The internal environment includes the quality and quantity of talent, the organizational culture, and the talent pipeline and leadership bench strength. The external environment includes many economic, political, and competitive forces that will shape the future. Figure 2-4 shows the HR elements of a SWOT analysis Internal Environmental Analysis The strengths and weaknesses of the organization represent factors within the organization that either create or destroy value. When assessing the internal environment, managers evaluate the quantity and quality of human resources, HR practices, and the organizational culture. The organizational culture is discussed at greater length in Chapter 1. The strength of the talent pipeline is particularly important as the organization plans its future. Fulfilling strategic objectives is impossible without sufficient skills and talent. Leadership development and succession planning programs ensure that high-quality talent will be available to carry out the strategy. Effective development programs can reduce the high failure rate of people in leadership positions. Selecting individuals with the right talents ጀ
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