| A SWOT analysis is a well established and particularly | | | | on in the process improvement program. As in |
| useful approach for helping decision makers | | | | strategic planning, my goal early on is to help my |
| determine if their strategic business objectives are | | | | client focus on the objective and determine under |
| achievable. It is normally conducted during strategic | | | | what circumstances that objective is attainable. Also, |
| planning and, as the name implies, it is used to quickly | | | | as in strategic planning, the SWOT analysis and |
| identify a company's Strengths, Weaknesses, | | | | supporting diagram drive subsequent process |
| Opportunities, and Threats. A SWOT analysis is | | | | improvement steps. |
| essential because subsequent steps in the planning | | | | Once the strategic process improvement objective is |
| process are derived from SWOT. | | | | identified and quantified (a fundamental rule for any |
| To set the stage for showing how a SWOT diagram | | | | Six Sigma engagement), I begin to populate the |
| is useful in improving business processes, one must | | | | SWOT diagram. SWOT quadrant names remain the |
| first understand how it is typically used to support a | | | | same but the definitions are modified to fit a process |
| SWOT analysis during strategic planning. | | | | improvement model. Strengths now identify the |
| A SWOT diagram is a rectangular diagram, divided | | | | current strengths in the existing process and/or the |
| into four quadrants, used to articulate the results of | | | | desired strengths of a new process. An example of |
| a SWOT analysis. The top left quadrant identifies a | | | | an existing or desired strength might be subject |
| company's strengths. Strengths are those attributes | | | | matter expertise that gives the company a strategic |
| that aid in achieving the strategic business objective. | | | | process advantage. Weaknesses now identify |
| An example of a strength might be current market | | | | weaknesses in the existing process model or |
| share of a product. The top right quadrant identifies | | | | potential weaknesses to achieve desired objectives. |
| a company's weaknesses. Weaknesses are identified | | | | An example of a weakness might be a lack of |
| as inhibitors to achieving the strategic business | | | | subject matter expertise, technology, or information |
| objective. An example of a weakness might be | | | | that is critical to the operation of a new or improved |
| insufficient capital to ramp up marketing. The bottom | | | | process. Opportunities now identify conditions that will |
| left quadrant identifies a company's opportunities. | | | | help make the strategic objective attainable. An |
| Opportunities are conditions that are helpful in | | | | example of an opportunity might be seamless supply |
| achieving a company's business objective. An | | | | chain integration due to the installation of a new |
| example of an opportunity might be a relaxation of a | | | | computer system. Threats now identify competitive |
| government regulation that enables the company to | | | | threats, regulatory risk, and a "bottom line" analysis if |
| enter a new market. The lower left quadrant is used | | | | we fail to act. I always ask the question "If we fail |
| to identify a company's threats. Threats are normally | | | | to act, what impact will it have on the customer, our |
| external conditions that can derail a company's | | | | company, and our employees?" |
| strategic business objective. An example of a threat | | | | In conclusion, SWOT diagrams are a valuable tool for |
| may be the development of a similar product by a | | | | defining the initial requirements for improving |
| competitor. Each of the four quadrants is further | | | | processes. They significantly improve communication |
| subdivided into "Internal Attributes and External | | | | with "C" level executives who are familiar with the |
| Attributes." Sometimes there is a fine line between | | | | technique and they quickly bring focus to the initial |
| these two but that is a subject for another time. | | | | planning meetings. |
| When separation is not apparent, I always classify | | | | I have included a link to a SWOT TEMPLATE in |
| the attribute as Internal. | | | | EXCEL format for those of you that may be |
| Now let's draw the parallel for using a SWOT diagram | | | | interested in exploring the idea of using SWOT |
| in a Lean Six Sigma process improvement | | | | diagramming for improving business processes. |
| engagement. I prefer to use SWOT diagrams early | | | | |