For those who do not know this famous and very simple tool, I will explain them briefly (same, I repeat, it does not have any conceptual complexity).
It consists of carrying out an analysis on four well-defined concepts: Strengths, Opportunities, Weaknesses and Threats. Hence, its name is SWOT.
Graphically we can summarize the SWOT analysis transforming it into a simple two-input matrix like the one we see here on the left.
For those who have ever used this tool they know that it is extremely simple to understand and apply.
But this time I want us to ask ourselves if the information that the SWOT offers us turns out to be the result of an analysis: static or dynamic, that is: taking a photo or recording a video, looking at a particular moment or analyzing its past or future evolution..
Of course, if we only stick to the SWOT definition we made above, I doubt if anyone dares to assert that it is “dynamic”. Also, while taking a snapshot can be helpful, there is nothing better than being able to understand trends and even dare to think about what tomorrow will be like.
SWOT allows to be read from other aspects, generating a very clear dynamic focus.
How is it done?
First, the “dynamic” can be thought of as the mere aggregation of several SWOTs at different times and an analysis of the (horizontal) comparison of the evolution, positive or negative, can be made.
Another look, in my opinion, much deeper (and useful) is to understand what the dynamics of the model itself consists of.
It must be kept in mind that the variables studied cannot be understood only in the present. Strengths and weaknesses, as internal aspects, are surely fully present. On the contrary, opportunities and threats, subject to environmental forces (rarely within the reach of the influence of the "interior") are linked in events of both the present and the future. Being perhaps somewhat philosophical, the opportunities and threats are positive or negative in a theoretical sense, in a practical sense they are not influenced by any signs until they occur and there, based on the forecasts taken previously, they become effective as strengths or weaknesses. That is why we must understand external aspects (opportunities and threats) as future internal aspects (strengths and weaknesses).
The SWOT can be analyzed as a model to be optimized, that is, to maximize or minimize, depending on the case, improving our scope of the proposed objectives. They, in general terms, may be two:
1.Minimize the negative aspects (weaknesses and threats).
2.Maximize the positive aspects (strengths and opportunities).
In each case we can go one step further and say:
1.Minimize the negative aspects, having as an axis to prevent threats from becoming weaknesses. That is, prevent the external from passing into the internal.
2.Maximize the positive aspects, focused on promoting that opportunities translate into strengths. Promoting that the external is located inside.
In this way, we define much clearer objectives (considering both model variables: positive / negative and internal / external) that are solid bases for developing strategic models in the short, medium and long term.
So far the generic objectives can be summarized as:
1.Avoid that (external) threats settle as (internal) weaknesses.
2. Capitalize (external) opportunities on (internal) strengths.
Surely you think the same as me and, quickly, we can complete these generic objectives in the following way:
1.Avoid that (external) threats settle as (internal) weaknesses.
2. Transform weaknesses (negative) into strengths (positive).
3. Anticipate and influence threats (negative) to turn them into opportunities (positive).
4. Capitalize (external) opportunities on (internal) strengths.
The forum of attraction is noticeable in the Fortresses. The central objective is to maximize the internal-positive aspects. To do this, improve the internal-negative (weaknesses) and the external-negative (threats), turn them into positives (opportunities) and thus bring the favorable from the outside to the inside.
In conclusion, I want to highlight the importance and usefulness of this very simple and, therefore, often despised tool. When it comes to planning and defining strategies, it is a powerful simplifier of reality and lays the foundations for a more ordered and "thought" analysis. Let's learn to get the most out of it, which I assure you has no limits.
