The SWOT analysis is one of the most common diagnostic tools used in business. It’s four simple perspectives provide a framework which is easy to follow and yet the tool is so often misunderstood. Why do so many people make these common 5 mistakes in SWOT analysis implementations?
Lets remind ourselves what this is – SWOT = Strengths, Weaknesses, Opportunities and Threats.
5 common mistakes in doing a SWOT analysis
The Strengths and Weaknesses are internal factors. The opportunities and threats are external factors.
Some experienced practitioners in the consulting and business strategy world advocate the use of PRIMO-F to identify Strengths and Weaknesses and PESTLE for external factors…
so it is said that:
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 in doing a SWOT Analysis:
- 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 mistakes in SWOT analysis implementations
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
A Guide to SWOT analysis The SWOT analysis is one of the most common diagnostic tools used in business.
There are 5 common mistakes in SWOT analysis implementations. 5 common mistakes in doing a SWOT analysis – page reviewed March 2016
theLBSS says
30/08/2012 at 01:45Useful Blog post: http://t.co/84Ared81 #biz
theLBSS says
03/02/2012 at 09:20Useful Blog post: http://t.co/84AvLNhb #biz
theLBSS says
07/01/2012 at 05:05Useful Blog post: http://t.co/84AvLNhb #biz
chet stevenson says
06/01/2012 at 15:275 common mistakes in doing a SWOT analysis http://t.co/4s94H1gB
Mike D Morrison says
06/01/2012 at 14:395 common mistakes in doing a SWOT analysis http://t.co/4s94H1gB
theLBSS says
30/08/2011 at 16:45Useful Blog post: #hr
Paul Medley says
09/04/2011 at 23:37Doing a SWOT Analysis
Paul Medley says
30/03/2011 at 10:475 common mistakes in SWOT analysis | RapidBI – Rapid Business Improvement
Mike says
22/12/2010 at 16:20Historical article from our blog- https://rapidbi.com/5-common-mistakes-in-doing-a-swot-analysis/
andrea hammer says
28/07/2009 at 09:05RT @rapidbi 5 common mistakes in doing a SWOT analysis plus guide https://rapidbi.com/SWOTanalysis
Josh M says
25/05/2009 at 13:00RT @MLMLeadership 5 common mistakes in SWOT analysis | Management, Leadership …
anveso says
25/05/2009 at 12:395 common mistakes in SWOT analysis
MLM LeadershipCourse says
25/05/2009 at 12:305 common mistakes in SWOT analysis | Management, Leadership …
anita santiago says
25/05/2009 at 03:53RT @rapidbi: 5 common mistakes in doing a SWOT analysis: The SWOT analysis is one of the most common..
Gary M. Katz says
25/05/2009 at 02:49RT @rapidbi: 5 common mistakes in doing a SWOT analysis (1 of the most common diagnostic tools used)
David Zinger says
25/05/2009 at 02:40@rapidbi RT5 common mistakes in SWOT analysis: . We should do a SWOT of SWOT
Jennifer Navarro says
25/05/2009 at 00:46RT @rapidbi New Management, Leadership & Business Articles-5 common mistakes in doing a SWOT analysis #lt
Beth N. Carvin says
24/05/2009 at 23:46RT@rapidbi "5 common mistakes in doing a SWOT analysis" #HR ~ME: We used exit interview data to create SWOT.