2- How to use / evaluate SWOT analysis for understanding the project better
What is SWOT analysis? (Alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.
Strengths: characteristics of the business or project that give it an advantage over others.
Weaknesses: are characteristics that place the team at a disadvantage relative to others.
Opportunities: elements that the project could exploit to its advantage.
Threats: elements in the environment that could cause trouble for the business or project
Identification of SWOTs is important because they can inform later steps in planning to achieve the objective.
How to use SWOT Analysis?
1- Create a four box matrix, with one box representing one of each of the categories of the SWOT analysis--strengths, weaknesses, opportunities and threats.
2- Hold a brainstorming meeting with other strategic planners and spend 10 to 15 minutes coming up with ideas to put in each category.
3- Observe the results of the brainstorming and write two or three things that represent the most important ideas from each category. For example, a good brand name, strong customer relationships, intellectual property rights, and supply chain access are great strengths. If the company is lacking in any of these areas, they could be large weaknesses. Opportunities often include things like new customer niches that can be tapped into, new products and technology, or new beneficial legislation. Threats could be unfavorable technology, such as a close substitute to your product or service, unfavorable regulations or bad publicity.
4- Next brainstorm ways to best take advantage or improve each of these important areas. For each strengths, think "How can we make this strength even stronger?" For weaknesses, try to come up with ways to reduce shortcomings, or turn weaknesses into strengths. For opportunities, think of ways that opportunities can be harnessed and turned into strength. Finally, think of ways to eliminate threats, or turn them into opportunities. It is best to tap into people from many different departments, such as legal, finance, human resources and marketing so that the broadest range of considerations is made when brainstorming. Experts from each area will also know how to best implement plans to take advantage of the SWOT results.
5- Use the results of the SWOT session to guide strategic decisions in the business. Over time SWOT results will change as the business environment changes, so it can be useful to hold new brainstorming sessions on a regular basis.