Types of Context
The context of an organization can be analyzed in a variety of different ways - by function, by level, etc.
Group A- Functional
Group B - locational
- Internal context
- External context
Listed below are some of the methods to study the context of organizations:
. The context scan provides a current snapshot of the context of the organization, which is comprised of two facets:
are two principal context scanning techniques: the PESTLE analysis and
the SWOT analysis. Both of these analyses need to be conducted
separately and then correlated.
- External Scan
– This is outward-facing and looks to issues and trends that are beyond
the organization’s control. However, the organization will be able to
leverage some positive trends and mitigate against negative impacts.
- Internal Scan – This scan is inward-facing and looks to matters that are within the organization’s control.
A PESTLE analysis is a
multi-dimensional analysis of the context of the organization for the
purpose of identifying issues that may affect influence the design of
the asset management system (AMS).
References in ISO 55001
4.1 The organization shall determine internal and
external issues that are relevant to its purpose and that affect its
ability to achieve the intended outcomes of its asset management
6.1 “When planning for the asset management system
the organization shall consider the issues referred to in 4.1…”
6.2.1 “When establishing its asset management
objectives, the organization shall consider the requirements of
relevant stakeholders and of other financial, technical, legal,
regulatory and organizational requirements in the asset management
22.214.171.124 “…the… external and internal contexts of the
organization … can significantly influence the design and scope of the
asset management system”
126.96.36.199 “Evaluating the organization’s external
context can include, but is not limited to, the following issues: a)
the social and cultural, political, legal, regulatory, financial,
technological, economic, competitive and natural environment, whether
international, national, regional or local; b) key drivers and trends…;
relationships with, and perceptions and values of, external
4.2.4 “When engaging with stakeholders to determine
their needs and expectations, the organization can use the list of
contexts given in 4.1.2 to frame the discussions”
4.3 “Based on the outcomes of reviews of its context
and stakeholders (see 4.1 and 4.2), the organization should define (or
review) the boundaries of the asset management system, and establish
5.2 “There should be processes in place to review and
update the asset management policy, and to ensure that if the
organization’s external or internal context changes, the actions
necessary to update the policy are also triggered”
Benefits of a Context Scan
- Awareness of Issues & Trends
– An understanding of its external and internal contexts will help the
organization raise its awareness about issues and trends.
- Effective Communications with Stakeholders – Information on the contexts can be used to effectively frame the discussions with the organization’s stakeholders.
- Design of the Asset Management System
- An understanding of the nature and complexity of the context
issues will help the organize establish an appropriate scope and
boundaries for its asset management system.
- Development of Policy and Strategy
– An understanding of the various contexts (legal, political, social,
technological, economic and environmental) will inform the organization
in the development of appropriate policy, strategy and plans.
- Appropriate Treatment of Risks – Awareness and analysis of issues will ensure that risks are identified and appropriate managed.
Every organization is influenced by a multi-faceted context.
These facets should be recognized as landmarks that will orient the
organization ast it navigates a path along the asset management journey.
Fig. Some examples of insidious legal "knots" in the context of the organization.
Fig. Leadership reflecting on the different manifestations of the organization's culture.
Fig. Top management establishes the structure of the organization.
Fig. Some examples of political "knots" that trap negative energy in the organization and need to be untangled with finesse.
Fig. Financial "knots" must addressed carefully or they may get even tighter.
Fig. Organizational "knots" (problems) require patience and finesse to untangle them -- or they will get even tighter. Do you know how to untangle the knots in your organization?