EFFECTIVE MANAGEMENT
EFFECTIVE MANAGEMENT
Time to Rethink SWOT
By Joseph P . Truncale , Ph . D . Contributing Editor
It ’ s not uncommon to begin a strategy and planning session with a thorough , open , honest assessment of the organization ’ s strengths , weaknesses , opportunities , and threats ( SWOT analysis ). In my experience , having facilitated any number of these sessions , it seems apparent that the time to re-think this approach may be at hand .
Consider this exercise which begins with a list of strengths . These mostly center on capabilities , equipment , processes , experience , and sometimes “ we have great people ”. Nothing wrong or even inaccurate here . However , this begs several questions . Among them , what will you do with this list once it ’ s completed ? And , more to the point , if your primary competitors were having this very same conversation , how likely is it that their list would look similar , if not nearly identical to yours ?
The idea of identifying and articulating your organizational strengths takes on far greater meaning when you instead focus on generating a list of your unique strengths . That is , what makes you different than your competitors ? What sets you apart as the provider of choice among your targeted customers ?
In his seminal article “ What is Strategy ”, Michael Porter makes the case that the essence of strategy is about being different . This differentiation marks a dividing line between you and everyone else . It addresses the question “ what sets you apart from the competition in a way that gives you more running room in the marketplace , leading the way to greater margins and increased customer loyalty ?”.
Unique , by definition , means one of a kind ( first coined in French , taken from the Latin “ Unicus ”), like no other . What about your organization makes you different ? Where do you stand out in a way that is unique ?
During strategy sessions , the following question can help planners address the matter of differentiation : “ If your business went out of business tomorrow , one just like it would be created the next day because somebody has to ( fill in the blank )”. If this question is answered with a list of commodities ( things others can easily do ) your business may be short on differentiation which can negatively impact pricing power .
Listing organizational strengths , all of them that come to mind , can be a “ feel good ” exercise and there is something to be said for that . If your team prefers this approach , go ahead and list all of your strengths . Then , take a second cut at it by culling out those strengths that make your organization clearly different and better than the competition .
Making this subtle but important change , moving from listing your “ strengths ” to identifying your “ unique strengths ” may yield a shorter list , but one that is far more powerful and useful . These unique strengths are raw material for developing your corporate strategies ; how you will leverage your competitive advantage into a compelling and enduringly successful plan .
For more tips on strategy and planning for your best future , contact me at joe @ ajstrategy . com .
When analyzing your company ' s strengths , it is important to stress the qualities that make your organization clearly different and better than the competition .
Photo : Getty Images / iStockphoto / Cecilie _ Arcurs
Joseph P . Truncale , Ph . D ., CAE , is the Founder & Principal of Alexander Joseph Associates , a privately held consultancy specializing in executive business advisory services .
He is the former CEO of the Public Relations Society of America ( PRSA ), the world ’ s largest public relations organization . Prior to joining PRSA , Joe was President & CEO of NAPL , a business management association representing leading companies in the printing , graphic communications , mailing , fulfillment and marketing services industry .
Joe specializes in strategy , customer analysis and organizational effectiveness .
He is a graduate of Monmouth University and he holds a Masters ’ Degree from Rutgers University . In 2011 , he earned his Ph . D . in Media , Culture and Communications at New York University and was the recipient of the Prism Award for Academic Achievement . His dissertation was a ground-breaking study of the leadership styles of highly successful entrepreneurial business executives in the graphic communications industry .
Joe served as Co-Chair of the New York University Board of Advisors and is an adjunct faculty member at NYU teaching graduate courses in Executive Leadership , Financial Management and Analysis , Finance for Marketing Decisions , and Leadership : The C Suite Perspective . He resides in Colts Neck , NJ .
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