Evaluating External Factors Impacting Strategic Change

🔍 𝗧𝗵𝗲 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗘𝗱𝗴𝗲 - 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗧𝗶𝗽 #1: 𝗦𝘁𝗮𝘆 𝗔𝗵𝗲𝗮𝗱 𝗼𝗳 𝗖𝗵𝗮𝗻𝗴𝗲 (and Turn Regulation into Opportunity) 𝗚𝗿𝗲𝗮𝘁 𝗹𝗲𝗮𝗱𝗲𝗿𝘀 𝗱𝗼𝗻’𝘁 𝗷𝘂𝘀𝘁 𝗿𝗲𝗮𝗰𝘁 𝘁𝗼 𝗰𝗵𝗮𝗻𝗴𝗲; 𝘁𝗵𝗲𝘆 𝗮𝗻𝘁𝗶𝗰𝗶𝗽𝗮𝘁𝗲 𝗶𝘁. Whether it’s new laws, emerging tech, or economic shifts, the best strategists see what’s coming and turn compliance into a competitive advantage. 𝗕𝗲 𝘁𝗵𝗲 𝘁𝗿𝗲𝗻𝗱-𝘀𝗽𝗼𝘁𝘁𝗲𝗿: Great strategists scan the horizon for economic shifts, technological trends, and looming policy changes. In regulated industries, this means anticipating new laws and guidelines – and planning for them before they hit. A government call-to-action in the UK, for example, urges financial firms to co-design strategies with regulators and consumer groups to spur growth. This isn’t just bureaucracy; it’s strategy (if done well). 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵-𝗯𝗮𝗰𝗸𝗲𝗱 𝗶𝗻𝘀𝗶𝗴𝗵𝘁: Studies show that companies proactive about external change thrive. Nearly three-quarters (72%) of surveyed utility industry leaders said innovation at their organization is primarily driven by regulation or compliance. 𝗜𝗻 𝗼𝘁𝗵𝗲𝗿 𝘄𝗼𝗿𝗱𝘀, 𝘁𝗵𝗲 𝗿𝘂𝗹𝗲𝗯𝗼𝗼𝗸 𝗰𝗮𝗻 𝗯𝗲 𝗮 𝘀𝗽𝗿𝗶𝗻𝗴𝗯𝗼𝗮𝗿𝗱. Conversely, MIT research finds that 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝘀𝘁𝗮𝗴𝗻𝗮𝘁𝗲 𝗶𝗳 𝘁𝗵𝗲𝘆 𝘁𝗿𝗲𝗮𝘁 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻 𝗽𝘂𝗿𝗲𝗹𝘆 𝗮𝘀 𝗮 𝗯𝘂𝗿𝗱𝗲𝗻 – so flip the script and use rules to fuel creativity. 𝗨𝘀𝗲 𝗰𝗮𝘀𝗲: When the EU rolled out open-banking regulations, savvy banks didn’t just grumble; they jumped on it. They formed new fintech partnerships and launched apps leveraging the mandated data-sharing. By the time competitors were playing catch-up, these frontrunners had won customers with innovative services (while ticking the compliance box). Similarly, healthcare providers who anticipated telehealth policy changes during the pandemic moved services online overnight – a strategic pivot that saved both patients and business. 𝗔𝗰𝘁𝗶𝗼𝗻 𝘀𝘁𝗲𝗽: 𝗜𝗻𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝘀𝗰𝗲𝗻𝗮𝗿𝗶𝗼 𝗽𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗶𝗻 𝘆𝗼𝘂𝗿 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝘁𝗼𝗼𝗹𝗸𝗶𝘁. For instance, many banks now run “what-if” simulations for upcoming regulatory scenarios (from interest-rate changes to new privacy laws) just as they do for market risks. By envisioning best and worst-case futures, you can prepare plan A, B, and C. It’s a playbook that served companies like Royal Dutch Shell well in turbulent oil markets, and it can work for your organization too – whether you’re navigating fintech regulations or healthcare reforms. #Strategy  #RegulatoryInsight #Innovation Michael Montalto Michael Cattanach Mike Olsson Maria Lilly • Robert Field Jessica Carroll Shera Haliczer Pete Cafarchio, PCC Rick Diana Satyendra (Tripps) T. Nikhil Ferreira Krishan Jogia David Audi An Le Hutch Hutchens Wally Musto Visar Gashi Gregory Scott Henson Mark McNamara Solomon Viera Gonen G. Stefanie Krievins Richard Williams

Understanding PESTLE and SWOT: A Strategic Duo for Project Management Success 🌍📊 In project management and risk mitigation, we often focus on internal factors—our strengths, weaknesses, and team capabilities. But to truly deliver sustainable results, it's critical to scan the external landscape too. This is where the PESTLE Analysis comes into play. What is PESTLE Analysis? PESTLE is a framework that helps identify external factors that can influence an organization or project. It stands for: 🔷 Political 🔷 Economic 🔷 Social 🔷 Technological 🔷 Legal 🔷 Environmental By examining these areas, you uncover opportunities and threats in the macro-environment, allowing you to plan more effectively. PESTLE + SWOT = A Holistic View While SWOT Analysis focuses on internal factors (Strengths and Weaknesses) and external influences (Opportunities and Threats), PESTLE helps deepen your understanding of those external risks and opportunities. For example: 🔹 Political changes (e.g., new regulations) can become key Threats in your SWOT. 🔹 A shift in Technology might open Opportunities to innovate and enhance project delivery. 🔹 Environmental trends might highlight risks that drive sustainability initiatives. Practical Applications for Project Managers 1️⃣ Conduct a PESTLE Analysis at the project kickoff or during risk workshops to align on external factors. 2️⃣ Integrate findings into your SWOT to prioritize risks and opportunities. 3️⃣ Use the insights to adapt strategies, manage uncertainty, and position your project for success. By combining PESTLE and SWOT, you’re not just managing your projects—you’re leading with a broader perspective that mitigates risk and identifies growth opportunities. How do you incorporate external analysis into your project planning or organizational risk management? I'd love to hear your insights and examples in the comments! _________________ 🔔 Ring the bell to follow me on LinkedIn for topics on #ProjectManagement, #ProgramManagement, #PMO, #BusinessTransformation, #CareerTips, and #Leadership. #RiskManagement #StrategicPlanning #SWOT #PESTLE

This week on FP&A Tomorrow, Jeffrey Casale (CEO of Board), and Rich Wagner (Field CTO at Board) join for a fascinating conversation about why Board acquired Prevedere, the value of using external economic factors and how to get started, what is great FP&A, and so much more.   Key insights from our discussion: ➡️ Companies are moving from closed strategic planning processes to models that incorporate external economic factors, helping them "peek around corners" and anticipate market changes ➡️ Board acquired Prevedere to help companies identify, quantify, and time the impact of external factors on their business performance ➡️ AI has dramatically accelerated the ability to build and analyze econometric models, making sophisticated forecasting accessible to more companies ➡️ The optimal FP&A professional today combines critical thinking and analytical skills with emotional intelligence and collaboration abilities ➡️ Rich's advice for getting started with external data: Create an "early warning dashboard" tracking signals that would impact your key business drivers Jeff also shared his thoughts on continuous planning, which I found insightful as I had never thought about listening to an earnings call this way:  "A CEO Can Tell Which Companies Do Continuous Planning Just by Listening to Their Earnings Calls" "When you get on an earnings call and a CEO is like, 'Whoops, I'm going to have to surprise you. Even though I told you three months ago that the future was looking good, now I got to tell you that it's not looking good.' And the stock plummets... I can tell you which company does continuous planning and which one doesn't." These are just a few of the many highlights from the episode, and I strongly encourage you to give it a listen. It is full of nuggets, especially when it comes to augmenting your budget process with external data.   Listen to the full episode to hear detailed examples of how companies are using external economic intelligence to transform their planning processes. Listen here: https://lnkd.in/gmjahPym How is your organization incorporating external data into your forecasting? Share in the comments! This week's episode is sponsored by Operators Guild. The Operators Guild is where the best CEOs, CFOs, finance, and BizOps leaders in the business connect, network, and grow together. Built by operators for operators, this members-only community is home to more than 1000 of the most elite high-growth operators in the world. Learn more and apply at operators-guild.com. ⭐⭐⭐⭐⭐⭐⭐⭐⭐⭐⭐⭐⭐ 📰 Join The Modern Finance Playbook Newsletter and get a free FP&A Business Partnering Digital Course Module at https://lnkd.in/g5H4YsvH 📺 Check out the podcast on our YouTube Channel at https://lnkd.in/ejtkdsQd

I was chatting with a marketing director yesterday who felt stuck taking orders from the sales team. When I asked her how much time she spends each week learning about her industry or her customers, she admitted "barely any". So we talked about ONE tool she can use to start to see the bigger picture. (Hello, PESTEL framework!) The PESTEL framework is a tool to understand external forces affecting a business. Of course, it's useful to fill this out for your own company to understand trends and implications in your industry. But it's especially helpful to use the tool to better understand issues affecting your customers. The framework looks at: 𝗣𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝗳𝗮𝗰𝘁𝗼𝗿𝘀  i.e. government changes, trade and tax policies 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 Inflation, Interest rates, Exchange rates, Economic growth 𝗦𝗼𝗰𝗶𝗮𝗹 Lifestyle trends, education, consumer behavior, family and population size 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 AI, cybersecurity, automation 𝗘𝗻𝘃𝗶𝗿𝗼𝗻𝗺𝗲𝗻𝘁𝗮𝗹 Climate change, sustainability 𝗟𝗲𝗴𝗮𝗹  Consumer/ labor/ copyright laws, lawsuits, anti-trust Why I like this framework: Marketers can move beyond being seen as the 'promotions department' by understanding the market inside and out. It's called 𝙢𝙖𝙧𝙠𝙚𝙩ing after all ;) Knowing the market isn’t just about watching your competitors. It’s about understanding the why behind the shifts in your industry. The more you connect those dots, the more valuable you are to your exec team. Here’s where to start: * Use tools like PESTEL to track key changes and trends in your industry. * Be the one who connects external shifts to internal strategy in meetings. * Stay ahead of what’s coming—anticipating market changes gives you leverage. * When you’re the marketer who can tie strategy back to market forces, you stop being reactive and start driving real business decisions. Have you ever used the PESTEL framework? How did it help you understand market dynamics? #marketing #marketstrategy #strategy #Pestel