What exactly is a S.W.O.T. analysis?
Picture the scene.
It’s a 3 pm meeting on a Thursday afternoon.
You’re sitting in a stuffy room on the 3rd floor discussing an upcoming project.
You know it’s important, but your mind is stuck on other things.
Suddenly, a know-it-all work colleague says to your boss, “This seems like a good opportunity to do a S.W.O.T analysis”.
Everyone nods in agreement, your boss looks impressed, and you think to yourself, “What the heck is that?”
The answer is it’s a strategic planning tool used to help you uncover the Strengths, Weaknesses, Opportunities and Threats of your plan.
Its exact origin is a mystery, but it has been in use since the 1960s and is one of the most frequently used tools out there.
Oh, and it is sometimes referred to as a ‘S.W.O.T. matrix’ just in case you’re wondering if they’re the same thing.
Why is performing a S.W.O.T analysis helpful?
When working on a project, it is easy to get caught up in all the enthusiasm.
While this is a great feeling, the associated optimism means you might overlook important factors that will impact the project later on.
By performing a S.W.O.T. analysis, it forces you to look at your plan from different perspectives.
In doing so, you will uncover things that might encourage you to revise your original plan.
It’s worth remembering that, as with any strategic planning tool, it has its limitations.
Indeed, the management guru Michael Porter developed his five forces framework as a criticism of S.W.O.T., which he found distinctly lacking.
How do you perform a S.W.O.T. analysis?
The good news is that it’s a very straightforward exercise.
Grab a piece of paper and a pen.
Next, draw a large cross and write down the words Strengths, Weaknesses, Opportunities and Threats in each corner like the image at the top of the page.
Then, start writing down as many points as you can under each heading and keep the following in mind as you write:
Strengths: The aspects of the project that give it an advantage over others.
Weaknesses: The aspects of the project that place it at a disadvantage relative to others.
Opportunities: The things in the environment that the project could exploit to its advantage.
Threats: The things in the environment that could cause harm to the project.
As you go through this process, it’s essential to consider both internal and external factors.
Internal factors include things like your company’s employees, the state of its finances, the strength of its marketing and so on.
On the other hand, external factors include the state of the economy, government legislation, and technical innovations, amongst other things.
A S.W.O.T. analysis assumes that strengths and weaknesses are internal, whereas opportunities and threats are more obviously external.
One other thing worth noting is that what might represent a strength for one aspect of your project could equally be a weakness for another.
Once you’re satisfied you have down all the elements, you can then start thinking about how they might impact your current plan so you can make any necessary revisions.
