SWOT Analysis

What is it?

SWOT Analysis is a tool used for understanding an organization's strengths, weaknesses, opportunities and threats

Why use it?

The SWOT Analysis tool can be used in identifying an organization's strengths (S) and weaknesses (W), and  examining the opportunities (O) and threats (T) it is facing. The outcome from a SWOT Analysis enables organizations to focus on strengths, minimize weaknesses, address threats, and take the greatest possible advantage of opportunities available.

How to use it?

While the SWOT Analysis is typically conducted in a group session, it can also be undertaken in other forums (including electronically).

Strengths:

Questions to ask and answer:

• What do we do exceptionally well?

• What advantages do we have?

• What valuable assets and resources do we have?

• What do members/customers identify as our strengths?

Tips:

• Be realistic...and honest!

• Think in terms of what you have that your competitors don't have.

• Don't just take the internal staff and volunteer perspective...consider how your members and customers view your organization.

Weaknesses:

Questions to ask and answer:

• What could we do better?

• What are we criticized for or receive complaints about?

• Where are we vulnerable?

Tips:

• Don't tiptoe around weaknesses, but be constructive and positive in putting them on the table.

• Get research so you know what outsiders think...about you and your competition!

Opportunities:

Questions to ask and answer:

• What opportunities do we know about, but have not been able to address?

• Are there emerging trends on which we can capitalize?

Tips:

• Look at changes in the sector represented by the organization, technological changes, government policy, socioeconomic and demographic changes.

• Be open-minded...key opportunities may come from unlikely and seemingly unrelated sources.

• Consider how you can exploit your strengths or address your weaknesses to generate additional  opportunities,

Threats:

Questions to ask and answer:

• Are any of our weaknesses likely to make us critically vulnerable?

• What external roadblocks exist that block our progress?

• Are our competitors or quasi-competitors doing anything different?

• Is there significant change coming in our members' sector?

• Is technology dramatically changing the sector and services to it?

• Are economic conditions affecting our financial viability?

Tips:

• Have an open and expansive perspective.  The buggy whip manufacturing association may not have seen early automobiles as a big threat to the association...but they were!

• An environmental scan is critical.

While an organization can undertake a SWOT Analysis without undertaking member research and an environmental scan, its value will be significantly greater if such research is incorporated.

Final Thoughts

The process is important not only for identifying where to apply resources and attention, it enables the organization to put issues into perspective.

If the organization has a major competitor, it can also be illuminating to conduct a SWOT Analysis of the competitor.  The process can assist in identifying strategies to counter the competition, and to anticipate their future moves.

A Sample SWOT Analysis

A provincial professional association's SWAT Analysis might look as follows:

Strengths:

• Our members value the professional designation.

• We have a lower course fee structure than similar programs.

• We provide good customer service.

• Our instructors are highly-regarded in the profession.

• We have a small staff and low overhead.

Weaknesses:

• We are slow to make decisions and adapt to changes that affect the profession.

• The professional designation is rarely included as a condition of employment.

• We are overly dependent on key volunteers who developed and teach our certification courses.

• We do not have the resources to research the market and promote the designation.

Opportunities:

• The employment market for our members is expanding rapidly.

• The government has indicated a willingness to review our Act.

• There is significant interest in accessing our programs from the the Caribbean, and south east Asia.

Threats:

• On-line education technology will produce more competition for courses.

• Since NAFTA, interest in the American certification is growing.

• A private company with a successful web site and conference is taking advertisers and sponsors away from us.

Based on this SWOT Analysis, the association is better positioned to take appropriate and effective action.

Association CEOs, managers and volunteer leaders frequently facilitate sessions or meetings involving staff, volunteers, members and third parties.  The intent of the Facilitation Role is to expose readers to various facilitation tools and issues. 

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