SWOT Analysis
"Ask the Expert" Transcripts
"Ask the Expert - SWOT Analysis" by Dr. Jim Galvin
February 18, 2004
Bill Freeman, NRC Moderator
Actual Transcript – Duration 50 Minutes
Moderator (Feb 18, 2004 3:02:06 PM)
Welcome. My name is Bill Freeman and I am the NRC Knowledge Manager, and today's Moderator.
Moderator (Feb 18, 2004 3:03:33 PM)
We are pleased and excited that you have agreed to participate in our second Ask the Expert online training on SWOT Analysis.
First off, don't worry - this is an easy thing to do. There are three roles in this session: Dr. Jim Galvin is today's Expert; I am the Moderator; and you are the discussion participants.
Jim will take the lead and present the session. This includes providing information, answering questions and feeding discussions.
As the Moderator, I am like a switchboard operator. When you ask your questions they are presented to me, (you won't see them). I will then review your questions and send them on to Jim. For most questions, I will post them live for all of us to see and for Jim to respond.
You are the discussion participants. This session is for you. When you want to ask questions, just type them in the bottom panel on the screen. Now don't bother taking notes. This session has an afterlife! Following this discussion, we will email you a full transcript of the session (simple edits).
Jim Galvin (Feb 18, 2004 3:05:05 PM)
Bill, thanks for inviting me today. "Ask the Expert" is an imposing title for this chat. I think I'd feel more comfortable if they called this "Ask the Reasonably Proficient."
Jim Galvin (Feb 18, 2004 3:05:36 PM)
I'll post some introductory material and then feel free to let your questions fly.
Jim Galvin (Feb 18, 2004 3:05:53 PM)
What is SWOT? A SWOT analysis is a simple tool you can use to help people think more strategically about their organization. The letters S-W-O-T stand for Strengths, Weaknesses, Opportunities, and Threats.
You will find SWOT to be a handy and helpful tool in a wide range of situations:
- You can use it to help FBO/CBOs take a fresh look at their current situation
- Teach FBO/CBOs how to do strategic planning
- Troubleshoot a FBO/CBO stuck on a plateau or in decline
- Assess an organization applying for a sub-award
- Lead a management team through a self-assessment
Of course, you can also conduct a SWOT analysis within your own organization.
It provides an easy way to organize systematic group reflection. It can help you and all of your staff to "get on the same page." SWOT is used worldwide in all kinds of
organizations.
Jim Galvin (Feb 18, 2004 3:06:39 PM)
How do you conduct a SWOT analysis?
Using a chalkboard, whiteboard, or a large flipchart, create a simple grid with four sections by drawing one vertical line and one horizontal line. This grid will have two large boxes on top and two on the bottom. Label the top left quadrant Strengths, top right Weaknesses, bottom left Opportunities, and the bottom right Threats.
Jim Galvin (Feb 18, 2004 3:06:48 PM)
Strengths are everything the organization does well. Weaknesses are areas needing improvement. Opportunities are possibilities that exist outside of the organization. Threats are dangers that loom.
A key to using SWOT is to understand that Strengths and Weaknesses are internal to the organization, and Opportunities and Threats are external. Work through the boxes one at a time. Start with Strengths and then move to Weaknesses. When you have exhausted these categories, move to Opportunities and save Threats until last.
Jim Galvin (Feb 18, 2004 3:07:24 PM)
After filling the four quadrants, you look for ways to build on the Strengths, minimize or cover Weaknesses, seize Opportunities, and protect against Threats. Next, compile these action steps into a practical strategy for the organization.
Moderator (Feb 18, 2004 3:09:07 PM)
Does an organization need to be a particular size to do a SWOT? I mean, can a small organization do one? Do they need one?
Jim Galvin (Feb 18, 2004 3:10:20 PM)
SWOT works with any size organization, large or small. It can be used by individuals as well as management teams. I saw one Web site recommending it as a useful tool for career planning for individuals, too.
Lisa National Resource Center (Feb 18, 2004 3:11:16 PM)
Who should be involved in a SWOT analysis from the organization?
Jim Galvin (Feb 18, 2004 3:12:48 PM)
The group involved can be large or small. For example, one group may only want to involve the top management team. Another may decide only to include paid staff. You can also use this in a large group-facilitated meeting where you break down into smaller groups and report out to the larger group.
Jim Galvin (Feb 18, 2004 3:13:07 PM)
It's a flexible and simple tool with many uses.
Peter Mennonite Economic Development (Feb 18, 2004 3:13:15 PM)
I'm doing a SWOT with a focus group tomorrow. Any suggestions about breaking the ice with a group and making sure that people are willing to say everything they need to about the organization.
Jim Galvin (Feb 18, 2004 3:14:52 PM)
You are talking about the human dynamics in the situation. If a team cannot talk honestly and openly about their organization, then you will have a superficial time using SWOT. I think you have to take their temperature before you begin.
Moderator (Feb 18, 2004 3:15:51 PM)
That sounds pretty political. How would you recommend "introducing" the concept to management? Or to stakeholders?
Jim Galvin (Feb 18, 2004 3:17:33 PM)
I would simply ask them if they want to have a strategic conversation about their organization. You don't have to describe the tool ahead of time unless they want to know what you intend to present.
Juvy Christian Community Health Fellowship (Feb 18, 2004 3:17:50 PM)
Hello. Just joining in. I know that SWOT is for Strengths, Weaknesses, Opportunities, & Threats, but is there some kind of basic starting point (i.e., how do you get started)?
Jim Galvin (Feb 18, 2004 3:19:28 PM)
Hi Juvy, where to start? You will want to draw the grid on the board. You might explain all four quadrants to give people a roadmap as to where they are heading. But then just jump right in with Strengths.
Jim Galvin (Feb 18, 2004 3:19:43 PM)
Here are some examples of questions to use for generating discussion around Strengths:
- What are we really good at here?
- What do we do well compared to similar organizations?
- What do other people think we are good at?
Moderator (Feb 18, 2004 3:20:39 PM)
Why is starting with Strengths the best place? Isn't the point of this to fix problems?
Jim Galvin (Feb 18, 2004 3:20:50 PM)
Starting with the Strengths quadrant is important for three reasons.
- First, it allows you to draw on principles of Appreciative Inquiry (AI). In AI, you look around for what is going right and ask what it would take to do more of that. All organizations tend to discount their strengths. Spending time in this quadrant first releases positive energy in a team by reinforcing what is going right and what you do well. A sound strategy will build on these Strengths.
- Second, Weaknesses is easy. Almost every staff person can tell you what is wrong with their organization. Some will want to fix these problems before moving on with the rest of the analysis. If you start with Weaknesses you might get stuck and never get back to Strengths.
- Third, Opportunities and Threats are external to the organization and tend to be more difficult for some staff to reflect on. Get the first two quadrants done and then help them adjust their thinking to what lies outside of the organization.
Juvy Christian Community Health Fellowship (Feb 18, 2004 3:21:43 PM)
Thanks! When you've gathered the details, where do you go from there?
Jim Galvin (Feb 18, 2004 3:23:37 PM)
Good question, Juvy. First, fill in all four quadrants. Then, when you have gathered many observations, help the group figure out how to build on their Strengths, cover their Weaknesses, seize Opportunities, and minimize Threats.
Lisa National Resource Center (Feb 18, 2004 3:23:48 PM)
Jim, sometimes when I've done SWOTs, I've given out sticky notes and asked people to work individually or in teams to come up with ideas--all ideas are good ones (that's a ground rule). People then can come up with ideas in a set period of time and then share them with the group. We then review all the ideas, pull out the duplicates, and then prioritize the rest. What do you think about that process?
Jim Galvin (Feb 18, 2004 3:25:39 PM)
Lisa, you must be an advanced user! Using sticky notes works well with small or large groups. You can also rearrange the post-its into categories after putting them on the wall. You can use different colors for each quadrant. I like using pink for Threats.
Jim Galvin (Feb 18, 2004 3:26:37 PM)
Here are some questions to use for Weaknesses: What are we not proficient at? Where do we need some help? What do we need to learn more about?
Jim Galvin (Feb 18, 2004 3:26:46 PM)
Here are some questions for Opportunities: What new possibilities are we seeing in our environment? What changes are happening that we like? What new resources are we finding?
Jim Galvin (Feb 18, 2004 3:26:58 PM)
Here are some questions for Threats: What obstacles are we facing? What could make life more difficult for us? What "storm clouds" are forming on the horizon?
Moderator (Feb 18, 2004 3:27:27 PM)
What if people don't see any Threats?
Jim Galvin
Yes, that's a tough one. Some nonprofits think they have no competition of any kind. They don't realize that they must compete for resources. If Threats don't work, try using Obstacles or Barriers. Basically, anything in the external environment that is getting in the way or has the potential to get in the way.
Moderator (Feb 18, 2004 3:30:16 PM)
So often, nonprofits only see other nonprofits as their competitors (and that competition limited to money). How do you help organizations see that for-profits are also competitors.
Jim Galvin (Feb 18, 2004 3:32:18 PM)
Good point. Tell some stories. I know of one organization that accepted donations of used clothing that they resold in their resale shop. They were the biggest resale operation in the city. Then a for-profit resale shop opened up, organized clothing better, charged more, and almost put them out of business. Planning would have put them in a far better position to respond to this external Threat.
Jim Galvin (Feb 18, 2004 3:34:31 PM)
Back to Peter's question about ice breakers before starting, I think that is always a good idea. People have to feel comfortable with each other and with you as the facilitator for them to open up and be honest about the current situation.
Wayne National Resource Center (Feb 18, 2004 3:35:01 PM)
When conducting a SWOT analysis, do you recommend converting S's to W's and T's to O's, or is it a tool to inventory where an organization is at? Also, how often do you recommend carrying out SWOT analyses?
Jim Galvin (Feb 18, 2004 3:37:12 PM)
Wayne, yes, finding connections between the boxes is the next step. How can you build on the Strengths? How can you use Strengths to cover Weaknesses? How can you use Strengths to seize opportunities? How can you use your strengths to minimize Threats?
Yvonne CJH Educational Grant Services (Feb 18, 2004 3:37:29 PM)
Wouldn't it be possible for some of the other non-profits to move from being "Threats" to becoming a "Strength" by collaborating together?
Jim Galvin (Feb 18, 2004 3:38:39 PM)
Hi Yvonne. Yes, collaboration and partnerships are great ways to cover Weaknesses. You can also work together to change the relevant environment to mitigate Threats. Nice observation.
Moderator (Feb 18, 2004 3:41:05 PM)
What are the mistakes people tend to make doing a SWOT? Is there anything particular to watch out for?
Jim Galvin (Feb 18, 2004 3:41:16 PM)
One mistake people sometimes make is to stop after filling in the squares. After completing all four quadrants, the next step is to look for action steps that will allow the organization to:
- Build on Strengths
- Minimize Weaknesses
- Seize Opportunities
- Counteract Threats
This is the point where you move from analysis to strategy-making. The action steps become the basis for developing a sound and effective strategy for moving forward. After all if SWOT analysis doesn't turn into actions, the whole exercise is useless.
Moderator (Feb 18, 2004 3:44:43 PM)
What is the hardest quadrant?
Jim Galvin (Feb 18, 2004 3:46:25 PM)
I've found that Opportunities and Threats to be more difficult for some people. Strengths and Weaknesses focus on the internal workings of the organization. Opportunities and Threats are both internal and external. Some people have a hard time thinking about the external environment, even some executive directors.
Moderator (Feb 18, 2004 3:46:58 PM)
Our time is getting short, let's have just one more question. Any burning questions?
Juvy Christian Community Health Fellowship (Feb 18, 2004 3:48:25 PM)
You've all given great information. Is this chat recorded (in a document) somewhere?
Moderator (Feb 18, 2004 3:49:28 PM)
Yes, Juvy. This session has an afterlife! Following this discussion, we will email you a full transcript of the session (simple edits for typos and grammar). It will also be part of the next e-newsletter, and posted on the private site!
Jim Galvin (Feb 18, 2004 3:49:34 PM)
Also, here are a few helpful Web sites that provide a basic overview of how to conduct a SWOT analysis:
Jim Galvin (Feb 18, 2004 3:49:57 PM)
In closing, here are some more practical tips for using SWOT with FBO/CBOs:
- Start with Strengths.
- Help them be realistic in judging their Strengths and Weaknesses.
- Remember that a Strength can also become a Weakness.
- Work hard on spotting Opportunities and potential Opportunities.
- Ask about obstacles if the team senses no Threats.
- Use short and simple phrases on the grid.
- Contribute your perspective as an outsider.
- After completing the grid, move to strategic actions they can take now.
Moderator (Feb 18, 2004 3:50:58 PM)
Thank you for participating in today's session. As always, we are here to help you anyway that we can. Good-bye.
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