Using SWOT analysis in ISO 9001:2015

What is SWOT?

SWOT stands for strengths, weaknesses, opportunities and threats. It is a widely used framework for business analysis and planning.

Development background described in the original article

The original article traces SWOT's development to work at the Stanford Research Institute in Menlo Park, California, during the 1960s and 1970s. It describes a study of major companies, motivated by the question of why business plans failed, and names Marion Dosher, Dr Otis Benepe, Albert Humphrey, Robert F. Stewart and Birger Lie among the researchers. The aim was to understand planning and help leaders agree on changes in management practice.

The historical account in the original article describes a nine-year project involving more than 5,000 employees, a 250-item questionnaire and 1,100 organisations. It presents the following planning sequence:

1. Values.
2. Appraise.
3. Motivation.
4. Search.
5. Select.
6. Programme.
7. Act.
8. Monitor and repeat steps 1, 2 and 3.

The account describes an initial assessment of what was good or bad in the present and future: satisfactory conditions, opportunities, faults and threats, abbreviated SOFT. It states that the terminology later changed from “faults” to “weaknesses”, giving the SWOT name in 1964.

SWOT can form part of a strategy-development process that establishes organisational purpose, analyses the situation, sets strategic objectives, develops plans and defines how progress will be monitored.

Using SWOT in a quality management system

ISO 9001:2015 requires attention to the organisation's context and relevant risks and opportunities. SWOT is one possible supporting tool; the standard does not require a SWOT analysis for every process or mandate this particular method.

Used appropriately, SWOT can help translate the organisation's situation into quality objectives, practical controls and performance reviews.

Six areas to consider in an organisational SWOT analysis

• Products.
• Processes.
• Customers.
• Distribution.
• Finance.
• Management.

Understanding the four elements

Weaknesses

• Working habits or behaviours that hinder performance.
• Insufficient or unsuitable work experience.
• Gaps in formal or structured training.
• Limited professional networks.
• Lack of direction or clear objectives.
• Gaps in occupational skills.

Strengths

Strengths are clear, demonstrable capabilities that can be maintained and developed. Examples include:

• Professional expertise.
• Relevant skills and work experience.
• A sound educational background.
• Strong professional relationships.
• Responsibility, dedication and commitment to the work.
• The ability to respond quickly and effectively to work demands.

Opportunities

Opportunities are favourable external developments that may create room for improvement or success. Examples include:

• Promising trends.
• Economic growth.
• New career opportunities.
• Assignment to a promising project.
• Opportunities to gain new skills or experience.
• Emerging technologies.
• New policies.

Threats

Threats are external developments that could negatively affect performance or career prospects. Their impact depends partly on how people and organisations respond. Examples include:

• Industry restructuring.
• Pressure from market volatility.
• Skills becoming obsolete.
• Insufficient readiness for technological change.
• Intense competition affecting organisations and individuals.

Putting SWOT into practice

1. Create a four-quadrant table, with one quadrant for each SWOT element.
2. Record clear, specific observations as bullet points in each quadrant.
3. Be candid and thorough, and consider other people's perspectives.
4. Review the entries, remove duplication and highlight the most distinctive and important points.
5. Analyse what the findings mean.
6. Define actions to develop important skills, address weaknesses, make use of opportunities and manage threats.
7. Review and update the SWOT analysis periodically so that the resulting plan stays relevant and useful.