The Environmental Scan – A Key Tool for your Strategic Planning
It is generally recognized that organizations must adapt to their environments in order to survive and prosper.
Effectively interpreting, analyzing and using the right information at the right time plays a crucial role in the success or failure of a business or organization. Unfortunately, many decision makers often lack the time and skills required to search for, interpret, synthesize and apply information to their decision-making and problem-solving processes and often fail ‘to take full advantage of the abundance of information at their disposal.
What is an environmental scan?
An environmental scan is an objective review and analysis of the current and potential conditions in which your organization is and will be operating. The results are extremely useful in shaping goals and strategies.
The process originated in strategic business management to identify potential positive and negative impacts caused by the external macro-level environment, the industry, and competitors, as well as the internal environment.
It allows you to review trends and forecasts and ask your stakeholders – constituency, clients, funders, volunteers and collaborators alike: What trends are impacting your life, your priorities, your work? And how?
Environmental factors to consider:
- Demographics – locally, regionally, nationally, and increasingly internationally (e.g., population, racial/ethnic mix, immigration status, education levels, etc.)
- Politics and public policy – changes in governmental regulation, federal financial aid policies, and public attitudes toward institutions of higher education
- Economies – local, regional, national and international
- Labour market – the demand and availability in relevant fields and the associated skills desired by employers
- Academic interests – popular fields and the employment interests of prospective students and their families
- Research – changes in interests and funding from governmental, private and foundation sources
- Funding – changes in available funding and in the attitudes, interests, and approaches of donors and funders
- Market Forces – An assessment of competition the organization must face, including industry trends and competitive analysis.
- Stakeholder Analysis – The identification of stakeholders and delineation of their needs.
- Technology – An internal and external assessment of technology to find opportunities for potential innovation
- Legal and Regulatory Factors – A view of how the organization can favorably address legal and regulatory factors and minimize any threats by relevant legislation and regulation. A review of regulations that impact/guide your work prior to setting the strategic direction.
Many organizations and individuals are unaware of the value of information or of the consequences of lack of information.
The practice of environmental scans commonly occurs during a strategic planning process every 3-5 years. However, given the accelerated pace of change, it is suggested you incorporate a mini environmental scan into the annual budgeting process.
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