“Do not be held back by your weaknesses and limitations; use your strengths and your ability to learn to move forward.”
Eduardo Alighieri
In the previous column we commented on the importance of making a diagnosis, before making the decisions that will lead us to formulate the strategy of the company or organization. One of the most used methodologies to do this is the SWOT analysis (for its acronym: Strengths or forces, Opportunities, Weaknesses and Threats).
The origin of SWOT is attributed to Albert Humphrey, a consultant at the Stanford Research Institute, who in the 1960s began using it with very important companies in the United States, clients of the institution.
The SWOT is a tool for studying the situation of a company, institution, project or even personnel that analyzes its internal characteristics (Weaknesses and Strengths) and its external situation – of the environment – (Threats and Opportunities) in a “square matrix”. ”. Its name comes from the acronym SWOT (Strengths, Weaknesses, Opportunities and Threats).
The objective of the SWOT analysis is to know the competitive advantages and disadvantages of the company or organization, at a given time, to formulate the strategy that best suits it, based on its own internal characteristics and those of the environment or market in which it operates. moves.
SWOT allows us to develop strategies that face threats and work on (alienate) weaknesses by using strengths (or capabilities) that also allow us to take advantage of opportunities. That is, it serves to evaluate the strategic position of a company, since it allows identifying internal and external factors that can impact its performance.
In summary, the specific objectives of SWOT are:
• Serve as the basis of a strategic plan.
• Completely analyze the current market landscape.
• Objectively (and humbly) analyze the internal situation of the company or organization.
• Support in making strategic decisions.
On this occasion we will talk about the internal part, that is, the Strengths and Weaknesses. Strengths are the internal factors that give an organization a competitive advantage, for example: a strong brand, efficient operations, qualified workforce or unique technology.
To identify strengths (also known as capabilities, competencies, or abilities), consider the following questions:
•What does the organization do very well?
•What makes the organization special, different?
•What do customers like about the organization?
Examples of strengths include: a high degree of customer loyalty, a strong brand reputation, or a unique product offering.
Weaknesses (or limitations), on the other hand, are internal factors that can hinder an organization’s performance such as inefficient processes, lack of trained personnel or outdated technology.
To identify weaknesses, consider the following questions:
•What are the internal challenges of the organization?
•What areas need improvement?
•What are the organization’s vulnerabilities?
Examples of weaknesses include: a weak brand reputation, inefficient operations, or a lack of trained personnel.
To identify strengths and weaknesses, it is essential to conduct a thorough analysis of the organization’s internal factors, including its resources, capabilities and processes. This can be done through various methods, such as surveys, interviews or focus groups, as well as by analyzing data and performance metrics. Additionally, it is important to consider the culture, leadership, and management practices of the organization, as they can significantly affect its performance.
Once strengths and weaknesses have been identified, it is crucial to develop strategies to leverage the former and address the latter. This may involve improving processes, investing in training and development or implementing new technologies, among other actions.
In summary, identifying an organization’s strengths and weaknesses is a critical step in strategic planning, as it allows the development of effective strategies to improve performance and achieve long-term success. By conducting a thorough analysis of the organization’s internal factors and using tools such as SWOT analysis, organizations can gain valuable insights into their competitive position and take steps to improve their strengths and address their weaknesses.
