Business Strategy 7: Step 4 Assess the External & Internal Environments

This continues our series on how John M. Bryson’s strategic change cycle

Bryson shares “a consideration of the ways in which inputs, process, and outputs are linked can help the organization understand what its strategies are and the value proposition that it offers stakeholders. In other words, what story does this linkage tell about the logic model, or value chain, that the organization pursues to convert inputs into outputs that meets its mandates, fulfill its mission, satisfy its stakeholders and create profit.” Bryson advises using a SWOC or SWOT Analysis (he exchanges the T or threat for C or Challenge)

Assess External & Internal Environments

Bryson outlines “The purpose of step 4 in the strategic planning process is to provide information on the strengths and weaknesses of the organization in relation to the opportunities or threats it faces. This information can be used to create ideas for strategic interventions that can shape and guide organizational decision and actions to create value.”

• “Strengths and weaknesses are usually internal and refer to the present capacity of the organization”
• “Opportunities and threats are typically external and refer to future potentials for good or ill”

“These distinctions between internal and external and between present and future are fluid, and people should not worry too much about whether they have made them properly.”

Process for Assessing the Environments

I blogged about SWOT analysis before. Bryson offers the following additional guidelines for assessing the strengths, weaknesses, opportunities, and threats:

• Keep in mind that the simpler is likely to be better
• Review information gained in steps 1, 2, 3 and other exercises prior to your SWOT
• Use a Snowcard technique to list strengths, weaknesses, opportunities, & threats
• Consider what is going on outside the organization before what is going on inside
• Look for patterns and important actions that might be taken immediately
• Consider institutionalizing  periodic SWOT analyses
• Construct various scenarios in order to help identify SWOTs

“The approach to external and internal environmental assessments…sets the stage for the identification of strategic issues in step 5.”

Thursday we analyze step 5 identify the strategic issues facing the organization