Decision processes and workflows

Every great decision requires a great process. Setting up a workflow for strategic analysis using tools like PESTEL, Porter's Five Forces, Value Chain Analysis, Scenario Analysis, SWOT Analysis, and Multi-Criteria Decision Making (MCDM) involves a systematic approach to ensure that each tool complements the others and provides a comprehensive understanding of the strategic environment. Here’s a suggested workflow:

1. Define Objectives
Identify Goals: Clearly define the objectives of the strategic analysis. What decisions need to be made? What questions need to be answered?
Scope of Analysis: Determine the scope, boundaries, and timeframe (e.g., market entry, product launch, competitive positioning).
Data Collection: Collect quantitative and qualitative data relevant to the analysis below. This may include market reports, industry publications, competitor analysis, and internal company data. The data collection can be done up front appended as needed futher along the process.
Stakeholder Input: Engage with key stakeholders to gather insights and perspectives that may not be captured in existing data. The stakeholder input will be tied to each analysis below as different stakeholders are relevant.

2. Conduct PESTEL Analysis
External Environment: Analyze the Political, Economic, Social, Technological, Environmental, and Legal factors that could impact the industry and the organization. This sets the context for the industry and market.
Documentation: Summarize findings in a report to highlight key trends and potential impacts on the organization.

3. Perform Porter's Five Forces Analysis
Industry Structure and dynamics: Assess the competitive forces within the industry: Threat of new entrants, Bargaining power of suppliers, Bargaining power of buyers, Threat of substitute products, Rivalry among existing competitors.
Integration: Use insights from the PESTEL analysis to inform this analysis.

4. Conduct Value Chain Analysis
Internal Analysis: Examine the organization’s internal processes and activities to identify areas of competitive advantage.
Identify Key Activities: Focus on primary and support activities that add value.
Link to SWOT: Use findings to inform strengths and weaknesses in the SWOT analysis.

5. Perform SWOT Analysis
Strengths, Weaknesses, Opportunities, Threats: Combine insights from PESTEL, Porter's Five Forces, and Value Chain Analysis.
Matrix Creation: Create a SWOT matrix to visualize the internal and external factors.

6. Conduct Scenario Analysis
Develop Scenarios: Create plausible future scenarios based on the insights gathered. Consider how different external factors (from PESTEL) and competitive dynamics (from Porter's Five Forces) could evolve.
Impact Assessment: Analyze how each scenario would affect the organization’s strengths, weaknesses, opportunities, and threats.

7. Multi-Criteria Decision Making (MCDM)
Criteria Development: Establish criteria for evaluating strategic options based on insights from previous analyses.
Option Evaluation: Use MCDM techniques (e.g., AHP, TOPSIS) to evaluate different strategic options against the established criteria.
Decision Matrix: Create a decision matrix to facilitate comparison and prioritization of options.

8. Implementation Planning
Resource Allocation: Identify the resources (financial, human, technological) required for implementation.
Risk Management: Assess potential risks associated with the chosen strategy and develop mitigation plans.

9. Synthesize Findings and Develop Recommendations
Integration: Combine insights from all analyses to form a cohesive strategic recommendation.
Action Plan: Develop a clear action plan based on the chosen strategic option, including timelines, responsibilities, and resources needed.

10. Communication of Findings
Stakeholder Engagement: Present findings and recommendations to stakeholders in a clear and actionable format.
Feedback Mechanism: Create channels for feedback from stakeholders to refine strategies and analyses.

11. Evaluate Decision Process
Use of time: How did the organization use its time compared to the original plan? What barriers hinder a proper allocation of time? How can they be removed?
Decision Audit: Evaluate frames, heuristics, barriers to learning from results, problematic phases, and record keeping. Grade the performance of steps on metadecision, framing, intelligence gathering, coming to conclusions, managing in groups, and learing from feedback.

12. Monitor
Feedback Loop: Establish a process for monitoring the external environment and internal performance to adapt strategies as necessary.
Regular Updates: Schedule regular reviews of the strategic analysis to ensure it remains relevant and responsive to changes.

Conclusion
This workflow allows for a comprehensive strategic analysis that leverages multiple tools to provide a well-rounded view of the strategic landscape. Each tool informs the others, creating a robust framework for decision-making.