Six Sigma Tool Navigator: The Master Guide for Teams

Tool description

The SWOT analysis is an effective tool to define a situation currently faced by an organization. This analysis identifies internal and external environmental characteristics such as organizational strengths, weaknesses, opportunities, and threats. This tool is instrumental in the strategic planning and goal-setting process.

Typical application

• To assess the relevant characteristics within an organization in order to verify its strengths and weaknesses.

• To evaluate organizational health.

• To plan for and position an organization in order to capitalize on future opportunities.

Problem-solving phase

Typically used by

before

• Affinity Diagram

• Factor Analysis

• Circles of knowledge

• Critical Dialogue

• Benchmarking

after

• Risk Space Analysis

• Comparison Matrix

• Gap Analysis

• Futures Wheel

• What-If Analysis

Notes and key points

• Strengths - Weaknesses - Opportunities - Threats (SWOT) definitions:

  • Strengths: Organizational resource and capabilities available to meet tactical and strategic business goals.

  • Weaknesses: Organizational deficiencies that may inhibit or limit business goal attainment.

  • Opportunities: A product idea, technological change, favorable trend, or market niche that could greatly improve an organization's position in the marketplace.

  • Threats: Porformance barriers or obstacles, unfavorable business trends, or operational problems that may have an adverse effect on the organization.

Step-by-step procedure

• STEP 1 The team engages a facilitator who has considerable experience in organizational analysis.

• STEP 2 The facilitator explains the SWOT analysis technique to the participants and draws four headings on a whiteboard or flip charts. These are strengths, weaknesses, opportunities, and threats.

• STEP 3 Participants identify items under each heading. The facilitator records them under respective headings. See example Organizational Positioning Using SWOT Analysis.

• STEP 4 Once the team has slowed generating items recorded information is reviewed for appropriateness and completeness.

• STEP 5 The information is dated and presented to the planning team or committee.

Example of tool application

Organizational Positioning Using SWOT Analysis