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DUDP LEARNING CENTRE 8. Organisational Assessment December 2004 Course adapted from Henley Management College’s material, “Strategic Management” by John Tompson and “The Search of Excellence” by Thomas J. Peters and Robert H. Watermann ThiNganHang.com
DUDP Learning Centre: 8. Organisational Assessment ORGANISATIONAL ASSESSMENT Every organisation must adapt to an ever-changing environment. Before going through complex changes process, it is crucial to know where the organisation stands, and what are its Strengths, Weaknesses, Opportunities and Threats. In this course, you'll learn how to assess strategically the position and direction of your own organisation and how to summarize them into a SWOT matrix. This course is mostly destined to public or administrative organisations. 1. Why an Organisational Assessment? An organisation is constantly under pressure to adjust its structure, strategy, etc., to respond to external influences. Changes can be responsive and adaptative to influences or the organisation can adjust itself to anticipate expected changes. Before going through a transformation process that will orient the organisation to a different direction, the actual location and direction must be known. An organisational assessment can make use of different and useful frameworks that help “locate” the organisation within external and internal contexts. An assessment intends to answer to the following questions: Dong Hoi Urban Development Project 1 ThiNganHang.com
DUDP Learning Centre: 8. Organisational Assessment • How are we doing?” • “Where are we?” • “Where are we going?” An assessment is often the foundation for strategic decisions, which answer to another question: • “How are we getting there?” The four questions form the bases for the Strategic Management Process. Strategic Management involves awareness of how successful and strong the organisation and its strategies are, and of how the circumstances are changing. Figure 1: The Strategic Square • Citizens satisfaction • Environmental fit • Internal assessment (Mission, Objectives, Strategy, Tactics) Situation Situation • Organisational model Appraisal Assessment How are Where • Environmental we are we? assessment doing? (Political, Economic, Social, Technological) How are Where • Monitoring we are we getting going? there? Strategic Strategic Decisions Direction • Stakeholders Analysis • Citizens demand • Implementation and expectations Dong Hoi Urban Development Project 2 ThiNganHang.com
DUDP Learning Centre: 8. Organisational Assessment 2. Environmental Analysis The environment is more turbulent than in the past. Managing it and operating in it demand more flexibility and more discontinuity than in the past. The Environmental Analysis will enable you to: • Understand the nature and degree of uncertainty in the environment • Determine the opportunities that can be built upon and the threats to be overcome or circumvented by the organization • Create a higher level of sensitivity to the signals in the environment • Enable the organization to match its capabilities effectively and efficiently to its external environment through creating and implementing the relevant strategy • Determine the degree to which proactive management can increase the control by the organization over its environment. PEST Analysis A PEST analysis is a framework that categorises environmental influences as political, economic, social and technological. The economy dictates the country’s growth, and this has some consequences on the level of services that the citizens expect from a public organisation. Economic conditions are often influenced by politics and government policy. Economy and policy shape the socio-cultural Dong Hoi Urban Development Project 3 ThiNganHang.com
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