Empowering 6 Extended SWOT Analysis Outcomes for Strategic Decision-Making
Extended SWOT Analysis, also known as Enhanced SWOT Analysis, is an advanced strategic analysis method that delves deeper into an organization’s internal and external factors. It goes beyond the conventional SWOT Analysis, which assesses Strengths, Weaknesses, Opportunities, and Threats by formulating primary strategic ideas we call protostrategies. These protostrategies emerge through the juxtaposing and detailed exploration of various combinations of isolated elements from the internal and external environments.
In extended SWOT analysis, an organization identifies not only its strengths and weaknesses but also seeks to comprehend the opportunities and threats in a more nuanced manner. This analysis forms the basis for the development of protostrategies. Protostrategies are initial concepts that arise from individual SWOT analysis components or combinations thereof. These ideas encompass strategies tailored to address specific SWOT analysis findings or combinations of these findings.
Table of Contents
Express Life Balance Wheel + sIQ Assessment
To get the most out of this reading, we recommend taking a quick self-assessment. This will help you apply the new knowledge more effectively and achieve better results.
Unlock your potential with 5 essential metrics:
- Strategium Personal Score – track 20 key areas of life.
- External Trend Impact – assess your environment.
- Personal Enhancement Mode – level of effort required.
- Strategic Planning Horizon – advised planning period.
- Strategium Intelligence Quotient – your new benchmark.
The Need for Extended SWOT Analysis
Traditional SWOT Analysis provides valuable insights but extended SWOT Analysis offers a more comprehensive view of an organization’s strategic landscape. It recognizes that the business environment is complex, and strategic planning requires a deeper understanding of the interplay between internal and external factors.
Extended SWOT Analysis is essential for several reasons:
1. Holistic Strategy Development: It enables organizations to formulate holistic strategies that evaluate multiple factors, resulting in more robust and adaptable strategic plans.
2. Identification of Protostrategies: By exploring various combinations of internal and external factors, extended SWOT Analysis uncovers protostrategies, which serve as the foundation for strategic decision-making.
3. Preparation for Strategic Planning: The insights gained from extended SWOT Analysis provide building blocks for developing a comprehensive organizational strategy.
In the following sections, we will delve deeper into the process of conducting an extended SWOT Analysis, providing instructions, examples, and templates to guide you through this strategic analysis method.
Understanding Extended SWOT Analysis
In this chapter, we will explore the intricacies of extended SWOT analysis, shedding light on how it differs from the conventional SWOT analysis and elucidating its role in crafting primary strategic decisions.
Explaining the Differences Between Traditional SWOT and Extended SWOT
Extended SWOT analysis distinguishes itself from the traditional SWOT analysis through its depth and scope. While the SWOT analysis primarily focuses on an organization’s strengths, weaknesses, opportunities, and threats, the extended version delves deeper into these aspects. It goes beyond mere identification and evaluation, aiming to unravel the complex interplay between an organization’s internal and external factors. This comprehensive approach is what sets extended SWOT analysis apart.
Highlighting the Value of Extended SWOT in Formulating Primary Strategic Decisions
Extended SWOT analysis plays a pivotal role in the strategic decision-making process. Dissecting and juxtaposing an organization’s strengths, weaknesses, opportunities, and threats in detail paves the way for the emergence of protostrategies. These protostrategies are initial, unrefined ideas that surface during the analysis. They represent formalized outcomes derived from the extended SWOT analysis of external and internal dimensions.
Protostrategies, in essence, embody the raw responses to the SWOT analysis findings. They encapsulate the approaches an organization should consider to address specific issues or leverage identified opportunities. These ideas emerge from examining individual SWOT analysis components or the combinations thereof.
In the context of strategic development, protostrategies are part of the foundation around which companies build a robust and adaptable strategy. They guide the transformation of abstract analysis into concrete action, making extended SWOT analysis an indispensable tool for organizations seeking to navigate today’s complex business landscape.
As we proceed, we will delve deeper into the methodologies, content, and sequence involved in conducting extended SWOT analysis.
Conducting a Strategic Session with Extended SWOT
In this chapter, we will delve into the significance of incorporating extended SWOT analysis into a strategic session and demonstrate its role within the broader context of the strategic planning process.
Traditional practice often limits SWOT analysis to a single strategic session, replacing the entire strategy process. However, our comprehensive strategizing methodology considers an extended SWOT analysis a crucial and indispensable step.
We recommend splitting this endeavor into two consecutive strategic sessions. The reason behind this division lies in the need to adequately prepare for the second part of this analysis, which involves revisiting and reevaluating the findings related to strengths, weaknesses, opportunities, and threats.
In our corporate strategic planning workshop, you can find detailed instructions for performing a SWOT analysis during strategic sessions. This course works well for individual use as well as for workgroups.
While a standard SWOT analysis generally raises few questions during its execution, the extended version often requires additional explanations. In this article, we will provide comprehensive insights into this aspect. However, please note that this article is not a substitute for a detailed SWOT analysis session in our workshop.
See the fundamental process of preparing and conducting an extended SWOT analysis below.
During this phase, participants in the working group engage in brainstorming sessions to identify or recollect all pertinent information related to the organization’s strengths, weaknesses, opportunities, and threats, considering both internal and external factors. It’s worth noting that this stage can sometimes give rise to methodological challenges, which we won’t delve into in this article.
As we move forward, we’ll provide a step-by-step guide to facilitate your understanding of the extended SWOT analysis process.
Step-by-Step Guide to Performing Extended SWOT Analysis for Your Business
Let’s see a comprehensive instructional manual for conducting extended SWOT analysis, breaking down the process into easy-to-follow steps and highlighting key considerations.
Let’s delve deeper into the analysis of combinations within an extended SWOT analysis. During this process, participants in the strategic session develop primary ideas, known as protostrategies, for responding to specific combinations under consideration.
As a result of this work, several types of protostrategies emerge:
- SO Strategies (Strengths-Opportunities): These strategies outline how we leverage our strengths to capitalize on opportunities.
- WO Strategies (Weaknesses-Opportunities): These strategies explore how we can utilize existing opportunities by addressing internal weaknesses within the organization.
- ST Strategies (Strengths-Threats): These strategies identify potential approaches to using strengths to mitigate threats.
- WT Strategies (Weaknesses-Threats): In these strategies, we compare weaknesses and threats, generating ideas to minimize weaknesses and counteract threats.
- SW Strategies (Strengths-Weaknesses): These strategies determine the required balance between the organization’s strengths and weaknesses in the future. It involves critically assessing the existing balance of strengths and identifying those to sacrifice in order to eliminate vulnerabilities that may pose a risk at the current stage of the company’s lifecycle.
- OT Strategies (Opportunities-Threats): This category focuses on responding to combinations of opportunities and threats. This combination can serve as the foundation for market positioning. We determine which opportunities should be pursued and leveraged and which we can disregard. We also consider which threats require our attention and how to respond effectively. The culmination of these findings establishes the company’s strategic position within the market environment, whether it’s a specific market or segment.
After thoroughly exploring these points and their possible combinations, a collection of ideas emerges, known as protostrategies. In other words, protostrategies serve as the initial strategic concepts, laying the groundwork for the subsequent development of a comprehensive strategy and its constituent parts, including goal maps, strategic project portfolios, programs, and more.
By following the step-by-step guide in our online course, you will be well-equipped to conduct a comprehensive extended SWOT analysis tailored to your business needs, setting the stage for informed and effective strategic decision-making.
Leveraging SWOT and PEST Analyses in Strategic Development
In this chapter, we will explore the synergies created by combining SWOT (Strengths, Weaknesses, Opportunities, Threats) and PEST (Political, Economic, Social, Technological) analyses in the context of strategic development. We’ll delve into how this powerful fusion enhances strategic decision-making and provide real-world examples of organizations that have reaped the benefits of this approach.
Extended SWOT analysis represents one of the most intellectually enriching phases in the development of the initial set of responses (protostrategies) for addressing threats, capitalizing on opportunities, and mitigating internal weaknesses. However, it is by no means the first stage in strategic development. PEST and SWOT analyses precede this crucial phase.
In the following diagram, you can see where these analyses fit within the framework of a proper strategic development process, containing the essential stages necessary for crafting a well-founded strategy.
SWOT and PEST analyses kick off this process, while protostrategies, business models, mission statements, functionality, vision, goal maps, projects, and resources follow suit.
Of course, when developing a strategy, you can navigate through many more stages and utilize an array of methods from our Strategy Navigator Matrix (periodic table of strategic elements). However, for the rapid development of a strategy using the Strategium Space methodology, this standard set suffices as an initial level for advancing strategic management within an organization.
Foremost among the data employed in protostrategy development are the results derived from PEST and SWOT analyses. To generate protostrategies themselves, we utilize the method of extended SWOT analysis in conjunction with brainstorming sessions.
This work can be conducted remotely, with team members simultaneously exploring protostrategies, or in a traditional setting, typically resembling a strategic session or meeting.
Stakeholders in Extended SWOT Analysis
In this chapter, we will explore the critical individuals responsible for steering the ship when it comes to extended SWOT analysis. We’ll dive into the key players who shape the strategic landscape and discuss the pivotal roles of leadership and other team members.
First and foremost, the task of conducting extended SWOT analysis and crafting protostrategies should fall upon the strategy development team. This team typically comprises key employees who possess a vested interest in the company’s future and play an integral role in shaping that future.
In the development of protostrategies within the framework of extended SWOT analysis, as well as in the broader context of strategic development, the participation of top-level management within the organization is paramount. When the focus shifts to functional strategy development, the leadership responsible for the corresponding function or department takes the lead.
Additionally, critical stakeholders or owners of the organization must also play a role in strategic development. If we’re honing in on functional strategy, it’s the upper echelons of the company’s management that need to be involved.
Engaging Top Management in the Extended SWOT Process
As we embark on the quest for primary strategic ideas, an initial “broth” emerges. This raw data must undergo an assessment by senior executives before proceeding further into the development of the growth strategy.
Why is this necessary?
The reason lies in the potential abundance of ideas generated during this phase. Some may hold substantial value, while others might not align with priorities, constraints, and even convictions of top management.
Let’s be realistic; in most companies, top leadership won’t entertain strategy formulations that jeopardize their position. Hence, it’s ultimately the top management that shapes the strategy.
This is precisely why it’s advisable for frontline executives to pre-screen ambiguous ideas from the initial pool of protostrategies. This way, time isn’t squandered on ideas unlikely to gain top management approval.
However, I must emphasize that this step is not mandatory.
Ultimately, its necessity hinges on your organization’s corporate culture. As the saying goes, “culture eats strategy for breakfast.” While I may not fully concur with Peter Drucker’s sentiment, I believe it’s wiser to ensure the dynamism of strategy development rather than get embroiled in internal corporate disputes.
Perhaps in some companies, this interim agreement won’t be necessary, while in others, the opportunity may not even arise.
In any case, employees and the working group members can and should explore ambiguous ideas. Nevertheless, they should bear in mind that rejected ideas should be backed by additional arguments, or it might be more prudent not to invest time in them.
Understanding the dynamics of interaction in most organizations, I posit that it’s often more convenient to have these ideas in reserve rather than banging on a closed door, especially considering the myriad of other opportunities for deploying these ideas in one’s career.
Data Collection for Extended SWOT Analysis
Let’s explore the critical aspects of data collection necessary for conducting an extended SWOT analysis.
The foundation of any meaningful SWOT analysis is data. It’s essential to identify the data sources required for a comprehensive analysis.
One vital aspect is the emphasis on the accuracy of the information. Outdated or inaccurate data can lead to flawed strategic decisions, which is why we stress the importance of maintaining an up-to-date information repository.
So, what factors and data do we employ for an extended SWOT analysis? In previous strategic sessions, we performed PESTLE and SWOT analyses, and their results serve as a starting point. However, it doesn’t stop there.
For this task, we can tap into the entire spectrum of information available to the company and its employees. Consequently, all departments within the company must participate in this strategic session.
Various sources can contribute, such as audit findings, an internal situational analysis, and more. Typically, such projects are the responsibility of consultants, business excellence, or internal audit departments. Protostrategies should be built upon and take into account these data points.
Protostrategies themselves, in turn, play a pivotal role in developing the organization’s goal map, the methods to achieve these goals and the composition of specific projects geared toward realizing strategic objectives.
In a broader context, protostrategies are indirectly influential in shaping the organization’s business model, mission, and vision.
The same principles apply to the strategies for any functional area within the organization.
Now, let’s delve into the content and sequence of tasks when conducting an extended SWOT analysis.
The Extended SWOT Analysis Methodology
In this chapter, we will delve into the comprehensive methodology of extended SWOT analysis, shedding light on the various tools and frameworks it encompasses. Additionally, we will provide an insightful overview of the extended SWOT matrix.
At the heart of the extended SWOT methodology lies the extended SWOT matrix. This matrix serves as a visual representation of the organization’s internal and external factors, highlighting the intersections where strategies are formulated. Below, you can see a process that shows how to use the components of this matrix for strategic analysis effectively.
Before embarking on the extended SWOT analysis journey, it’s crucial to assemble the right team. This team may differ slightly from the participants in the initial SWOT analysis phase. We emphasize the importance of having socially bold team members who aren’t afraid to propose and defend radical ideas for transforming the business.
The ideal team should comprise experienced individuals with a deep understanding of the company and the market. All team members should familiarize themselves with the SWOT analysis method and related materials.
Efficiency in the process is better when team members independently work on different ideas beforehand. Each member should conduct an individual extended SWOT analysis. Subsequently, a coordinator collates and consolidates the results of these findings for joint discussion.
The rationale behind individual preliminary work is straightforward. It prevents individuals from hiding behind the contributions of others, a phenomenon that can often occur during brainstorming sessions. Thus, this preparatory work ensures each team member actively participates.
To facilitate your understanding, we have included the extended SWOT analysis lesson segments in this article. If you’re not already enrolled in our course on corporate strategy development, the provided link will redirect you to its description as this lesson is not publicly accessible.
In the upcoming sections of this chapter, we will break down each step in the extended SWOT analysis process, offering valuable insights to guide you through this critical strategic endeavor.
Real-Life Extended SWOT Analysis Practice
Let’s delve into a real-life extended SWOT analysis example. Our approach involves a meticulous examination of each section within the SWOT analysis. We systematically compare and contrast the points within each section to identify potential connections and intersections.
For every pair of points identified, we brainstorm innovative solutions, changes, or projects that could address the specific combination of challenges and opportunities they represent.
Occasionally, we encounter situations where a straightforward solution isn’t readily apparent. However, these instances are exceedingly rare, and they warrant a closer examination and more profound contemplation of the issue at hand.
More commonly, we find ourselves in situations where identical solutions can address different combinations of challenges and opportunities. This occurrence is far more prevalent.
Furthermore, there are instances where a single solution effectively mitigates several issues simultaneously. Therefore, don’t be surprised if you arrive at the same solution for multiple combinations. There is no cause for concern in such cases.
However, exercise caution not to oversimplify solutions or generate overly simplistic protostrategies. While simplicity can be an asset, it’s essential to maintain the depth and relevance of your strategic thinking.
To facilitate the resolution of complex issues, you can employ a helpful technique. Imagine that nothing else, apart from the specific SWOT analysis pair related to your organization or functional area, has any influence. Essentially, you abstract away from the broader, more complex real-world context and focus solely on crafting solutions for that particular combination. This approach can help stimulate creative thinking.
Subsequently, pass on the results of your work to the coordinator of the working group. They meticulously process these materials, consolidating the findings, eliminating redundancies, and then distributing the materials back to all participants for review.
This stage sets the base for the strategic session, where all the synthesized insights and protostrategies are discussed and refined.
Facilitating a Strategic Session with Extended SWOT
Let’s delve into the practical steps for organizing and conducting a strategic session using the extended SWOT analysis approach. Additionally, we will explore strategies for fostering collaboration and innovation within your strategic team.
Once we’ve thoroughly examined the contributions of participants during their independent work, we move on to the pivotal stage of our extended SWOT analysis – the strategic session (protostrategy generation). This session can be conducted either in person or remotely, depending on the preferences and logistical constraints of the team.
During the strategic session, fresh insights and ideas inevitably surface, resulting in the initial collection of protostrategies. These protostrategies serve as the foundation for the future development of the organization’s or functional area’s strategy. However, correct processing of this information is crucial.
After the session concludes, the coordinator compiles the brainstorming results and, in some cases, as mentioned earlier, submits them for approval to senior management.
The coordinator and the senior management team may evaluate these protostrategies based on various criteria such as feasibility, alignment with organizational goals, and other pertinent parameters. Although regrettable, we must set aside unsuitable ideas.
Key recommendations:
- Diverse Brainstorming: Conduct the extended SWOT analysis through collaborative brainstorming sessions or even individual ideation.
- Inclusivity: Encourage suggestions that go beyond the boundaries of the team’s responsibilities and authority.
- Multifaceted Perspective: Examine the situation from multiple angles: the perspective of leadership, clients, competitors, and collaborators.
- Long-term Focus: Analyze potential actions in the current and future contexts, considering the entire horizon of the organization’s strategic planning.
- Depth of Analysis: Strive for depth in your analysis, taking into account not only current trends but also anticipated future changes.
- Open-mindedness: Put forward any proposals for responding to existing and anticipated challenges and opportunities, even those that may seem unrealistic.
- Clarity and Specificity: Ensure your recommendations are clear, specific, and presented as individual items. Avoid grouping protostrategies, as this can complicate further processing.
By adhering to these recommendations, you can conduct an extended SWOT analysis effectively and derive innovative protostrategies to enhance your organization’s strategic planning.
The Outcomes of Extended SWOT Analysis
In this chapter, we will delve into the tangible results and valuable insights obtained through the extended SWOT analysis. We will explore how these findings profoundly influence strategic decision-making.
The culmination of the extended SWOT analysis process should lead to the identification of potential developmental directions for the organization. These directions are determined based on the prevailing composition of protostrategies.
Each domain represents a consolidated, succinct evaluation of a set of protostrategies.
As illustrated in the diagram, if our analysis reveals a preponderance of strengths and opportunities, it becomes logical to focus our efforts on development. The growth should become the guiding principle of our strategy.
However, if we find ourselves facing a multitude of threats and weaknesses, it necessitates thoughtful consideration of our next steps. Unless we contemplate the option of exiting the market or discontinuing the business, we must diligently work on resolving these issues. We should build our strategy around responding to threats and overcoming internal weaknesses.
There are also alternative pathways that entail more flexible responses and the mitigation of threats, as depicted in the diagram above.
By understanding the dynamics of your organization’s protostrategies, you can chart a course toward growth and sustainability that is well-informed and agile. These outcomes serve as the cornerstone for strategic decisions that can shape the future of the company.
In the next chapter, we will explore the practical implementation of these strategic decisions derived from the extended SWOT analysis.
Method and Sample Extended SWOT Analysis Using a Matrix Template
In this chapter, we’ll roll up our sleeves and dive into the practical aspects of conducting an extended SWOT analysis. We will use a matrix template, guiding you through the process step by step, and explaining how to effectively populate this matrix.
Creating an initial set of protostrategies can be streamlined using a template in a table format, as depicted in the diagram below. During the analysis of strategic session results, participants systematically fill in the appropriate fields with new ideas.
A real-life example of a SWOT analysis, customized for a specific company or department, can be found in the materials within our practical course.
This template helps with processing and alignment. After the protostrategies have been approved, the next step involves taking the entire set and categorizing them by topics to facilitate further processing.
Topics can vary widely, covering aspects such as market strategies, information technology, motivation, processes, personnel, organizational development, and more. The specific classification depends on the types of strategies being developed within your organization.
Tables, processes, and other materials for conducting a strategic session, right down to sample letters for distributing to members of the working group on the topic of extended SWOT analysis, are provided in the appendix to the relevant lesson in our corporate strategy course.
You can also explore practical examples of SWOT analysis in the introductory video at the beginning of this article.
Conclusion
In closing, we’ve delved into the intricacies of conducting an extended SWOT analysis and unveiled the significance of the term “protostrategies.”
Indeed, this is a new term, prefixed with “Proto…” (from the Greek “protos” – first), which is a part of compound words denoting primacy, fundamental aspects, or the preliminary stage of the development of something (such as protoplasm or prototype). It can also indicate the highest degree, as seen in “protoiereus” or “protostrategist.”
The term “protostrategies” underscores the primacy and fundamental nature of ideas as a precursor to the subsequent development of a strategy.
Once again, let me remind you that what I’ve shared with you here is just one of the stages in the process of developing a strategy. This article itself is a fragment of one of the lessons in our strategy development course, which contains all the necessary information for your work, including table and slide templates, along with instructional videos.
The Strategy Development Workshop is an integral part of the Ultimate Strategizing Flow program.
If you’re not quite ready to embark on your learning journey, we recommend subscribing to our lessons and updates or enrolling in one of our complimentary courses.
