SWOT Analysis An important Step for strategic planning Assoc. Prof. Dr. Wongsa Laohasiriwong Khon Kaen University

Personal Objectives What I need to do? Strategic Initiatives What we need to do ? Strategic Initiatives What we need to do ? Strategy Vision and Goals Core Value Mission SWOT Analysis

Strategy Formulation Strategy Implementation Strategic Control Methods HPO Strategic management Orga Organization & process redesign Market & customer relations Information management Performance evaluation Personnel management Financial management Change organization culture Networking Strategy Map SWOT Analysis Value Chain Risk Management Technology Development Capacity Building Process Improvement Structure Design Benchmarking Blueprint for Change Change Management Individual SC Survey customer sataisfaction GCS Participation Networking GSMS/GFMIS Knowledge Management Unit cost eAuction/eProcurement Balanced Scorecard PMQA Value for money

Steps for strategic planning Set working group Collect data for analyzing the capability of the department Internal factor Strength Weakness External factor Opportunity Threat Ask for Stakeholders’ expectations What the department wants to be What are the goals What strategic issues have to be developed What the department has to do to accomplish visions and goals Define KPI, targets Implement strategies in term of projects Setup stepStep 1 Step 2 Step 3 Step 4 Project setup SWOT analysis Vision, strategic issues, goals StrategiesAction plan

Organizational Diagnosis SWOT Analysis 7’s Mackincy Model Balanced Scorecard Six Box model

SWOT Analysis 1.Strength 2.Weakness 3.Opportunity 4.Threat 1.Strength 2.Weakness 3.Opportunity 4.Threat

SWOT Strengths: attributes of the person or company that are helpful to achieving the objective. Weaknesses: attributes of the person or company that are harmful to achieving the objective. Opportunities: external conditions that are helpful to achieving the objective. Threats: external conditions which could do damage to the objective.

TOWS Analysis 1. Start from T = threat To know the situation 2. Follow by O = Opportunity What are opportunity to survive, achievement, on what conditions? 3. Then analyses W = Weakness What should be improved? 4. Then S = Strength What we have to be used for improvement 1. Start from T = threat To know the situation 2. Follow by O = Opportunity What are opportunity to survive, achievement, on what conditions? 3. Then analyses W = Weakness What should be improved? 4. Then S = Strength What we have to be used for improvement

Department/ Organisation W (7S) S (7S) T (PESTELI) O (PESTELI)

PEST ANALYSIS P : Politics E : Economics S : Social T : Technologies P : Politics E : Economics S : Social T : Technologies

PESTELI ANALYSIS P : Politics E : Economics S : Social T : Technologies E : Ecology L : Legal I : Industry P : Politics E : Economics S : Social T : Technologies E : Ecology L : Legal I : Industry

Table for Opportunities and threats of Environment outside the organization IssuesThreatsOpportu nity  Politic (policy/regulation)  Macro economic  Social and culture  Technology  Client/ customer negotiation  Suppliers negotiation  Old competitors competency  New competitors potential  New product, service characteristics

The McKinsey 7-S Framework Structure StrategySystems Shared Value Skill Staffs Style Robert Waterman, Tom Peters and Julien Philips Waterman Jr., Robert H., Peters, Thomas J., and Julien R. Phillips "STRUCTURE IS NOT ORGANIZATION." Business Horizons 23, no. 3: 14

McKinsey 7S Model Strategy Plans for the allocation of a firm's scarce resources, over time, to reach identified goals. Environment, competition, customers. Structure The way the organization's units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc. Systems The procedures, processes and routines that characterize how important work is to be done: financial systems; hiring, promotion and performance appraisal systems; information systems.

McKinsey 7S Model Skills Distinctive capabilities of personnel or of the organization as a whole. Staff Numbers and types of personnel within the organization. Style Cultural style of the organization and how key managers behave in achieving the organization’s goals. Shared Value The interconnecting centre of McKinsey's model is: Shared Values. What the organization stands for and what it believes in. Central beliefs and attitudes.

Marvin Weisbord Six-Box Model (Weisbord’s Model) Purposes: What 'businesses' are we in? Structure: How do we divide up the work? Relationships: How do we manage conflict (coordinate) among people? With our technologies? Rewards: Is there an incentive for doing all that needs doing? Leadership: Is someone keeping the boxes in balance? Helpful mechanisms: Have we adequate coordinating technologies?

IssuesWeaknessStrength 1. Resource system Human resource system Capital system or process factor IT system 2. Financial or result of development Value added on quality of life People acceptance utilization Table for Strength and weakness

ItemsWeaknessStrength 3. Customer or clients Better Cheaper Faster 4. Management process Production Marketing Service 5. Organizational development Leadership Learning organization Adaptation

SWOT MATRIX  Identify 1: Outside: Opportunity / Threat items 2. Inside: Strength / Weakness items -. Scenario planning or SWOT Matrix as following

Outside Inside StrengthsWeaknesses Opportunitie s Threats SO Strategie s WO Strategie s ST Strategie s WT Strategie s

WeaknessStrength Opportunity Threat Growth Stars Stability Question Marks Stability Cash cows Retrenchment Dogs

TOWS Matrix SO : use its strengths to take advantage of opportunities ST : consider a strength to avoid threat WO : take advantage of opportunities by overcoming weaknesses WT : defensive and act to minimize weaknesses and avoid threats

Balanced Scorecard Vision & Strategy Vision & Strategy Financial Perspective Learning & Growth Perspective Customer Perspective Internal Process Perspective

Balanced Scorecard 4 Perspectives 1. Customer Perspective. 2. Financial Perspective. 3. Internal Process Perspective. 4. Learning and Growth Perspective. 1. Customer Perspective. 2. Financial Perspective. 3. Internal Process Perspective. 4. Learning and Growth Perspective. Balanced Based on Vision of the organization