What is a SWOT Analysis?
When you start a new project or make a major business change you need a good view of the situation so you can make the best possible decisions. Using the SWOT analysis technique can help you get the information you need in a rigorous, structured manner. It is one one of the classic tools of the business analyst.
Using a Mind Map to carry out the analysis makes the task easier and allows you to be more productive, and might even be enjoyable.
The object of SWOT analysis is to examine 4 areas critical to the success of any business venture:
- Strengths
- Weaknesses
- Opportunities
- Threats
By focussing on these areas you can ensure your business:
- Makes the most of your strengths
- Minimises your weaknesses
- Takes advantage of any opportunities
- Considers possible threats
A Very Brief History
The basic SWOT analysis process was created in the 1960s at the Stanford Research Institute by an American business and management consultant called Albert Humphrey. He produced a team method called ‘SOFT’. This was later developed into what we now know as SWOT analysis.
How SWOT Analysis Works
The method works by focussing on the internal and external factors that may affect the situation.
- Internal factors are features of the organisation
- External factors are features of the environment
The method considers both the helpful/positive and harmful/negative factors.
- Strengths and Weaknesses are Internal factors
- Opportunities and Threats are External factors
Asking the Right Questions
It is important you ask the right questions in each section of the SWOT analysis to ensure useful information is collected. The set of questions you need to consider will vary with each analysis.
I have included some examples of the type of questions you may find useful.
Strengths
- What are we good at and how does this affect the situation?
- What are we known for?
- What is our Unique Selling Proposition (USP)?
- What do our customers like about our business?
- What skill/experience/technical/financial resources do we have?
- What connections and networks can help?
Weaknesses
- What are we bad at and how does this affect the situation?
- What are our competitors doing better than us?
- What do our customers dislike about our business?
- Do we lack any skill/experience/technical/financial resources?
- Do we lack any connections or accreditation we may need?
Opportunities
- Are there any changes happening in the industry we could use?
- Are there training opportunities?
- If there is a competitor, are there weaknesses we can use?
- Is there any new technology we can use?
- Does this expand our market?
- How will this benefit our current customers?
Threats
- What risks and obstacles do we face in moving forward?
- What are our competitors doing and how might that affect the situation?
- Could any changes in guidance or legislation affect the situation?
- Could any technical changes affect the situation?
- Could any industry changes affect the situation?
- Could any business changes internally or at our clients affect the situation?
SWOT Analysis and Mind Maps
The traditional way of carrying out a SWOT analysis is to produce a set of 4 lists. This produces a static and uninspiring set of data.
By using a mind map you can bring the information to life and use the structure to generate ideas, organise and prioritise the data.
Mind Map Structure
Create a simple Mind Map with 4 branches – one for each section of the SWOT Analysis.
Add branches for the various factors. You can concentrate one branch at a time or move around the mind map as you think of various factors. For example, when thinking about people you may add branches to Strengths (for relevant skills) and Opportunities (to provide training). With a mind map, it is easy to add items and move them around as necessary.
You can create a template mind map with example factors already added. You can use this to structure the questions and items you explore. In the example below I have based the mind map on the questions noted in this post. Note that in a traditional mind map there is only 1 word per branch.
Generating Ideas
Once you have a basic structure you can begin to generate ideas and information using the structure. For each branch, you can generate examples. In the example, I have expanded the list of things we are good at.
You can also generate ideas by being less specific. If you add an item then you can ask ‘what kind of thing’ it is (for example people, or infrastructure) and then add any other items in that category. So if you have added ‘VOIP’ capability then you may add other infrastructure items for video conferencing or webinar hosting.
Organising
You can move branches around and rearrange their order. You can move items together by category and even place a ‘cloud’ around them to separate them and make them stand out.
Prioritising and Linking
If you have many items then you can use icons to prioritise them. You can use filters that show only high priority items.
You can also link items to show how they are related.
Adding Icons, Pictures and Notes
As well as adding priorities, you can also add other icons to the branches. In the example, I have added icons to the main branches to give a visual cue to the theme of each branch. Adding icons in this way can stimulate your thinking and creativity.
Most mind mapping software will also allow you to add floating pictures and notes. This lets you include extra information not necessarily tied to a particular branch.
Using the Mind Map
You can use the mind map in many different ways:
- As a focus for discussions
- As a meeting agenda
- As the structure for documents
- As a task list for further investigations and analysis
A SWOT analysis in a mind map provides a wealth of information in a concise and visually engaging format.
The information can easily be filtered, organised and output for a variety of purposes.
The mind map process brings a classic business analysis tool up to date for use in today’s fast-moving and data-rich environment.
(The mind map was produced using ‘Freeplane’. Freeplane is a free, open-source software application for creating mind maps, and electronic outlines.)