In order for situational analysis to work, you will have to take a broad perspective. There are several tools to help you with this broad perspective:
SWOT – Assessment of Strengths, Weaknesses, Opportunities, and Threats (SWOT). This is an organizational assessment of things you are good at (strengths), things you are not good at (weaknesses), future potential opportunities, and future potential threats.
PEST – Assessment of Political, Economic, Social, and Technological (PEST) trends that impact the company. You should study the external factors that influence your organization.
Five Forces Analysis – Analysis of the company’s industry which consists of: 1) Power of Suppliers, 2) Power of Customers, 3) Barriers to Entry within the Industry, 4) Threat of Substitute Products and Services, and 5) Intensity of Competition.
The full range of specific analytical tools is covered in Module 2 Course 2 – Analytical Tools and Techniques. This course will focus on the overall process and frameworks used in decision making. For example, the basic process steps for many decisions consists of:
1. Gather and collect evidence, connect to stakeholders, conduct research, and scan the situation.
2. Analyze the information to identify critical issues.
3. Summarize and communicate the results
4. Plan and take action based on the results
Additionally, you can apply evaluate the quality of your situational analysis as follows:
1. Comprehensive – Takes a broad view of the environment
2. Credible – Uses credible sources of information
3. Convincing – Provides understanding as to what is going on
4. Concise – Focused and relevant to the situation
5. Compelling – Empowering and insightful so we have better control
“A problem is a need for change. A dream or goal you have is a problem. At this moment, you face several problems. This isn’t at all unusual; it’s the perpetual human condition. Life is an ongoing struggle. The purpose of solving problems and accomplishing legitimate dreams isn’t to remove them but to give meaning and direction to the struggle.” – Breakthrough Thinking by Gerald Nadler and Shozo Hibino