SWOT stands for Strengths, Weaknesses, Opportunities and Threats. So, what is it used for and it is worth the time? A SWOT analysis is a great tool to set the strategic direction of the organization. It is a tool to help an organization (company, division, department, etc.) reflect on the internal abilities and vulnerabilities and how they can be used in the external environment. To say it more simply, for an organization to look honestly at itself and decide what to do to take advantage of the opportunities available. Sounds easy, but the brutal honesty needed can prove difficult. If done right, it can be one of the best planning tools available and it does not require spending oodles of cash on consultants.
The desired outcome of performing the analysis is to determine the goals and actions of the next year or more. But, this needs to wait to the end of the process and be wary of jumping ahead, it is easy to do.
The first step is creating the correct environment for a discussion. I have found that a “panel of peers” works well for getting constructive feedback. The way this works is a group of peers, maybe department or division managers, meet and present their SWOT analysis to the others who serve as the feedback panel. They are familiar with the business and understand many of the issues that will be presented. They will also present their SWOT to the panel. Since each group will present to and serve on the panel, people tend to be fair and constructive.
Before presenting the SWOT to the panel, each group will need to prepare a SWOT for their group. The first part of the SWOT is the hardest! The leader(s) of the group need to take a brutally honest look at the internal Strengths and Weaknesses. This includes the people, skills, technology, capability, capacity or anything else that may affect the group’s performance. Remember this is an internal look; Often people tend to start to look at external influences. Do not look for solutions – just identify the good, bad and the ugly.
After looking internally, each group will need to analyze the external environment it lives. Opportunities may be things like new technology, acquisition targets, better suppliers, new markets or anything that might be taken advantage of. Threats need to be identified as well. Examples of threats are new competitors, increased regulations, reduced supply base, or increase in raw materials are a few examples.
As you might have guessed by now, this is not a ten minute exercise.
Once the Strengths, Weaknesses, Opportunities and Threats are identified, the actions can be identified to take advantage of the strengths to capitalize on the opportunities as well as improve weak points and defend against threats. This is the basis to set goals for the year.
If you are lucky, the discussion that ensue during presentation with the panel will help gain a deeper understanding of your organization both inside and out.
There are plenty of templates available of the web. A quick search on the web will give a good selection to choose. There is one example you are free to download if you like.
Good luck!
The desired outcome of performing the analysis is to determine the goals and actions of the next year or more. But, this needs to wait to the end of the process and be wary of jumping ahead, it is easy to do.
The first step is creating the correct environment for a discussion. I have found that a “panel of peers” works well for getting constructive feedback. The way this works is a group of peers, maybe department or division managers, meet and present their SWOT analysis to the others who serve as the feedback panel. They are familiar with the business and understand many of the issues that will be presented. They will also present their SWOT to the panel. Since each group will present to and serve on the panel, people tend to be fair and constructive.
Before presenting the SWOT to the panel, each group will need to prepare a SWOT for their group. The first part of the SWOT is the hardest! The leader(s) of the group need to take a brutally honest look at the internal Strengths and Weaknesses. This includes the people, skills, technology, capability, capacity or anything else that may affect the group’s performance. Remember this is an internal look; Often people tend to start to look at external influences. Do not look for solutions – just identify the good, bad and the ugly.
After looking internally, each group will need to analyze the external environment it lives. Opportunities may be things like new technology, acquisition targets, better suppliers, new markets or anything that might be taken advantage of. Threats need to be identified as well. Examples of threats are new competitors, increased regulations, reduced supply base, or increase in raw materials are a few examples.
As you might have guessed by now, this is not a ten minute exercise.
Once the Strengths, Weaknesses, Opportunities and Threats are identified, the actions can be identified to take advantage of the strengths to capitalize on the opportunities as well as improve weak points and defend against threats. This is the basis to set goals for the year.
If you are lucky, the discussion that ensue during presentation with the panel will help gain a deeper understanding of your organization both inside and out.
There are plenty of templates available of the web. A quick search on the web will give a good selection to choose. There is one example you are free to download if you like.
Good luck!
| swot_example_template.pptx |
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