SWOT Analysis (aka TOWS) is a versatile technique that’s applicable throughout an organization: be it at the enterprise, business unit or operational level, and can support a variety of goals:
- Strategic analysis
- Project planning
- Comparing options
- Implementation feedback
- Workshop Evaluation
- Performance appraisal
Too often a SWOT diagram is seen as the first point of call in strategic planning; its real value is to profile the results from situational analysis activities in order to drive strategic planning.
Let’s look where the SWOT profile fits into strategic planning:
A, B, C of Strategic Planning
To begin with, analyse the internal and external environments considering areas such as culture, skills, market share, customers, competitors etc. Then generate a SWOT profile, which is what today’s #babite is all about, so hold fire! Finally, plan what needs to be done (strategy) and how to get it done (tactics).
With the context out of the way, let’s take a closer look at that middle task. To produce the SWOT profile we’ll need to put on our thinking CAP:
Thinking CAP
1. Categorize
The results of the situational analysis must be organised. Internal environmental factors are summarized as ‘strengths’ or ‘weaknesses’ whilst the external factors are classified as ‘opportunities’ or ‘threats’, accordingly either are positive or negative.
SWOT Diagram
2. Analyze
Now don’t just accept these results – take a closer look. The diagram can over simplify the situation, as environmental factors don’t always fit a category snugly: strengths can be weaknesses and opportunities threats. Get a group, review, brainstorm, consolidate, tidy up and make amends.
3. Prioritize
By now we should have a wide variety of factors, but we’d better sort them into some sort of order as input into the final planning step. The SWOT profile is often displayed as a matrix list.
Personally I find this a little tame, I Pimp My SWOT!
By adding different filters and positioning the factors, I can prioritize pictorially and view from varying perspectives.
Pimp My SWOT!
Mix them up. Create your own. You get the idea!
Now we have our SWOT Profile ready for the strategic planning step, which looks to:
- Leverage strengths;
- Remedy weaknesses;
- Seize opportunities; and
- Mitigate threats.
The techniques used for situational analysis are key to strategic success, as is striking a balance between internal and external analysis.
Filed under: Enterprise Analysis, Techniques Tagged: | #analysis, #babite, #babokEA, #swot, #technique
