Managing enterprises better in the 21^st century

By John Kyriazoglou

1. Introduction

According to various sources¹ ‘management control’ is a management function aimed at achieving defined goals within an established timetable, and usually understood to have three components:

(1) Setting standards,

(2) Measuring actual performance, and

(3) Taking corrective action.

In practical business terms, management controls, in a private company or public organizational environment, are used daily by managers and employees to accomplish the identified objectives of an organization (private company, public organization, or business entity, called ‘enterprise’ in this article).

Simply put, management controls are the operational methods that enable work to proceed as expected. 

Management is responsible for establishing and maintaining the business management control environment. Auditors play a role in a system of internal controls by performing evaluations and making recommendations for improved controls. Furthermore, every employee plays a role in either strengthening or weakening the specific company’s internal business management control system. Therefore, all employees need to be aware of the concept and purpose of internal business management controls.

How many, of these business management controls, however, does an enterprise need?

For more details, download the article from the following link:

http://www.slideshare.net/jkyriazoglou/managing-enterprises-better-in-the-21st-century

Preparing for the EU General Data Protection Regulation (GDPR)

By John Kyriazoglou

Is your company ready?

What steps should you, as a manager, executive or board director take for your company by May, 2018?

My new book ‘Data Protection and Privacy Guide’ in five volumes (see links at the end), is designed to support you effectively in all these issues.

I am providing below a short summary of the GDPR and how it impacts your business operations (including your IT systems) and a flavor of what is contained in these volumes.

1. Introduction to the EU GDPR

On April 2016, the EU General Data Protection Regulation (GDPR) was approved, entering a two-year transition period (April 2016 to May 2018) during which member states and enterprises (private companies and public organizations) handling European residents’ personal data will need to adopt the new requirements. The Regulation introduces tough penalties for non-compliance, with breached organizations facing fines of up to 4% of annual global turnover or €20 million – whichever is greater.

The new law dramatically changes the way in which organizations approach personal data protection (for customers, employees, etc.), particularly in terms of access privileges. With financial penalties in place, which can be as much as 4 per cent of a corporation’s annual turnover, enterprises simply cannot afford to let personal data slip into the wrong hands through mismanagement or a malicious breach. One way to ensure this doesn’t happen is for personal data to be secured under lock and key with the help of identity governance, where entry is monitored and controlled around the clock, etc.

2. Preparing for the General Data Protection Regulation (GDPR)

What basic steps to take by May, 2018:

Step 1: Awareness. You should make sure that decision makers and key people in your company or organization are aware that the law is changing to the GDPR.

Step 2: Data Protection Officers. You should designate a Data Protection Officer, if required, or someone to take responsibility for data protection compliance and assess where this role will sit within your organization’s structure and governance arrangements.

Step 3: Personal Data you hold. You should document what personal data you hold, where it came from and who you share it with. You may need to organize a personal data audit, etc.

Step 4: Individuals’ rights. You should check your corporate procedures to ensure they cover all the rights individuals have, including how you will handle requests within the new timescales and provide any additional information, how you would delete personal data or provide data electronically and in a commonly used format, etc.

Step 5: Communicating privacy information. You should review your current privacy notices and put a plan in place for making any necessary changes in time for GDPR implementation.

Step 6: Legal basis for processing personal data. You should look at the various types of data processing you carry out, identify your legal basis for carrying it out and document it.

Step 7: Consent. You should review how you are seeking, obtaining and recording consent and whether you need to make any changes.

Step 8: Children. You should start thinking now about putting systems in place to verify individuals’ ages and to gather parental or guardian consent for the data processing activity.

Step 9: Data breaches. You should make sure you have the right procedures in place to detect, report and investigate a personal data breach.

Step 10: Data Protection Impact Assessments (DPIA). You should familiarize yourself now with the guidance regarding when to carry out a DPIA. For example where a new technology is being deployed or where a profiling operation is likely to significantly affect individuals, etc.

Step 11: Data Protection by Design and by Default. You should ensure that all your products produced and sold and all services provided (including Information systems) by your company implement privacy and data protection according to the principles of the GDPR.

Step 12: International Operations. If your company operates internationally, you should determine which data protection supervisory authority you come under.

3. Resources to support you in implementing the EU GDPR

As noted above, my new book ‘Data Protection and Privacy Guide’ in five volumes (see links at the end), is designed to support you in all these issues.

This book, in 5 volumes, contains a complete set of methods, strategies, plans, policies, audit tools and other practical techniques to guide, support and facilitate you to effectively manage the personal data your company collects and processes and comply better with all privacy regulations (e.g. EU GDPR).

1. Data Protection and Privacy Management System: Data Protection and Privacy Guide – Vol I

http://bookboon.com/en/data-protection-and-privacy-management-system-ebook

2. DP&P Strategies, Policies and Plans: Data Protection and Privacy Guide – Vol II

http://bookboon.com/en/dpp-strategies-policies-and-plans-ebook

3. Data Protection Impact Assessment: Data Protection and Privacy Guide – Vol III

http://bookboon.com/en/data-protection-impact-assessment-ebook

4. Data Protection Specialized Controls: Data Protection and Privacy Guide – Vol IV

http://bookboon.com/en/data-protection-specialized-controls-ebook

5. Security and Data Privacy Audit Questionnaires: Data Protection and Privacy Guide – Vol V

http://bookboon.com/en/security-and-data-privacy-audit-questionnaires-ebook

Thank you,

John Kyriazoglou

A Manager’s ‘duty of care’ responsibilities

By John Kyriazoglou

Plato: ‘The most important of all goods is health, the second is beauty of the soul and the third is to be able to become rich without doing anything bad’.

This short article describes a plan for improving the responsibilities you have as a business owner, board director or manager towards the wellbeing of your employees.

Introduction

Our workplaces are full of problems, to put it lightly. According to the World Health Organization ‘Mental health problems, such as depression, anxiety, substance abuse and stress, are common, affecting individuals, their families and co-workers, and the broader community. In addition, they have a direct impact on workplaces through increased absenteeism, reduced productivity, and increased costs¹.’

As 60-70% of people with common mental disorders were in work, according to various experts and governmental studies, it is up to each company and its individual owners and managers to do something about these crucial and debilitating problems at work.

The principle that investing in support for employees who may be struggling is not just morally correct but a financial imperative is well established, according to experts².

Also you must remember that your staff, quite rightly so, are the single most valuable asset your organization has. This definitely means that when they work and travel for your company, you need to be assured of their safety at all times, to the best of your abilities.

In general terms, a manager’s or professional’s duty of care responsibility is a legal, and many times, professional obligation, which is imposed on an individual manager or professional, requiring them to adhere to a standard of reasonable care while performing their duties and avoid any acts that could foreseeably harm others (organizations, societies, people, environment, et).

In practical terms, duty of care means that every party to a contract must comply well according to the rules included in it as well as other relevant industry and state laws and regulations on ethics, health and safety. The same goes for an accountant in correctly maintaining financial transactions and preparing company accounts; Auditors, in confirming the financial statements of a company; Board and managers in managing well their corporate resources, etc.

More details at:

http://www.slideshare.net/jkyriazoglou/a-managers-duty-of-care-responsibilities

Free e-book: How to reduce occupational stress

Free e-book: ‘How to Reduce Occupational Stress’

Book inspired by ancient Greek wisdom

Published: Feb, 12 2015, by John Kyriazoglou

http://bookboon.com/en/how-to-reduce-occupational-stress-ebook

A self-help guide and an approach to manage and reduce occupational stress and improve the mental health of your people

Table of Contents

PART A

Prologue

Chapter 1: The Stress Management Approach

Chapter 2: Occupational Stress Management Action Plan

Chapter 3: Strategy #1: Incorporate Basic Stress Reduction Actions

Chapter 4: Strategy #2: Add Spirituality to Your Basic Stress Reduction Actions

Chapter 5: Strategy #3: Improve Your Stress Reduction Management Process with Better Relationships

Chapter 6: Strategy #4: Strengthen Your Stress Reduction Management Process with More Robustness

Chapter 7: Improve Stress Efforts

Chapter 8: Concluding Remarks

Bibliography

PART B

Over 10 appendices with examples of Plans, Policies and Questionnaires that support Part A of the book.

http://bookboon.com/en/how-to-reduce-occupational-stress-ebook

New Book: Corporate Wellness: Management and Evaluation Toolkit

New Book: Corporate Wellness: Management and Evaluation Toolkit

I am glad to announce that this toolkit was just published and is available for your review and potential use at:

https://flevy.com/browse/business-document/corporate-wellness-management-and-evaluation-toolkit-958

It contains material related to occupational stress and corporate wellness.
It contains:
1. A set of management improvement plans (with over 72 actions).
2. A stress policy.
3. Several stress performance measures.
4. Occupational Stress Audit Evaluation Questionnaires (Four audit questionnaires with over 87 questions to evaluate the stress level of people at all levels of your company, in terms of: Personal Happiness; Personal Stress; etc.).

5. Corporate Wellness Audit Questionnaires (18 audit questionnaires with over 90 questions to evaluate the Corporate Wellness of your company, in terms of: Tone at the Top; Understanding of the organization by the board; Operational philosophy; etc.).

6. Over 72 improvement actions.
7. An evaluation method that calculates an index for the person or entity taking going through the evaluation questions.

You may also check out the following documents for your business use.

1. Auditing and Improving Business Performance

http://flevy.com/browse/business-document/Auditing-and-Improving-Business-Performance-216

2. Audit Report Model and Sample

https://flevy.com/browse/business-document/audit-report-model-and-sample-268

Thank you,

John Kyriazoglou, CICA, B.A (Hon-University of Toronto),

Business Thinker, Consultant and Author of several books

Happy New Year

Happy New Year to all!

 

Here is an ancient Greek quotation for your consideration and enjoyment:

‘Do not spoil what you have by desiring what you have not; remember that what you now have was once among the things you only hoped for.’

   Epicurus (Greek philosopher, 341- 270 B.C.)

 

More sayings, quotations and maxims of ancient Greece and how these may apply and improve your personal, family and business life are included in my recent book

‘Ancient Greek Pearls of Wisdom for the 21^ST Century’ (Amazon.com).

 

Best and warmest regards,

 

John Kyriazoglou

 

Ancient Greek Wisdom for the 21st Century

New Book: ‘Ancient Greek Pearls of Wisdom for the 21st Century’

 

Hi,

 

I am glad to inform you that this book was just published and is available at: https://www.createspace.com/4324169   and

 http://www.amazon.com/Ancient-Greek-Pearls-Wisdom-Century/dp/1490441735/ref=sr_1_2?s=books&ie=UTF8&qid=1386180048&sr=1-2&keywords=kyriazoglou

 

Authored by John Kyriazoglou

This book 'Ancient Greek Pearls of Wisdom for the 21st Century' is about guiding and supporting you to improve your personal, professional and business life in our current 21st century society.

This is achieved by:
1. Presenting a set of Ancient Greek Pearls of Wisdom in each area of life (wealth, governance, friendship, etc.) and proposing a solution in responding to basic questions in each such area (e.g. 'Why should I believe in the Supreme Being? and What do I need religion for in my business activities?)
2. Summarizing the impact of several noted ancient Greek thinkers to the world and the relevance of their contributions today.
3. Offering you, an Improvement Approach (The Pandora Way) based on Ancient Greek Wisdom (for each area: governance, wealth, association with others, self-management, education and family, etc.) including: over 60 'tips', more than 40 'golden rules' and numerous (over 20) 'recommendations' that you may consider and use to manage yourself, your family and your business more effectively and potentially make your life better.
The ancient Greek wisdom pearls relate to:
(a) The maxims, quotations and sayings (over 600) of the Oracle of Delphi, the Seven Sages and other well-known ancient Greek thinkers: Aristotle, Plato, Socrates, Pythagoras, Heraclitus, Epicurus, etc.
(b) Four hymns, the Hippocratic Oath, 9 fables of Aesop, several short stories (over 17) and the works and thoughts of noted ancient Greek philosophers, poets and intellectuals, such as: Aristotle, Plato, Socrates, Heraclitus, Epicurus, Pythagoras, etc.

(c) The real-life examples and stories of the every-day life and activities of ancient Greeks.

The book contains: A foreword, a preface, ten chapters (one for each area of living, such as: governance, wealth, etc.), three appendices, and a bibliography.

I would appreciate your comments if you have the time to review it.

 

Please like my ‘Ancient Greek Wisdom’ page on Facebook.

You may follow me on Twitter and Slideshare and connect with me on Facebook and LinkedIn.

 

 

 

Thank you for your support and my best wishes for the Holiday Season and the New Year 2014.

 

John Kyriazoglou

 

 

Business Data Security Guidelines

Business Data Security Guidelines

 

John Kyriazoglou*

 

A business data security policy and related procedures should include protection controls and measures that cover the following issues:

1. Comprehensive due diligence of all critical staff, including external parties (outsourcing, external suppliers, sub-contractors, etc.). 

2. Authentication of all customers.

3. Non repudiation and accountability for all on-line transactions.

4. Segregation of duties.

5. Authorization controls.

6. Business data, transactions, records and information integrity.

7. Transactions audit trails.

8. Information confidentiality.

9. Appropriate disclosures for organizational services.

10. Data privacy.

11. Business continuity and contingency planning.

12. Security and other crises incident response planning.

13. Access controls: encryption, passwords, password control devices, tokens, user authentication devices, anti-hacking tools/techniques, digital signals origin identification, anti-tapping tools/techniques.

14. Data confidentiality.                              

15. Data integrity.

16. Anti-virus and e-crime detection software.

17. Time stamping.

18. Biometrics.

19. Digital signatures.

20. Smart cards.                            

 

 

John Kyriazoglou (jkyriazoglou@hotmail.com)

John Kyriazoglou, CICA, B.A (Hon-University of Toronto)

International IT and Management Consultant, author of several books

Profile:http://www.linkedin.com/pub/john-kyriazoglou/0/9b/919

Blog: http://businessmanagementcontrols.blogspot.com/

SSRN Free Publications: http://ssrn.com/author=1315434

 

 

The Beauty of Number 147

The Beauty of Number 147

By John  Kyriazoglou*

The maxims of the Oracle at Delphi (Maxims of Delphi), the most famous religious location of Greece for over 1000 years were made up of very brief quotations (two to five words) full of wisdom and moral values. The subject matter they deal with varies from religious faith, to obedience to law, how to treat friends, how to behave in a just manner, education, country, way of life, happiness, etc.

 

These maxims, 147 in total, were inscribed in the frontal columns at the temple of the god Apollo, at the Oracle of Delphi. They were copied on single marble tablets and were transported to all parts of the Ancient Greek World, as the writing on paper or on parchment was not known at the time.

It should be noted that these 147 maxims of Delphi embodied the complete universe of values for the ancient Greeks. The number 147 equals 3 times 7 times 7 (or 3x7x7). The meanings of numbers in the ancient Greek world were quite important.

Number 3 represents divine perfection, and in Pythagorean terms completion. 

Number 4 represents the whole creation, as there are 4 seasons in a year, 4 winds, 4 directions, 4 elements (fire, water, air and , earth), etc.

Number 7 is the combination of 3 and 4, and represents the universe. Also Apollo’s lyre (musical instrument) had 7 strings, there were 7 sages, etc. In Pythagorean terms 7 is a cosmic number with 3 of heaven and 4 of the world. Number 147, being 3x7x7, represented all divine values for all universes (a universe of a universe).

Most, if not all, of these maxims (e.g., ‘Follow God’, ‘Obey the law’, ‘Worship God’, ‘Respect your parents’, etc.) have been attributed to the seven sages of Ancient Greece: Thales, Pittacos, Bias, Solon, Cleovoulos, Periandros, and Chilon, who are also credited of having their own quotations, as well. For a full list of these maxims, quotations and sayings see my book ‘Pearls of Wisdom of the 7 Sages of Ancient Greece’ at Amazon.

Ethical maxims and quotations play a significant role in shaping our every-day life and social interactions with others, as they embody simple rules to memorize and follow and thus make our life easier as they provide a level of assurance that we are doing the right and accepted thing.

These Oracle of Delphi maxims and the quotations and sayings of the Seven Sages cover all areas of living, such as:

1. Religiosity (faith, worship, religious behavior, God, praying, etc.),

2. Governance (protect home country, society, laws, ruling),

3. Managing Property (wealth, protection of self and property, profit, finance, etc.), 

4. Principles, Virtues and Values for Association with Others (friendship and love, peace and hate, anger, justice, honor, goodness, murder and vice, wisdom, mercy and forgiveness, and happiness),

5. Personal Skills (self-control, efficiency, effectiveness, hope, fortune, etc.), 

6. Knowledge, Education and Training, and

7. Family, Values and Conduct in Life (marriage, family, wife, children and parents, conduct and virtues during life, and death).

 

How all of these can support and help you improve your life is described in detail in my book ‘Pre-Classical Greek Wisdom for a Better Life’, available at:

http://www.smashwords.com/books/view/359434

*John Kyriazoglou, CICA, B.A (Hon-University of Toronto, Canada)

Greek-Canadian Author, Business Thinker, and Management Consultant

Blog: http://businessmanagementcontrols.blogspot.com/

E-Mail: jkyriazoglou@hotmail.com

Profile: http://www.linkedin.com/pub/john-kyriazoglou/0/9b/919

 

 

New Book: Auditing and Improving Business Performance

New Book: Auditing and Improving Business Performance

 

Please check out my new book, at:

http://flevy.com/browse/business-document/Auditing-and-Improving-Business-Performance-216

This book provides you, the business owner, board member, company director, senior manager, auditor, other stakeholder, etc., with a useful set of practical tools to assist and support you in reviewing and improving the performance of your small, medium-size or large company.

It contains:

1. A general business model of five dimensions: ‘C¹’ for customers, ‘P¹’ for people, ‘P²’ for property, ‘P³’ for production and ‘P⁴’ for performance.

2. Description of several performance-related aspects, such as: Measurement Culture, Vision, Mission and Strategy, Policies and Procedures, Management Support and Commitment, Performance Measurement and Management System, etc.

3. Eight business performance audit questionnaires with 100 questions for items described in 2 above.

4. Over forty performance measures for the functions of: Finance, Sales, Production Output, Management and IT.

5. An evaluation approach with a scoring scheme on the basis of the audit replies collected in 3 above.

6. Five business performance improvement recommendations.

7. Guidelines and control processes to consider in implementing the suggested improvement recommendations.

 

MORE DETAILS, at:

http://flevy.com/browse/business-document/Auditing-and-Improving-Business-Performance-216

 

Thank you,

John Kyriazoglou, CICA, B.A (Hon-University of Toronto),

Business Thinker, Consultant and Author of several books

Editor-in-Chief for the Internal Controls Magazine (U.S.A.)

E-Mail: jkyriazoglou@hotmail.com                                                          

Profile: http://www.linkedin.com/pub/john-kyriazoglou/0/9b/919

Blog: http://businessmanagementcontrols.blogspot.com/

Cyber Threat Security Mechanisms

Cyber Threat Security Mechanisms 

By John Kyriazoglou

The following methods and techniques may be utilized for the analysis, design, implementation, assessment and evaluation of the cyber threat strategy and measures required to protect any type of organization.

1. Corporate Physical security: Guards, dogs, locks, cameras, video surveillance, etc.

2. Corporate administrative procedures: corporate governance policies and procedures like ethics program, risk management approach and procedure, personnel review and due diligence, segregation of duties, business data management files and data procedures, etc.

3. IT policies and procedures: passwords, access controls, hardware security, data validation rules within application software, back up procedures, offsite data retention capabilities, etc.

4. Corporate recovery mechanisms: business continuity policy, IT recovery process, backup procedures, offsite storage and testing procedures, etc.

5. Security trapping mechanisms: honey net and other trapping facilities, special security trapping and diversion tools and techniques, etc.

6. Business intelligence function.

7. Corporate anti-espionage techniques.

 More details may be found in my books:

(1) Printed Book: Business Management Controls: A Guide, www.itgovernance.co.uk.
(2) Printed Book: Business Management Controls: Toolkit, www.itgovernance.co.uk.               
(3) Printed Book: ‘Corporate Strategic and Operational Controls’
Direct Link: http://www.theiic.org/publicationsbookstore/bookstore2.html
(4) Printed Book: 'IT Strategic & Operational Controls’
Direct Link: www.itgovernance.co.uk/products/3066
(5) E-Book: ‘Implementing Management Controls for Small and Medium-Size Companies’
Direct Link: http://www.amazon.com/dp/B007Z1WTOM
(6) E-Book: ‘Auditing and Improving Business Performance’
Direct Link: http://www.amazon.com/dp/B0088I8IVY
(7) Free E-Book: IT-Business Alignment (2 Parts)
http://bookboon.com/en/business-ebooks/it/it-business-alignment-part-i
http://bookboon.com/en/business-ebooks/it/it-business-alignment-part-ii

 

Strategy Assessment Methods: GAP Analysis

Strategy Assessment Methods: GAP

 By John Kyriazoglou

 The following methods and techniques may be utilized for the analysis, assessment and evaluation of strategy of any type of organization. The evaluator may use only one method, or more than one, depending on his (or her) experience and situation.

These methods and techniques are: SWOT analysis, PEST Analysis (also known as PESTLE Analysis), Gap Analysis, Portfolio analysis, Value chain analysis, Delphi Method, Life cycle analysis, Screening strategic options, Financial analysis, Scenario planning, Critical success factor analysis, The five forces, Directional Policy Matrix, and Competitor Analysis.

Previous posts described SWOT and PEST. Other future posts will deal with the rest of these methods and techniques.

 

Gap Analysis

Gap Analysis is a method used extensively in the process of designing the strategy of an organization.  With the use of this method, the gaps between the present situation and the desired state are defined, in terms of processes, procedures, technology, systems, human resources, infrastructure and organizational structure.

The steps to achieve this are:

Step 1. Describe the business goals and objectives to be achieved. Describe where you want your whole business or business function or department to go. This could be a long-term plan for the company, or something more immediate for a particular business function. Consult with all managers involved, directly or indirectly, with the systems and procedures of the company or function.

Step 2. Select the basic performance metrics, quality and quantity criteria, which you will use to monitor your gap analysis work.

Step 3. Describe the existing business processes. This could involve all business processes of the company as a whole or the processes of a specific department or function. This description also includes identifying the IT systems utilized in the processes you document.

Step 4. Define the desired future performance position.

Step 5. Measure your current performance.

Step 6. Recognize the gaps between your existing and the future desired position. This involves identifying the gaps, which are the differences between your goals and the existing processes, and recommend remedies. A chart or summary table may be useful in showing the "to be" and "as is" cases.

Step 7. Design a strategy to achieve the desired position as described above by bridging all the defined gaps, and for all processes, procedures, technology, systems, human resources, infrastructure and organizational structure components identified.

Step 8. Execute the strategy described in step 7 to achieve the desired position by bridging all the defined gaps, and by improving the processes, procedures, technology, systems, human resources, infrastructure and organizational structure.

Step 9. Request feedback on a draft version of the gap analysis document. The review process might identify additional gaps and help build awareness and support for your recommendations.

Step 10. Monitor and report progress achieved.

Free Business Controls Toolkit-Demo

Free Business Management Toolkit-Demo

Please note that a free downloadable Business Management Controls Toolkit demo is now available for immediate download. It contains around 10% of the full toolkit (see description below), giving you sample documentation demonstrating the style and content of the full toolkit.

blog.itgovernance.co.uk

http://blog.itgovernance.co.uk/free-downloadable-business-management-controls-toolkit-demo/

Toolkit: Business Management Controls Toolkit

This Business Management Controls Toolkit provides you with the performance measures and compliance indicators, the checklists and questionnaires, documents, plans, policies … extensive documentation that, tailored to your organization, will prove to be invaluable to your existing practices. This toolkit will demonstrate its unique design to structure and shape the business control practices in your organization. Included in this toolkit are: Checklists and Questionnaires; Documents; Management Plans; Policies; Procedures, etc.

http://www.itgovernance.co.uk/shop/p-1249-business-management-controls-toolkit.aspx. Business Records Management Checklist

Compliance Controls Framework

Corporate Fraud Management Systems Audit Program Ethics Management Checklist Financial Management Systems Checklist Internal Audit Function Checklist Soft Controls Evaluation Checklist Regards,

John Kyriazoglou, CICA, B.A (Hon-University of Toronto),

Business Thinker, Consultant and Author of several books
Editor-in-Chief for the Internal Controls Magazine (U.S.A.)
Member of the Board of Directors of Voices of Hellenism Literary Society (U.S.A.)
E-Mail: jkyriazoglou@hotmail.com
Profile: http://www.linkedin.com/pub/john-kyriazoglou/0/9b/919
Blog: http://businessmanagementcontrols.blogspot.com/
SSRN Free Publications: http://ssrn.com/author=1315434

Strategy Assessment Methods: PEST

Strategy Assessment Methods: PEST 

By John Kyriazoglou

The following methods and techniques may be utilized for the analysis, assessment and evaluation of strategy of any type of organization. The evaluator may use only one method, or more than one, depending on his (or her) experience and situation.

These methods and techniques are: SWOT analysis, PEST Analysis (also known as PESTLE Analysis), Gap Analysis, Portfolio analysis, Value chain analysis, Delphi Method, Life cycle analysis, Screening strategic options, Financial analysis, Scenario planning, Critical success factor analysis, The five forces, Directional Policy Matrix, and Competitor Analysis.

A previous post described SWOT. This post describes PEST. Other future posts will deal with the rest of these methods and techniques.  

PEST Analysis (also known as PESTLE Analysis)

PEST analysis is concerned with the environmental influences on a business. The acronym PEST stands for the Political, Economic, Social and Technological issues that could affect the strategic development of a business. The acronym PESTLE stands for the Political, Economic, Social, Technological, Legal and Environmental issues that could affect the strategic development of a business.

 Political issues are factors and conditions that relate to how governments intervene in the economy. These include: Tax and customs regulations, laws (labour, environment, health, etc.), political stability, government spending, government organization and attitude environmental regulation and protection, government spending on research, etc.

 Economic issues are factors and conditions that relate to how the economy impacts a business. These include: economic growth, income distribution, foreign exchange rates, inflation rate, cost of capital, monetary policy, costs of exporting or importing goods and services, risk appetite of industry, energy cost, etc.

 Social issues are factors and conditions that relate to how the society impacts a business. These include: Health consciousness, population growth rate, age distribution, demographics, living and housing conditions, career attitudes, emphasis on safety, trends of fashion, etc.

 Technological issues are factors and conditions that relate to how the technology impacts a business. These include: Automation processes, production processes, IT systems and communication systems, communication infrastructure, research and development activity, rate of technological change, internet, etc.

Legal issues are factors and conditions that relate to how laws and regulations impact a business. These include: Data privacy law, consumer law, anti-trust law, employment law, health and safety laws and regulations, accounting standards and regulations, compliance laws, etc.

Environmental issues are factors and conditions that relate to how the environment impacts a business. These include: ecological and environmental aspects such as weather, climate, climate change, etc.