Resources for business

The RapidBI Team have been busy writing new free content covering strategic and tactical business theories, tools, thechiques and methods appropriate for people involved in the development of organizations or themselves. below are some of the newer pages.

Key Pages:

Holistic Diagnostic Tools - Find out what using a holistic approach can offer you and your organization Scanning the Business Environment - Why do this - is it just a waste of time or the critical factor? Management Models - 100+ Management Models - a page full of graphical management models, covering organizational growth, leadership, coaching, change management etc. Porters five forces - Michael Porter's five forces is a model used to explore the environment in which a product or company operates. The PESTLE Analysis - The PESTLE analysis - a powerful tool for exploring the external environment of an organzation Force Field Analysis - The Force Field analysis is a valuable tool in any decisionmaking process SWOT analysis - The SWOT analysis - a powerful tool for exploring the strengths of an organzation Personal Development Plans - Need to develop a Personal Development Plan - all you need is here PRIMO-F_- Business_Growth_Model - The PRIMO-F business growth model, a holistic approach Continuing Professional Development or CPD - CPD has been around for some years, now the need for personal responsibility is ever increasing. Write SMART objectives - Description on how to write SMART and SMARTER objectives for individual and business performance Learning Logs - We have had requests for material to complement our PDP and CPD pages... here it is Critical Success Factors - What are Critical Success Factors and how to use them Corporate Social Responsibility CSR - How does Corporate Social Responsibility impact smaller businesses Learning Styles - Want to be a more effective learner? hers is a summary of the main learning style theories and applicationWrite a Mission Statement - How to write a mission statement for your business. more coming soon...Psychometric_Personality_Testing - What psychometric testing is and how to use it Career Anchors - A powerful tool to help individuals understand their career strengths Business Values -how to use values to create an effective organizationChange Management - Understanding the impact of psychology on change

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Mike Morrison is director of RapidBI, an organizational effectiveness consultancy. He has been involved in HR, OD and strategic development for over 20 years. He can be contacted via www.rapidbi.com/

© This article is copyright RapidBI 2006, 2008 – it may be copied providing the authors are credited, and direct links maintained

Strategy and Tools in Business

Strategy and tools in business

Over the years a lot of good and bad stuff has been said about SWOT. Sure it is not the most robust of tools but when used in the way it was originally developed – it is a powerful tool.
Some people have argued that it is time to move on from SWOT to other things – in this piece we explore SOAR an appreciative Inquiry tool.

An interesting article on this topic was published in Ai Practitioner magazine ( http://preview.tinyurl.com/2bvobg ) (it is available here http://preview.tinyurl.com/26wk4v )for those that are not subscribers).

Having read the article, the SOAR approach to my mind makes the same mistake that many using the SWOT analysis do - and that is they miss the context. When the (highly researched) SOFT was changed to SWOT the new authors missed the point which is why the tool is often miss-understood. It was never designed to stand on its own, nor was it ever to be part of the direct action phase - it was a diagnosis and data capture tool.

The authors of this article to my mind make 2 fundamental mistakes:
1) they assume that all applications of SWOT are in the way they describe
2) they appear to ignore weaknesses and threads - apparently believing that their solution will soar (pardon the pun) over any difficulties.
Would the shareholders of Enron be in the position they are now in (extinct) if they had faced up to their threats and weaknesses, rather than focus on what they thought were their strengths?

The article clearly states in its summary
"This article has attempted to address the strategy-to-execution gap. In doing so, we have discussed SOAR, a strengths-based framework that builds on the best points of SWOT (strengths and opportunities) in order to move beyond the “as-is” state of the organization’s environment to the “to-be”."

Yes this as a framework can be used as the authors state to take SWOT data and apply it - but SOAR in itself is not a diagnostic or orientation tool. Anyone using this as a diagnostic tool is going to make the same errors as 1000's of people have done with inappropriate use of SWOT.
This thread has been started to help CIPD students (and others) complete their studies - and for that they must use SWOT and PESTLE - if they chose to use other tools they will need references - I cannot see any on the article .

Appreciative Enquiry has its place.
Appreciative Inquiry is a particular way of asking questions and envisioning the future that fosters positive relationships and builds on the basic goodness in a person, a situation, or an organization. In so doing, it enhances a system's capacity for collaboration and change. Appreciative Inquiry utilizes a 4-stage process focusing on:

• DISCOVER: The identification of organizational processes that work well.
• DREAM: The envisioning of processes that would work well in the future.
• DESIGN: Planning and prioritizing processes that would work well.
• DESTINY (or DELIVER): The implementation (execution) of the proposed design.
  
  

The basic idea is to build organizations around what works, rather than trying to fix what doesn't. It is the opposite of problem solving. AI focuses on how to create more of what's already working.
This method is more positive in nature than many others, however it is as a strategy naive in that it assumes success breeds success - many organizations are in fact where they are now because they did solve problems and did not just focus on what works.

Would a company that currently makes plastic carrier bags be advised to use SOAR - or look at the external factors which may bring about the end of the need for their product?

Equally any diagnostic process needs to look holistically at the people and the processes - not just one or the other.

Is SWOT redundant?.....

No but it is sure made more reliable with additions of other models in the transition to application.

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Mike Morrison is director of RapidBI, an organizational effectiveness consultancy. He has been involved in HR, OD and strategic development for over 20 years. He can be contacted via www.rapidbi.com/

© This article is copyright RapidBI 2008 – it may be copied providing the authors are credited, and direct links maintained

Strategic Organizational Development

OD professionals are the CEOs allies in creating a top performance culture for the organization.

Organizational Development professionals are specialists in Change Management and Culture Development. However many find themselves in positions that make it difficult to get a straight line of communication to the CEO. Mainly because of the Organizational structure and the fact that OD-Organization Development is located under HR. Ideally the OD Head would have a position on the same level as the HR Head according to Dr. William Rothwell from Pennstate University who is an authority in HR. However reality is that most OD professionals still work under the more traditional structure.

Some years ago I held an OD role that reported directly into the CEO - HR did not!! - so to some extent this is down to the CEO and their experience of what an OD professional can and cannot deliver in relation to their needs and vision for the organization.

OD as a discipline is getting is only recently starting to grow an a standalone profession. More so with the pangs of growth that many of the new organizations are now facing. Talent acquisition, retention, organizational culture and people development are now starting to hinge more on the OD professional more than the HR. Recognizing this aspect, many organizations are allocating independent structures for the OD function. However, in cases where the OD has to work under HR, whether he/she can connect to the CEO solely depends on what he/she is capable of taking to the table. If a OD professional can sparkle with out-of-the-box ideas which can directly contribute to the growth of organization, the CEO cannot turn a blind eye.


Back in the 60's and 70's OD focused on people, behaviours and their actions and interactions with each other, in those days the majority of organizations did not know how to look after or engage with their people -

Things have now changed, much is different

CEO’s are having their valuable time ever squeezed and as such will only be able to have people reporting directly in that can add directly and measurably to their primary objectives. They have to focus on the big picture or strategic matters.

Unfortunately it is not very often that OD practitioner can demonstrate primary change. If we want to be engaged at this level we need to re-evaluate what we do and what is classed as OD activity. For example, traditionally when undertaking diagnostic processes we seem to focus on people and behaviours, or on the culture, now we need to be more integrated and holistic. This means starting to look at factors which traditionally have not been the domain of OD practitioner. If we are to truly facilitate change then our diagnostic process need to map the PRIMO-F model – that is to cover:

• People,
• Resources,
• Innovation,
• Marketing,
• Operations and
• Finance elements,

For it is how these factors interact that provide the organization with either an advantage or disadvantage in the market place. When undertaking a SWOT analysis for your organization do you cover all of these elements appropriately? Sure we may not be in a position to solve any issues raised here but as OD facilitators our role is to identify any blocks in the organization, then help to facilitate a solution.

So if we really want to get noticed we need to really get strategic and start looking at interactions with people and systems in all elements of our respective organizations.


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Mike Morrison is director of RapidBI, an organizational effectiveness consultancy. He has been involved in HR, OD and strategic development for over 20 years. He can be contacted via www.rapidbi.com/

© This article is copyright RapidBI 2006, 2008 – it may be copied providing the authors are credited, and direct links maintained

How to Write a SWOT analysis

SWOT Analysis

A SWOT is a planning tool used to understand the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business. It involves specifying the objective of the business or project and identifying the internal and external factors that are supportive or unfavourable to achieving that objective.

SWOT is an acronym for Strengths, Weaknesses, Opportunities, Threats.

There are several ways of graphically representing the SWOT analysis matrix or grid. Several versions are shown on this article - use the one which is best suited to your application. (More templates can be seen on our website SWOT analysis templates )

While at first glance the SWOT looks like a simple model and easy to apply, I can say from experience, that to do a SWOT analysis that is both effective and meaningful, requires time and a significant resource. This cannot be done effectively by just one person. It requires a team effort. The SWOT methodology has the advantage of being used as a 'quick and dirty' tool or a comprehensive management too, and that one can lead to the other. This flexibility is one of the factors that has contributed to its success.

The term "SWOT analysis" is in itself an interesting term. To my understanding, the SWOT is not an analysis. It is a summary of a set of previous analyses – even if those were not more than 15 minutes of mini-brainstorming with yourself in front of your computer. The analysis or more correctly interpretation comes after the SWOT summary has been produced.

The SWOT Model

Positive	Internal		Negative or potential to be negative
	Strengths	Weaknesses
	Opportunities	Threats
	External

	Strengths	Weaknesses
Opportunities	Offensive - make the most of these	Defensive - watch competition closely
Threats	Adjust - restore strengths	Survive - turn around

Definition of SWOT

A SWOT analysis process generates information that is helpful in matching an organization or group’s goals, programs, and capacities to the social environment in which it operates. Note the SWOT itself is only a data capture - the analysis follows.

Strengths

• Positive tangible and intangible attributes, internal to an organization.
• They are within the organization’s control.
  

Weakness

• Factors that are within an organization’s control that detract from its ability to attain the desired goal.
• Which areas might the organization improve?

Opportunities

• External attractive factors that represent the reason for an organization to exist and develop.
• What opportunities exist in the environment, which will propel the organization?
  Identify them by their “time frames”

Threats

• External factors, beyond an organization’s control, which could place the organization mission or operation at risk.
• The organization may benefit by having contingency plans to address them if they should occur.
• Classify them by their “seriousness” and “probability of occurrence”.

Background to the SWOT Analysis

The SWOT analysis technique is credited by Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from top companies.

The goal was to identify why corporate planning failed. The resulting research identified a number of key areas and the tool used to explore each of the critical areas was called SOFT. Humphrey and the original research team used the categories “What is good in the present is Satisfactory, good in the future is an Opportunity; bad in the present is a Fault and bad in the future is a Threat.” This was called the SOFT analysis.

In 1964 Urick and Orr at a conference changed the F to a W, and it has stuck as that, soFt to sWot

On its own a SWOT analysis is meaningless It works best when part of an overall strategy or in a given context or situation. This strategy may be as simple as:

1. Goal or objective
2. SWOT / SOFT
3. Evaluation or measures of success
4. Action

Introduction to SWOT

The SWOT analysis tool is great for developing an understanding of an organization or situation and decision-making for all sorts of situations in business, organizations and for individuals.

The SWOT analysis headings provide a good framework for reviewing strategy, position and direction of a company, product, project or person (career).

Doing a SWOT analysis can be very simple, however its strengths lie in its flexibility and experienced application. Remember the capture is only part of the picture.

Applications

A SWOT analysis can be used for:

• Workshop sessions
• Brainstorm meetings
• Problem solving
• Planning
• Product evaluation
• Competitor evaluation
• Personal Development Planning
• Decision Making (with force field analysis)

The SWOT is a great tool that can be used in association with PESTLE

Overview of SWOT

	POSITIVE/ HELPFUL to achieving the goal	NEGATIVE/ HARMFUL to achieving the goal
INTERNAL Origin facts/ factors of the organization	Strengths Things that are good now, maintain them, build on them and use as leverage	Weaknesses Things that are bad now, remedy, change or stop them.
EXTERNAL Origin facts/ factors of the environment in which it operates	Opportunities Things that are good for the future, prioritize them, capture them, build on them and optimize	Threats Things that are bad for the future, put in plans to manage them or counter them

Aim of a SWOT Analysis

• Reveal your competitive advantages
• Analyze your prospects for sales, profitability and product development
• Prepare your company for problems
• Allow for the development of contingency plans

A SWOT analysis is a process to identify where you are strong and vulnerable -- where you should defend and attack. The result of the process is a 'plan of action', or 'action plan'.

The analysis can be performed on a product, on a service, a company or even on an individual.

Done properly, SWOT will give you the BIG PICTURE of the MOST IMPORTANT FACTORS that influence SURVIVAL and PROSPERITY. As well as a PLAN to ACT ON.

How to do a SWOT

Irrespective of whether you or your team are future planning for specific products, work, personal or any other area, the SWOT analysis process is the same.

• Step 1 – Information collection - In the here and now…
  List all strengths that exist now. Then in turn, list all weaknesses that exist now. Be realistic but avoid modesty!
• You can conduct one-on-one interviews. Or get a group together to brainstorm. A bit of both is frequently best
• You'll first want to prepare questions that relate to the specific company or product that you are analyzing. You'll find some questions and issues below to get you going.
• When facilitating a SWOT - search for insight through intelligent questioning and probing
• Step 2 – What might be…
  List all opportunities that exist in the future. Opportunities are potential future strengths. Then in turn, list all threats that exist in the future. Threats are potential future weaknesses.
• Step 3 – Plan of action…
  Review your SWOT matrix with a view to creating an action plan to address each of the four areas.

In summary:

• Strengths need to be maintained, built upon or leveraged.
• Weaknesses need to be remedied, changed or stopped.
• Opportunities need to be prioritized, captured, built on and optimized.
• Threats need to be countered or minimized and managed.

A SWOT analysis can be very subjective, and two people rarely come-up with the same final version of SWOT. It is an excellent tool however, for looking at the negative factors first in order to turn them into positive factors. Use SWOT as guide and not a prescription.

For more detailed examples, templates etc visit http://www.rapidbi.com/created/SWOTanalysis.html

Mike Morrison

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Mike Morrison is director of RapidBI, an organisational effectiveness consultancy. He has been involved in HR, OD and strategic development for over 20 years. He can be contacted via www.rapidbi.com © This article is copyright RapidBI 2006, 2008 – it may be copied providing the authors are credited, and direct links maintained

Useful Links

Recently I have noticed a number of trends on many professional forums. There appear to be increasing numbers of people in HRD roles or studying for HRD roles that lack some of the 'basics'. To meet this need I have written a number of guides and introductory articles, their purpose is to act as a beginner 101. I hope you find them of value.

The pages below contain free articles on management, leadership and HR issues:

http://www.rapidbi.com/articles

Management Models - 100+ Management Models - a page full of graphical management models
The PESTLE Analysis Tool - The PESTLE analysis - a powerful tool for exploring the external environment of an organzation
SWOT analysis - The SWOT analysis - a powerful tool for exploring the strengths of an organzation
PRIMOF_- Business_Growth_Model - The PRIMO-F business growth model
Write SMART objectives - Description on how to write SMART objectives for individual and business performance
Critical Success Factors - What are Critical Success Factors and how to use them
Corporate Social Responsibility CSR - How does Corporate Social Responsibility impact smaller businesses