Transcript S.W.O.T. Analysis

“If You Don’t Know Where You Are Going, Any
Road Will Get You Somewhere”
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Planning Philosophies:
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If You Fail to Plan You Are Planning to Fail!
Planning is as much about doing the right things
as it is doing things right.
Are you a WITB or a WOTB?
 Don’t confuse business activity with business
achievement!
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Begin with a S.W.O.T. Analysis
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S.W.O.T. stands for Strengths, Weaknesses,
Opportunities, and Threats.
Strengths.
 What are you or your business good at, what
are your particular advantages, what positive
things are you best known for, or what do you
excel at?
Weaknesses.
 What are you or your business not good at,
what represents your failures, what can you
improve on or eliminate altogether?
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S.W.O.T. Analysis continued:
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Opportunities.
 What goods or services in demand within the
economy or community are not currently being
provided or provided in sufficient numbers?
 Is there an availability of financing, time, or labor
that should be taken advantage of?
 Are there cost cutting measures or additional
revenue sources you could implement.
Threats.
 What issues within the economy, the world of
finance, the application of government
regulations, the demographics of society, or the
world of labor might present roadblocks or
obstacles to the future achievement of your
organization?
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S.W.O.T. Analysis continued:
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Invite employees and possibly family to the
S.W.O.T. analysis.
Hold the meeting in a semi-formal atmosphere
where people feel comfortable yet lends itself to
serious thought.
Sometimes it is recommended that the
organization’s owner or leader not be present.
Have a facilitator lead the discussion. Invite
everyone to participate, to be honest and
candid, but also to be tactful.
Write the participants ideas and comments on a
whiteboard or flipchart in front of the room.
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S.W.O.T. Analysis continued:
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After the meeting compile the notes into a
summary form and distribute them for everyone
to consider and evaluate. Then:
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Follow up the S.W.O.T. Analysis with Goal Setting:
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Ideal = the perfect situation.
 100% calf crop.
Goal = a realistic achievable situation.
 95% calf crop.
Objective = an event that helps achieve a goal.
 Move the calving area to a south sloping area.
 Ground warms up earlier in the winter.
 Rain water and snowmelt drain away
allowing animals to be drier and warmer.
 Purchase bulls with a “calving ease breeding
trait.”
 Consider building a calving barn.
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Goal Setting:
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What should I do when I achieve a goal?
 Replace it with a new one.
 Goal setting is not a destination, it is an
ongoing activity.
The proper number of goals is three per category.
 Business.
 Personal.
 Professional.
Deadline Driven.
 “The Pareto Rule”
Write it down.
Assessment = Accountability.
Rewards = There is a benefit to effort
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Is there a specific format for a business plan?
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Who = Who are the owners or managers. What
is the legal form of the business or organization.
What = What is the nature of your business or
organization.
Where =At what location or locations are you
located.
When = During what time of year does your
business or organization function.
Why = For what purpose are you doing this.
How = The plan objectives.
How Much = The plan budget.
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FOLLOW THE ROADMAP!!
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Complete the process with a strategic plan:
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Strategic Planning Recommendations:
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“No one size fits all answer.”
Be open minded.
Think outside the box.
Invite in another “set of eyes.”
Spend as much energy trying to prove yourself
wrong as you do to prove yourself right.
Have someone play the role of the “Devil’s
advocate.” As Jim Collins states in the book,
“Good to Great”, spend time looking under rocks
for ugly squiggly things.
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Vertical and Horizontal Integration:
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Ralph and Kay Jones Business Plan:
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The plan was written in December 1984.
The plan was to be achieved by June 15, 1989.
The goals were:
 To fund Brian and Kristi’s college educations.
 To pursue different challenges for Ralph.
 To allow Kay to pursue a masters degree.
 To secure five retirement plans.
 To be prepared to provide for Ralph’s parents.
 To pay off all real estate, machinery, and
livestock debt within 4.5 years through
progressive change.
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The plan FAILED. We missed it by:
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How $5,000 became $40,000:
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H.U.T.
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Hear.
Understand.
Take Action.
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