5 common mistakes in doing a SWOT analysis
The SWOT analysis is one of the most common diagnostic tools used in business. Its four simple perspectives provide a framework which is easy to follow and yet the tool is so often misunderstood.
SWOT – Strengths, Weaknesses, Opportunities and Threats.
The Strengths and Weaknesses are internal factors, the opportunities and threats are external factors. Some advocate the use of PRIMO-F to identify Strengths and Weaknesses and PESTLE for external factors…
Simple rules for a successful SWOT analysis
- Be realistic about the strengths and weaknesses of your organization
- The Analysis should distinguish between where your organization is today, and where it could be in the future.
- Be specific. Avoid grey areas
- Always analyse in relation to your competition i.e. better than or worse than your competition
- Keep your SWOT short and simple – but only as short and simple as the application or situation demands – it is about ‘fitness for purpose’
- Avoid unnecessary complexity and over analysis
- There is little point in listing an Opportunity (O) if the same opportunity is available to competitors
- It is pointless to say you have Strengths (S) if your competitors have the same
The Top 5 mistakes:
- An unclear goal
- Maintaining too narrow of a focus
- Neglecting input from others
- Performing an analysis only once
- Reliance on SWOT as a holistic diagnostic strategy
A concise SWOT Analysis
Keep your SWOT analysis short and focused. If it becomes too long-winded, you’ll soon forget some of the more important points and it will become less effective in the long term.
Great SWOT Strengths
When considering your SWOT strengths, it’s all too easy to congratulate yourself and identify what you think it is that makes you great. Instead, flip the coin and consider what it is that your customers do/will think are your strengths.
Few Weaknesses
Having written a long list of SWOT based strengths for your organization, it’s also very easy to become a bit jaded and quickly fly over your weakness, without a critical eye. As a result, count up the number of SWOT based strengths, and then write twice as many weakness. This will force you to take a deeper look at the areas that you need to improve.
Opportunities
By considering your SWOT analysis based opportunities, you get to play god with your future. It’s all too easy to look at opportunities with rose-tinted glasses and predict opportunities that don’t actually exist. Instead, look at the opportunities that are available to you today.
Threats
Again, as with SWOT weaknesses, when you consider your SWOT threats, you have to take a cold hearted look at some of the things that you’d probably rather ignore.
Conclusion
The SWOT is a valuable tool that in the right hands and with the appropriate level of effort can provide a valuable insight into current and future strategy.
Remember to consider the results of the SWOT analysis as just one tool in a variety of analysis methods that can form together to create a more realistic analysis of your organization
© RapidBI.com This article has been written by Mike Morrison or one of the RapidBI team. We welcome your comments. If you wish to use any text you are free to do so, however please credit us and link to our site.
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Related posts:
- 5 common mistakes in SWOT analysis
- 5 common mistakes in doing a PESTLE analysis
- SWOT analysis
- SWOT analysis for schools and education
- SWOT or SOAR? – Strategy and tools in business
16 Responses to “5 common mistakes in doing a SWOT analysis”
Trackback from davidzinger (David Zinger)
Time May 25, 2009 at 02:46
@rapidbi RT5 common mistakes in SWOT analysis: [link to post]. We should do a SWOT of SWOT
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Trackback from mopartnersceo (Gary M. Katz)
Time May 25, 2009 at 02:52
RT @rapidbi: 5 common mistakes in doing a SWOT analysis (1 of the most common diagnostic tools used) [link to post]
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Trackback from anitasantiago (anita santiago)
Time May 25, 2009 at 03:58
RT @rapidbi: 5 common mistakes in doing a SWOT analysis: The SWOT analysis is one of the most common.. [link to post]
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Trackback from grazianig (Gianni Graziani)
Time July 26, 2009 at 21:25
5 common mistakes in doing a SWOT analysis by @rapidbi [link to post]
Trackback from projektlotse (andrea hammer)
Time July 28, 2009 at 09:09
RT @rapidbi 5 common mistakes in doing a SWOT analysis [link to post] plus guide http://www.rapidbi.com/created/SWOTanalysis.html
Trackback from garrymumford (Garry Mumford)
Time July 28, 2009 at 09:13
RT @rapidbi: New article- 5 common mistakes in doing a SWOT analysis [link to post]
Trackback from MelonScooter (MelonScooter)
Time July 28, 2009 at 09:32
RT @rapidbi New article- 5 common mistakes in doing a SWOT analysis [link to post]
Trackback from shanetechteach (shanetechteach)
Time July 28, 2009 at 09:34
@rapidbi sounds interesting. Will gave to give that a read.
Trackback from dennydov (Denis Do)
Time July 28, 2009 at 13:38
RT @StartupLab 5 common mistakes in doing a SWOT analysis [link to post]
Trackback from dennyua (Denis Do)
Time July 28, 2009 at 13:39
RT @StartupLab 5 common mistakes in doing a SWOT analysis [link to post] less than 5 seconds ago
Trackback from startuplab (Startup-Lab)
Time July 28, 2009 at 14:31
5 common mistakes in doing a SWOT analysis [link to post]
Trackback from Usoltsev (Oleg Usoltsev)
Time July 28, 2009 at 14:43
@dennydov The most critical mistake of SWOT analysis is to forget to answer the question: what to do with all that stuff after analysis?
Trackback from magnusearch (Michael Seals)
Time July 29, 2009 at 06:25
RT @StartupLab 5 common mistakes in doing a SWOT analysis [link to post] – just what I was looking to compare #ppc B.M. solutions
Pingback from 6 Creative Ways to Stand Out in the Job Search! – Unlimited Job Postings powered by Job Board Engine
Time August 17, 2009 at 17:42
[...] SWOT is a strategic planning tool. It stands for Strengths (attributes helpful to achieving the objective), Weaknesses (attributes harmful to achieving the objective), Opportunities (external conditions that will be helpful to achieving the objective), and Threats (external obstacles or conditions that will harm the process). Look at the picture–it helps. Doing a SWOT analysis on the company demonstrates your drive, commitment, and skills, along with helping you create a better 30/60/90-day plan. Click this link for advice on how to do one and avoid mistakes. [...]
Pingback from 6 Creative Ways to Stand Out in the Job Search! (guest blog by Peggy McKee « Corn On The Job)
Time August 27, 2009 at 04:17
[...] SWOT is a strategic planning tool. It stands for Strengths (attributes helpful to achieving the objective), Weaknesses (attributes harmful to achieving the objective), Opportunities (external conditions that will be helpful to achieving the objective), and Threats (external obstacles or conditions that will harm the process). Look at the picture–it helps. Doing a SWOT analysis on the company demonstrates your drive, commitment, and skills, along with helping you create a better 30/60/90-day plan. Click here for advice on how to do one and avoid mistakes. [...]
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Trackback from garygorman (Gary Gorman)
Time May 24, 2009 at 23:12
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RT@rapidbi 5 common mistakes in doing a SWOT analysis: The SWOT analysis is one of the most common dia.. [link to post]
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