Safety Pest by TPenney

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									    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
           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.
                                        P
Political 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?
                                     S
Socio-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?
                                 T
Technological 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
Let your Staff Help
Talk Supplier SIPOC
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 problem
O – Open mind and apply creative techniques
I – Identify best solution
T – Transform

								
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