PEST analysis and internal diagnostic

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analysisPEST analysis is a strategic analysis method that lead a company to observe its surrounding according to five criterions. P for political, E for Economic, S for social and T for technological. As a lot of analysis methods, PEST wad design to observe the outside in a strategic and market logic.

That’s the proof that compagnies have neglected their internal side for decades and only focused on the outside. I’m not saying they were wrong but that they have to deal with both internal and external sides to really be globally competitive.

For example, consider you have to analyze the inner side in ordre to improve management, promote collaborative process… you have to deal not only with processes but also with the human componant, the social practices.

So let’s try to use PEST as a tool of internal diagnostic, on a people-centric based purpose:

– Politic: power, symbols of power, how they make decisions

– Economic: part of the salary impacted by performance, investments on people self-development, budget for communication, KM, intranet tools..

– Social: kind of management, collaborative attitudes, autonomy vs. control, self responsability, membership, turnover

– Technological:  tools as intranet, KM, collaborative tools, wikis etc…

I think it could provide an inner view based on social practices that may be very efficient in the purpose of initiating actions to promote collective intelligence and deploy dedicated IT tools. Because it’s useless to launch such a project without having a peripherical view that includes both human and IT sides and shows interactions between pepople together and people and IT.

A good way to start a management 2.0 project…