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Four Alternatives to a SWOT Analysis

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Before analyzing alternatives to a SWOT analysis, it is important to understand what a SWOT analysis entails and hopes to achieve. The analysis examines an organization’s Strengths, Weaknesses, Opportunities, and Threats. The strengths are what the organization does best and any advantages they have over the rest of the market/sector. The weaknesses section should identify areas of the company that show a need for improvement. These first two categories of reflection are internally focused evaluations. The next two factors focus on an external analysis of the industry. The opportunities section identifies areas of potential growth, including clientele, product variation, various geographic markets, and other business opportunities. An examination of threats includes factors that pose challenges to organizations that are competing for the same suppliers, clients, or contracts. 

The different analyses provide alternatives to the SWOT analysis in order to make sure that you can get the most out of your strategic planning process. A strategic plan is a critical component of any nonprofit as it ensures that organizations remain tied to their vision. It allows organizations to stay focused on their vision as they implement their mission through capacity building and effective nonprofit strategy.

SOAR Analysis

A SOAR analysis maintains the Strengths and Opportunities sections of a SWOT analysis but introduced Aspirations and Results in the place of Weaknesses and Threats. Aspirations focus on what the organization wants to do, who they want to serve, and where they wish to operate. The results section addresses how the organization will identify and track their progress toward their Aspirations and Opportunities. This section works to ensure that the organization is making progress and sticking to its plan for achieving its goals. 

What are the advantages of a SOAR Analysis? 

A SOAR analysis is considered oriented toward action to a greater degree than a SWOT analysis. A SWOT analysis is more analytical in its approach. This difference makes SOAR more useful for younger organizations that are developing their identity or brand. SOAR provides an option for organizations that will not know exactly what their weaknesses are yet. It is a forward-thinking examination rather than an analysis based on experience. Additionally, SOAR tends to be more positive whereas SWOT tends to focus on opposing forces and competition. 

PESTEL Analysis

The PESTEL analysis examines six factors: Political, Economic, Social, Technological, Environmental, and Legal. The analysis uses this framework to determine whether macro-economic factors are affecting an organization. 

  • Political: how much is the government involved in the economy or in your organization’s particular market? How much can government policy influence your market?

  • Economic: how many economic factors (interest rates, employment, foreign exchange, unemployment, etc.) will affect your organization’s profitability?

  • Social: how much do emerging trends or demographic changes (population growth, age distribution, etc.) affect your organization?

  • Technological: how much do technological innovation, development, and disruption affect the organization’s market or the industry/sector?

  • Environmental: how much do the surrounding environment and ecological impact influence the organization’s policies? Check out how why NMBL likes to use an analysis that focuses on environmental factors.

  • Legal: how will changes in legislation affect the organization’s profitability, sustainability, and growth?

What are the advantages of a PESTEL Analysis? 

Understanding these six macro-economic factors and their relationship with an organization is a useful first step toward potential threats and weaknesses. Similar to the next analysis, Five Forces, this general framework is best when complemented by another analysis. This analysis is commonly used in conjunction with a SWOT analysis rather than as an alternative. The PESTEL analysis works well to ensure that marketers are not making decisions while thinking they work in a vacuum. Similarly, the PESTEL form accounts for the dynamic macro-economic landscape. This allows businesses to plan and adapt. 

Here’s how we use a PESTEL Analysis in our Strategic Planning process.

Five Forces Analysis 

Developed in the 1980s by Harvard Business School professor Michael Porter as an analysis of the competition of a business, it examines five forces that determine the competitive intensity and the attractiveness (or lack thereof) of an industry in terms of profitability. The model includes three forces from “horizontal” competition: these are threats from substitute products or services, the threat of established rivals, and the threat of new entrants. The two other forces come from “vertical” competition: these forces examine the bargaining power of suppliers and customers.

What are the advantages of a Five Forces Analysis?

Porter developed the theory in response to the then-new and popular SWOT analysis. He believed that his analysis provided more rigor and thoroughness than the SWOT alternative. While these next points are not advantages, they are important to note before undertaking this analysis. The Five Forces Analysis focuses on a macro level and does not focus on actions for high or low force threats. Additionally, other academics have introduced a possible sixth force, “complementors,” which focuses on the reasoning behind strategic alliances. Many point out that the generality of this analysis is a significant fault, but the analysis generates a quality framework that can be complemented with another value chain analysis. 

NOISE Analysis

The NOISE analysis is a tool that allows analyzers to examine the current state of a business and generate a strategic improvement plan. Needs, Opportunities, Improvements, Strengths, and Exceptions. 

  • Needs (N) – what is needed for a strategy to be achieved (needs can be organizational or individual)?

  • Opportunities (O) – what external factors offer opportunities for your organization to grow? How are other departments, locations/chapters, or peer organizations achieving growth? Are there unexplored areas that offer new opportunities for growth?

  • Improvements (I) – how must the organization adjust to achieve needs and prepare to take advantage of opportunities?

  • Strengths (S) – what is the organization doing well currently? How are you measuring success? 

  • Exceptions (E) – of the four above subjects, what is already present? List all factors regardless of their current impact.

The main premise behind NOISE analysis is that you frame issues in terms of what you don’t have rather than what you need to overcome. The use of solution-focused language creates a plan that focuses on identifying obstacles and finding new opportunities. Seeing many opportunities is more positive than seeing a long list of strategies done wrong and challenges to overcome. 

What are the advantages of a NOISE Analysis? 

A NOISE analysis seems to feel more positive because it identifies and focuses on needs. To a staff, needs may feel more achievable and targetable than being handed a list of challenges to overcome. To meet needs is often easier than challenges to be overcome. 

Utilizing a vision-based strategic planning technique to prepare for the decision-making phase of a strategic planning process is essential for peeling back the layers of an organization. Understanding the organization and its environment, internally and externally, is the first step toward developing a plan for achieving new strategies or refocusing on incomplete ones. These four alternatives to a SWOT analysis all offer different positive aspects, but of course, each has its gaps. You cannot know where to go if you do not even understand where you are at presently. Using the proper planning analysis and technique is essential for framing your current situation and your future path. Examine the positives and what your organization needs as it develops its strategic plan to choose the right analysis for your organization. 

Looking to align your organization’s future? We help our clients develop comprehensive and functional strategic plans that allow them to align the future of their organization from top to bottom. Learn more about our strategic planning work and strategic planning prep kit. Also, reach out to us today for a strategic planning consultation!