PESTLE stands for political, economic, social, technological, legal and environmental.
It's a tool for considering how the world is changing (sometimes called ‘external analysis’ or ‘environmental analysis’).
Looking out and considering how the world is changing can help you:
It'll help you to open up your thinking about change. Without it, your strategy will be missing a vital external perspective.
As part of your overall strategy process, it will lead to clearer, more relevant goals, better decisions, and a more secure future as you are better prepared for what will happen.
The world is constantly changing, so it makes sense to collect data and ideas about this on an ongoing basis. If you are able to do this, it will be easier to consider it when you come to develop or review your strategy.
There are two steps
Depending on how much time you have, you could:
You may end up with a lot of ideas about how the world is changing. If this feels like too much you can:
If you’ve identified some changes that feel vital but are also uncertain, scenario planning can be a useful tool to use.
So far you've considered what is changing in the world which is relevant for your organisation and your mission.
The next two questions are:
This grid can help to open up your thinking about the implications of external changes.
The following tool can help you to consider a variety of opportunities.
You’ll now have a range of ideas about what you might do. You’ll also have more ideas if you’ve used other tools like SWOT or Other Players. The next stage of the strategy process is to make good decisions. There are a number of tools to help.
You’ll now have a range of ideas about what you might do. You’ll also have more ideas if you’ve used other tools like SWOT or Other Players. The next stage of the strategy process is to make good decisions. There are a number of tools to help. ‘When we did this, we were terrified. We were walking in a small circle of light but all around us, we didn’t know what was in the corners. It was scary for a while but after a bit, all we could see were opportunities. It’s very inspiring.’
Last reviewed: 04 July 2022
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