Strategy and analysis
PESTLE Analysis
Rank the Political, Economic, Social, Technological, Legal and Environmental factors shaping your team or initiative.
What the framework is
PESTLE scans the world outside your organisation in six directions: political, economic, social, technological, legal and environmental. It asks what is changing around you that you can't control but will have to respond to.
What the result looks like
Political
Win rate
01
Election next year
83%
20 Wins · 4 Losses
02
Trade agreements
42%
10 Wins · 14 Losses
03
Funding priorities
25%
6 Wins · 18 Losses
Economic
Win rate
01
Interest rates
71%
17 Wins · 7 Losses
02
Energy prices
50%
12 Wins · 12 Losses
03
Consumer spending
29%
7 Wins · 17 Losses
Social
Win rate
01
Ageing population
63%
15 Wins · 9 Losses
02
Remote working
54%
13 Wins · 11 Losses
03
Changing expectations
33%
8 Wins · 16 Losses
Technological
Win rate
01
Automation
79%
19 Wins · 5 Losses
02
AI tools
46%
11 Wins · 13 Losses
03
Cyber security
25%
6 Wins · 18 Losses
Legal
Win rate
01
Data protection rules
67%
16 Wins · 8 Losses
02
Employment law
58%
14 Wins · 10 Losses
03
Product standards
25%
6 Wins · 18 Losses
Environmental
Win rate
01
Net zero targets
88%
21 Wins · 3 Losses
02
Extreme weather
38%
9 Wins · 15 Losses
03
Supply chain emissions
25%
6 Wins · 18 Losses
When it earns its place
Use it before a strategy review, before entering a new market or region, or when writing the context section of a grant or business case. It pairs well with SWOT. The factors that rank highest here become the opportunities and threats there.
The usual failure is a long catalogue with no priorities. Legal and political items also overlap, and the same change gets counted twice.
How to run it with a group
- Write the question people will answer, with a time horizon. For example: "Which of these will most affect us over the next three years?"
- List a handful of factors in each of the six sections. Where one factor fits two sections, pick one.
- Participants compare factors two at a time within each section. Participants do not need an account to respond.
- Invite people who see different parts of the outside world: finance, frontline staff, partners, members.
- Take the top two in each section into your SWOT or your risk register.