Growth tips 30 seconds to business enlightenment.
SWOT Analysis – part 1
19-Jan-2012
Early in my business career, (prior to joining RESULTS.com) I had the
experience of having external consultants come into my firm to do
“strategic planning” with us on an annual basis.
We would go to an offsite meeting. They would start by having us do a
SWOT analysis (an assessment of company Strengths, Weaknesses,
Opportunities, and Threats), and then we would create a long list of
action items and go back work and do our best to get these things done –
with varying levels of success.
I am embarrassed to admit that for many years I mistakenly thought that
this was “strategic planning”. Many companies who contact us today to
help them with their strategic planning suffer from this misconception
too.
Strategy first, then SWOT.
What they don’t realize is that you need to create a clear strategy
first, before you can perform a SWOT analysis and choose your current
action priorities. Unfortunately in most cases, they don’t know what a real strategy is – nor have they done the necessary thinking and analysis in order to be able to create one.
You see, a SWOT analysis can only be performed effectively in the
context of your chosen strategic direction. Do you know the strategic
moves you need to make within the next 3-5 years to position your firm
for future success in your industry?
Dual Vision.
Professor Philip Kotler of the Kellogg School of Management explains the vital strategic concept of Dual Vision:
“Companies need to operate with one eye focused on the short term and one eye focused on the long term.
Short term is about projects related to improving the current core business and meeting the needs of today’s target customers.
Long term is not about performance improvement, it’s about forgetting
the past and reshaping the business to compete more effectively in the
future, and often this demands bold, disruptive, strategic moves away
from the present to reshape the company for future success.”
One-eyed SWOT.
Strategic planning requires us to look at how to improve our current
business, “improving what is”, balanced with what we need to build to
succeed in the long term, “creating what will be”.
This is the test of true strategic leadership. Can you keep both of
these contexts in mind? You need to have one eye on the future, one eye
on the present, and make sure your SWOT analysis bridges both of these
worlds.
And if you aren’t already clear on “what will be”, and the 3-5 year strategic moves you need to make to get you there - then all you are really doing is a one-eyed SWOT !!
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34531334269947::RESULTS.com | The Missing 98%
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Monday
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| Date | 21-May-2012 |
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