The most powerful benefit of SWOT Analysis tools is to surface everyone’s views of the current business environment. It allows the group to come to a consensus on the current situation to effectively plan for the future.
I worked in banking for twenty years before starting CFO Perspective. I’ve done lots of SWOT analysis and peer analysis at companies I’ve worked at or with. The most powerful benefit of these tools is to surface everyone’s views of the current business environment. In other words, these tools have more benefits as communication tools than decision-making tools.
For example, here are two benefits:
- It allows the group to come to a consensus on the current situation. The group must agree on some set of facts to develop strategies based on those facts. It’s incredibly difficult for a management team to come to a consensus on future strategy when they don’t agree on their present situation.
- This helps everyone understand the assumptions behind each person's recommendations. They see the world differently, which means they are asking different questions and arriving at different answers. Many disagreements are due to differences in assumptions, not conclusions.
I wish you the understanding and consensus that a SWOT analysis can provide. I wish you well.
- Rob Stephens
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