MakeMyStrategy™ is based on many years of practical experience, recognized strategic theories and the book "Strategy in winning companies" and in the tool you experience how SWOT analysis is first used as a conclusion model and then prioritized to eventually be the basis for change needs in the company.

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Conclusion model:

Our experience shows that if every time you complete a topic in your assessment of the current strategic situation, you complete the current assessment by inferring the main opportunities and threats or strengths and weaknesses you will quietly collect the SWOT elements on an informed basis. It also means that once you have been 360 degrees around your business both seen from the outside in and seen from the inside out you will have collected a large number of SWOT elements. If you stop here, the work just ends up in the drawer – that's why it's important that you take another step. A step where you make a prioritization.

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Priority:

The reason you have to make this prioritization is that we don't have untold resources and we can't do it all at once. We need to focus on the strategy being sharp. When prioritising, it is an advantage to prioritize based on what effect they have. An example (source: "Strategy in winning companies") on how to assess can be seen below:

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Once you have prioritized you have had some opt-outs taken and now no longer have a long gross SWOT overview, but rather a priority SWOT overview you have been critical of. The next step is to translate this priority SWOT overview into concrete needs for change.

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Change needs:

The final step to translating SWOT analysis into something useful is about inferring change needs. As a link between the current strategic situation and the future goal of the company, the company identifies change needs. This is done by active use of the priority SWOT inventory. The needs for change we also call traffic lights and traffic lights create the basis for the development the company is facing.

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A green traffic light is identified when you combine an external option and an internal strength. Thus, an external opportunity arises in the market while the company is strong in this area. In other words, a business opportunity, also called a green traffic light, is defined to be used. So the ball is right in front of goal and just needs to be kicked in. It can also be said that an assessment and conclusion has been made of what happens when this combination of internal forces and external options occurs.  

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A red traffic light is identified when you combine an external threat and an internal vulnerability. So there is an external threat in the market and the company is weak in this area. In other words, a business challenge (burning platform), also called a red traffic light, is defined to be handled here and now. The cork is pulled out of the bathtub and if it is not put in we run out of water. So there is an urgent challenge that needs to be solved immediately.

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In other words, we'll reseal the SWOT overview using the TOWS model.

After this, we have translated the SWOT overview into x-number change needs expressed as red and green traffic lights.

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SWOT, TOWS and traffic lights cannot stand alone. It must, along with your other strategy material, be translated into concrete actions. An easy and simple approach is to use MakeMyStrategy™ as structures and summarize all your work into one comprehensive and coordinated action plan.

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Great to have a facility we can tap into when it suits us

John Helt

CEO

WeITglobal