SWOT analysis is not the only method that can be used to define the context of an organization. It is true that it has a certain advantage, because thanks to it you can define both the internal and external context. The method we want to tell you about focuses more on external factors, but thanks to its reliable implementation, you can become aware of what conditions we, as an organization, will face, and what aspects we will be able to use to our advantage.
I am talking about the PEST analysis or its wider version of PESTEL.
The assumptions of the method are simple. You analyze the impact of the following areas on the organization, i.e .:
- Political
- Economic
- Social
- Technological
And in the extended version, you can also analyze the areas:
- Environmental
- Legal.
What you can pay attention to when analyzing individual factors will be in a moment. We just want to tell you why it is worth doing such an analysis and how it relates to the context of the organization.
Most of us live rather calmly, not fully realizing what changes in the environment are or will be happening. We are aware that laws are changing, currencies are more or less stable, and humanity is rather aging. But do we apply this information to business? I hope so. And if not, it is time to focus a bit on the PEST analysis.
It is worth mentioning here that the ISO 9001:2015 standard and all based on it, require specifying the internal and external context. With the help of PEST, we will be able to partially define the context. It’s because, by definition, the external environment is subject of the analysis. But the information we obtain can really prove useful and important to the business decisions we make. And what is equally important, it will constitute a really specific basis for risk analysis, which you have to do, if you have implemented ISO, whether you like it or not.
Regarding management systems: remember – the context of the organization in documented form is not required. Nevertheless, we encourage you to document it, no matter what methods you used to determine it.
The undeniable advantage of the method is focusing attention on very specific external areas, and a thorough analysis of their impact on our organization may lead to surprising conclusions. Therefore, consider carrying out this analysis whether or not it relates to the context of the organization as understood by ISO. We guarantee that you will be surprised both by how many factors influencing your organization you will be able to identify and by the number of things that you had no idea about influence. Reliable information gathering is the key to success. Almost everything is available online. Also, all you need is willingness and some time.
See what to look for when analyzing particular areas.
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