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 Fit Best 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