How to use a SWOT Analysis?

Author: Steven Bonacorsi

- SWOT offers professional managers an effective evaluative technique to aid the decision making process.

- It can not find the solution for you, but it will ensure that issues are: identified, classified and prioritized clearly, showing the problem in terms of key underlying issues. Decision makers can then see the answer.

- It's a four-part approach to analyzing a Companies overall strategy or the strategy of its business units. All four aspects must be considered to implement a long-range plan of action.

Why use a SWOT Analysis?

In any business, it is imperative that the business be its own worst critic. A SWOT analysis forces an objective analysis of a Companies position via its competitors and the marketplace. Simultaneously, an effective SWOT analysis will help determine in which areas a company is succeeding, allowing it to allocate resources in such a way as to maintain any dominant positions it may have.

SWOT Analysis is a very effective way of identifying your Strengths and Weaknesses, and of examining the Opportunities and Threats you face. Carrying out an analysis using the SWOT framework will help you to focus your activities into areas where you are strong, and where the greatest opportunities lie.

Why Bother to SWOT?

The economy stinks. So why take the time to bang your company over the head doing a SWOT analysis when so much is out of your control? No question that the current downturn is impacting some businesses more traumatically than others and a lot of disappointing business results can be blamed primarily on the general economic climate. But look around. A high percentage of U.S. businesses are surviving the pain, and many are even thriving. During depressed economic times, there are still lots of winners--who typically win not by sticking with their past game plans--but rather by focusing on some new thing(s) that are under their control.

A Basic SWOT Analysis

You can develop the basic analysis in a brainstorming session with members of your company, or by yourself if you are a one-person shop. The business of management today is characterized by complex issues and continuous change. Frequently the related decisions and actions are characterized by trying to understand the complexity of the issues involved so that an appropriate decision can be made. While this kind of applied decision making is not an exact science, SWOT analysis is internationally known as a method of understanding the issues which are involved. In doing so, ideas can be shared between managers and even integrated into a wider picture for subsequent analysis.

Use SWOT analysis to help you and your team reach the best solution by:

- Helping decision makers share and compare ideas

- Bringing about a clearer common purpose and understanding of factors for success

- Organizing the important factors linked to success and failure in the business world.

- Analyzing issues that have led to failure in the past

- Providing linearity to the decision making process allowing complex ideas to be presented systematically.

How does SWOT analysis work?

- The strategy is to look at the organizations current performance (strengths and weaknesses) and factors in the external environment (opportunities and threats) that might affect the organizations future.

- Once the attributes for each section have been identified it is possible to determine the point of balance. Eventually the points of balance of strengths versus weaknesses and opportunities versus threats can be plotted together.

- For example, an information technology department needs to determine the strengths and weaknesses of its people and its technology. It also needs to make sure the IT strategy complements the Companies business goals. The department head needs to ask: What is each staff member good at? What are they not good at?

- Project leaders also must consider opportunities and threats -- or customers and competitors. How attractive is the market or direction they're considering? What's their market share and cost structure?

- To get a better look at the big picture, consider both internal and external forces when uncovering opportunities and threats.

Internal Analysis:

Examine the capabilities of your organization. This can be done by analyzing your organization's strengths and weaknesses.

External Analysis:

Look at the main points in the environmental analysis, and identify those points that pose opportunities for your organization, and those that pose threats or obstacles to performance.

Key points: Once the SWOT analysis has been completed, mark each point with the following:

- Things that MUST be addressed immediately.

- Things that can be handled now.

- Things that should be researched further.

- Things that should be planned for the future.

- Now that each point has been prioritized, set an action point for each and assign it to a person, add a deadline.

- Although the SWOT analysis will assist in identifying issues, the action plan will ensure that something is done about each one. With complicated issues, a further brainstorming session might be done to analyze it further and decide what action to take.

- The SWOT analysis results should be reviewed every few months to determine if anything has changed and what has been achieved.

- The "Brainstorm" is best used when setting up a new project or organization, works best in smaller groups than a SWOT session, and can be effectively used in the transformation process when the participants are a smaller group of managers.

- The observations generated by the participants should not include any major surprises to the organizers and coordinators of the program and the administrators of the organization.

- It can be used in a conference where the participants come from different locations and organizations.

Article Source: http://www.articlesbase.com/strategic-planning-articles/how-to-use-a-swot-analysis-5111325.html

About the Author

Steven Bonacorsi is a Senior Master Black Belt instructor and coach. Steven Bonacorsi has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies. International Standard for Lean Six Sigma (ISLSS)

Author for the Process Excellence Network (PEX Network / IQPC)

Process Excellence Network

Steven Bonacorsi, President of International Standard for Lean Six Sigma (ISLSS)

Certified Lean Six Sigma Master Black Belt

47 Seasons Lane

Londonderry, NH 03053

Phone: +(1) (603) 401-7047

E-mail: sbonacorsi@islss.com

Process Excellence Network: http://bit.ly/n4hBwu

Process Excellence Global Summit

Dear colleague,

The agenda is set, the contributors confirmed and the dates fast approaching for PEX Network's original and largest meeting in the global Summit and Awards Series, to be held from 16-20 January 2012.

So here's a quick list of how to make sure you get the most of your time atPEX Week 2012!

16th January - Refresh your personal process skill set by selecting from your choice of practical, interactive and actionable pre-summit workshops.

With only 40 places in each session, last year we had to turn people away on the door from some of the groups. Workshops are the perfect way to perfect some of the most essential capabilities in the process leaders toolkit and really help you maximize you time at the event.

The full list of workshops can be found here. Attendees are requested to register for their desired option to avoid disappointment.

17th - 18th January: Don't miss out on the PEX Week Orlando Conference sessions!

19th - 20th January: Become a Certified Process Professional: Sign onto this 2 day accredited course to equip yourself with next Generation process and performance skills

Led by Steve Towers, Founder & CEO, The BP Group the training course will cover leadership levels for the Certified Process Professional (CPP).

LEARN HOW TO:

- Exploit process management for triple crown benefits with sustained high performance: Reducing costs, enhancing service and improving revenues at the same time
- Develop performance metrics for end-to-end processes Link processes to enterprise business goal
- Coach and align people for performance and process management

19th January: Top your week off by selecting from one of 3 exclusive PEX Week Post Summit Focus Days

1. Experience the business behind the magic: Disney return for 2012 to share their insights and model for leadership excellence. Last year's site visit on customer experience was a sell out months before the event - book your place today!

2. Get up to scratch on modelling and analytics for process excellence - an integrated approach to process improvement, management and analytics

3. See process excellence and process for innovation first hand: This is your chance to get a sneak peek into one of Bausch & Lomb's longest running manufacturing facilities

And to be honest I could go on! Of course please do view the full agenda and further options by downloading your own personal copy of the weeks options, you won't be disappointed!

I look forward to meeting you in January!

Vanessa Lovatt
Director
PEX Network

Steven Bonacorsi, MBB, PMP, MS-CIS, MBA

Friday, May 10, 2013

Lean Six Sigma Online

Tuesday, September 18, 2012