SWOT
SMART: Review

I use SWOT analysis on a regular basis.  It's a great tool that allows you to test your understanding of a strategy or task. The letters stand for:

• Strengths

• Weaknesses

• Opportunities

• Threats

It is one of the best ways I know to undertake a review of the strategy and measures of SMART.

Overview

SWOT analysis can be used to test whether projects or plans have been thought through properly.  For the SMART process the purpose is to review the overall Strategy plan.  This is the plan that you created at the start of the SMART process.  It's a wonderful tool to get you focussed and to make sure that you have your strategy correct.

To use SWOT effectively you need to apply it to each of the key strategic parts of your plan.

Practically this means for each task in the plan you need to examine the strengths, weaknesses, opportunities and threats.  For example, you might be looking at opening an office in Chicago.  You might discover that there are actually many threats to that goal.  These could come in many guises such as other companies recruiting potential staff.

Generally the analysis is recorded in a table that contains four columns:

I've put some sample text into the table to show you the type of material you should expect to produce.

Undertaking SWOT

This type of analysis is most effective when you use several people together brainstorming around a topic.  These people should be knowledgeable and respected in their domain area.  Get everyone together in a room for about 40 minutes and brainstorm each of the four categories.

At this stage in the process don't throw away any ideas relevant to the task being discussed.  Instead make a note of ideas for later use.  Spend about 10 minutes completing each column.  Try not to let one group take too much of the available time.  Instead call a halt after 10 minutes discussion and if needed return to it after competing the other columns.

Once you've finished the initial session you should write up the material generated.  You should produce a table for the people that were at the meeting.  Once it's ready send it to them for review.  Wait for a few days to let people form opinions about the SWOT analysis.  When they are ready gather the team back together for a second meeting.

At the second meeting agree what should be thrown out from the analysis.  Then tighten up the definitions on the remaining items.  If necessary hold a further round of reviews.

SWOT Complete

Your SWOT analysis should now be complete and written up.  It's now time to spend thinking time about the overall strategy.  You need to decide whether your overall yearly strategy remains correct.  Whilst you're letting your mind mull it over you should complete SWOT analysis for any key tasks not included so far.

You don't need to tackle all the tasks in the strategy only the major ones.  For a medium sized company there may be 10 or so and a small company 5 or so.  If it's a personal or department view then perhaps 3 tasks is about the average number.

As you think about the SWOT analysis, new tasks will start to form in your mind.  The tempting thing to do is to add them immediately into your DO NOW task list.  I'd suggest you use caution.  Take a week or so to make sure you've thought through the new tasks.  I'd also suggest that you validate with others to ensure you're making the right decisions.

Validation

Validation of key strategic moves sounds a lot grander than it is.  Validation just means getting as many valuable opinions as possible.  If possible these opinions should include the customers of the decision.  Remember that customers can be internal as well as external.

When validating new directions try not to ask leading questions.  Instead ask open ended questions and seek counsel from people.  If you disagree with what they are saying don't tell them straight away.  Try to really understand what they are saying to you.  If you still don't see merit in what they are saying you can always disregard their opinion.  However always be thankful to the person for helping you shape your ideas.

If you'd like to use SWOT analysis then I've provided you with a free swot analysis form that you can use.