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SWOT2
SWOT analysis

SWOT

SWOT analysis identifies internal Strengths and Weaknesses, and external Opportunities and Threats. Each of these should be identified for every line of business (LOB) that organisation or project is engaged in.

Internal Strengths and Weaknesses

Consult widely with staff and participants to identify weaknesses that must be managed or avoided as the plan is formulated. Identify those strengths that can be capitalised on in accomplishing the desired future. Many people do not identify weaknesses as they think this shows failure and shortcomings. Individual planners or a planning team may underestimate or avoid the weaknesses.

Looking at five key areas can facilitate identification of weaknesses. They are:

1. Line of Business

Analyse each line of business as a separate unit. Look at the Critical Success Indicators [CSI} to see if they are in right place and have been identified adequately. It is crucial to find out if there are units in organisation that are operating as a business on their own.

2. Strategic Profile

Examine the strategic thinking in the organisation, and the level of creativity. Look for examples of pro-active future thinking. Are there strategic weaknesses such as passive thinking, or risk avoidance?

3. Resource Analysis

Are financial and managerial resources used well? Are there weaknesses or gaps in the allocation of resources? Are some parts starved of resources, while others are resource rich? Does the allocation of resources hinder achievement of purpose?

4. Organisational Culture

In what ways does the organisational culture hinders or helps the execution of its Statement of Purpose? What are the weaknesses associated with organisational culture?

Four organisational cultures are:

Power culture: one individual can make a difference in organisation

Role culture: each person in organisation has a role and people perform their role accordingly

Achievement culture: people in organisation want to reach certain goals

Support culture: everyone should support everyone else for he good of the organisation.

5. Implementation Considerations

Identify weaknesses in the operation of the organisation. There is no need to wait until planning has been finished before starting to implement improvements. Taking action gives the impression to every one that management is serious about strategic planning, and that the organisation is committed to planning and evaluation.

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