyst to do his job properly.
One comment, however: as in so many cases, we are dealing with an externally-oriented, market-led methodology. Proof once again that we have long focused on the external and neglected the internal (in my opinion, the two should be carried out together).
Applied to an internal diagnosis, the PEST analysis can provide a highly relevant approach to the social organisation of the business:
– Political: expression of power, signs of power, decision-making
– Economic: salary components (motivation, incentives), employee development budget, investment in information and communication systems, etc.
– Social: management style, collaborative attitudes, autonomy vs. control, problem-solving methods, buy-in, staff turnover
– Technological: existing communication platforms, preferred mode of communication, closed or collaborative tools, user acceptance, cross-functional tools, KM, etc.
This is just a quick outline to work on, but its usefulness in an internal diagnosis is immediately apparent. What’s more, it highlights the social aspect of human capital and the interactions that already exist or need to be developed.
Without going so far as to say that a management 2.0 project (social practices + collaborative tools) has an impact on all these points… there is certainly a relevant angle of analysis to be developed… with a view to a people-centric project.
Because it’s all very well to lead an innovative project, but it’s even better to have a solid frame of reference for determining the actions to be taken!
Related articles:
Blogs as a management tool: what’s important is content
Social computing and knowledgeworking need new metrics
Turning knowledge into action and results
How to link formal and informal within the enterprise : the “still” company
Enterprise 2.0, Management 2.0, HR 2.0 and Culture 2.0 according to Jon Husband
Think 2.0 and search for your client
