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SWOT AnalysisLike a snapshot - but not a tool for the family photographer
SWOT analysis provides insight at a point in time - like a snapshot. Also like a snapshot, it can provide a different picture depending upon what it is focused on. In your family business, you might focus one view on the business as a whole; another view of one operating division; yet another view of one sales territory.
To do the analysis, start by dividing a page into four quadrants with a vertical line and a horizontal line. The top two SWOT analysis quadrants are Strengths and Weaknesses. The bottom two quadrants are Opportunities and Threats.
In the first box of this SWOT analysis, list all the strengths of your family business, operating division, sales territory or whatever you are analyzing. This isn't the time for modesty. One of the strengths you take for granted might be something that your customers value and that your competition doesn't have or do. Brainstorm. Write down words that characterize your business. You can edit later. In the top right box list weaknesses - things you don't have, things you cannot do, things you don't do well. This is the time for brutal honesty - you are not producing a selling document so there is no point in fooling yourself. But also a time for realism... sure, you don't have a billion dollars, and you aren't likely to get it soon, nor could you do well with it if you did get it... so stick within the realm of reason. The lower left box is for opportunities. What is the market NOT doing, what are your competitors NOT doing - what does the market need that you could perhaps provide? Think in terms of what would benefit your customer - cheaper, easier, more convenient, faster... Lower right is for threats - what do you see that could make you obsolete; that could wipe you out. What are your competitors doing that will change things for you... building automobiles, so there will not be horses drawing carriages, so your buggy whips will no longer be needed [unless you can keep them for long enough for them to become valuable collectors items to be sold online at an eBay auction!]. Notice that the top two [Strengths and Weaknesses] relate to matters that are INTERNAL to your family business, while the bottom two [Opportunities and Threats] relate to EXTERNAL matters. A couple of hints here - things that throw our clients off more than anything else when they do a SWOT Analysis...
"OK, we keep it simple, not too much analysis, and stick to what we know... but how can we be sure we don't miss important things in our SWOT Analysis?!" Glad you asked! We have included something that should really help.
Best Practices Benchmarking
Based on the best practices benchmarking of a wide variety of organizations, we set out a complete framework of organizational factors. Browse through them yourself... have others in your organization study them... use them as the basis for your SWOT Analysis... select those that you think are relevant for your analysis... What are the benefits of this approach?
Here's a quick overview of what's in each section... just click on a link to open up a wealth of best practices benchmarking experience! Each section should be considered for issues that might be relevant to your SWOT Analysis.
Leadership StylesDifferent leadership styles are available depending upon concern for profit or concern for production. An imbalance in the concerns tends to sway the leader to a less effective style.Organizational StrategyOrganizational strategy is concerned with envisioning a future for your family business, creating value in the eyes of your customers, and building and sustaining a strong position in the marketplace. This is usually a fertile area for items for your SWOT Analysis.
Organizational DesignOrganizational design assesses the internal structure and systems of the family business, its organization (including staffing structure, internal control systems and the condition and use of information) and its unique skills and abilities. Another fertile area for SWOT Analysis issues.
Organization StructuresOrganization structures are how winning companies do their work better - enable interaction across departmental lines, have sensible and effective reporting relationships, clear lines of authority.
Gap AnalysisProduce Gap Analysis of the critical issues by studying the key elements of these core drivers. Help you and your managers establish an Action Plan to address these critical performance issues. Hours, not weeks or months. A logical follow-on to your SWOT Analysis.
It's a snapshot, but do a SWOT Analysis regularly and review them occasionally to track progress. Your SWOT Analysis is an excellent basis for your initial call to our Managing Director.
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