swot: does anyone besides mba professors and consultants use it?
Post on 06-May-2015
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IS THERE ANY BENEFIT OF SWOT OUTSIDE MBA
CLASSROOMS?Based onhttp://www.bscdesigner.com/swot-outside-mba-classrooms.htmBy Aleksey Savkin
BSC DESIGNER
BSC STRATEGY MAP NEEDS AN INPUT
• How are we supposed to get this input?
BSC DESIGNER
BSC’ STRATEGY MAP NEEDS AN INPUT
• How are we supposed to get this input?• How can one come up with a strategy?
BSC DESIGNER
BSC’ STRATEGY MAP NEEDS AN INPUT
• How are we supposed to get this input?• How can one come up with a strategy?• One of the business frameworks is SWOT analysis.
BSC DESIGNER
Is there any benefit of SWOT outside MBA classrooms?
Source: www.bscdesigner.com
BSC DESIGNER
Is there any benefit of SWOT outside MBA classrooms?
The best business insights are rather spontaneous breakthroughs based on
the experience of my team.
Source: www.bscdesigner.com
BSC DESIGNER
Use SWOT analysis! It allows me to sell consulting services to any company without any learning of
its products and service.
Is there any benefit of SWOT outside MBA classrooms?
The best business insights are rather spontaneous breakthroughs based on
the experience of my team.
Source: www.bscdesigner.com
So what?
BSC DESIGNER
Use SWOT analysis! It allows me to sell consulting services to any company without any learning of
its products and service.
Is there any benefit of SWOT outside MBA classrooms?
The best business insights are rather spontaneous breakthroughs based on
the experience of my team.
Source: www.bscdesigner.com
SWOT! So what?
SWOT AND ITS MODIFICATIONS
BSC DESIGNER
THE VISUAL RERESENTAION OF SWOT ANALYSIS
The SWOT acronym stands for :
BSC DESIGNER
THE VISUAL RERESENTAION OF SWOT ANALYSIS
Strengths and weaknesses are considered to be “internal,”
BSC DESIGNER
THE VISUAL RERESENTAION OF SWOT ANALYSIS
Strengths and weaknesses are considered to be “internal,”
while opportunities and threats are “external.”
BSC DESIGNER
TOWS - A DIFFERENT WAY TO PRESENT
A different acronym of the same words - threats, opportunities, weaknesses, and strengths
BAD NEWS. SWOT DOSEN’T WORK
BAD NEWS. SWOT DOSEN’T WORK
• At least not in a real business environment.
BAD NEWS. SWOT DOSEN’T WORK
• At least not in a real business environment.• Authors of the research ”SWOT Analysis: It’s Time for a
Product Recall” investigated SWOT empirically.
BAD NEWS. SWOT DOSEN’T WORK
• At least not in a real business environment.• Authors of the research ”SWOT Analysis: It’s Time for a
Product Recall” investigated SWOT empirically.• They interviewed executives of 20 UK manufacturing
companies that used SWOT.
BSC DESIGNER
THE RESULTS OF THE RESEARCH
• SWOT analysis typically helped to generate a long list of various factors
BSC DESIGNER
THE RESULTS OF THE RESEARCH
• SWOT analysis typically helped to generate a long list of various factors
• These factors in most cases were meaningless for a business
BSC DESIGNER
THE RESULTS OF THE RESEARCH
• SWOT analysis typically helped to generate a long list of various factors
• These factors in most cases were meaningless for a business
• Found factors were neither prioritized nor verified
BSC DESIGNER
THE MAIN CONSEQUENCE
• None of these companies used the outputs for a future strategy design
• 20 UK manufacturing companies is obviously not a representative sample
BSC DESIGNER
A CRITIQUE OF THE RESEARCH
• Executives could not truthfully say that
BSC DESIGNER
A CRITIQUE OF THE RESEARCH
• Executives could not truthfully say that • They were not influenced in any way by the results of
the SWOT-based brainstorming
BSC DESIGNER
A CRITIQUE OF THE RESEARCH
• If you will read an original article
BSC DESIGNER
A CRITIQUE OF THE RESEARCH
• If you will read an original article• You will agree that something is wrong with SWOT
BSC DESIGNER
A CRITIQUE OF THE RESEARCH
• If you will read an original article• You will agree that something is wrong with SWOT• It is not a magic pill like it is promoted by strategy
consultants
WHY IS SWOT SO POPULAR THEN?
BSC DESIGNER
INFO-PRODUCTS ON SWOT
• The results of SWOT analysis for virtually any company from the Fortune 500 list
BSC DESIGNER
INFO-PRODUCTS ON SWOT
• The results of SWOT analysis for virtually any company from the Fortune 500 list
• These reports were not prepared by the company’s executives
BSC DESIGNER
INFO-PRODUCTS ON SWOT
• The results of SWOT analysis for virtually any company from the Fortune 500 list
• These reports were not prepared by the company’s executives
• They have nothing to do with an actual strategy design process
BSC DESIGNER
INFO-PRODUCTS ON SWOT
• In most cases these reports work as front-end products
BSC DESIGNER
INFO-PRODUCTS ON SWOT
• In most cases these reports work as front-end products
• They are supposed to attract the attention of prospects to some consulting business.
BSC DESIGNER
INFO-PRODUCTS ON SWOT
• In most cases these reports work as front-end products
• They are supposed to attract the attention of prospects to some consulting business.
• Consulting boutiques are the biggest beneficiaries of the SWOT magic pill
BSC DESIGNER
SWOT AS A MAGIC PILLS FROM CONSULTANTS
• SWOT analysis allows them to sell consulting services to any company without a deep learning of its products and service.
BSC DESIGNER
SWOT AS A MAGIC PILLS FROM CONSULTANTS
• SWOT analysis allows them to sell consulting services to any company without a deep learning of its products and service.
• Consultants can focus on asking “right” questions and generating long lists of factors and ideas.
BSC DESIGNER
SWOT IN MBA CLASSROOMS
• SWOT analysis is popular in MBA classrooms
BSC DESIGNER
SWOT IN MBA CLASSROOMS
• SWOT analysis is popular in MBA classrooms• Lectures pay too much attention to SWOT in the
classroom
BSC DESIGNER
SWOT IN MBA CLASSROOMS
• SWOT analysis is popular in MBA classrooms• Lectures pay too much attention to SWOT in the
classroom• A result managers see SWOT as a panacea to any
business problem
SWOT FROM INPUTS TO THE RESULTS
BSC DESIGNER
SWOT INPUTS
• It assumes that the business situation is stable enough
BSC DESIGNER
SWOT INPUTS
• It assumes that the business situation is stable enough
• Another assumption is that inputs are supposed to appear during the brainstorming
BSC DESIGNER
SWOT PROCESS
• The SWOT analysis cannot be underestimated as a brainstorming method
BSC DESIGNER
SWOT PROCESS
• The SWOT analysis cannot be underestimated as a brainstorming method
• SWOT doesn’t give us any method to make an informed assumption
BSC DESIGNER
SWOT OUTPUT
• As any brainstorming method, SWOT generates a list of ideas.
• Another problem with SWOT outputs is that the resulting ideas are given in a list.
BSC DESIGNER
AUTOMATION OF SWOT
• There is no need for an automation of SWOT.
BSC DESIGNER
AUTOMATION OF SWOT
• There is no need for an automation of SWOT.• Using paper and pen to put down ideas that come up
brainstorming
BSC DESIGNER
AUTOMATION OF SWOT
• There is no need for an automation of SWOT.• Using paper and pen to put down ideas that come up
brainstorming• Users of BSC Designer can apply ”Framework – SWOT
and TOWS.bsc” from “Sample Scorecards” folder of BSC Designer installation to support their SWOT analysis.
BSC DESIGNER
AUTOMATION OF SWOT
Find this project in “Sample Scorecards” folder of BSC Designer installation.
TWO MAJOR FLAWS OF SWOT
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TWO MAJOR FLAWS OF SWOT
• Two words “customers” and “education.”
BSC DESIGNER
TWO MAJOR FLAWS OF SWOT
• Customer is not directly involved in this framework
BSC DESIGNER
TWO MAJOR FLAWS OF SWOT
• Customer is not directly involved in this framework• Education is a big deal of finding and “seeing” these
opportunities
BSC DESIGNER
TWO MAJOR FLAWS OF SWOT
• Customer is not directly involved in this framework• Education is a big deal of finding and “seeing” these
opportunities• This process should be run even before getting the
team to brainstorm any ideas.
A BOTTOM LINE
BSC DESIGNER
A BOTTOM LINE
• The obvious benefit is that SWOT gives another perspectives to see the business and its environment.
BSC DESIGNER
A BOTTOM LINE
• The obvious benefit is that SWOT gives another perspectives to see the business and its environment.
• This perspective works great for academic exercises in MBA classrooms,
BSC DESIGNER
A BOTTOM LINE
• The obvious benefit is that SWOT gives another perspectives to see the business and its environment.
• This perspective works great for academic exercises in MBA classrooms,
• but cannot help much with finding a better strategy in complex and uncertain real-life situations that business faces every day.
BSC DESIGNER
A BOTTOM LINE
• SWOT analysis depends a lot on the experience of the team that is using it.
BSC DESIGNER
A BOTTOM LINE
• SWOT analysis depends a lot on the experience of the team that is using it.
• The framework provides a different perspective,
BSC DESIGNER
A BOTTOM LINE
• SWOT analysis depends a lot on the experience of the team that is using it.
• The framework provides a different perspective,• but at the same time it shifts the focus from a
customer.
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A BOTTOM LINE
• The list of generated findings could have been much more useful if these insights could be linked to each other by cause-and-effect connections.
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A BOTTOM LINE
• SWOT is a main academic tool used in the quest for a good strategy.
BSC DESIGNER
A BOTTOM LINE
• SWOT is a main academic tool used in the quest for a good strategy.
• Executives will continue to use the method even if empirical evidence shows that it is not working.
BSC DESIGNER
A BOTTOM LINE
• SWOT is a main academic tool used in the quest for a good strategy.
• Executives will continue to use the method even if empirical evidence shows that it is not working.
• Hopefully, in good hands this business framework will generate some valuable insights.
BSC DESIGNER
A BOTTOM LINE
• What is your experience with SWOT?
BSC DESIGNER
A BOTTOM LINE
• What is your experience with SWOT?• How did it help you with strategy planning?
BSC DESIGNER
• [1] “SWOT Analysis: It’s Time for a Product Recall” Roy Westbrook, Terry Hill (1997) Long Range Planning, 30 (1).
• [2] “Stop SWOT’ing The Small Stuff” Dave Lavinsky, 2013, Forbes
• [3] “Marketing Myopia” Theodore Levitt, 1960, Harvard Business Review.
RESOURCES
BSC DESIGNER
MORE ABOUT THE BALANCED SCORECARD
Find more insightful articles about the Balanced Scorecard in ”Articles” section at www.bscdesigner.com
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THANK YOU!
Feel free to send us your questions using the contact form at www.bscdesigner.com
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