Looking at the news over the last year I’ve was shocked. I couldn’t believe how many businesses had failed! I’m not just talking about going under – I’m talking about failing to notice the signs and take advantage of their position.

Many business owners complain that they’re at the mercy of their environment – that they can’t change a thing. Now for some businesses this may be (partly) true. But I think if you look hard enough you know what’s on the horizon – the signs are often there!

How many businesses do you know of that take advantage of a downturn to win more customers? Or how many directors sit back when their business is on the up and think it will always be like this? It may seem strange but some do – just look at the banks at the beginning of the 2008 recession.

So what can you do better?

This is issue 5 in a series of articles created to help you achieve your vision - by taking time to build your business strategy. If you would like more information on any of the issues in this newsletter or the series please call on +44 1844 208802, email me at philip@malabarconsulting.co.uk or visit the website at www.malabarconsulting.co.uk.

What would you do with your own ’crystal ball’? The first step is to look around you – to review the environment in which you operate. This helps you spot Opportunities and in doing so also helps you identify potential Threats to your business - one comes hand in hand with the other. The best way to assess your environment is to carry out a ‘environmental analysis’ using a process called STEEPLED. You can download a STEEPLED template from www.malabarconsulting.co.uk/downloads or simply send me an email to downloads@malabarconsulting.co.uk.) STEEPLED simply breaks your ‘environment’ into manageable chunks – Social, Technological, Economic, Environmental, Political, Legislation, Ethical and Demographic. This generally covers most of the factors but you can always add others in if you need to. Take time, either with your team, or alone to brainstorm what’s happening or probable to happen in your ‘world’ – i.e. your environment against each of these factors. For example in Political you might say “change of Government at the next election” or for Technological you might say “Greater use of Social media by the over 40s”. Have a think about where you can get this STEEPLED information – what’s the media saying, what are your customers, suppliers and competitors talking about? What’s happening in other industries, or even countries, that might happen to your industry or your country? You could commission research or attend a seminar to help get your thinking started. The internet obviously also provides a great source of information. For each of the factors you initially come up with keep an open mind – as in any brainstorming session these first ideas contain valuable information. REMEMBER Malabar Consulting runs STEEPLED workshops 4 times per year – check the events page of www.malabarconsulting.co.uk/events for information of the next one. Once you have created a list under each heading you can then assess the factor in more detail – think about the impact on your industry, your competitors and your business specifically. Is the factor a constant or is it likely to change – if so when? This helps you ask the ‘So What?’ question – and it is within the ‘So What?’ that lies the benefit of the STEEPLED analysis. The ‘So What?’ leads to the breakthroughs in the market place and also to the downfalls. For each factor assess whether it could be an Opportunity or a Threat to your business. In a previous newsletter we discussed SWOT analysis – but only focussed on the Strengths and Weaknesses part – now we are looking at the OT – the Opportunities and Threats. This is now where the real benefit of the STEEPLED analysis comes in – if done correctly it can really help you gain a picture of what your world could look like in the future – and there in lies the success of any business – predicting the future. Now, this is not a crystal ball but with the knowledge from a STEEPLED analysis you have the information you need to make informed decisions about how to form your business strategy to take advantage of the Opportunities that exist and also how to put plans in place to minimize the impact of any Threats on the horizon. Once you have completed your STEEPLED analysis and assessed your Opportunities and Threats you also have all the information you need to assess your ‘Critical Success Factors’. We’ll go into these in more detail in the next issue. Remember the world is constantly changing – and so is your market place. Your customers’ tastes are evolving. The only constant is change itself. So, to keep up with the Opportunities and be aware of the Threats I’d recommend you carry out a STEEPLED analysis at least twice per year. Why not call Me to help facilitate your next session – it might help you predict the future – and what would that be worth? Until then good luck, happy crystal ball gazing.

To paraphrase Isaac Asimov (again): “The only constant is change, that is the dominant factor in society today. No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be.” By regularly reviewing your environment, using this simple tool, you can start taking account of the world as it is – and as it will be and that WILL help you find Opportunities and become aware of Threats before they affect your business.

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