PESTEL Analysis

Although PESTEL analysis is used as a tool for developing a marketing strategy, it is also useful for scanning the external environment. A governor needs to be aware of all elements of PESTEL: the economic, political, social, legal, environmental, technological developments and policies that may impact the social enterprise.

The module also offers social entrepreneurs an opportunity to assess enterprise wide risk and thus evaluate and mitigate the needs, focus and culture of their social enterprise. Risk Management is a crucial activity within Governance. Governance and Leadership using enterprise wide risk management will aim to identify which systems, processes, controls and structures of management will help their enterprise achieve its Mission.

Additional reading on the topic you can find here. Also, the Lucid Chart team provide some really straightforward advice regarding carrying out risk management. Their text you can find here.

When Children’s Centres were extensively reviewed in England and two studies produced for wider consideration, the following analysis and overview of the link between Governance and Leadership could be identified. There is a two-way link between leadership and governance:

(1) Governance frameworks provide strategic direction for leaders, help them to foster commitment, shared aims and to hold people to account;
(2) Strong leadership contributes to effective governance by promoting inter-agency collaboration, shared understanding and clear roles and responsibilities.

The two studies were firstly, an Evaluation of Children’s centres in England: strand 3-delivery of family services by children’s centres by  Golf, Hall, Sylva et al. (2013) from the University of Exeter, and secondly,  Highly effective leadership in children’s centres, research undertaken by Sharp, Lord, Handscomb, Macleod in 2015.