The use of SWOT as a tool to stimulate strategic conversation in SMEs

Raf Sluismans, Tinne Lommelen and Friso den Hertog Maastricht University & Hasselt University

SWOT analysis – outdated tool?

• Tool in strategy• Widespread & intuitively attractive• Qualities & critiques voiced

• Recipe (How to)• Active ingredients (Why it works)

SWOT as tool in large scalepolicy programmes

STEP 1: Intake interview

STEP 2: Innovation scan

Discuss scan results

Build SWOT matrix

Score SWOT matrix

STEP 3: Strategic session 1

Set priorities

Formulate actions

STEP 4: Strategicsession 2

• Target group: SMEs• Aim: strengthen innovation capacity• Means: strategic conversation – Four steps– Professional consultants

Discuss scan results

STEP 3: Strategic session 1

SWOT as tool in large scalepolicy programmes

STEP 1: Intake interview

STEP 2: Innovation scan

Build SWOT matrix

Score SWOT matrix

Set priorities

Formulate actions

STEP 4: Strategicsession 2

• Standardized process & customized content• Attention for critiques voiced– Thoroughness and focus– Methodology– Outcome

Recipe for valuable SWOTs

• Protocols (purpose, procedure, outcome)– Selection of participants– Specific topic of strategic exercise – Selection of questions– Organization of brainstorm sessions– Controlling group dynamics – …

• Toolbox• Training• Monitoring • Continuous conversation consultants & participants

in SMEs

Active ingredients:Focus & priority

• Preparing analysis• Building matrix

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kitchens as productexclusive kitchenwarekitchen designers location of kitchen-shopsstrong relationships with architectsSubtotaal Ano use of computer programs to design kitchensinsufficient communications between sales and installationfollow up of marketing actionsconditions and terms of paymentslost margins due to numerous changes in projectsSubtotal BTotal

Threats

Wea

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Opportunities

Streng

ths

Active ingredients:Focus & priority

• Preparing analysis• Building matrix• Scoring matrix

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kitchens as product 6 6 4 2 0 18 1 6 6 5 5 23 41exclusive kitchenware 2 1 4 0 6 13 3 5 0 0 0 8 21kitchen designers 5 6 6 6 0 23 6 6 6 4 0 22 45location of kitchen-shops 6 0 0 6 0 12 0 6 2 6 3 17 29strong relationships with architects 4 6 6 2 1 19 5 6 3 1 1 16 35Subtotaal A 23 19 20 16 7 15 29 17 16 9no use of computer programs to design kitchens

4 0 1 6 0 11 2 1 1 1 5 10 21

insufficient communications between sales and installation

1 4 6 0 0 11 1 5 6 0 0 12 23

follow up of marketing actions 4 5 4 5 0 18 1 6 6 5 0 18 36conditions and terms of payments 1 1 1 0 0 3 2 1 3 0 0 6 9lost margins due to numerous changes in projects

1 2 2 0 0 5 0 6 4 0 0 10 15

Subtotal B 11 12 14 11 0 6 19 20 6 5Eindtotaal 12 7 6 5 7 9 10 -3 10 4

Threats

Wea

knesses

Opportunities

Streng

ths

Conclusion

• Appeal of SWOT– In general– In particular settings

• Contributions– Articulate design – standardized SWOT– Objective: stimulate strategic conversation in SME– Means to an end: aiming for focus and priority in

strategic management developments