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SeCtion tWo Change approaches & management tools
PESTELI Description
This is a checklist tool to support reflection on the environment in which an organisation, or specific sub-unit of it, operates. It is an acronym of seven factors:
• Political: the internal and external influences which may affect organisational performance and the options available to it
• Economic: the extent and nature of the competition faced by the organisation, or the services provided by it, and the economic resources available to it
• Sociological: changes in demography or broader culture which may affect the demands for services provided by the organisation
• Technological: innovations in ways of doing things and/or tackling new or old problems. Not necessarily limited to technical equipment, such innovations may include ways of thinking or organising
• Ecological: definition of the wider system of which the organisation is a part, and how it interacts with the people and organisations within this system
• Legislative: the legal context within which the organisation operates
• Industry: a consideration of the attractiveness of the industry in which the organisation
currently operates.
Use
PESTELI may be used to assess factors which may favour the organisation and those which may prevent it growing and achieving its mission. Its potential value resides in using the information derived from the assessment to inform strategic change interventions.
Strengths and limitations
The strength of the approach lies in its potential to stimulate reflection on a range of potentially important factors in organisational performance. The danger common to all such checklist approaches is that once an entry is made under each heading this may be considered to be the end of the process of reflection, bringing discussion to a premature close before the full complexity of the factor has been considered. Similarly, a common mistake is to make entries under the headings without reference to the underlying objectives of the organisation, and without informing any change programme. While the tool may be used to promote reflection in the light of major developments with the potential to radically alter the operating environment of
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