Monday, July 31, 2023

JavaScript Full Stack Developer Capture the Job Offer and Advance Your Career (Week #5 - Article Series: The 150%+ Solution)

Colleagues, the new “JavaScript Full Stack Developer” audio and ebook is part of the Interview Prodigy(https://tinyurl.com/57ehhjb2) series. (Audible) (Kindle) This week’s article (#5) includes “The 150%+ Solution” excerpt from this book written to help software developers and engineers achieve their career goals.

Chapter 5 - The 150%+ Solution

Regardless of the role you are applying for (contractor, consultant, or employee), position yourself as someone who "goes beyond" the minimum job-skills requirements and adds the extra effort-contributions that will benefit the employer. Tell them you are a professional ready to learn new skills, take on new assignments and go the extra mile. One way to do this is by helping your peers and raising your hand when a new project is announced. This chapter will focus on the 150% solution that will help you stand out.

Position Yourself with These Six Necessary Skills for Any Role

 

In chapter 2 of this book, we mentioned the need to have soft skills. But what are they? First, these skills are sometimes called "21st-century skills," "applied skills," or "interpersonal skills." These skills are non-technical or specific to a job, but as someone in IT, they will give you the edge in your application. These skills help you think, communicate with people, and reflect on your experiences. Essentially, it would be best if you thrive in an organization. According to career coach Jane Horowitz, the basis of her coaching practice is to "hire for attitude, train for skills." She considers it will and drive as the best determinants of hiring young people.

These soft skills determine whether you get a job and are highly responsible for helping you keep your job. An employer can hire and train you, but it is very hard for you to stay employed if you lack those soft skills.

 According to Harvard University's 2011 "Pathways to Prosperity Project" study, employers in the United States are increasingly seeing students graduate from college unequipped with the skills they need to survive in the 21st-century workforce. Many lack critical thinking, problem-solving, communication, and creativity skills. The founder and CEO of Rainmaker Thinking and expert and author on young people in the workforce, Bruce Tulgan, has been tracking the generational change in the workplace since 1993. According to Tulgan and several other employers and experts, there is a gap in soft skills from previous generations to the current generation entering the workforce. Employers demand that their employees have certain skills regardless of the field. But not only do organizations want these skills. According to Pew research, employment and wages have increased in most occupations that require higher social or analytical skills like management, leadership, and communication skills. Workers understand this too. According to Pew Research, most workers agree that soft skills are more important than technical skills to do their job.

 

These soft skills are valuable, so they can be considered good news. It doesn't matter what you studied or your path after high school. You can work on learning these skills because they will help you succeed in the workplace. Therefore, to boost your career, you will need the following soft skills.

 

Communication 

Communication is essential for any profession, so you must be able to communicate effectively. And it goes beyond just verbal communication. You must also be able to use nonverbal communication effectively, as it is also needed in the workforce. No matter your field or job, you will need communication skills both within and outside. Parents also see the value of communication. Based on an NBC News State of Parenting Poll sponsored by Pearson, 54% of parents said that good social and communication skills are important for a child's future success and are more important than grades. Pew research got the same findings. Their study found that communication skills were the essential skills Americans say children need to succeed.

In the words of Tchorzynski, "communication is a big one. A lot of students struggle with it because they are used to communicating electronically, and they are challenged when having conversations face to face with somebody."

 Communication skills will make you an adult career-ready, which means that you will be able to articulate your thoughts coherently and astutely. Also, you will be able to express your ideas through oral, written, and non-verbal cues. Listening isn't exempted from what makes you a great communicator because it helps you better understand what happens within your work environment and beyond.

 

In addition, as the digital world continues to grow, it becomes important that you can share and deliver information through digital means. This will require strong relationships and social awareness skills, two central components of effective communication. Also, you must understand that there is a need for you to be positively assertive. Think about yourself in the context of a wider group, understand the social rules of the work environment you find yourself in, and learn to communicate within that confinement.

Teamwork and collaboration

 The ability to work in a team is one skill people ignore. Most jobs require teamwork and collaboration between employees. Therefore, you must be able to work within a group structure. Once you start working in an organization, you must learn to think beyond yourself and your desires. Instead, think about the common goal of the company you have been employed to work for. As a new employee, you aren't likely not going to be made the team lead immediately, so you must be able to work under a leader and for the team's goal. Even if you are made a team lead, remember that it is a group, so you must be open to listening to everyone's input, no matter who they are, before making decisions. This is what defines a leader who is also a team player. Finally, remember that your skills aren't meant to be hoarded but can be used for the good of the company or organization you work for.

 

In the early years of most people's careers, people often demonstrate teamwork through hard work, commitment, and sacrifice. This will require playing whatever role is necessary to support the organization's mission. In addition, it means supporting other employees' success. It also means showing support to your colleagues. Finally, teamwork requires employees to foster relationships with their bosses and coworkers and be more socially aware of the context of their existing relationships.

 

Professionalism

 

Shifting from college or high school to the workforce can require tremendous adjustment for young people. However, the responsibility and self-management needed to succeed at work can differ from the environments you were used to as a young person. One of the keys to professionalism is to form good work habits. This means being responsible, punctual, and organized. All of these are skills that are necessary for professional settings. Punctuality is probably the simplest yet most essential path to professionalism. According to Tchorzynski, "When you clock in for a job, and my job starts at 8, I am there and ready to work at 8, not walking through the door."

 

As someone aspiring to succeed in their career, you must keep your work organized and be responsible for deadlines for projects you have been assigned. In addition, ensure that you communicate with your superiors about these expectations. These basics are part of what you need to manage yourself and your time.

 

Self-Management and initiative

 

Every employer wants their staff to have leadership qualities. This doesn't mean that if you apply for an entry job, you will immediately become a leader of a project or boss in the department. However, it means that you should show some skills which prove that you have leadership potential, such as your ability to manage yourself and take the initiative. Self-management in a workplace means that you can plan, prioritize, and organize your work. Also, you should be able to have follow-through and discipline to stay on track with assignments and projects. Initiative means you can act and take charge of things that need to be executed without waiting to be asked. This quality is highly sought after by employers because it shows that you have a deep level of motivation and curiosity for your work. It is also quite beneficial to a manager when they can rely on their employee to take the initiative instead of waiting until they are asked to do a task. Finally, you should be able to self-evaluate your performance. And you can do this by assessing your actions, work, and projects against goals, timelines, and general work guidelines.

 

Critical and creative thinking

 

Someone who thinks critically can evaluate and assess a situation before making decisions. Among other skills, they must be able to analyze and examine an issue or topic. This requires not just accepting what exists but looking beyond for other possibilities. On the other hand, creative thinking is looking at problems or situations with fresh perspectives and suggesting nonconventional or new solutions to a problem. Critical and creative thinking both work together. More so, both of them are needed for today's workforce. You must be able to make decisions and solve problems by using your creative and critical thinking abilities. One way to achieve this is to examine data and provide well-informed analysis to report to your superior or team leader. Or, you could come up with a creative solution to a project.  

 

Global fluency and perspective

 

You will need a broad understanding of the world around you in today's economy. Also, because of how the world is, more and more employees interact with people different from them. Having a global perspective on issues is even more important because it fosters positive relationships in a diverse workforce. Having a global perspective means that you respect diversity. It also means that you are open, inclusive, and sensitive to people's experiences, cultures, and beliefs. Interacting with and respecting people from other cultures, ages, races, genders, abilities, political ideologies, and religions is important. Being globally fluent also means having digital skills, which are essential in today's economy. But this doesn't only mean that you have the technical skills (of course, you need to). Still, you need to know how to use social media appropriately, use formal and informal emails, and communicate online effectively.

How to Position Yourself as the Ideal Candidate

 

Thousands of candidates are trying to prove to the hiring manager that they are the best candidate for the vacant job. Each person does their best to stand out from the rest. But how do you stand out? Of course, having all the necessary experience, skills, and qualifications is great. However, the challenge for most candidates is their ability to communicate this effectively to their employers.  Next, we will cover some of the ways you can position yourself as the best person for the job, and then we will follow that with some steps you can take to showcase your value.

 

Five qualities you must have to stand out as the ideal candidate

 

Besides the skills required for the position you are applying for, there are other resume skills you must have to stand out in the workplace. These skills are part of what makes your application stand out. They also show that you are indeed a strong fit for an organization.

 

Leadership

 

Although this has been discussed under soft skills, it is worth mentioning again. Employers value a candidate that can take the initiative. He can lead a team even without being the official leader. Of course, this doesn't mean you usurp your team leader's position. But it is about putting yourself forward in situations where the team may be stuck and an extra hand may be needed. This also means you can bring the best out of a team even when you aren't officially in charge. If being in a team improves their overall performance, you are somehow exceeding the expectations of the job title responsibilities.

 

Resilience

 

Your mental fortitude and your ability to persevere in tough situations can make you stand out. Occasionally, you will encounter unexpected problems, but you must show that you can still thrive in these circumstances. Barriers should not weaken your output, but they make you more creatively resilient. This also means that you can work under pressure without allowing yourself to be overwhelmed by the situation before you. Also, a resilient worker can contribute positively to a team's morale and productivity.

 

Work ethic

 

Aside from being resilient and having good leadership qualities, you must also have a good work ethic because it leads to better job performance and satisfaction. In addition, this also means that you are very likely to be on top of your work and finish your tasks timely and to a good standard.

 

Growth mindset

 

Being teachable helps you stand out from the rest of the pack. No man has ever reached a point where he has learned everything that needs to be learned. Also, as the world changes, new ways of doing things emerge, which means another round of learning and growth. A person with a growth mindset knows this. So, they live to learn every day. People with a growth mindset believe they can develop their skills and abilities by working hard. In addition, they have an optimistic outlook and a strong willingness to grow as individuals. This helps them cultivate a thriving work environment and adds to the long-term value that can be brought to the table.

 

Curiosity

 

Curious people are more likely to take action than those who aren't. For example, studying and researching extensively are traits of someone who is curious and wants to learn and improve on what they already know. This also correlates with problem-solving. So, curious people are more likely to solve workplace-related problems because they are proactive in seeking solutions that do not yet exist.  

Positioning Yourself as the Best Candidate for the Job

 

There are six ways to position yourself as the number one candidate for the job and stand out from the crowd. The general rule of thumb is that the best approach will be to align your strength with what your employers are looking for in their ideal employee.

 

1. Tailor your resume to the job interview Description

 

Remember that your resume is like a factual report where you present your professional background. Your resume should include things like the following:

 

  • Academic achievements

  • Skills

  • Work experience

  • Credentials

Nevertheless, tailoring your resume means making your application specific to the company's needs, usually stated in the employment description. As someone seeking a job, it is your responsibility to identify the abilities or skills the employers need based on what they have presented in the advert description.

 

Once you have done this, the next thing to do is translate those values into your resume. Make a subtle difference in your approach, which can help you make an impression on your employers. For example, having an "IT Qualifications" section and including relevant coursework makes your resume more unique than sticking to the traditional format. 

2. Personalize your cover letter

While it is great to tailor your resume, applying the same concept from the previous step to personalizing your cover letter is also a good follow-up step. This is an opportunity to show that you match the company's cultural values. And this means that you prove to them that you align with their mission and beliefs. In addition to that, you could also show a lot more subjectivity. For example, it would be best to mention that you are genuinely passionate about your work. Also, having some in-depth paragraphs regarding why you're the best person to hire will say a lot.  

3. Talk about other competencies

Talk about other competencies which you possess. Competencies refer to the qualities an ideal candidate should possess. As I mentioned, you could put other skills on your resume, not just those directly related to your job. But include skills that can also contribute to how well you cope with the job, benefit others in your team, and take the company to the next level. For instance, it will benefit you and your team if you have good communication skills.

Therefore, adding this or other relevant abilities can show employers that you can execute jobs well. In addition, it is a great way to show that you are a good match for the role and stand out by having qualities that only very few candidates have. 

4. Exceed the expectations of your hiring manager

You must aim to tick all the necessary boxes of your hiring manager and exceed his expectations. That means you should meet all the expectations the job description requires, along with the cultural value of the organization. If you do not, you will not make it past the applicant tracking system (ATS), which filters job seekers on specific criteria.

An alternative will be to do more than the standard expectations if you have been allowed to work on a small project or do a trial. 

5. Demonstrate that you are an expert in the industry

You can highlight your desirable industry expertise by listing all your credentials. For example: 

  • Publications

  • Testimonials

  • References

  • Your network

  • Achievements

When you do, you will leave an impression that you have a degree of skills and are quite valuable. During your interview, you could also demonstrate industry knowledge by discussing the results you were responsible for. You can also showcase your expertise by using technical jargon. 

6. Talk about your values 

Employers want to build a group of people who are self-driven and passionate. And you must prove to be someone capable of helping them fulfill that objective. So even though your resume must focus on the company's needs, you should clearly state your values and interests. This is one way to give them insight into your long-term value and whether you're an employee worth retaining. After all, it's more expensive to go out and recruit a new employee than to retain one already working for you.

Sell Yourself: Focus on the value you can bring to the company 

When you apply to work in a company, your selling point should always be what you can bring to the table. Also, it is important that you not only play the part but you must look at the part. When hunting for a job, you are essentially selling your value. Therefore, you must showcase the value you bring to the organization you are applying to work for. Therefore, you are responsible for translating those values into your resume, interview session, and cover letter. 

A common mistake you must avoid during your application is to focus just on yourself, considering your goal should be meeting the company's needs. So, focus on how you can help them meet those needs.

Resume Mistakes That Will Cost You a Job

No matter what some job seekers do, they don't get hired, and there are several reasons for this. Suppose you are currently making one or even any of these resume mistakes. In that case, it is probably one of the things hindering you from landing your ideal job in your dream company.

According to a study by Undercover Recruiter, around 20% of recruiters reject an applicant before even getting to the end of their resume. At this point, we will look at the following areas: 

  • Resume formatting mistakes

  • Resume writing mistakes

  • General resume mistakes

After this, you will be able to understand what resume mistakes you must avoid if you want to boost your chances of success in your next job application.

Resume formatting mistakes

Your resume format has an impact on the way your recruiter will perceive your application. Even if you have amazing content on your resume, you could still be rejected if the hiring team does not like your resume's formatting style. Let's look at it in detail.

1. Naming the file "Resume."

Do not name your file "resume" or any word or variation that sounds like it. For example, one recruiter went through 100 resumes and had a short list of 10 candidates that they needed to whittle down to 5 or 10 for an interview. The recruiting manager went through the directory searching for the 20 resumes so he could review them another time but in more detail. However, he could find only 14.

The recruiting team assumed that the other 6 were in the generic mass of 30 or so files titled "resume" or its other variant. However, the recruiting manager said, "I will be damned if I'm going to wade through them all to check." Your filename must begin with your actual name instead of naming it "resume."

2. Using a resume-template that has been over-designed

Don't use a colorfully designed or modern resume. As beautiful as they are, they do not guarantee that you will stand out. It's, however, a lot easier to focus on clearly presenting your work experience and skills because they prove you can do the job well.

A better approach will be to keep the resume layout as simple as possible so the reader can easily locate specific information.

3. Having more than two pages on your resume

Do not let your recruiting manager move to the third page before they find your previous experience. Suppose you list your hobbies, "strengths," and education before your work experience. In that case, your recruiter will likely assume that you don't have any. For entry-level jobs, this might be overlooked. But when the job requires 3 or more years of relevant experience, if you don't include that on the first page of your resume, recruiters will likely close your file and move with their lives.

4. Not making your resume as brief as possible

Resumes do not have to be more than 2 pages. Generally, it should be as brief as possible. What matters is that you include the most important and relevant details. The truth is that most recruiters are in a hurry. Recruiting isn't the only job they do; you aren't the only candidate they need to interview.

If you are applying for entry-level positions, anything more than 2 pages seems wordy, and it will make prospective employers assume you cannot prioritize or be concise. Anything more than two pages can look inefficient.

When applying for entry-level positions or if you are with little or no experience, ensure that your resume is one page in length. But if you are applying for a senior management position, you can make your resume as long as it needs to be.


Resume Writing Mistakes

Below are mistakes people make when writing their resumes that you must avoid. Doing any of these will leave a bad impression and can become a deal-breaker whether you get employed.

Having incomplete information on your application

When applying for a job posted on LinkedIn, but your information isn't complete, you may not be considered for the position. For example, you may not have a resume file attached to your profile for a recruiter to download. Not every hirer will be moved by the aesthetics or richness of your LinkedIn profile, for instance. The most important thing is to attach a CV to your application. You could face the consequences if you give any wrong information on your resume, especially an inaccurate one.

Resume spelling and grammar errors/mistakes

It will surprise you that this is still a common mistake by candidates in today's workforce. At first, the recruiter will review your resume by skimming through it within a minute or less. However, if they see something embarrassing, such as a typo or grammatical error within that time, their confidence in your work will lessen, and there is a good chance they will get rejected.

You're lacking variety

Using the same words repeatedly can make your application less engaging. While it can be good to use the basic language since it helps make your resume readable, it can look boring if it lacks variation in terms or word choices and sentence openers.

Too much jargon

Jargons aren't so bad. They aren't bad, and it's essential to use some to demonstrate your knowledge and expertise in the area. But there is a problem when they are overused because it makes your resume quite difficult to read.

You have left out your past responsibilities or achievements

This applies to both the education and work experience sections in your resume. You must highlight what you were responsible for and your achievements in both sections. Suppose your achievements are from an extracurricular activity. In that case, it is still worth mentioning because it will give your employers more insight into you. Do not only list out your day-to-day obligations. Instead, describe exactly what you have been doing and what impacts you were able to make.

You didn't include examples

When making any statement, you need to include it to support the claims on your resume. If you do not, it won't mean much to your recruiters because you have not proven it. Including examples will also show that you are confident and rational. But making claims without proof would not attract credibility to your resume and the things you have highlighted. So, rather than acknowledging it wholeheartedly, they will start by questioning the information you have listed.  

Ignoring resume power words

Action verbs and buzzwords are examples of power words. Adding these will make your application more intriguing while reading because they help to add emphasis and significance to your sentences. But buzzwords can become a problem when you overuse them. Also, make sure to use them in the right context.

Resume clichés

Do not state the obvious, and do not repeat something common. This is one of the major reasons why candidates fail to get hired. For example, don't say, "I am a hard worker" or "I can work in a team." After all, these are attributes the position would most likely require anyway.

You're not personalizing your resume

Have you been sending the same resume to different employers? If this is the case, you have been making another resume mistake which can lead to rejection. Seeing if you have taken to tailor your resume and use the right keywords is another way recruiters can determine whether you are a serious and committed candidate. You may have similar content if you are applying for the same position. However, it is still important to personalize an organization's job description.

General Resume Mistakes

Next, we will look at 4 resume mistakes that are also quite common among candidates seeking a job. Making any of these errors on your application can cost you a potential job offer. 

Lying on your resume

Lying is a big deal regarding job applications, and you will be waving a big red flag to the hiring manager if your resume contains untrue content. One mistake some candidates make is underestimating the recruiter's experience. First, it is worth mentioning that they will know when you are lying about some information, and they can know the truth during the interview. The interview also helps them confirm whether what you have on your resume is true.

Not double-checking your social media & contact information

You must look through your social media information and ensure they are appropriate. The area in the digital era where things like this will surely matter at some point when it comes to job recruitment. However, not every employer will include it, but it is better to be safe than sorry. In addition to that, your contact details should be accurate and appropriate. For example, your email address should be appropriate.

Not optimizing your email for the applicant tracking system

Applicant tracking systems are scanners that check your resume to see if it matches the recruiter's job description. The first phase in the hiring process is to beat the resume scanners. Next, the scanners will check for keywords that must be included in the resume. If these scanners notice that you don't meet the criteria, you won't reach the next stage.

Taking resume advice as gospel

Do not take resume advice as gospel. Every recruiter is different in what they expect and look out for. One HR might tell you something, and another will disagree with them. Finally, the major thing is that whatever you can do to make it easier for the hiring manager helps you. Remember that this isn't about you but the hiring manager who needs to dig through hundreds of resumes. 

So, keep in mind that as you write yours, aim to meet the recruiter's needs, and you will have the edge over others. In summary, as you now know, the mistakes applicants make on their resume that cause them to get rejected, try to avoid them. Below is a recap of what you must remember. 

  • Avoid naming the file "resume."

  • Avoid using a resume template with too many designs.

  • Do not use more than two pages for your resume.

  • Make your resume as brief as possible.

  • Make sure you provide the complete information.

  • Check for resume incorrect spelling and grammar errors.

  • Vary your words and sentence openers.

  • Much of the jargon shouldn't be too much.

  • Give a detailed description of your responsibilities and achievements.

  • Do not forget to include examples.

  • Use resume power words

  • Avoid résumé clichés

  • Personalize your resume

  • Don't lie

  • Double-check your social media and the contact information you provided.

  • Remember to optimize your resume for the applicant tracking system.

  • Don't take all resume advice as gospel.

Some candidates use AI resume builders powered to beat the resume scanners, making them miss all the tedious stuff since the AI automatically creates a full, tailored application. The only thing they will need to do is click a few buttons. From there, they can edit. You can look up some videos on YouTube to see how an AI resume writer works.

Listen to or read the newest Interview ProdigyAmazon Audible & Kindle Book Series 

Here are the newest Interview Prodigyaudiobooks & ebooks series on Amazon for your reading-listening pleasure (https://tinyurl.com/57ehhjb2). 

  • JavaScript Full Stack Developer: Capture the Job Offer and Advance Your Career  (Audible) (Kindle)

  • AI Software Engineer: ChatGPT, Bard & Beyond (Audible) (Kindle

Regards, Genesys Digital (Amazon Author Page) https://tinyurl.com/hh7bf4m9 

Creative Problem Solving (Week #6 - article series: PESTEL Analysis)

Friends, greetings. Here is chapter five in our weekly series from the Learning Wizardaudiobooks & ebooks on Amazon for your reading-listening pleasure. “Creative Problem Solving: Root Cause Analysis, 5 Whys, Feynman Technique and Beyond” (Audible) (Kindle). This week (#6) our focus is on PESTEL Analysis.

Chapter 6 - PESTEL Analysis


Introduction

In today's tumultuous and rapidly evolving corporate milieu, it is imperative for businesses and organizations to remain apprised of extrinsic forces that could potentially disrupt their operational functions. PESTEL analysis, a highly effective problem-solving tool, aids businesses and organizations in comprehending external factors that could impede their success. PESTEL analysis encompasses an examination of political, economic, social, technological, environmental, and legal factors, all of which can influence a business or organization.

According to a report published by Grand View Research, the worldwide PESTEL analysis market size was valued at a staggering USD 952.4 million in 2020, with an anticipated compound annual growth rate (CAGR) of 6.6% from 2021 to 2028. The report cites the escalating necessity for businesses to comprehend external factors affecting their operations as a major driving force behind this growth.

PESTEL analysis proves to be of particular importance to businesses and organizations operating in industries that are highly regulated or are frequently impacted by shifts in government policies. For instance, a healthcare organization may utilize PESTEL analysis to comprehend how government regulations or environmental factors can influence its operations.

In addition to regulatory and environmental factors, PESTEL analysis can also aid businesses and organizations in understanding the influence of social and technological factors on their operations. For example, a retail business may apply PESTEL analysis to comprehend how shifting consumer preferences or technological advancements could potentially impact its sales.

PESTEL analysis is an invaluable tool for problem-solving and strategic decision-making. By comprehending external factors that could impact their operations, businesses, and organizations can make informed decisions and adapt to changes in their environment. The subsequent sections will explore the steps involved in conducting a PESTEL analysis, as well as strategies and pointers for implementing and gauging its effectiveness.

Description:

In the realm of strategic management, PESTEL analysis serves as a potent tool for assessing a business's external environment by scrutinizing the political, economic, social, technological, environmental, and legal factors that may influence its performance. This tool, as described by Kotler et al. (2013), is pivotal in comprehending the macro-environmental elements that influence a business. It allows businesses to detect potential opportunities and threats arising from external environmental changes.

The political factors, comprising governmental policies, regulations, and political stability, hold a significant impact on businesses. Economic factors, such as inflation, economic growth, and unemployment, could adversely affect a company's operations. Additionally, social factors, including demographics, cultural trends, and lifestyle changes, are also critical in influencing business decisions. Technological factors, encompassing innovations, new technologies, and the speed of technological advancement, offer great potential for both opportunities and challenges. Environmental factors, such as climate change, pollution, and sustainability, can significantly affect a business's performance. Finally, legal factors such as laws and regulations that impact the company must be factored in.

PESTEL analysis allows businesses to identify strategic opportunities and threats by analyzing the external environment's potential impact on the organization. According to Grant (2016), PESTEL analysis is "a powerful tool to evaluate the external environment of a business and to determine potential strategic opportunities and threats."

In conclusion, PESTEL analysis offers a powerful mechanism to evaluate a business's external environment, allowing businesses to make informed decisions by developing effective strategies. By conducting a PESTEL analysis, companies can adjust their strategies and operations to adapt to changes in the ever-evolving business environment.

Best Suited For:

PESTEL analysis, an acronym for Political, Economic, Social, Technological, Environmental, and Legal analysis, is an invaluable instrument for evaluating external factors that impact businesses and organizations. When a company is engrossed in strategic planning, market research, or risk assessment, PESTEL analysis can be exceptionally beneficial. In accordance with KPMG, a professional services company, PESTEL analysis is a crucial tool for business strategy and planning because it helps identify opportunities and threats in the market while also enabling businesses to capitalize on them (KPMG, 2020).

Strategic planning is a critical arena where PESTEL analysis can be advantageous. By scrutinizing the political, economic, social, technological, environmental, and legal factors that influence a company, businesses can identify budding trends and opportunities that can assist in their long-term strategies. For example, a company that performs a PESTEL analysis might discover that changes in regulations or consumer preferences create new openings for growth in a specific market or product line.

Market research is another area where PESTEL analysis can be valuable. By comprehending the external factors that impact consumer behavior and preferences, businesses can create more effective marketing strategies and improve the targeting of their products and services. According to a report by Technavio, PESTEL analysis is a crucial tool in market research because it enables companies to understand the external factors that influence consumer behavior and purchasing decisions (Technavio, 2019).

Lastly, PESTEL analysis can be useful in risk assessment. By analyzing external factors, businesses can identify potential threats and vulnerabilities and develop strategies to alleviate them. For instance, a company might conduct a PESTEL analysis to detect environmental or regulatory risks that could impact their supply chain or operations.

In conclusion, PESTEL analysis is a versatile tool that can be applied in various contexts to help businesses and organizations better understand the external factors that impact their operations. By identifying emerging trends and opportunities, companies can develop more effective strategies and achieve greater success in the marketplace.

Methodology-Steps:

The process of conducting a PESTEL analysis involves six key steps, each of which identifies different external factors that can impact a business or organization. To conduct a comprehensive PESTEL analysis, individuals must analyze each of the following factors: political, economic, social, technological, environmental, and legal.


Step 1: Identify Political Factors

Political factors refer to the multifarious government policies and regulations that significantly impact a business or organization. Ghazinoory et al. (2011) assert that these can include complex tax policies, intricate labor laws, stringent environmental regulations, arduous trade restrictions, and unpredictable political stability. For example, a single change in tax policies can drastically affect a company's profitability, while the introduction of new environmental regulations can result in significant alterations to a company's manufacturing process and supply chain (Prajogo, 2016).

Step 2: Identify Economic Factors

Economic factors refer to the prevailing macroeconomic conditions that significantly impact a business or organization. Prajogo (2016) explains that these factors can include inflation rates, interest rates, exchange rates, and economic growth. Such factors can profoundly affect consumer spending, market demand, and the overall cost of doing business. For instance, fluctuations in exchange rates can significantly impact a company's export and import activities, while changes in interest rates can significantly affect the cost of borrowing for a company (Prajogo, 2016).

Step 3: Identify Social Factors

Social factors refer to the highly intricate cultural and societal factors that substantially impact a business or organization. Ghazinoory et al. (2011) contend that these factors can include complex demographic trends, rapid lifestyle changes, and highly nuanced consumer preferences. Such factors can significantly impact market demand and shape the perception of a company's products or services. For example, changes in demographic trends can significantly impact a company's target market, while shifts in consumer preferences can result in significant changes to a company's marketing and branding strategies (Prajogo, 2016).

Step 4: Identify Technological Factors

Technological factors refer to the dynamic innovations and advancements that significantly impact a business or organization. Ghazinoory et al. (2011) assert that such factors can include automation, digitalization, and artificial intelligence. These factors can significantly impact a company's operations, supply chain, and product development. For example, innovations in automation can significantly alter a company's workforce and productivity, while advancements in digitalization can affect a company's marketing and distribution strategies (Prajogo, 2016).

Step 5: Identify Environmental Factors

Environmental factors refer to the complex ecological and environmental factors that substantially impact a business or organization. Ghazinoory et al. (2011) maintain that these factors can include climate change, natural disasters, and sustainability. Such factors can profoundly impact a company's operations, supply chain, and reputation. For example, changes in climate can significantly impact a company's logistics and supply chain, while strict environmental regulations can result in significant modifications to a company's manufacturing processes (Prajogo, 2016).

Step 6: Identify Legal Factors

Legal factors refer to the intricate laws and regulations that significantly impact a business or organization. Ghazinoory et al. (2011) argue that these factors can include consumer protection laws, labor laws, and intellectual property laws. Such factors can significantly impact a company's operations, supply chain, and compliance requirements. For example, modifications to consumer protection laws can significantly impact a company's marketing and product development, while changes in labor laws can affect a company's workforce and HR policies (Prajogo, 2016).

In conclusion, conducting a PESTEL analysis is a critical step toward understanding how external factors can affect a business or organization. Through careful analysis and evaluation

Implementation:

When implementing PESTEL analysis in a practical setting, using a structured approach that systematically identifies and analyzes the six external factors - political, economic, social, technological, environmental, and legal - is critical. To ensure comprehensiveness, each factor should be broken down into subcategories, and each subcategory should be rated on a scale of 1-5 based on its impact on the business or organization, as recommended by the Harvard Business Review.

However, PESTEL analysis is not just about gathering data; it is also about identifying trends and patterns in the data. For instance, a retail business conducting a PESTEL analysis may observe a growing trend toward online shopping. This trend may present an opportunity for the business to invest in an e-commerce platform or increase its online marketing efforts.

The primary objective of PESTEL analysis is to inform data-driven decision-making and strategic planning. For example, a construction company may discover that there is an increasing demand for sustainable building practices through a PESTEL analysis. This finding may inform the company's decision to invest in training its employees on sustainable building practices.

Many businesses and organizations have successfully used PESTEL analysis to solve problems or make strategic decisions, including McDonald's and Tesla. In 2014, McDonald's found through a PESTEL analysis that there was a growing trend toward healthy eating. As a result, the company decided to introduce healthier menu options to appeal to health-conscious customers. Similarly, Tesla used PESTEL analysis to identify the growing trend toward electric cars, which informed its decision to focus on developing electric cars.

To use PESTEL analysis effectively, it is essential to follow a structured approach, identify trends and patterns, use the findings to inform decision-making and learn from other businesses and organizations. By doing so, individuals can use PESTEL analysis to stay ahead of external trends and changes.

Measurement:

To determine the effectiveness of a PESTEL analysis, it's essential to consider the accuracy of the analysis, evaluate its impact on decision-making, and continually monitor the external factors analyzed in the report.

One approach to assess the accuracy of a PESTEL analysis is to compare the forecasted outcomes of the analysis with actual outcomes over an extended period. According to G. Johnson, K. Scholes, and R. Whittington's "Exploring Corporate Strategy," "The accuracy of the PESTEL analysis is measured by the degree to which the external factors identified in the analysis serve as precise predictors of future trends or events." If the external factors identified in the report do not accurately predict future trends or events, it may suggest that the analysis was ineffective or that the external environment has shifted in unanticipated ways.

Another approach to determining the effectiveness of a PESTEL analysis is to evaluate its impact on decision-making. Did the analysis provide valuable insights that informed strategic decisions? Was the analysis employed to create new products or services or to enter new markets? As per the Journal of Business Research, "PESTEL analysis can guide and support strategic decision-making processes, and can assist organizations in developing a more comprehensive understanding of their external environment and the elements that influence it." If the analysis did not guide decision-making or was not utilized to propel strategic change, it may suggest that the analysis was ineffective.

Lastly, it's crucial to continually monitor the external factors analyzed in the PESTEL report. According to J. McGee and H. Thomas's "Strategic Management: An Integrated Approach," "Alterations in the external environment may happen rapidly, and it's crucial to monitor the external factors analyzed in the PESTEL report on a consistent basis to guarantee that the organization is equipped to adapt to new trends and developments." By monitoring external factors consistently, organizations can ensure that their strategies remain pertinent and effective.

In conclusion, evaluating the accuracy of the analysis, assessing its impact on decision-making, and monitoring external factors over time are all vital measures to determine the effectiveness of a PESTEL analysis. By using these measures, organizations can ensure that their analysis is accurate, relevant, and useful for driving strategic change.


Next Steps:

Here are some suggestions for the next steps after conducting a PESTEL analysis:

Use the findings to inform decision-making:

Once the PESTEL analysis is completed, it is important to use the findings to inform decision-making. According to a study by the Journal of Business Research, "the PESTEL analysis helps organizations to make better strategic decisions, and the use of PESTEL analysis has been positively associated with business performance" (Abdullah & Nawi, 2016). By considering the external factors analyzed in the PESTEL analysis, individuals can make more informed decisions about future strategies and tactics.

Develop a monitoring and analysis plan:

External factors are constantly changing, and it is important to monitor and analyze them on an ongoing basis. To do this, it is recommended to develop a monitoring and analysis plan that outlines the key external factors to be monitored, the frequency of monitoring, and the methods to be used for analysis. According to the Harvard Business Review, "companies need to have a strategic radar system that continuously scans the external environment for threats and opportunities" (Davenport & Prusak, 2003). By monitoring and analyzing external factors, individuals can stay ahead of changes in the market and adjust strategies accordingly.

Share the findings with stakeholders:

The findings of the PESTEL analysis should be shared with stakeholders, such as management, employees, and investors. According to the World Journal of Management, "sharing the findings of a PESTEL analysis with stakeholders can increase their understanding of the business environment and lead to better decision-making" (Khan, 2015). By sharing the findings, stakeholders can have a better understanding of the external factors that affect the business or organization and can provide input on how to respond to these factors.

Resource Tips:

Conducting a comprehensive PESTEL analysis can be a daunting task, especially if you're unfamiliar with the process. Luckily, there are a number of valuable resources available to help guide you through the steps. One such resource is HubSpot's "How to Use PEST Analysis in Marketing" guide, which provides a detailed breakdown of each of the six factors involved in a PESTEL analysis. By thoroughly examining the political, economic, social, technological, environmental, and legal elements of a situation, you can gain a deeper understanding of the factors at play and make more informed decisions.

Another helpful resource is Lucidchart's "PESTLE Analysis: "How to Perform One in 6 Steps" guide, which offers a simple, step-by-step process for conducting a PESTEL analysis. By following the six key steps, including identifying relevant factors and analyzing their impact, you can organize your findings in a meaningful way and use them to guide your decision-making.

For a more comprehensive look at PESTEL analysis, Creately's "PESTLE Analysis: The Ultimate Guide" is an excellent resource. In addition to providing an overview of the benefits and challenges of the tool, this guide offers a case study that shows how a business used PESTEL analysis to inform its strategy. By taking advantage of these resources and tools, individuals can conduct effective PESTEL analyses that help them make informed decisions and solve problems across a wide range of scenarios.

Learning Wizard audio & ebook series on Amazon:

  • Creative Problem Solving: Root Cause Analysis, 5 Whys, Feynman Technique and Beyond (Audible) (Kindle

  • Gifted - Transform your life with lessons learned from the world’s most creative people (Audible) (Kindle

  • The Art and Science of Learning - Ordinary Gifts … Exceptional Results (Audible) (Kindle

  • Transformation of the Global Education System - The Disruptive Impact of AI, Mixed Reality and Next Gen Knowledge Workers (Audible) (Kindle

Regards, Genesys Digital (Amazon Author Page) https://tinyurl.com/hh7bf4m9