The main goal of an organization is to be successful in achieving the objectives of its projects. But throughout this journey of the project life cycle, many events come across the project. These events can act as a hindrance or opportunity for an organization. So, highlighting potential risks before projects begin will help to prepare for monitoring and managing certain controllable events. This can be done using the SWOT Analysis technique. In Addition, incorporating SWOT analysis into project management can help in improving planning, mitigating risk, and increasing overall project success.
In this blog, we are going to discuss SWOT Analysis techniques through which Businesses can assess their projects.
What is SWOT Analysis?
SWOT stands for strengths, weaknesses, opportunities, and threats. It is a strategic planning technique that project managers use to analyze the internal or external factors that come across the project throughout its life cycle. It helps the project manager to identify the risks affecting the project and the opportunities to grab for its success.
Now let’s have an overview of four focus areas of the SWOT Analysis:
Strengths are integral to the organization (i.e. internal factors that can be controlled by the organization itself) that determine the success of the project.
We can analyse the strength by including the following points:
- What do you do well?
- What unique resources can you draw on?
- At last, what do others see as your strengths?
For example, Experienced and Skilled team members will count as the strength of the project.
Weaknesses are another internal factors that can make it difficult for a project to succeed. Weaknesses prevent an organisation from reaching its full potential. They are areas that the company must improve to remain competitive.
We can analyse the weakness by considering the following points:
- What could you improve?
- What are others likely to see as weaknesses?
- Where do you have fewer resources than others?
For example, Inexperienced and new team members can be the weakness of the project.
Opportunities are the external factors (i.e. the factors that can’t be controlled) that could help the project succeed. They could be current opportunities that exist now but have not yet been taken advantage of or they could be future opportunities that you think may happen.
The opportunities can be analysed with the following points.
- What opportunities are open to you?
- How can you turn your strengths into opportunities?
- What trends could you take advantage of?
For example, Changing consumer behaviour can be an opportunity for businesses to understand the needs of the customers yet to be fulfilled.
Threats are the external factors that can be a hindrance to your project. As with opportunities, they can be current or future threats.
The threats can be analysed with the following points.
- What threats could harm you?
- What is your competition doing?
- At last, what threats do your weaknesses expose you to?
For example, a threat could be increased costs of supplies, materials, or contractors.
Advantages of SWOT Analysis
The advantage of SWOT Analysis is that it focuses on the areas that have positive or negative impacts on your business. It helps to:
- Maximise response to opportunities
- Overcome organisation’s threats
- Addresses Weaknesses and strengths
- Understand your business better
- Explore new solutions to problems
- Reveal possibilities and limitations for change
- It is very Cost-effective
- It is a source of information for strategic planning
The SWOT analysis is a basic yet comprehensive technique for identifying not only an action plan’s flaws and threats but also its strengths and opportunities. In addition, the goal of a SWOT analysis is to assist businesses to understand all of the factors that are involved in making a business decision.