Every Strategist knows the acronym PESTLE. It helps us to consider the context in which any planned course of action would take place. I encourage all leaders to put PESTLE into their strategic planning sessions. For those who don’t recall, PESTLE reminds us of the key areas to consider:
To see how your strategic planning session might unfold, let’s take just one of these, 'Social' and explore population change.
By 2035, seniors will make up over 23% of the population in the western world (up from 18% in 2020) possibly resulting in strained healthcare systems, public pensions, and labour markets. As fewer workers support more retirees, economic productivity and tax revenues face pressure, prompting policy shifts like higher retirement ages and increased immigration. At the same time, these older adults are shaping governments, consumer demand, housing, and urban planning.
This shift poses both significant challenges and emerging opportunities.
1. Workforce Shortages and Skills GapsAs older workers retire and fewer young workers replace them, companies risk labour shortages and knowledge loss, especially in skilled trades and leadership roles.
2. Rising Operational and Compliance CostsIncreased public spending on pensions and healthcare may lead to higher business taxes or stricter regulations, which disproportionately impact smaller firms.
3. Misaligned Product-Market FitProducts and services designed for younger demographics may struggle as the market ages, requiring adaptation to stay relevant and competitive.
How you respond to these will determine your continued success. You don’t have to be perfect, but you do have to be better than your competition. Companies don’t necessarily fail, they just get left behind.
1. Expanding Silver EconomyCompanies can capitalize on demand for health tech, elder care services, senior-friendly home modifications, financial planning, and travel tailored to older adults.
2. Innovate Through Inclusive DesignDeveloping age-accessible products—such as simplified tech interfaces or ergonomic packaging—can differentiate SMEs and unlock new customer segments.
3. Leverage Experience-Based Employment ModelsRetaining or rehiring retirees as consultants, mentors, or part-time staff preserves institutional knowledge and creates flexible, cost-effective talent pipelines.
No matter what products or services you sell, the value you create is consumed by an individual at the very end of your value chain. So yes, this impacts your business. How will you capitalize on it?
Before you embark on any new strategy, be sure to consider PESTLE. The above ‘Social’ example is generic and should be considered from your company’s perspective and in combination with the other PESTLE elements.
Let us know if you’d like to know more about PESTLE workshops. Every time we have run these workshops with clients, the discussions we stimulate always generate better ideas resulting in sounder plans.
See you next time,
Andrew
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