Using SWOT Analysis for Process Improvement

I have used SWOT Analysis for years when doing strategic planning but with a couple of minor tweaks, I have found that a SWOT can easily be applied to improving processes. 

SWOT is a four quadrant diagram that represents Strengths, Weaknesses, Opportunities, and Threats.  Wikipedia defines a SWOT analysis as a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. 

Wikipedia further goes on to say that a SWOT analysis must starts with defining a desired end state or objective:

• Strengths:  attributes of the person or company that are helpful to achieving the objective.
• Weaknesses: attributes of the person or company that are harmful to achieving the objective.
• Opportunities: external conditions that are helpful to achieving the objective.
• Threats: external conditions which could do damage to the objective.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.
 
First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.

Look how quickly the above can map to Process Improvement:

1. SWOT helps identify the strategic objectives we hope to achieve with the new process and helps us determine if the objective is attainable
2. Strengths: identifies the current strengths of the existing process (if any) or what the existing strengths of the new process should be
3. Weaknesses: identifies the current weaknesses of the existing process or the weaknesses caused by not having an existing process
4. Opportunities: identifies external conditions that are helpful to achieving the objective.  An example may be the development of new technology, better access to information, etc.
5. Threats: identifies external show stoppers that could block our ability to achieve our objective. An example may be the fact that an valued supplier does not have access to the new technology or information.
   

The bottom line is that executives identify with SWOT and it can quickly bring focus to the initial planning meetings.

I have included a link to a SAMPLE SWOT in EXCEL format  for those of you that may be interested in exploring this idea further.

Regards,

Jim Pickens


Jim Pickens is the the managing partner for DMAIC.com. http://www.dmaic.com is the complete online resource for Six Sigma consulting, training, software, books, and events.