Design thinking resource
A strategic planning tool for examining internal strengths and weaknesses alongside external opportunities and threats.
SWOT stands for Strengths, Weaknesses, Opportunities and Threats. The analysis begins by clearly defining the individual, organisation or project being assessed.
Strengths and weaknesses are internal: resources, capabilities, processes, infrastructure, skills and performance. Opportunities and threats arise externally through markets, customers, regulation, technology, competition and wider trends.
A useful SWOT analysis goes beyond four disconnected lists. It considers how strengths can be used to pursue opportunities, how weaknesses may intensify threats and where existing capabilities limit the ability to respond.
The most significant factors should be prioritised according to likely impact rather than treated as equally important.
Strategies may leverage a strength, address a weakness, form a partnership, improve a process or diversify a product or market. Decisions should connect directly to the evidence recorded in the analysis.
SWOT is not a one-time exercise. Reviewing it periodically helps teams respond as internal capabilities, competitors, technology and external conditions change.
Put the method to work
Set a clear boundary around the individual, organisation, project or decision being examined.
Record valuable internal resources, capabilities and attributes that create advantage.
Acknowledge internal limitations, gaps and conditions that constrain performance.
Examine external changes and possibilities that could be used productively.
Recognise external conditions that may undermine success, sustainability or performance.
Analyse relationships between factors and focus attention on those with the greatest impact.
Update the analysis as circumstances change and new evidence becomes available.
Why it matters
Align goals, resources and capabilities with the external environment.
Develop a realistic understanding of strengths, limitations and areas for growth.
Recognise distinctive capabilities and opportunities that can strengthen a value proposition.
Identify weaknesses and threats early enough to develop an informed response.
Prioritise initiatives and allocate resources using a balanced view of internal and external factors.
Create a shared language for discussing position, priorities and strategic direction.
Revisit the analysis to remain responsive to changing conditions and performance.
Continue exploring
Place this method back within the broader 5E Design Thinking Framework and continue developing your understanding.