Practically everyone who is in business has heard of SWOT analysis. It’s where you evaluate your company’s Strength, Weaknesses, Opportunities, and Threats. It’s a very helpful tool—and as a business coach, I use it frequently with my clients.
It’s important, however, to recognize what SWOT analysis is not. Doing a SWOT exercise isn’t like swallowing a magic pill. The process of identifying your strengths, weaknesses, opportunities, and threats won’t make your company better.
That’s because SWOT analysis is a diagnostic tool. It helps you figure out where you are, what you’re good at, and where you’re vulnerable. You have to take the steps to make things different. You have to take advantage of your strengths and opportunities. And you have to work on your weaknesses and threats. The good news is, that once you’ve identified those things, you can come up with plans. And there are tools (and coaches!) to help you achieve those goals.
Don’t let the thought that you might have weaknesses scare you off. Every business has them—even those that we sometimes hold up as shining examples of business excellence. A recent Techcrunch article highlighted the weaknesses of such powerhouses as Apple, Google, Facebook, and Microsoft. The article is worth reading, but here (in very abbreviated form) are what the author cites as the major weaknesses of each company.
- Apple: Doesn’t seem to understand the Cloud
- Google: “One-trick-pony” (Search) when it comes to revenue
- Facebook: No meaningful links to the open Web
- Microsoft: Weak when it comes to mobile
The point isn’t to pick on these companies or to glory in their shortcomings. These are all very successful companies—but they still have weaknesses. And these weaknesses could undermine their future success (Venture capitalist Fred Wilson recently speculated that Apple will not be a top-3 tech company by 2020).
The point is that you can’t address a weakness that you don’t know about (or acknowledge). That’s where SWOT analysis comes in. It’s a diagnostic tool that helps you identify strengths and weaknesses; threats and opportunities. Knowledge may be power—but only when you use it to take action.
What do you know about your business—and what are you doing about it?
Need help growing your business? With over 35 years of experience and thousands of companies assisted, Chuck Kocher and The Transformation Company can help you scale your business into a truly exceptional business capable of high growth strategies. Businesses are always changing, don’t let yours be left behind. Stand out with our business and executive leadership programs – designed to challenge and improve your business. Your business will thank you for it. Contact me today for a free consultation! 719-339-9505