SWOT Revisited: Pinpointing and Solving Problems with SWOT Analysis Methodology

Access your KPIs online;
Measure your success;

Navigation: All Balanced Scorecard Articles > SWOT Analysis

Before you can start solving problems with SWOT analysis, you have to analyze first what those problems are. This can be achieved by assessing the company's strengths, weaknesses, opportunities and threats. Check additional information about solving problems with SWOT.

We all have heard great things about the SWOT analysis methodology but solving problems with SWOT has really never been clear. How do you exactly perform a SWOT analysis? Who should be involved? What do you need in order to begin solving problems with SWOT?

When we say "problems", it does not mean SWOT has the power to solve the problems of humanity. What it can do, however, is to prepare a company for any jagged paths that it may come across in the future. One good thing about solving problems with SWOT is that you don't need money (or in some cases you might need some, but not that much) - you need a lot of brains and a lot of time.

First and foremost, let us try to review what SWOT means. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. Now, these four aspects pertain to the internal and external issues of the venture. Strengths and Weaknesses are internal because they point inside the company's direction. Obviously, Opportunities and Threats are all pointing out to the target marketplace. There are certain factors that should be addressed in all these four aspects when solving problems with SWOT so it is important to know what those particular issues are.

To start solving problems with SWOT , you have to point what those problems are in the first place. Before you do that, gather a team of experts from different departments of your organization and perform a little brain storming. Remember when we mentioned "a lot of brains"? Solving problems with SWOT is not a stand-alone project.

Next thing you have to do is to get a whiteboard. Now, some people say it is okay to use a paper, but you need a visual tool that everyone can see. Draw intersecting lines into the whiteboard to create four squares. In each square, label them according to the SWOT principle: Strengths, Weaknesses, Opportunities and Threats. Use this board to gather information and ideas from your team and just erase the irrelevant data and information later.

Now, let us proceed with the real act of solving problems with SWOT. To pinpoint the issues, you need to ask these questions to yourself and your team and list down the answers:

Strengths:

1.What separates your company from the others in the competition?

2.In terms of goods and services, what does your company do well?

3.What do you think are your advantages?

Weaknesses:

1.What are the usual causes of problems and complaints?

2.In which aspect do you think your company is doing poorly?

3.What could you improve and how will you improve it?

4.What should your company avoid in order to keep your clients and customers intact?

Opportunities:

1.What are the current interesting trends?

2.Are there any changes in technology, government policies, regulations, lifestyle and local and global events that you can take advantage of? If yes, what are they and how will you use them to attain your company's goal?

3.What are the chances currently facing your company?

Threats

1.What is your competition doing?

2.Is technology advancement threatening your business?

3.Do you have bad cash flow problems?

Once you are done this assessment, you can start solving problems with SWOT. However, remember that this tool is not used in exclusivity. Explore your options further and make sure to utilize other strategic analysis tools in order to ensure that you will be able to survive right in the heart of the lion's den.

If you are interested in solving problems with SWOT, check this link to find out more about solving using SWOT. Also, you can check other articles in SWOT Analysis category.

Balanced Scorecard Toolkit includes step-by-step manuals, documents, presentations, check lists designed to help business professionals with successful development and implementation of Balanced Scorecard. Learn more about BSC Toolkit.