Monthly Archives: March 2016

How to categorise influences – the PESTLE Framework

Often-times when need a way to think about the complexity around us. We need a framework for breaking down our macro-environment into manageable chunks.

The PESTLE framework is just such a framework.

And its very handy in the context of strategic foresight and strategy planning.

The PESTLE framework has been around since the late sixties, and has been refined with the passing of years. Being pedantic, it’s properly called “the PESTLE macro-environment scanning framework”. It first started out as 4 categories: PEST. But now its common usage is PESTLE.

So what does PESTLE stand for, and why is it useful? Let’s go through the letters:

P. Political. What is happening with business policies? Are changes likely within government? What are the latest in taxation policies, government subsidies and trade negotiation outcomes?

E. Economic. How are interest rates & unemployment tracking? What are people buying? What is happening to the world economy, to the local exchange rate? What industries are doing well, what markets are becoming more turbulent.

S. Social. Think about education, lifestyle, age and attitudes of your customers. What is happening in the world of people? Are social policies changing? What TV shows are popular, what are people writing about in the “Letters to the editor”?

T. Technological. Is there much R&D out there? What about automation, the pace of change. Think also of genetics, biotech, fintech and robotics. What is the latest software and app being made possible because of the internet?

L. Legal. What changes to laws are likely to impact you? Are financial regulator legal battles of note. Are there any statutes, laws or administrative arrangements that are likely to influence your organisation?

E. Environmental. Are energy consumption patterns changing? What of climate concerns. Getting closer to where you work and live, what of the surrounding geography. Are there any likely influences as a result of changes to ecology.

So this PESTLE framework, or taxonomy, gives us a way to think about what is happening around us. For we operate our businesses in a context, a context where there are political factors, where there are economic, social and other factors. To a greater or lesser extent, changes in each of these six areas affect us.

For example, think about your customers and perhaps and either their changing economic situations, or their changing attitudes. And on the other side of the business, what about your employees. With the social system, if you will, that they live in what are they expecting from your work environment?

And from a competition perspective, are you able to pickup on and capitalise upon changes in any of these 6 areas quicker than other players in your market?

Are you using the PESTLE framework as part of your strategy planning processes?


For more of what I have to offer, visit Dellium Advisory, follow on Twitter, connect using LinkedIn, or review my IT Strategy blog.


There is change between now and the future – how do you view them both?

Given that we’ll experience the same amount of new inventions and technological change over the next 25 years that we have experienced over the last 75 years, how will your business be affected?

Secondly, given that the volume and value of international trade has consistently accelerated since the early 1950’s, how will our economy be affected?

And given that some of the highest value jobs on the market were not around 10 years ago, how will your career be affected?

Given these things, can we really say that the future is a far off time? Firstly, can we approach our business, including our customers, suppliers and the competition the same as we always have? Secondly, what about the economy? How will the global changes that we are seeing affect us? For example, look to at the trends in China’s economic growth or even reflect upon how the current events across Europe will play out. The question is how will these global changes impact the local markets in which we trade and the social environment in which we live? And finally, what about our jobs, the career we are planning on having?

Yes there are risks. But there are also opportunities. We can look at the glass half empty, or we can see it as half full (as an aside, some wags suggest that the glass is twice as big as it needs to be!).

So, we should be planning for these possibilities. We should be considering the social and economic trends that will be affecting us. We should be weighing up the risks and opportunities afforded by new technologies, by new ways of doing things.

We should be considering the future through more than “business as usual” lens.

Would you consider viewing the future through a dystopian lens or a utopian lens. What about using a lens of greater regulation and discipline?

For the question is: through what lens do you see the future?

For more of what I have to offer, visit Dellium Advisory, follow on Twitter, connect using LinkedIn, or review my IT Strategy blog.