Strategic planning is a critical step or dot, as I like to say, as we connect the dots from Mission to Execution. The situational analysis is the starting point for developing strategy. It allows understanding and insight into the present situation and future forecasting. We will spend time looking in the mirror and some time looking into a crystal ball.
Today we will talk about the methods to conduct a situational analysis and the sources of information that are needed.
A quote by Will Rogers summarizing why ongoing situational analysis is important:
“Even if you're on the right track, you'll get run over if you just sit there.”
– Will Rogers
Brainstorming is great in the planning process, but it is critical to be organized and yes, strategic in what information you look at to conduct the situational analysis so nothing important is missed.
Situational Analysis Frameworks
These frameworks allow you to think comprehensively of all aspects that can impact your business and assess the sources of data in an organized fashion. One of the most commonly used is the SWOT analysis but the others can useful. Let’s talk about the factors that are included in each framework.
Strengths, Weaknesses, Opportunities, Threats
Financial, Customer, Internal Process, Organizational Capacity
Political, Economic, Social, Technological, Legal, Environmental
PORTER’s FIVE FORCES
Competitive Rivalry, Threat of New Entrants, Threat of Substitution, Power of Customers, Power of Suppliers
Company, Customer, Collaborators, Competition, Context
If you choose to do a SWOT, keep the other factors in mind as you complete the SWOT. For example, from the PESTEL, are there legal factors that will impact your strengths, weaknesses, opportunities, or threats. This is what I like to do and also add a pharmacy specific framework to include factors specific to our industry.
Sources of Data
The sources used will depend on your industry and I will focus on healthcare and pharmacy today. Think broadly – what do you need to know – to help you analyze your situation.
Internal Data / Benchmarks
Organization and Department Metrics
Assessments, Plans and Forecasts
Compile these internal and external sources of information.
Once you have your sources of information, you will conduct a systematic assessment. I like to answer the following questions to assess each piece of information.
Adding the year will allow you to start the prioritization process that will be continued in the strategy development phase. You will be able to choose future years which I think takes some pressure off and helps to support a longer range plan.
I hope this has helped provide perspective on Situational Analysis.
After you complete the situational analysis, then you will move to the developing the Strategies/Goals/Objectives. Visit kimberboothe.com/blog/013 to learn more about this next step. If you want to go deeper – check out my Pharmovation Course kimberboothe.com/pharmovation which is a facilitate implementation program that provides additional templates and examples with the opportunity to obtain feedback on your analysis.
In this week's blog post at kimberboothe.com/blog/013, you will be able to access the Situational Analysis Template as the free blog download. You can use this tool to compile your own situational analysis. You will look in the mirror and look into a crystal ball.
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Now it's your turn:
Let us know how you have conducted situational analyses before and what aspect you enjoyed the most. Share your insights and what actions you will take in the comments section at kimberboothe.com/blog/013.
Be bold, be a connector and pharmovator, and excel your life and advance pharmacy practice.