SWOT Analysis

Posted on Wednesday, April 17, 2019

In order for an organization to be successful and create value, management needs to be aware of risks and opportunities relevant to the organization, its strengths and its weaknesses.  A SWOT analysis provides such information.  By analyzing four areas – Strengths, Weaknesses, Opportunities and Threats, an organization can create a strategy to minimize risk and take advantage of opportunities. 

• Strengths are helpful to your organization in accomplishing your mission. What is your organization doing well?  What are you known for?
• Weaknesses are harmful to your organization.  In what areas is your organization struggling?
• Opportunities can positively impact your organization and are external.  Where can your organization improve?  Are there areas for expansion?  Are there opportunities for collaboration?  Is there a need that your organization can fulfill? 
• Threats are also external but may prevent your organization from accomplishing your mission.  What are your competitors doing?  Is there a possibility for loss of funding? 

Before starting your SWOT analysis, consider the following:

• Involve individuals from multiple areas of the organization that bring different viewpoints.
• Be specific.  Instead of a strength being “good” leadership, what specifically makes the leadership “good”?
• Be honest, especially with weaknesses.
• Use your SWOT analysis as part of your strategic plan.
• Continue to monitor and analyze.

Simply answering these four questions will not make your organization successful.  You must understand the reasons why your organization is strong in certain areas and weak in others.  Then you can use it as part of your strategic planning process to minimize risks and capitalize on opportunities. 

Posted by:Carrie Minnich, CPA 

Posted in Mission Minded Nonprofits

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