The PESTEL model is an alternative risk assessment approach to the more famous SWOT analysis. IN this post, we will look at the application of the ideas of this model within the context of a school. PESTEL is an acronym that stands for
- Political factors
- Economic factors
- Sociocultural factors
- Technological factors
- Environmental factors
- Legal factors
Political factors can include local laws and ordinances that may impact an institution’s ability to function. Examples can include labor laws for faculty and staff, privacy laws, laws regarding children such as the number of days of study per year, etc. All of these legal concepts fall within the purview of political factors.
If a school is overseas, this can become more complicated. Now the school; has to deal with immigration laws and visas. The school must also address Language and customers as well as addressing the hiring and even the firing of local faculty and staff.
Economic factors are related naturally to money. Schools, particularly private and tertiary schools, are affected heavily by the economy. Tuition-driven schools can be destroyed by an economic downturn. Government schools are often immune to this to a certain degree because of government support, but no institutions survive an economic downturn unscathed.
Other problems can include obtaining loans and buying things on credit for private institutions. Interest rates may change, and cash may not be available. Private schools may not receive an influx of cash except when tuition is paid several times yearly. This necessitates borrowing money in the short term to cover expenses until tuition for the next semester comes.
Sociocultural factors relate to awareness of local demographics and culture. How a school addresses upper-class kids will be different from how they help immigrant kids who do not speak English. In addition, like everything else, demographics and values change over time. If schools are not keeping track of this, the community around them will change while the school is holding on to ideas that worked in the past but are no longer appropriate now.
Schools usually keep track of local cultural needs as meeting needs is a main philosophical component of education today. However, it is still important to be aware of this aspect of an analysis.
Technology changes at a speed that cannot be appreciated or understood. Everybody struggles with the latest improvements in technology. However, the challenges of technology are not only the speed. Sometimes the availability of technology can be a problem as well.
For example, there is an idea called the digital divide. The digital divide is the separation in terms of technology between various countries. Within education, what can be done can be limited in part by access to education.
Environmental factors relate to such things as weather, energy, etc. Schools that provide transportation have to take into account the price of this. In addition, dormitory schools have to look at the cost of energy and water as students live on-campus. Environmental factors can also impact hiring. Suppose faculty and staff cannot find local housing because of environmental concerns. In that case, it can complicate things for the school.
Looking at the environmental factors can also include the appearance of the school. For example, no-gum rules are often put in place so that gum is not found all over campus, ruining the school and its appearance.
Legal factors are similar and related to political factors and can overlap with economic factors. The real point here is to understand that the ideas in the PESTEL model overlap and indicates that the divisions discussed here are artificial. To make a clear report of the context a school is facing having categories like those presented by the PESTEL model is convenient.