Safety PEST Analysis

Changes in your business environment can create great opportunities for your

organization - and cause significant threats

Threats can include deregulation that exposes you to intensified competition; a shrinking market; or increases to interest rates, which can cause problems if your company is burdened by debt in incident safety costs

Before the Problem gets to Huge

First Where are We

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Reverse brainstorming

Clearly identify the problem or challenge, and write it down.Reverse the problem or challenge by asking:"How could I possibly cause the problem?", or"How could I possibly achieve the opposite effect?".Brainstorm the reverse problem to generate reverse solution ideas. Allow the brainstorm ideas to flow freely. Do not reject anything at this stage.Once you have brainstormed all the ideas to solve the reverse problem, now reverse these into solution ideas for the original problem or challenge.Evaluate these solution ideas. Can you see a potential solution? Can you see attributes of a potential solution?

Similar to the SWOT Analysis

• It helps you to spot business or personal opportunities, and it gives you advanced warning of significant threats. It reveals the direction of change within your business environment. This helps you shape what you're doing, so that you work with change, rather than against it. It helps you avoid starting projects that are likely to fail, for reasons beyond your control. It can help you break free of unconscious assumptions when you enter a new country, region, or market; because it helps you develop an objective view of this new environment

Understand the Risk• Risk Analysis helps you identify and manage potential problems

that could undermine key business initiatives or projects.• Risk is made up of two things: the probability of something going

wrong, and the negative consequences that will happen if it does. • You carry out a Risk Analysis by first identifying the possible

threats that you face, and by then estimating the likelihood that these threats will materialize.

• Risk Analysis can be quite involved, and it's useful in a variety of situations. To do an in-depth analysis, you'll need to draw on detailed information such as project plans, financial data, security protocols, marketing forecasts, or other relevant information.

Risk Value = Probability of Event x Cost of Event

Risk analysis is useful in many situations, for example, when you're:• Planning projects, to help you anticipate and neutralize possible

problems. • Deciding whether or not to move forward with a project.• Improving safety and managing potential risks in the workplace.• Preparing for events such as equipment or technology failure,

theft, staff sickness, or natural disasters.• Planning for changes in your environment, such as new

competitors coming into the market, or changes to government policy.

The Chart

• The Risk Impact/Probability Chart is based on the principle that a risk has two primary dimensions:

• Probability – A risk is an event that "may" occur. The probability of it occurring can range anywhere from just above 0 percent to just below 100 percent. (Note: It can't be exactly 100 percent, because then it would be a certainty, not a risk. And it can't be exactly 0 percent, or it wouldn't be a risk.)

• Impact – A risk, by its very nature, always has a negative impact. However, the size of the impact varies in terms of cost and impact on health, human life, or some other critical factor.

With the Risk Impact/Probability Chart, you map out each risk – and its position determines its priority. High-probability/high-impact risks are the most critical, and you should put a great deal of effort into managing these. The low-probability/high-impact risks and high-probability/low-impact risks are next in priority, though you may want to adopt different strategies for each.

PPolitical Factors to Consider• When is the country's next local, state, or national election? How could this change

government or regional policy?• Who are the most likely contenders for power? What are their views on business policy, and

on other policies that affect your organization?• Depending on the country, how well developed are property rights and the rule of law, and

how widespread are corruption and organized crime? How are these situations likely to change, and how is this likely to affect you?

• Could any pending legislation or taxation changes affect your business, either positively or negatively?

• How will business regulation, along with any planned changes to it, affect your business? And is there a trend towards regulation or deregulation?

• How does government approach corporate policy, corporate social responsibility, environmental issues, and customer protection legislation? What impact does this have, and is it likely to change?

• What is the likely timescale of proposed legislative changes?• Are there any other political factors that are likely to change?

E

Economic Factors to Consider• How stable is the current economy? Is it growing, stagnating, or

declining?• Are key exchange rates stable, or do they tend to vary significantly?• Are customers' levels of disposable income rising or falling? How is

this likely to change in the next few years?• What is the unemployment rate? Will it be easy to build a skilled

workforce? Or will it be expensive to hire skilled labor?• Do consumers and businesses have easy access to credit? If not,

how will this affect your organization?• How is globalization affecting the economic environment?• Are there any other economic factors that you should consider?

SSocio-Cultural Factors to Consider• What is the population's growth rate and age profile? How is this likely

to change?• Are generational shifts in attitude likely to affect what you're doing?• What are your society's levels of health, education, and social

mobility? How are these changing, and what impact does this have?• What employment patterns, job market trends, and attitudes toward

work can you observe? Are these different for different age groups?• What social attitudes and social taboos could affect your business?

Have there been recent socio-cultural changes that might affect this?• How do religious beliefs and lifestyle choices affect the population?• Are any other socio-cultural factors likely to drive change for your

business?

TTechnological Factors to Consider• Are there any new technologies that you could be using?• Are there any new technologies on the horizon that could radically

affect your work or your industry?• Do any of your competitors have access to new technologies that could

redefine their products?• In which areas do governments and educational institutions focus their

research? Is there anything you can do to take advantage of this?• How have infrastructure changes affected work patterns (for example,

levels of remote working)?• Are there existing technological hubs that you could work with or learn

from?• Are there any other technological factors that you should consider?

The Dimensions of Culture

And Tows Strategic Matrix

Use Porter’s Diamond to Control your Safety Losses

Now write your controls using McKinsey 7S

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When looking at your Safety Issues

• Challenge assumptions: For every situation, you have a set of key assumptions.

• Reword the problem: Stating the problem differently often leads to different ideas.

• Think in reverse: If you feel you cannot think of anything new, try turning things upside-down.

• Express yourself through different media: We have multiple intelligences but somehow, when faced with workplace challenges we just tend to use our verbal reasoning ability.

Now DO IT

DO IT is an acronym that stands for:D – Define problemO – Open mind and apply creative techniques I – Identify best solutionT – Transform