CHIN’s Environmental Scan: Methodology and Findings

I. Introduction

This article discusses the Environmental Scan methodology that CHIN adopted with the assistance of Pricewaterhouse Coopers (PwC) and shares some highlights from the sample scan conducted in June 2005. The objective of the article is to share the results of this experience with CHIN members and the museum community, some of whom are already engaged in environmental scanning activities. The publication of this article is the first initiative by CHIN to share and promote the practice of environmental scanning with its member institutions. Forthcoming initiatives, such as making portions of CHINs scan public, and the creation of an online tutorial are discussed at the end of this article.

Environmental Scanning is the act of identifying, analyzing and using information about events, trends and relationships in an organization’s external environment . The knowledge gained from this exercise assists in strategic decision-making. E-scanning is commonly conducted in private sector organizations, and is relatively new to the public sector. It is challenging to design and conduct effective environmental scans in a public sector environment because of the many demands and the heterogenous character of the public that is served. Given the potential benefits of environmental scanning, CHIN engaged Pricewaterhouse Coopers (PwC) to create a methodology for an Environmental Scan, and to conduct a sample scan.

II. Objectives

CHIN identified three key objectives in adopting the practice of environmental scanning:

1. To improve our understanding of the needs of the various audiences that CHIN serves – including CHIN members – and to consistently deliver value-added services; 2. To improve our understanding of the demand for CHIN’s product and service offerings, particularly in the educational domain; and, 3. To support and improve strategic decision-making at CHIN through better data and information capture and analysis.

These objectives would drive the methodology, and utltimately the scan itself.

III. Environmental Scanning Methodology: Key Principles

The methodology devised for the Environmental Scan focusses on key principles that govern the acquisition and use of information. Rather than prescribing detailed, step-by-step instructions on how to conduct an Environmental Scan, the methodology identifies and explains principles that must be adhered to in order to successfully carry out these Scans. This is a more flexible approach and allows for the evolution of the process. The methodology also addresses key challenges involved in adopting environmental scanning to the public sector, namely, conducting a focussed, purposeful scan given the necessarily broad accountabililty lines (the public, Parliament and stakeholders) that every federal public sector entity must consider.

By devising a methodology that extracts manageable, focussed information and uses it in a targeted manner to support strategic decision-making, many of the challenges facing a public sector organization in this exercise are managed. In order to achieve this objective, the methodology addresses how to use the information in addition to how it should be gathered.

The key principles that were developed to guide CHIN’s Environmental Scan are as follows:

1. Link technology, research and strategic planning in a formal scanning system.

Technology, research and strategy are the key elements of information scanning in any organization. Technology is a tool for the research, in that it is useful in the information gathering phase, whereas strategic planning ensures that the information, once gathered, is put to good use. CHIN must ensure that these three elements are present and working in accord in its Environmental Scan. This is essential to ensure that the scan is conducted in a structured, focussed manner, and that any findings and recommendations reach the correct decision makers in the organization.

2. Designate internal experts to analyze information and identify its organizational context.

In order to be useful, the information gathered from CHIN’s Environmental Scan must be analyzed and managed by subject experts within the organization. The methodology recommends that automated information gathering products such as newsreaders be used to filter out irrelevant unwanted information.

3. Ensure that all gathered intelligence progresses through a formalized action loop.

An Environmental Scan is only useful if the intelligence it gathers is put to good use. This item relates to the strategic planning element mentioned in item number one. CHIN must ensure that information collected reaches the right people and is used in strategic decision-making. Many organizations decentralize the collection, categorization and analysis of information to specific units. This information is then disseminated throughout the organization and finally stored centrally. To adhere to this principle, CHIN must ensure that information is prepared for action.

4. Create study teams to manage in-depth information needs.

As Environmental Scans identify areas in which programs or services can be established by the organization, it becomes necessary to focus on specific issues. When CHIN identifies such issues through the Environmental Scan, study teams dedicated to these issues should be established, rather than simply adding these items to the regular environmental scanning process. This will ensure that these issues receive the attention that they deserve, and that they do not take away from the regular scan. These teams should be composed of subject specialists.

5. Condense information to its core essence for targeted distribution.

CHIN should ensure that information gleaned from its Environmental Scan takes the form of easily digestible, well summarized segments. This will ensure that its Environmental Scan provides the organization and its stakeholders with useable, actionable information. When prepared in this format, information can be more easily presented to key decision makers.

6. Consult Organizational Networks.

Because data collected in an Environmental Scan can vary in its type – from raw data such as public opinion polling to informed, anectodal information – any organization should stimulate its social networks to get data. In the case of CHIN, this would mean soliciting and welcoming information not only from within the organization, but from members and stakeholders as well.

7. Forge knowledge partnerships with members, customers/users and other stakeholders/partners.

This principle is rooted in item number six (above), but goes a step further in that it calls for formalized partnerships with stakeholders in the environmental scanning process. CHIN is fortunate to have an active, knowledgeable member community to consult on museum issues. The Environmental Scan is another item on which CHIN should work with members for the benefit of the Network.

8. Subscribe to external knowledge sources that deliver targeted information.

This is often the first step in an Environmental Scan: to identify newsletters, web sites and other sources of external, credible information. By customizing delivery of this information, organizations can save staff valuable time. CHIN should look at cost-effective services that provide key information for the Environmental Scan.

These key principles were recommended to guide the exercise of CHIN’s Environmental Scan. They are flexible in that they can be used with different organizational configurations, but firm in that they are targeted at identifying key information and using it in a strategic manner.

IV. Sample Environmental Scan

The sample scan was conducted by PwC in June 2005. In carrying out the scan, PwC regularly consulted with CHIN, conducted interviews, made use of CHIN research such as the 2004 Survey of Visitors to Museums’ Web Space and Physical Space, the CHIN 2004 National Membership Study, and the Virtual Museum (of Canada): The Next Generation, as well as using internal PwC data and information found on the internet. In all, PwC conducted a scan in the following five subject areas: General Museum and Cultural Environment, Social Environment, Learning and Education Environment, Information Technology Environment, and Economic Environment.

The following is a summary of some of the key findings of the sample Environmental Scan conducted by PwC for CHIN:

1. General Museum and Cultural Environment

• CHIN’s members are challenged to develop cultural content due to limited financial, operational, human resource, and technological capacity.

• There is a good level of international cooperation in the sharing of best practices in digital content development.

• Canadians feel that museums are an essential part of their communities. However, customer revenues are not offsetting the costs of operations.

• Internet penetration globally and in Canada continues to increase.

• Younger Canadians are more comfortable with the Internet, but seniors are using the Internet at a faster rate.

• Museum customers are currently not using the Internet to any great extent for cultural content.

• Technology convergence and the Internet are changing the way people access and use content in their daily lives.

• Canadians of all ages are using the Internet to find information and services that they need. However, older Canadians spend less time on the Internet and look for specific information.

• Increases in immigration and continued multiculturalism in Canada will continue to put pressure on the demand for cultural content for different ethnicities.

• Canadians are better educated than ever, which will affect the demand for cultural content.

• Recent surveys indicated an increased demand for heritage activities in the short and long term, which will affect the demand for online cultural content.

• Information technologies, and specifically “courseware”, are finding its way in the classrooms of Canadians.

• The inclusion of cultural content in Canadian curriculum is happening, but lack of specialized cultural knowledge in the school system is hindering its ability to access the online medium.

• There is continued growth in the Canadian and global broadband internet market.

• Preserving and exchanging digital information amongst members and other global organizations relies upon the widespread adoption of standards.

• The nature of digital content presents the need for copyright protection and Digital Rights Management (DRM).

• Digital Content Management strategies are being applied due to continued growth and expansion of digital content.

• Public sector funding is a significant contributor to the financial sustainability of Canada’s museum community.

• There have been positive developments recently in federal government funding for arts and culture.

• Museums, and CHIN, are affected by trends in travel and tourism, domestically and abroad.

• Canada is viewed by tourists as a “bargain”, regardless of the fluctuations in the Canadian exchange rate.

V. Conclusions

The Environmental Scan methodology and sample conducted by PwC provides the basis for CHIN to conduct its own annual Environmental Scan. CHIN is committed to conducting an annual scan to ensure that it is aware of its environment, and that information gleaned from its environment is used in strategic decision-making at the management level. As a member-focussed organization, CHIN is committed to sharing knowledge on the environmental scanning methodology. As such, CHIN will be releasing portions of its own scan that will be beneficial to members who wish to engage in this exercise. CHIN will also be creating an online tutorial that will demonstrate how to create an environmental scan. The objective of this tutorial will be to help member organizations who wish to conduct their own scans. It will demonstrate how a scan is conducted, and will identify sources of information for completing this task.

Ultimately, CHIN is conducting annual environmental scans to better serve its member community. Annual scans help an organization to see trends on the horizon; they facilitate forward thinking and the ability to react in a favourable manner to events in the broad environment. CHIN members can expect to benefit from these scans in at least two ways: information gathered from this annual exercise will continue to be shared with the museum community so that it can be used for planning and decision-support; and, CHIN as an organization will use the data collected from these scans to support the planning of programs and services that are innovative and forward thinking for members.