Leverage success with a SWOT analysis

It is always said that we need to concentrate on the right priorities to achieve success. But most of us are at a total loss when it comes to what exactly to focus on!

An effective framework for visioning, developing and confirming your goals is through a SWOT analysis – an acronym for Strengths, Weaknesses, Opportunities and Threats.

Carrying out a SWOT analysis involves identifying internal strengths and weaknesses as well as examining external opportunities and threats, and then seeing how they relate to each other. This interesting insight alerts you to your weaknesses so that no threat can catch you unawares any longer.

With little thought, you can understand your strengths and uncover the greatest opportunities, that you are well placed to take advantage of and thus achieve your goals. Thereby, it enables proactive thinking, rather than relying on habitual or instinctive reactions

SWOT analysis is a flexible concept that can be used in various scenarios from assessing projects or business ventures, making decisions, solving problems, evaluating candidates for a position to marketing strategy formulation. It also shows it efficacy as a valuable career-planning tool.

Therefore, in a business context, organisations can analyse strategic propositions and match their resources and capabilities to the competitive environment in which they operate. Gaining a better understanding of how to relate to the external situation will also enable them to carve a sustainable niche in the market.

And, when used to map a personal profile, it ensures that people are working as effectively as possible and develop their careers in a way that takes the best advantage of their talents, abilities and opportunities.

Here’s how to take an inventory of the four components:

Strengths

These are the internal attributes that add value and give you a competitive edge over others (be it companies or colleagues). So, take an objective look at:

• What do you do well?

• What is your USP?

• What advantages you have over others?

• What relevant resources you have access to?

The tangible and intangible assets, skills or resources can range from track record, specialist expertise, good communication, creativity or ability to quickly respond to change in the individual context to strong market share, organisational structure, quality equipments, loyal customers or innovative products in the broader segment. One distinguishing feature for identifying these positive aspects is that they are always useful in achieving objectives.

Weaknesses

Its time for a reality check, be realistic and focus on the harmful gaps in your capabilities. Though these factors may detract from your abilities, they are well within your control. Think in terms of:

• What are you doing badly?

• What should you improve?

• What should you avoid?

Examine them from your own point of view as well as what others see as your weaknesses.

The unpleasant truths may include but are not limited to shallow skills, inability to achieve results, lack of experience, inferior service, damaged company reputation or poor business location.

Opportunities

Analyse external attractive factors facing you like positive market trends and try to uncover greater potential.

Even studying your strengths or looking to eliminate weaknesses can open up a window of new opportunities. They may comprise an expanding job, new markets and other prospects for further development.

Threats

Threats are external obstacles in your path that are largely beyond your control. They are characterised by unfavourable trends like downsizing, obsolescence, price wars, competitors with superior skills/products, shifts in consumer tastes and changing technology. Yet, what constitutes opportunities and threats is largely subjective, as a situation like ‘an unfulfilled consumer need’ can be an opportunity for a company that can meet that need while a threat to those that cannot!

On the whole, a formal SWOT analysis not only increases your awareness of the unique situation you or your firm is in (both in terms of pointing out what needs to be done and in putting problems into perspective). But it will also provide you a roadmap to maintain, build and leverage your strengths as well as deter or eliminate weaknesses so as to pursue, exploit and capitalise on the opportunities even while avoiding, countering or at least defending against potentially devastating threats.

In the words of a top consultant, “It gives a comprehensive concept of internal and external factors and how to creatively and innovatively develop a strategy that is directional, cost-effective and of course executable.’

Individuals can reflect on their own SWOT to find a job that suits their strengths and where weaknesses can be minimised or even overcome, whereas companies can easily identify a fit between their strengths and the upcoming opportunities. This helps them to distinguish where they are today and where they can go in the future.

Therefore, this is an encouragement to still do better and an important step in finding career/company direction!

PAYAL CHANANIA

faqs@cnkonline.com

(tHE hINDU, oPPORTUNITIES, 07:01:2009)
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