What is SWOT analysis and how is it useful in projects

Many have probably heard of such a tool as SWOT analysis, but few know what it is. And even fewer have actually used it. Let's figure it out and understand how this tool can be useful in projects.

1. What is SWOT analysis

SWOT analysis is a method of strategic planning. It is an analysis of four groups of factors that affect a company/project. The abbreviation SWOT is formed from the abbreviation of words by capital letters:

· S (strengths) – strengths – advantages, strengths, unique characteristics.

· W (weaknesses) – weaknesses – shortcomings, weaknesses that slow down the project.

· O (opportunities) – opportunities – something that can improve the situation in the project.

· T (threats) – threats – potential dangers that may cause the project to suffer.

SWOT analysis consists of two stages. In the first stage, fill in the table shown in the figure below.

Strengths and Weaknesses — internal factors that can be influenced: project team composition, role distribution, prioritization. Opportunities and Threats — external factors that do not depend on us in any way: regulatory factors, provision of information and decision-making by the Customer.

At the second stage, when external and internal factors for SWOT analysis are found, a solution matrix is ​​created. It describes what needs to be done to avoid potential threats or bring the project out of crisis.

2. Who needs SWOT analysis and why

Here's why you can use SWOT analysis in projects:

· understand your strengths and create your uniqueness for the Customer;

· find weak points and understand how to get rid of them – for example, how to improve processes and avoid potential problems;

· assess possible threats and develop a plan to prevent or minimize them;

· define the project goals for the short or long term;

· discover areas in which the project has potential for development and find ways to master them (additional sales to the Customer);

· find out what resources will be needed to successfully implement the project.

What else can be analyzed using SWOT?

There is a SWOT analysis of personality. It is carried out to identify a person's true values ​​and make a development plan for him, find the shortcomings that hinder development and get rid of them.

There is also a SWOT analysis of the profession – it is carried out when choosing a specialty or thinking about career growth. Thanks to the method, you can understand what profession will suit you. For example, whether you will be able to become a manager in the future.

You can even use the tool to buy an apartment or choose a movie to watch together.

3. Types of SWOT analysis of a company

There are two types of SWOT analysis: express and complex. The choice between them depends on the goals of the analysis, as well as the time you are ready to allocate for it.

Complex analysis is a deep study of all aspects of a business/project. Each identified analysis factor and solution is assigned points depending on their importance and impact.

Express analysis is a quick overview of the main characteristics. Points are not assigned for this method of analysis. It is suitable when you need to quickly assess the situation and decide how to proceed.

4. How to conduct a SWOT analysis

Let's look at how to perform an express analysis step by step.

Step 1. Strengths – search for strengths

Strengths — properties of a product, team, project that give you advantages. This could be the most extensive experience on the market, low cost, unique technologies, high SLA, etc.

To find strengths for a SWOT analysis, you can answer the following questions:

· How do you compare to other teams or competitors for the better?

· Why did the Customer choose you (your product)?

· What feedback do you receive from other Customers?

· What competencies and experience does your team have?

· What special technologies do you use? How well are your processes structured?

· How can you expand your influence with the Customer?

Step 2. Weaknesses – search for weaknesses

Weaknesses are anything that hinders the successful promotion of your project. For example, poorly organized testing processes, lack of work with the Customer's expectations, poor development of potential risks.

To find weaknesses for SWOT analysis, you can answer the questions:

· What kind of negative feedback do you receive from Customers?

· In what way is your team worse than others (in your company or in comparison with competitors)?

· What errors constantly occur in business processes?

· What prevents you from completing your assigned tasks?

Step 3. Opportunities

These are factors that can be taken advantage of if the right decisions are made. These can be political, social, technological factors.

For example, the departure of foreign vendors, the discovery of problems at the Customer that you know how to solve.

Step 4. Threats – search for threats

Threats — changes in the environment that may negatively affect the project: the emergence of new team members from the Customer, the introduction of new requirements, new regulatory factors.

The search for threats in SWOT analysis is structured in the same way as the search for opportunities: think about what from the outside could negatively affect the project.

Step 5. Preparing the decision matrix

The SWOT analysis decision matrix contains actions that need to be taken to develop the project. To fill the matrix, you need to compare different groups of factors. You will get four combination options.

S + O – what strengths will help to realize opportunities.

W + O — how weaknesses can prevent you from taking advantage of opportunities. At this intersection, you need to find solutions that will correct the weaknesses and allow you to realize the opportunities.

S + T – how strengths can help protect against threats.

W + T – what weaknesses increase the likelihood that threats will harm the project.

After comparing all the strengths and weaknesses, opportunities and threats, a list of specific solutions is formed: what can be done to successfully implement the project or prevent failure in the future. The solutions found as a result of the analysis are assigned priorities – and they are consistently implemented.

5. SWOT Analysis – Strengths and Weaknesses

Sources: once, two, three

In his channel I write about self-development, project management, how our brain works, psychology, how to deal with procrastination, how to work with information and increase your productivity.