Do you hold a management position at a power transmission company? Do you know the tools that can improve how your organization — or even your leadership — operates?
In this article we present a tool that is simple to apply, the SWOT matrix, widely used to make more assertive decisions — after all, your organization needs to be confident in what it is deciding in order to pursue better results.
This content will help you carry out your planning, and it is also a good way to complement initiatives already under way. So, do you know what this tool is and how to apply it? Keep reading to learn more!
WHAT DOES SWOT MEAN?
The SWOT matrix, created by Kenneth Andrews and Roland Christensen, takes its name from the initials of Strengths, Weaknesses, Opportunities, and Threats. [DOWNLOAD THE TEMPLATE NOW]
It is important to understand what the external and internal factors are and how to manage them. Internal factors are found in Strengths and Weaknesses; once managers identify these points, they can work on them within the organization. External factors lie in Opportunities and Threats — although they are independent of the manager's strategies, they create ways to seize opportunities and reduce risks and losses.
WHAT IS IT FOR? ADVANTAGES
The matrix can be used to carry out and complement all kinds of analyses and plans, because it makes it possible to identify the positive and negative factors of any objective under study. In other words, you can apply this matrix to assess your department, your leadership, or the transmission company as a whole.
As you research and analyze the answers, you open your mind to your current situation, and that is extremely valuable for creating new strategies and refining your processes.
Now that you know what it is, where it came from, what the acronym stands for, and some of its benefits, it is time to build your matrix. We put together a step-by-step guide for creating yours — but first, click and download the matrix to your computer so the steps below make more sense to you:
AN EXAMPLE TO HELP YOU!
Say you are facing a series of problems at your transmission company when it is time to generate reports for ANEEL. Every area involved feels the strain of providing correct, up-to-date data to send to the regulatory agency. Applying the SWOT, you find that one of the weaknesses is the fact that each area of the company uses a different system for its management — that is, each department had a different work methodology, with no integration and no data traceability. People struggled to automate processes and gather information to submit data to ANEEL, and they could never do the work independently.
Based on that weakness, the company considered the possibility of replacing its management software. The challenge now is to find a vendor that offers integration across the management of all areas and technology that meets ANEEL requirements.
Did you notice how identifying a weakness was able to uncover a great opportunity to modernize your company's entire technology stack? That is the main goal of the SWOT matrix: opening doors to improvements in the organization.
I FINISHED THE MATRIX — NOW WHAT? HOW DO I APPLY IT?
Just finished filling in the matrix? Now it is time to act! You should analyze the possible change options for each quadrant — in other words, it is time to create strategies in pursuit of business growth or a stronger business.
Let's get practical: with this analysis in hand, your goal is to amplify the positives and reduce the negatives. You can cross-reference the quadrants to create effective strategies. Here are some examples:
- You can use these quadrants together to expand the opportunities that already exist in the external environment.
- Do you know which of your transmission company's strengths help reduce external threats?
- What can you do to reduce your company's weaknesses through external opportunities?
- Do you know how to eliminate weaknesses and reduce external threats? If one of your weaknesses and threats is staff training, for example, do you know what to do to reduce that problem?
As the Chinese strategist and philosopher Sun Tzu said: "Focus on your strengths, recognize your weaknesses, seize your opportunities, and guard against threats."
Apply the SWOT matrix with your team, and tell us about your results.
Originally published in Portuguese at useall.com.br.