SWOT — a 4-box strategy tool
What is SWOT?
SWOT is a popular 4-box strategy analysis and strategy development model. The acronym SWOT is derived from …
- Strengths
- Weaknesses
- Opportunities
- Threats.
SWOT has been around for decades and could lay claim to being the most widely used strategy tool in modern times. It is used by industry, commerce, charitable and voluntary organisations. In higher education, SWOT is often a key part of business studies and MBAs. If you have ever applied for a business loan, it is likely that the bank would want to see a SWOT analysis or something similar.
SWOT has the advantage of simplicity
The advantages of SWOT support its popularity:
- It is easy to understand — a simple diagram and no mathematics.
- It is applicable to many levels in an organisation — from an individual, a team, a business unit or division, up to the corporate strategy.
- It can be applied at many different depths from quick and easy, to highly detailed.
- With proper use, it can be linked to corporate objectives and to strategy deployment.
- Being highly visual, it is easy to communicate.
Is SWOT a Significant Waste of Time?
But, and it is a big but: SWOT is often applied incorrectly. Just a few pitfalls include:
- Generalised SWOTs — a SWOT analysis needs a specific context or problem to solve;
- Starting in the wrong box —The 'S' is definitely the wrong place to start;
- Failure to convert SWOT bullet points into strategic intentions — the SWOT boxes need rearranging to make it useful.
An unskilled facilitator, or self-facilitation, without adequate knowledge of the underlying principles and method often results in a workshop full of flip charts and no strategy. SWOT is then deservedly known as a Significant Waste of Time. The next step is to hire a skilled facilitator.