SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves monitoring the environment in and around the organisation or individual. Done properly, it is a powerful tool that can make a real difference to your planning process.

Start by defining a desired end state or objective.

With a clearly identified objective, SWOT analysis can be used to help in the pursuit of that objective. In this case, SWOTs are:

• Strengths: attributes of the organisation (internal factors) helpful to achieving the objective.
• Weaknesses: attributes of the organisation (internal factors) that make achieving the objective more challenging.
• Opportunities: external conditions helpful to achieving the objective.
• Threats: external conditions that make achieving the objective more difficult or more unlikely.

Correct identification of SWOTs is essential. Your next steps in the process of planning to achieve your selected objective are derived from the SWOTs.

First, decide whether you can achieve your objective, given the SWOTs. If the objective is NOT attainable, you need to choose a different (potentially interim) objective and then repeat the process.

Creative Use of SWOTs.

If, on the other hand, the objective seems attainable, the SWOTs are used as inputs to the creative generation of possible strategies, by asking and answering each of the following four questions, many times:

1. How can we Use each Strength?
2. How can we Stop each Weakness?
3. How can we Exploit each Opportunity?
4. How can we Defend against each Threat?

In larger organisations, a task force that represents a broad range of perspectives should carry out the SWOT analysis. For example, a SWOT team may include an accountant, a salesperson, an executive manager, an engineer, and a facilitator.

For those of us who work alone, we have two options:

• Repeat the process from several perspectives;
• Ask for help.

This was a guest post by Paul Fileman of SPS who are a national team of proven senior management professionals, passionate about working to help businesses achieve their next level of development and performance. Whether they are facing market changes, financial problems, people/skills issues, or are preparing a major project, they offer dedicated support from a multi-disciplined team of experts.

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