Using SWOT as a Strategy Facilitation Tool

SWOTPROPER FACILITATION OF

SWOT-TOWS BRAINSTORMING

USING

WHEN USED RIGHT, SWOT IS A POWERFUL BRAINSTORMING

TOOL FOR EXPLORING STRATEGY

UNFORTUNATELY, MANY ENTREPRENEURS DON’T KNOW

HOW TO USE IT PROPERLY

AND IN MY EXPERIENCE, SWOT HAS LOST ITS PRACTICAL VALUE

OVER THE YEARS

ME THINKS IT IS TIME FOR A REFRESHER COURSE

A SWOT STARTS BY LOOKING INWARDS

IT ASKS WHAT STRENGTHS & WEAKNESSES DO YOU BRING TO

THE TABLE

BUT IT ALSO CONSIDERS THE EXTERNAL CONTEXT

IT ASKS WHAT OPPORTUNITIES & THREATS ARE IMPACTING YOU

FROM THE OUTSIDE

MISTAKE #1CONFUSING INTERNAL

CAPABILITIES VERSUS EXTERNAL DRIVERS

LET’S LOOK AT AN EXAMPLE…

INTERNAL

EXTERNAL

STRENGTH WEAKNESS

OPPORTUNITIES THREATS

HERE IS A BLANK SWOT TABLE

DRAW ONE OF THESE ON SOME LARGE FLIP CHART PAPER AND TAPE IT TO THE WALL (OR JUST

DRAW ON THE WALLS)

HAVE ALL THE MEMBERS OF THE TEAM INDEPENDENTLY (WITHOUT

TALKING) WRITE SINGLE IDEAS USING POST-IT NOTES & STICK THEM IN THE RELEVANT CELL

HAVE EVERYONE READ AS A GROUP, CLARIFYING AS

REQUIRED, AND MERGING DUPLICATES

WARNING: IN THIS PROCESS, YOU’LL FIND SOME EXAMPLES OF THREATS &

OPPORTUNITIES THAT ARE ACTUALLY INTERNAL RATHER THAN EXTERNAL, SO YOU’LL NEED TO REPHRASE THEM OR

MOVE THOSE IDEAS TO STRENGTH/WEAKNESS

WARNING: MAKE SURE THAT EVERYONE HAS A CHANCE TO SPEAK UP AND THAT EVERYONE FULLY UNDERSTANDS EACH

IDEA

YOU’LL END UP WITH SOMETHING LIKE THIS

INTERNAL

EXTERNAL

STRENGTH WEAKNESS

OPPORTUNITIES THREATS

Unique domain skills in our market

Strong existing client

relationships

Ahead of the competitors by

6-9 months

Mature R&D program

Sufficiently sized financial

war chest

High key-man risk

Product-Market fit in

new segments

Internal politics &

bureaucracy

Still lack strategic alliances

Strong, new entrants

Potential regulatory changes Weak macro-

economics

Traditional competitors

moving down into our segment

Labour shortage in local market

Emerging HNW Insurance segment

Growth in Asia

Maturity of Mobile / Social /

IoT

High levels of cash holdings in target segment

HOWEVER, THOUGH INTERESTING, THERE WILL BE NO THOUGHTFUL PRIORITIZATION AT

THIS STAGE

MISTAKE #2NOT PRIORITIZING IDEAS

AS A GROUP YOU NEED TO PRIORITIZE (FORCE-RANK) THE

ITEMS IN EACH CELL

TO DO THIS, USE THE WISDOM-OF-CROWDS

START BY GIVING EVERYONE 10 VIRTUAL DOLLARS

ASK EACH PERSON TO INVEST SOME OR ALL OF THEIR $10 INTO THE IDEAS IN EACH CELL BASED ON HOW IMPORTANT THEY FIND

THE IDEA(THE FACILITATOR CAN SERVE AS THE BOOKIE)

EVERYONE MUST SPEND ALL THEIR MONEY

YOU CAN SPEND $1 ON AN IDEA, OR ALL $10, OR ANYTHING IN

BETWEEN(BUT REMEMBER OTHERS ARE INVESTING TOO, SO SPEND WISELY)

HERE IS AN EXAMPLE OF WHAT THE OUTPUT MIGHT LOOK LIKE

FOR THE STRENGTHS CELL, GIVEN A TEAM OF 5 ($50)

INTERNAL

EXTERNAL

STRENGTH WEAKNESS

OPPORTUNITIES THREATS

Unique domain skills in our market

Strong existing client

relationships

Ahead of the competitors by

6-9 months

Mature R&D program

Sufficiently sized financial

war chest

High key-man risk

Product-Market fit in

new segments

Internal politics &

bureaucracy

Still lack strategic alliances

XXX

Strong, new entrants

Potential regulatory changes Weak macro-

economics

Traditional competitors

moving down into our segment

Labour shortage in local market

Emerging HNW Insurance segment

Growth in Asia

Maturity of Mobile / Social /

IoT

High levels of cash holdings in target segment

$25

$14$6

$4

$1

AT THE END OF THE EXERCISE, YOU’LL HAVE GROUP-DEFINED

PRIORITIES

GO THROUGH ALL CELLS AND RE-SORT IDEAS ACCORDING TO THE

PRIORITIES(FOCUS ON THOSE THAT NATURALLY BUBBLED UP BASED ON INVESTMENT

SIZES. IF YOU HAVE A LARGE ENOUGH TEAM, THERE WILL BE OBVIOUS WINNERS & LOSERS THANKS TO STATISTICS)

INTERNAL

EXTERNAL

STRENGTH WEAKNESS

OPPORTUNITIES THREATS

1. Strong existing client relationships

2. Unique domain skills Mature R&D program

3. Sufficiently sized financial war chest

4. Mature R&D program5. Ahead of the competitors

1. High key-man risk2. Product-Market fit in new segments3. Still lack strategic alliances4. Internal politics & bureaucracy

1. Strong, new entrants2. Traditional competitors moving down

into our segment3. Labour shortage in local market4. Weak macro-economics5. Potential regulatory changes

1. Emerging HNW Insurance segment

2. Maturity of Mobile / Social / IoT

3. High levels of cash holdings in target segment

4. Growth in Asia

NOW IT IS TIME TO DEVELOP ACTIONABLE SMART OBJECTIVES

USING A TOWS DIAGRAM

SMART ACTION ITEMS ARE:SPECIFIC

MEASURABLEACHIEVABLE

RELEVANT (TO STRATEGY)TIMELY

IN A TOWS DIAGRAM, YOU SHIFT THE SWOT CELLS TO THE OUTSIDE OF A NEW GRID

STRENGTH1. Strong existing client

relationships2. Unique domain skills

Mature R&D program3. Sufficiently sized financial

war chest

WEAKNESS1. High key-man risk2. Product-Market fit in new

segments

OPPORTUNITIES1. Emerging HNW

Insurance segment2. Maturity of Mobile /

Social / IoT

THREATS1. Strong, new entrants2. Traditional

competitors moving down into our segment

3. Labour shortage in local market

INSIDE THE GRID, YOU ARE LOOKING TO DEVELOP SMART

ACTION ITEMS THAT LEVERAGE THE SWOT ACCORDING TO THE

FOLLOWING RULES

SMART ACTIONS TO USE STRENGTHS TO DELIVER OPPORTUNITY

SMART ACTIONS TO ENSURE WEAKNESS DOES NOT UNDERMINE OPPORTUNITY

SMART ACTIONS TO USE STRENGTHS TO COUNTER THREATS

SMART ACTIONS TO ENSURE WEAKNESS DOES NOT HELP MANIFEST THREAT

STRENGTH1. Strong existing client

relationships2. Unique domain skills

Mature R&D program3. Sufficiently sized financial

war chest

WEAKNESS1. High key-man risk2. Product-Market fit in new

segments

OPPORTUNITIES1. Emerging HNW

Insurance segment2. Maturity of Mobile /

Social / IoT

THREATS1. Strong, new entrants2. Traditional

competitors moving down into our segment

3. Labour shortage in local market

MISTAKE 3STRATEGY ACTION ITEMS MUST

BE SMART

GOOD LUCK, I HOPE YOU FIND SWOT-TOWS USEFUL AS YOU DEFINE AND EVOLVE YOUR

STRATEGY

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