SWOT and other strategic planning tools for

supporting commissioners

David Peacock

Knowledge Services & E-Learning Manager

Outline:

• What is Strategy?• PEST / PESTLE. A tool to analyse the

organisations external environment.• SWOT. A tool to determine the organisations

resources and competencies.• Analysing the best fit: Using PESTLE and

SWOT analysis tools to aid strategic decision making.

What is Strategy?

“Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations.”

- Johnson, Scholes and Whittington.

Strengths & Weakness

Capabilities & Resources

Mission

Opportunities & Threats•Needs of customers & stakeholders

•PEST Forces•Competitors and allies

The FitBest course

of action

What do we want to accomplish?

What are your capabilities?

What is needed

and feasible?

B.W.Barry

PEST / PESTLE -Analysing the External environment

PESTLE :-

• P - Political / Legal• E - Economic / Financial factors• S – Socio-cultural factors• T – Technological• L – Legal• E - Environmental

What environmental factors are affecting the organisation?

Which of these are the most important at the present time? Which will be in the next few years?

PEST (Political) -The main DOH policy initiatives…..• World class Commissioning/ Practice Based

Commissioning• Darzi review• Role of independent contractors/social

enterprises• Partnership links to Local Government /

Social care• Joint Strategic Needs Assessment• Integrated Care Pilots

PEST (Economic / financial)-

• WCC• Practice based commissioning• PBR and the “internal market”• Impact of Independent sector provision• Local overspends & deficits• Operating framework from 2010/11• PFI developments• Economic conditions –levels of deprivation

PEST (Socio-cultural factors)

• Changes to the main populations demographics: adults, children, young people, disadvantaged groups, ethnic minority groups, older people, people with disabilities, people with learning disabilities, people with mental health problems

• Consumerism & growth of choice

• Development of expert & informed patients

• Involving patients in the commissioning process

• Growing obesity and poor diets

• Lifestyle changes

• Changes to family structure – singletonism

PEST – (Technological)

• NPFiT/CfH• ESR and additional functionality• Multi-purpose mobile devices• Digital TV• E-learning and m-learning• Tele-medicine• Computer Mediated Communication (CMC)• Web 2.0 technologies

PEST – (Legal)

• EU procurement law

• Changes to contract law

• Data sharing within the JSNA

• Competition law

• Judicial review

PEST - Environmental

• Housing issues

• Transport issues

• Pollution issues

• Organisations carbon footprint

• Impact of extreme weather

SWOT

• Strengths

• Weaknesses

• Opportunities

• Threats

Opportunities:- issues to consider

• market developments;

• competitor vulnerabilities;

• political, economic, social and technological trends;

• Unique Selling Points;

• new services; new partnerships;

• and new distribution channels.

Threats:- issues to consider

• political, economic, social and technological trends;

• competitor strengths and intentions;

• new technologies, services, ideas;

• changing customer/client demand;

• sustaining internal capabilities;

• and new obstacles.

Six planning areas

• Service/ product (what are we selling/delivering?)• Process (How are we delivering/selling it?• Customer/Client (Who are we delivering /selling it

to?)• Distribution (How does it reach them?)• Finance/resources (What are the resources,

costs and investments required?)• Administration (and how do we manage all this?)

Analysing internal strategic capability

• Strategic capability – the resources and competencies of an organisation needed for it to survive and prosper.– SWOT

Strengths & weaknesses: issues to consider

• Capabilities; resources, assets, people? • Reputation and presence? • Experience and knowledge? • Marketing – reach, distribution, awareness? • Location and geography? • Value, impact and quality of service? • Processes, systems, IT?

• Cultural, attitudinal and behavioural issues?

Analysing the “best fit”

SWOT analysis

How do these strengths take

account of these opportunities

How do I overcome these weaknesses to take account of

these opportunities

How do I use these strengths to

reduce the likelihood of these

threats

How do I overcome these weaknesses

to ensure these threats do not

become a reality

Opportunity

Threat

Strength Weakness

SWOT analysis (adapted from McLaughlin et al).

Attack

“Go for It”

Beware

“Don’t do it”

Explore

“If you have time”

Project

“Watch yourself”

Opportunity

Threat

Strength Weakness

Group work

TASK 1: Undertake a PESTLE for your organisation and /or your service

TASK 2: Undertake a SWOT for your organisation and /or your service

• Complete a flip chart for each task

• Identify a spokesperson to feedback