Strategic Analysis

This is a term often used with an assumption that the people hearing it understand its meaning.

Strategic Analysis is said to be:

‘… the process of conducting research on the business environment within which an organisation operates and on the organisation itself, in order to formulate strategy.’

BNET Business Dictionary

What is meant by the term “strategic analysis” differs from academic to academic and business o business, however there are some common factors. These are typically:

1. Identification and evaluation of data relevant to strategy (a plan, method, or series of maneuvers for achieving a specific goal or result: a strategy for gettingahead in the world) formulation

2. Definition of the external and internal environment to be analysed

3. A range of analytical methods that can be employed in the analysis

Examples of analytical methods used in strategic analysis include:

• SWOT analysis
• PESTLE analysis
• PRIMO-F analysis
• Porter’s five forces analysis
• Value chain analysis

 

 

Business Diagnostic Models

There are many business diagnostic models available but are they all the same?

DAVID LEYSERMAN said:

A business diagnostic can refer to an activity or a tool used to carry out the activity and of course there are different tools for different jobs. Some diagnostic tools are quick and dirty questionnaires while others are elaborate exercises with scientifically validated outcomes. Diagnostics range from a general business health check through to drilling down into a multitude of specific business areas.

Often consultants use the term “business diagnostic” to mean training needs analysis (TNA) or other identification of niche needs. these may be diagnostic tools used in business but they are hardly a diagnostic of business issues in the context of the operations of the business/ organization.

Others consider the three models, SWOT analysis, PESTLE analysis and Porter’s Five Forces to provide a comprehensive overview of the key areas of business operation. but the reality is that while these are frameworks for data collection they are NOT diagnostic tools, nor do the necessarily look at all key business operations.

Others consider the Force Field analysis tool to be a diagnostic, Its a great decision making tools – but hardly a diagnostic. Others in the field of organizational development consider tools such as cause maps and social network analysis to be good diagnostic tools – and they are – but only at the organizational level and not the business level.

A diagnostic model is a framework for identifying, analyzing and interpreting data in a given context to identify possible needs. The key here is “business diagnostic” Any diagnostic that only looks at people, style and people process and ignores BUSINESS PROCESSES, marketing and finance is not a business diagnostic.

The framework we like to operate to is the PRIMO-F model, not perfect but a holistic business approach which is practical and time efficient.

 

How to write your own holistic business diagnostic

In our piece “How to write your own Business Diagnostic Tool” we outline some of the steps to develop a robust, practical and reliable tool. For in business there is no such thing as one person that is an expert in all parts of business, and for the BIR we had a team of 10+ people contribute to its initial development and testing. In summary:

So to make a reliable Business Diagnostic Tool:

• Project manager for 10+ years
• Involve experts from a diverse range of experiences – 150+days
• Test and review – 150+  days
• Continuous development – 200 days and on going
• Software development & testing – ongoing

 

A business diagnostic is a meaningless exercise unless the person conducting it can correctly interpret what the diagnostic reveals about the business and is able to identify, prescribe or deliver effective remedies to address what the diagnosis shows.

An effective business diagnostic process provides the manager/ management team with a practical framework for identifying the current and desired health of a business in terms of its people, products 9services), customers and financial position as well as identifying appropriate planning strategies.

Any effective diagnostic tool will collect data from multiple sources and not just from one person. the key reason why a business fails… rose tinted glasses!

 

People – Resources – Innovation – Marketing – Operations - Finance

Marketing plan for a training company

How to develop a marketing plan for your training company

What is a marketing plan?

A Marketing Plan is sometimes called a marketing strategy, in essence it is an action plan of what it is you are going to do to promote your business. Like any SMART goal  it is a written plan that states the marketing goals and the objectives to be achieved over a specified period of time.

So if you are currently in business or looking to set up a training company or starting out in freelance training, the one thing you need is a clear plan – well in fact two plans… a business plan (a simple one page plan will do) and a marketing plan.

A marketing plan looks at three factors:

1. Where is your business now?
2. Where do you want/ need your business to be? (and why)
3. How are you going to get your business there?

Jumping straight to step (2) or three is a waste of time without REALLY understanding (1) – where is your business now (are you now)? What do you do? Who do you do it with? For how much?

We need to follow some sound principles…

Knowledge -> Understanding -> Action

We need Knowledge of where we are – we need to understand or make sence of this in order to take appropriate Action

 

A  Marketing Plan Template (example)

 

Executive Summary - What is the plan about – one or two simple paragraphs

Business Overview 

- What do you do – be specific (to say you run management training courses is too vague)

Target market - who do you do it do/ with? The narrower & more specific the better

Vision – what do you want to be ?

Mission – Why are you in business? what is your purpose?

Current Analysis - where are you now ? what do you do? who to? for how much?

External Analysis – What is happening in the environment in which you are, or want to operate? 

Conduct a PEST/ PESTLE analysis

Internal Analysis

Conduct a PRIMO-F analysis

Use the PESTLE & PRIMO-F data to complete a comprehensive SWOT analysis. Use this to consider where you are, where are you going and how are you going to get there?

 

Marketing Strategies – your plan

Consider what approaches (strategies) are required to achieve your desired goals. Look at:

• Marketing Mix (4 ps – product, place, pricing, promotion)
  • Your target market
  • Service/ product strategy
  • Pricing  approach
  • Promotional strategy- how do people know you exist?
  • Customers – acquisition, maintain – also see Ansoff matrix

  

Implementation Plan

What needs to be done. What actions.. by who… by when

Resourcing requirements

• How much money/ cash you need for your business plan
• Investment from you ?
• The people involved – is this just you? associates? partners?

This template will work equally well for a coaching or consulting company.

Writing a One Page Business Plan

One Page Business Plans

This article on simple business planning has been on the agenda for some time but never quite made it to the keyboard. Often when I run business advice sessions one of the biggest barriers to many people starting a business – or at least a barrier in their head is the business plan. They go on course, read business start-up websites and they all say you must start with a plan – well they are right – but not the sort of plan that many of the business books promote.

If you are a typical person looking to start your own business, then you will probably not be looking for finance, you are doing this with the resources you have available – then you do not need a monster 50 page business plan, what you need is a one page plan. Even if you do need a 50+ page business plan for fund raising, this will generally sit on the shelf and not get used so you need something practical too.

Introduction to the one page business plan

When starting a business it is easy to “go off track”, to have inconsistent messages in your marketing material etc – so some form of reference point is required. Something that you go to every day when a decision is required to ask yourself a simple question – is this activity required for the development of my business (to do it or not do it) or is it a distraction?

The one page plan needs to be clear enough that it helps you explain to people what it is you do – and more importantly sometimes what you don’t do.

Author Jim Horan, suggests that there are five questions a well written business plan must answer:

1. What are we building?
2. Why are we building it?
3. How do we measure success?
4. How are we going to build this monster?
5. What’s the work to be done?

These questions themselves could form a simple template.

Below is our preferred format/ sample template for a one page business plan.

The Rapid One Page Business Plan

Vision	What do you want to be a part of? What type of company? What products/ services… to who… where… when…
Goals/ Mission & Objectives	What is your purpose? Why start/ run the business? How will you achieve the vision? What level of engagement will you have with your suppliers & customers? How will you measure success?	1) 2) 3) 4) 5)
Strategies PRIMO-F	People (you & the people that support you) What must be achieved in the next 12 months? How will you measure success? Who can do what? What skills we have
	Resources What physical resources are available? How will you use them appropriately (cost effectively) What must be achieved in the next 12 months? How will you measure success?
	Ideas & Innovations What is the big idea?
	Marketing *its critical that people know you exist* What must be achieved in the next 12 months? Who are your customers? Where are your customers? How will you reach them? How will you know you are reaching them? (How will you measure success?)
	Operations What needs to happen to deliver the product/ service? What must be achieved in the next 12 months? How will you measure success?
	Finance What must be achieved in the next 12 months? How will you measure success? Start up Budget __________	Per month… Projected &        actual: Revenue __________  __________ Costs        __________ __________ Profit       __________ __________ (what’s left)
Actions	What specific actions are you taking to achieve your vision? When will key projects be completed? How much will each project cost to complete? What help & support do you need to be successful over this period?	1) 2) 3) 4)

This tool for Rapid Business Improvement can be used alone or as a practical summary to a comprehensive business plan.

** Marketing is one area than many new and young businesses neglect. the of saying “build it and they will come” works well in the centre of a village which everyone has to walk past – but in the modern age of fast life style and literally millions of people on the web, it is harder than ever to get your messages to people thet might want your services. Knowing you exist is one thing, converting those visitors to sales is quite another. never expect that a simple website without a comprehensive social media and traditional media marketing campaign will work – it wont!

Marketing always takes much longer than you expect – often by a factor of 10.

A one page document like this is a valuable tool to develop clarity, it is not a replacement for a full business plan if needed for external parties (fund raising, etc)

Also see our pages on SWOT & PESTLE to help further develop your one page business plan. If you are an established business then consider using a tool like our BIR to help identify improvement priorities

Organizational Diagnostic Reviews

What is a Diagnostic Review?

Before exploring the function and content of a Diagnostic Review lets understand what we mean.

Diagnostic – Refers to something that is used to determine the cause or disorder in a function/ organization.

Review – A commentary, often with criticism or correction. Also a report providing a critical consideration of a work or activity.
A diagnostic review examines an organizations management and financial systems and practices. Diagnostic reviews are generally at a strategic level and not audits and do not track individual items of expenditure or process actions. Nor do they provide a pass or fail assessment of an organizations management system. Rather, they provide leaders and stakeholders with information to act upon.

The review process should consist of a measurable assessment of key elements of your organization. It uses proven criteria for assessment and a full report that highlights current situation, progress to date, improvement opportunities and proposed action plans.

A holistic Diagnostic Review will cover all of the PRIMO-F areas of your organization or business, including the systems and controls in each.

The Diagnostic Review process should involve four groups of people:

• Board or Owners
• Managers
• Staff
• Other strategic stakeholders

In addition it should include information from two external groups:

• Customers
• Suppliers

The objective being to establish a 360 view of the current status at a given point (snapshot) in time.  Many diagnostic reviews fail as they neglect to capture wide enough perceptions on what is occurring withing an organization.

Know where you are before taking your first step

When beginning any Organizational Development (OD) or change process it is vital to know where you are, before embarking on a journey to your destination.

If you plan to go to New Zealand or Australia, your first step will be very different if starting from the UK or the US. While this analogy may seem obvious when in the context of travel, it is less so in the context of organizational change. But the situation is the same. Your route to your destination , vision or goal, will vary Dependant on your current position, from a skill and a cultural point of view.

Every organizational change intervention has improvement as it’s ambition some where along the line. We know from research that change is best perceived as something that people have already achieved, and that they have learned from their experiences. By positioning change as the norm rather than a feared future uncertainty, we can help people prepare for ‘the stability of continuous change’.

Using organizational diagnostic reviews as a tool for identifying “where are we now” can enable us to identify strengths and weaknesses that need to be addressed as part of our change journey.

Get Specific

One of the reasons that change and improvement initiatives fail is that the aims and objectives are either too vague or poorly communicated. Having definitions for all the elements we are looking to address is critical. These may be scores or indicators as part of a commercial organizational diagnostic review tool, or they may be KPIs or CSFs

The Business Improvement Review is a holistic diagnostic review tool which takes into account the vision/ mission, measure the culture and explores the strengths & weaknesses of the management and systems in which the business operates. the BIR is like a GPS for your organization. It will tell you where you are now, and with the right implementation strategy it can help you plot a route to your desired destination.

• The strengths and weaknesses of its People
• The strengths and weaknesses of its Resources
• The strengths and weaknesses of its Innovation
•  The strengths and weaknesses of its Marketing & Sales
• The strengths and weaknesses of its Operations (Products & Processes)
• The strengths and weaknesses of its Finance systems and cash-flow

 

A Diagnostic Review Case Study

Case Study Ltd is based in Feltham, the company designs, manufactures and supplies XXXXXX and associated equipment. It operates in a niche, yet growing market. Clients are first-class names, principally major corporate’s and international organizations.

Business is competitive. Larger rivals are often able to compete successfully in terms of price through their associations with raw material suppliers.

The company experienced losses five years ago as a result of losing a significant contract. Sales have subsequently been rebuilt from £1.2m to £2.5m for the year ended March 19xx. T/o fye March 19xx is projected at £2.8m.

There are fifty five staff at Feltham, led by Managing Director and supported by company accountant. The remaining management team comprises the chief engineer, quality and purchasing managers, the production planner and shop-floor supervisor.

1.     Business Issues arising from the Diagnostic Review

The following key business issues have been established through the process of questionnaires and interviews:

• The company overall has a sound level of knowledge of the industry. It believes it has good products, a customer focused outlook and good relations with suppliers and key existing clients.
• The three-year decline in gross profit margin (a key financial measure) has been arrested, albeit that it remains at a low level of 15%. The lack of profitability inhibits future options available to the Managing Director without the continued support of the parent company.
• Financial controls are in place and costs are controlled. Cash-flow issues dictate that there is a reliance of support from the parent company.
• There is no expressed long-term vision to guide the company  -  “why are we doing this……what are we in business for ?”
• The company is reactive. Business and marketing strategies are neither clear or cohesive among the management team. There needs to be detailed plans and priorities for achievement of the company’s broad aim of expansion.
• At times, communication is inconsistent, both at a management and operational level. The full team has few meetings and, as a result, lacks cohesion. There are contrasting views within the team that need to be reconciled   – see the range of views presented in Chart A.
• Management’s view of their management style is not shared by staff. There are significant gaps in opinions on involvement of staff, recognition and praise, leadership of people, openness, levels of teamwork and respect for people.
• Overall, this appears to indicate that collective leadership is not as effective as perceived by the management team. Do staff really understand what is expected of them? Is this symptomatic of an overall communication issue?
• Senior management perceive a level of freedom and involvement in decision-making that is not shared by the remaining team. This is not totally surprising, given the lack of accountability evidenced by the absence of performance management i.e. employees do not appear to be set measurable goals, performance standards, or receive regular feedback of performance.
• This, in turn, makes it difficult to evaluate individual performance and identify areas where performance and efficiency can be improved. A formal appraisal process may be beneficial, with an emphasis on how their performance impacts upon, for example, bottom line, company goals, customer service.
• There is general concern that the manufacturing process needs to be improved. There appears to be consistent  -  and persistent  -  problems across the production operation. These include:
  • Limited space resulting in poor production flow
  • Lack of coherent planning and scheduling
  • Inadequate stock planning and control
  • The company struggles to turn around work quickly enough; deliveries frequently fail to meet deadlines; and there is a lack of knowledge generally about the proposed new  information system. On this latter point, collective ownership of the system would be appropriate to obtain “buy-in”, rather than impose by edict.
• It is apparent that there is no one single individual within the company with direct responsibility for co-ordinating the manufacturing process.

People	Resources	Innovation	Marketing	Operations	Finance
Communications poor. Every effort is made but it does not have the desired effect. Some weaknesses in specific management techniques. Poor in some areas due to lack of training. Motivation seems to mean more hours spent at work. Fairly motivated workforce…..show commitment to the company. Casual approach; a Monday morning works meeting. Resistance  by individuals in certain departments. Too much fire-fighting; not enough time or co-ordination.	Premises too small. Shortage of space, no room for expansion. The staff are good; premises, equipment, IT and funding are a problem. More modern plant, machinery and tooling is required if production is to increase.	Respond well to customer-led demand but are not innovating ahead of the game. The team needs training in modern company techniques. The ideas are there but resources and time stop it happening. Ideas are translated quickly. R&D constrained by need to monitor overheads. Long term plans not known.	Could be better. Efforts from MD and one other, but lacking a sales force…… only one salesman plus agents. Good relationships with key clients. Reliant on existing contacts. Unable to penetrate new markets.	Slow in all areas. Need to speed up the flow of production from design to delivery. Information flow at all stages of production needs to improve. Lead times too short; never enough time from the customer. Deliveries are consistently late. R&D ad-hoc. No planning; lack of co-ordination; fire-fighting. Not enough stock is carried. Too many variations on small batches. Management info system being developed.	Turnover growing. Cash-flow issues. Weak balance sheet. Management accounts good. Appears to be o.k., but no in-depth knowledge of performance. Not aware of the finances. Not aware unless sales target not met.

To complete a Diagnostic Review on your organization (large or small) look at http://rapidbi.com/bir/ and buy the BIR diagnostic tool or contact a certified consultant user.

 

 

ICAEW Directors Briefings

Directors Briefings

Resources for busy professionals

Every now and again as a consultant, manager or business adviser we need to put our hands on short, accurate and trusted materials covering a wide range of topics. In a previous blog entry I highlighted some of the fact-sheets available from the CIPD most of which are open to any web site visitor. In the same way that the CIPD fact-sheets provide HR based material the The Institute of Chartered Accountants in England and Wales  (ICAWE) provide a range of Directors briefings for their members and web site visitors. These cover a diverse range of materials including strategy, marketing, business planning etc. What is more these topics are covered in just 4 pages, and are kept up to date- so data we can trust.

The RapidBI team have used these materials with our clients and hope that you find them useful too:

Human Resources:

Consultants:
Directors Briefing on: Using a consultant

Managing your Employees:
Directors Briefing on: Employees who work from home
Directors Briefing on: Performance appraisals
Directors Briefing on: Stress management
Directors Briefing on: Managing change
Directors Briefing on: Everyday workplace policies
Directors Briefing on: Managing your time
Directors Briefing on: Motivating employees
Directors Briefing on: Assertiveness
Directors Briefing on: Team-building
Directors Briefing on: Communicating with employees
Directors Briefing on: An Internet policy for your employees
Directors Briefing on: An email policy for your employees

Employment Law: (also see CIPD fact-sheets)
Directors Briefing on: Employment contracts
Directors Briefing on: Dismissing employees
Directors Briefing on: Discipline and grievance issues
Directors Briefing on: Redundancy
Directors Briefing on: Employment tribunals
Directors Briefing on: Rights for working parents and carers
Directors Briefing on: Sickness issues and SSP
Directors Briefing on: Discrimination
Directors Briefing on: Working time regulations
Directors Briefing on: Minimum wage and statutory pay obligations
Directors Briefing on: The law on flexible working

Pensions:
Directors Briefing on: Pensions for business owners
Directors Briefing on: Pensions for employees
Directors Briefing on: Pensions for senior managers

Recruitment: (also see CIPD fact-sheets)
Directors Briefing on: Interviewing
Directors Briefing on: Graduate recruitment
Directors Briefing on: Recruitment

Remuneration: (also see CIPD fact-sheets)
Directors Briefing on: Incentive pay
Directors Briefing on: Remuneration

Training: (also see CIPD fact-sheets  & this site)
Directors Briefing on: Investors in People
Directors Briefing on: NVQs
Directors Briefing on: Using training effectively
Directors Briefing on: Personal development plans

Strategy:

Your business strategy:
Directors Briefing on: Writing a business plan
Directors Briefing on: Increasing profitability
Directors Briefing on: Creating a valuable business
Directors Briefing on: Your money and your business
Directors Briefing on: Key issues in running your business 

Management strategies:
Directors Briefing on: SWOT analysis
Directors Briefing on: Cost control
Directors Briefing on: ISO 9000
Directors Briefing on: Benchmarking
Directors Briefing on: Your business and the environment
Directors Briefing on: Key performance indicators
Directors Briefing on: New product development
Directors Briefing on: Innovation
Directors Briefing on: Filing and records management

Growth strategies:
Directors Briefing on: Strategic acquisitions 

The board of directors:
Directors Briefing on: Effective board meetings
Directors Briefing on: Directors’ responsibilities
Directors Briefing on: Role of the company secretary

Marketing:
Directors Briefing on: Design
Directors Briefing on: Building customer loyalty
Directors Briefing on: Planning your marketing
Directors Briefing on: Marketing with your database
Directors Briefing on: Pricing
Directors Briefing on: Research for your marketing
Directors Briefing on: Creating a brand 

Marketing methods:
Directors Briefing on: Exhibitions
Directors Briefing on: Direct mail
Directors Briefing on: Writing a mail-shot
Directors Briefing on: Advertising strategy
Directors Briefing on: Writing an advertisement
Directors Briefing on: Effective PR
Directors Briefing on: Marketing on the Internet
Directors Briefing on: Managing your sales team
Directors Briefing on: Your sales strategy
Directors Briefing on: Selling technique
Directors Briefing on: Negotiating a sale
Directors Briefing on: Sales presentations
Directors Briefing on: Purchasing
Directors Briefing on: Negotiating a purchase 

Finance:Finance Basics
Directors Briefing on: Finance for non-financial managers
Directors Briefing on: The euro
Directors Briefing on: Budgeting

Corporate Finance:
Directors Briefing on: Valuing a business
Directors Briefing on: Buying a business
Directors Briefing on: Selling a business
Directors Briefing on: Floating your company
Directors Briefing on: Planning your exit from your business 

Sources of finance:
Directors Briefing on: Overdrafts and bank loans
Directors Briefing on: Subsidised and guaranteed loans
Directors Briefing on: Venture capital
Directors Briefing on: Business angels
Directors Briefing on: Factoring and invoice discounting
Directors Briefing on: Car finance
Directors Briefing on: Financing equipment
Directors Briefing on: Getting a grant for your business 

Cash-flow management:
Directors Briefing on: Insolvency
Directors Briefing on: Credit control
Directors Briefing on: Interest on late payments
Directors Briefing on: Managing your cash-flow
Directors Briefing on: Managing your creditors
Directors Briefing on: Debt recovery

Please note that this is not all of the Director’s Briefing fact-sheets available – but a selection of those available. These links are out of our control and may or may not work over time. See the The Institute of Chartered Accountants in England and Wales home page for all available Fact-sheets.

For concise, practical advice on core business issues, browse a collection of four-page briefings produced by BHP Information Solutions for the busy practitioner, director and entrepreneur. The Briefings can be downloaded free of charge.

Disclaimer: These publications are for general guidance only, for businesses in the United Kingdom governed by the laws of England. Business Hotline Publications Ltd, expert contributors, the Institute of Chartered Accountants in England and Wales and RapidBI disclaim all liability for any errors or omissions.

PRIMO-F model for business development

PRIMO-F the Business Growth Model

Often in organizations we use a SWOT analysis as a way of identifying priorities and areas for improvement. While the SWOT is a wonderfully flexible tool, it is too easy to miss out key elements. We tend to use a SWOT based on our experiences, rather than the actual situational needs.

As SWOT analysis is made up of two internal elements (SW) and two external elements (OT) it is helpful to use a structure to give us a guide for what should be included.

• PRIMO-F model provides the structure for SWot
• PESTLE analysis model provides the structure for swOT

 

The PRIMO-F model was developed by the RapidBI team as part of a SWOT analysis of an organization. It helps to provide a consistent framework for comparison and benchmarking either from within the organization or to benchmark against a previous analysis or benchmark against other organizations.

The PRIMO-F model was derived out of some work from Durham University Business School (DUBS), and research into what makes an organization and its management effective. This research demonstrated that an effective organization needed to fulfil the following equation:

 

Organizational Growth Effectiveness = Performance to date * Potential for the future.

 

Where Performance to date (FiMO) included:

• Finance
• Marketing
• Operations

and Potential for the future (RECoIL) included:

• Resources,
• Controls and Systems
• Innovation and
• Leadership

This was sometimes called FiMO/ RECoIL.

One of the problems with this method was the lack of consistent application, as a tool or framework it is fine, however many managers, consultants and business advisor’s have their own priorities. For example a person who has a financial background will major on finance, a person with marketing will focus on marketing etc. After all we are all human. One of the problems with the model in the ‘field’ is that often key issues were missed. The BIR was developed to take these factors and review them consistently.

In many situations it is difficult for managers to differentiate between performance to date and potential for the future, as several areas overlapped, for example resources, operational leadership and management. In addition FiMO RECoIL was seen as too complex for many managers to use on a day to day basis. To solve this problem we developed the PRIMO-F. A simplified way of showing strengths and weaknesses in the relevant areas.

The PRIMO-F Model:

PRIMO-F

• People
• Resources
• Innovation & Ideas
• Marketing
• Operations
• Finance

Mapping PRIMO-F to FiMO RECoIL

Performance of the business:

How good is it in terms of its Finance, Marketing & its Operations?

Potential for Growth

People in terms of their experience, their leadership and the controls in place in the organization.

Experience: Age of the business, Management experience of:

• borrowing
• product development
• different types of market
• use of external agents
• moving sites
• managing growth

Leadership:

• Involving a senior management
• age of owner manager
• occupational base of owner manager
• personal objectives and ambition in line vision of the future
• education and training

Operations – Control: Adequacy of information and control systems

• Ability to use information
• Degree of professionalism and Responsibilities of management
• Adequacy of planning and monitoring
• Level of delegation
• How performance is assessed

Resources: Availability, utilization and appropriateness (fit for purpose)

• Liquidity and availability of finance
• Technology level and capability
• Physical assets: age and state
• Product range and life
• Use of and access to appropriate external agents

Innovation & Ideas:

• Number and source of ideas innovation is being considered
• How they are assessed
• Level of development or market testing of these ideas
• Level of market planning of these ideas
• How creative they are.

The PRIMO-F model is not in itself a solution – but a tool to enable that powerful too the SWOT to work more effectively.

PRIMO-F is © Mike Morrison & RapidBI 1998 - you may quote the model - but please include a link back to this site.

SWOT analysis for schools and education

SWOT analysis for teachers, schools and education

Strengths, Weaknesses, Opportunities and Threads in an educational environment.

A SWOT analysis is a tool that can provide prompts to the governors, management teachers and staff involved in the analysis of what is effective and less effective in the schools systems and procedures, in preparation for a plan of some form ( that could be an audit, assessments, quality checks etc.). In fact a SWOT can be used for any planning or analysis activity which could impact future finance, planning and management decisions. It can enable you (the governors and management) to carry out a more comprehensive analysis.

Definitions

• Strengths – Factors that are likely to have a positive effect on (or be an enabler to) achieving the school’s objectives
• Weaknesses – Factors that are likely to have a negative effect on (or be a barrier to) achieving the school’s objectives
• Opportunities – External Factors that are likely to have a positive effect on achieving or exceeding the school’s objectives, or goals not previously considered
• Threats – External Factors and conditions that are likely to have a negative effect on achieving the school’s objectives, or making the the objective redundant or un-achievable.

Before starting any planning or analysis process you need to have a clear and SMART goal or objective. What is it that you need to achieve or solve? Ensure that all key stakeholders (relevant to the issue being explored) buy into this objective or goal.

Then undertake a PESTLE analysis (or PESTLE in Schools), this will provide you with the external factors (OT).

Use the PRIMO-F model to ensure all internal factors are considered

Conducting a SWOT analysis in a school

One of the most effective ways to conduct a SWOT analysis is not in isolation, but with a team effort. When the goal is shared, then a brainstorming session can be run.

Ensure than when running such a session it is facilitated by a person not involved with the content – this is best with an independent person. If budgets do not allow this – then talk to another establishments head, and arrange a contra deal.

Do this activity in a number of phases:

1) Share the goal

2) Data collection (no filtering or comments – record verbatim) consider all areas of PRIMO-F

3) Take a break of at least 1 hr

4) Filter, sort and analyse into the 4 areas – SWOT – be critical and SMART avoid ambiguous statements or ideas at this stage

5) Prioritise the elements

Have a second session where the planning phase takes this data and puts it into a realistic plan.

IMPORTANT TIP,do not hide or underestimate threats or weaknesses – if you ignore them or underplay them now they will come back to haunt you at some stage – probably when they can do most damage!

The goal of any session like this is not necessarily to neutralise any weakness or threat – that is impossible – but to have it on your radar – and where possible take avoiding action. To some extent it is all about risk.

What sort of tasks and issues can this be used for?

At its most complex and comprehensive, it can be used for business planning, however it is also of value to solving localised issues and challenges.

An Example

We will use an example of a teacher working within a first school who want to improve the relationships with parents of his pupils.

TASK Define the goal and measurable outcomes – i.e. to have more than 50% of parents spending one day in class per term Consider the current activities you have in place to encourage parent-partnerships within your class/ school. Complete a SWOT analysis, identifying your current strengths and realistically appraising your current weaknesses. This can only be done involving other teachers, pupils and parents. From the current analysis identify factors which could be improved Identify opportunities that could be created Put a plan and set of measures in place.

The school identified the following objective:

• To improve parent-partnership by encouraging parents to visit the school and become active members of the community.
• Outcome – to have more than 50% of parents spending one day in class per term

Currently, the school holds an open day once each year. It uses this as a way to encourage parents to visit the school and engage with school staff. The following is the initial SWOT Analysis.

Strengths Highly-skilled teachers. History of successful Open day events School has a strong ethos of openness, sharing and commitment to increasing parental confidence Parents wanting to get involved PTA willing to participate	Weaknesses Teachers not available to meet parents often enough Current open days events not increasing voluntary activity Not enough staff time to plan more events Staff not clear of their role in the parent relationship Narrow focus on open events not partnership activities Curriculum too stretched for additional activity
Opportunities Active volunteer committee willing to plan and organise events Pupils active in the school’s Pupil Participation Project can be asked for their opinions and suggestions. Head Teacher is willing flex curriculum to free up teacher time Use parents to contribute to curriculum delivery	Threats Confidentiality is at risk Pupil coercion to do things they do not wish to do

The next step is to develop a plan with interested stakeholders

SWOT Analysis templates for schools & education

SWOT Analysis Template/ Worksheet – use these templates to start your SWOT process

	SWOT Analysis on ____________________ (organisation name or product/ service/ project) School/ establishment/ organisation Background/ situation ____________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ (usual business partners, relationships, channels to market, assumptions etc…) Date PESTLE completed ____________________ Date of SWOT Analysis ____________________ ____________________v
		INTERNAL
	Under each of the PRIMO-F factors list the relevant strengths and weaknesses. List the Opportunities and threats from your PESTLE analysis below. Then considering the combination of these factors generate some options or alternative strategies for action.	Strengths (PRIMO-F) People (teachers, parents, PTA etc) ___________________ ___________________ ___________________ ___________________ Resources ___________________ ___________________ ___________________ ___________________ ___________________ Innovation & Ideas ___________________ ___________________ ___________________ ___________________ ___________________ Marketing (communications) ___________________ ___________________ ___________________ ___________________ ___________________ Operations (day to day running) ___________________ ___________________ ___________________ ___________________ ___________________ Finance ___________________ ___________________ ___________________ ___________________ ___________________	Weaknesses (PRIMO-F) People (teachers, parents, PTA etc) ___________________ ___________________ ___________________ ___________________ Resources ___________________ ___________________ ___________________ ___________________ ___________________ Innovation & Ideas ___________________ ___________________ ___________________ ___________________ ___________________ Marketing(communications) ___________________ ___________________ ___________________ ___________________ ___________________ Operations(day to day running) ___________________ ___________________ ___________________ ___________________ ___________________ Finance ___________________ ___________________ ___________________ ___________________ ___________________
E X T E R N A L	Opportunities ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________	SO Alternatives / Strategies ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________	WO Alternatives / Strategies ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________
	Threats ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________	ST Alternatives / Strategies ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________	WT Alternatives / Strategies ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________ ___________________

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SWOT Analysis Template / Worksheet 2

	SWOT Analysis on ____________________ (School/ establishment organisation name or product/ service/ project) Background/ situation________________________________________________________________________ __________________________________________________________________________________________                   __________________________________________________________________________________________   (usual operational partners, relationships, channels to market, assumptions etc…) Date PESTLE completed ____________________ Date of SWOT Analysis ____________________v
		INTERNAL
	Under each of the PRIMO-F factors list the relevant strengths and weaknesses. List the Opportunities and threats from your PESTLE analysis below. Then considering the combination of these factors generate some options or alternative strategies for action.	Strengths	Weaknesses
E X T E R N A L	Opportunities	SO Alternatives / Strategies	WO Alternatives / Strategies
	Threats	ST Alternatives / Strategies	WT Alternatives / Strategies

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SWOT Analysis Template / Worksheet 3

SWOT analysis – Strengths, Weaknesses, Opportunities and threats
Date
Company/ Department name
Internal Factors
Our Strengths	Ways to exploit	Our Weaknesses	Ways to reduce
External factors
Our Opportunities	Ways to exploit	Our Threats	Ways to reduce

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A SWOT analysis in a school, college or other educational establishment can be a simple and yet effective tool for ensuring that all appropriate factors are considered. In this environment it is particularly important to use the PRIMO-F template to ensure that all elements have been considered. Indeed ensure that under People – teachers, support staff, parents and children are considered along with third party people (police, local health etc that can form a part of your community.

Teachers, Tutors, PTA (Parent Teacher associations) management committees etc all have a valuable contribution to make

Under Resources, remember to include IT, and consumables that can be used as part of the process

5 common mistakes in doing a PESTLE analysis

The PEST or PESTLE analysis is one of the most common diagnostic tools used in marketing and business planning. Its six basic perspectives provide a framework for understanding external factors which may impact the organization, which is easy to follow and yet the tool is so often misunderstood.

PESTLE - Political, Economic, Sociological, Ecological, Legal, Environmental.

PESTLE provides the external perspective to a SWOT analysis…

where: PESTLE + PRIMO-F = SWOT

Six simple rules for a successful PESTLE analysis

1. Be realistic about what is happening in each of the six areas
2. The Analysis should identify what is happening in the marketplace today, and where it could be in the future.
3. Be specific. Avoid grey areas
4. Always analyse in relation to your competition i.e. better than or worse than your competition
5. Keep your PESTLE analysis short and simple to understand – but only as short and simple as the application or situation demands – it is about ‘fitness for purpose’
6. Avoid unnecessary complexity and over analysis

The Top 5 mistakes people make:

1. An unclear goal – providing the context for the PESTLE analysis
2. Maintaining too narrow a focus – you need to look broadly at the market
3. Neglecting input from others – inside and outside the organization
4. Performing an analysis only once- this needs to happen on a regular basis (monthly for technology firms – quarterly for many others)
5. Reliance on PESTLE as a holistic diagnostic strategy – it is only one tool.

A concise PESTLE Analysis

Keep your PESTLE analysis short and focused. If it becomes too long-winded, you’ll soon forget some of the more important points and it will become less effective in the long term.

 

Conclusion

The PESTLE is a valuable tool that in the right hands and with the appropriate level of effort can provide a valuable insight into current and future strategy.

Remember to consider the results of the PESTLE analysis as just one tool in a variety of analysis methods that can form together to create a more realistic analysis of your organization

Future proof your business – Effective Business Planning

PRIMO-F Business Planning model

In the current economic climate, the most many of us can do is batten down the hatches and hope that we can weather the storm.

Many of us will be looking to cut and minimise expenses and costs (which is the right thing to do) but what costs do we cut? Where should we be investing?

In the previous downturns those that kept looking forwards were the ones which recovered quickest and have made more profit.  Identifying what we should be improving can be a challenge.

 

Having a robust business plan

Having and maintaining a well-developed business plan is a key factor in the sustainability and operation of your business.

Managers and owners managing costs should prepare a written plan outlining the overall activities of the business including the People, Resources, Innovation/ Ideas, Marketing, Operations and Financial factors pertaining to the business. The PRIMO-F model.

Using proven business diagnostics or health checks can be the best way to identify the strengths and weaknesses of your business. Having a structured approach ensures that all factors are considered and a benchmark is made on current performance. If you cannot measure it, how can you manage it?

Engaging your people

Unlike the business planning our bank managers (and many accountants) want – we need a plan that looks at what and how we do it. The plan needs to be understood by everyone in the business, as they will be the people ensuring its success – not just the owners of the business. – People want job security – the best way to give that to them is get their commitment to success.

Contents of a business plan

• Mantra, mission statement, or vision
• Executive summary
• Milestones for PRIMO-F – make your Business Plan a real plan you will use:
  • People – how many, with what skills
  • Resources – plant, buildings, stock, energy, etc
  • Ideas/ Innovation – new thoughts, products and methods
  • Marketing and sales – what, where, when, how
  • Operations – volumes, processes, procedures, WIP etc
  • Finance – cash-flow, breakeven by product line
• The business You’re In
• What you sell/ do
• Who you plan to sell to
• Why people will want to pay for your product/service
• Start with an initial assessment/ diagnostic
• The financials

Avoid buzzwords – use clear English that you and your management understand – this needs to be a ‘living’ document.

The vital few

An effective plan is not about having lots of targets – it is about having the vital few that will make all the difference to your success.

There are only so many factors that we as business can manage and monitor at one time and the contents of our business plans also need to be kept simple, if we are going to use them as decision making and planning tools. This means we need to identify the ‘critical success factors’ for our business. Under each of the PRIMO-F areas, what are the 2-5 things that must be done to hit our growth or sustainability targets?

Always revise your plan

A plan is just that – your plan – it will change. Developing a strong business plan will poise your business for current sustainability and future growth, even if it takes a while to do so, it’s a wise idea to revisit your plan at least every year, depending on the size of your company.

Trends in the marketplace come and go quickly, so adjusting to them is essential. Your business plan sets the stage for change. In the current climate it is sensible to revisit it at least quarterly.

How long should a plan be?

The $64M dollar question – it depends:

1. What you want it for
2. Who will see it
3. How you are planning to use it

For a business plan that is usable by the managers to make decisions and plan the operations of the business on a day to day level you should have a good robust one page plan backed up by financials.

For a plan that is going to be used to raise finance you will need more ‘meat on the bone’.

If tour business plan is not on your desk, being used for day to day business decisions – then it is not adding value to your business – re-write it so it becomes an invaluable document.

See our post http://rapidbi.com/management/writing-a-one-page-business-plan/

Mike Morrison is a consultant based in West London with over 10 years experience as a business adviser.

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5 common mistakes in doing a SWOT analysis

The SWOT analysis is one of the most common diagnostic tools used in business. Its four simple perspectives provide a framework which is easy to follow and yet the tool is so often misunderstood.

SWOT – Strengths, Weaknesses, Opportunities and Threats.

The Strengths and Weaknesses are internal factors, the opportunities and threats are external factors. Some advocate the use of PRIMO-F to identify Strengths and Weaknesses and PESTLE for external factors…

so PRIMO-F + PESTLE = SWOT

 

Simple rules for a successful SWOT analysis

• Be realistic about the strengths and weaknesses of your organization
• The Analysis should distinguish between where your organization is today, and where it could be in the future.
• Be specific. Avoid grey areas
• Always analyse in relation to your competition i.e. better than or worse than your competition
• Keep your SWOT short and simple – but only as short and simple as the application or situation demands – it is about ‘fitness for purpose’
• Avoid unnecessary complexity and over analysis
• There is little point in listing an Opportunity (O) if the same opportunity is available to competitors
• It is pointless to say you have Strengths (S) if your competitors have the same

  

The Top 5 mistakes:

1. An unclear goal
2. Maintaining too narrow of a focus
3. Neglecting input from others
4. Performing an analysis only once
5. Reliance on SWOT as a holistic diagnostic strategy

A concise SWOT Analysis

Keep your SWOT analysis short and focused. If it becomes too long-winded, you’ll soon forget some of the more important points and it will become less effective in the long term.

Great SWOT Strengths

When considering your SWOT strengths, it’s all too easy to congratulate yourself and identify what you think it is that makes you great. Instead, flip the coin and consider what it is that your customers do/will think are your strengths.

Few Weaknesses

Having written a long list of SWOT based strengths for your organization, it’s also very easy to become a bit jaded and quickly fly over your weakness, without a critical eye. As a result, count up the number of SWOT based strengths, and then write twice as many weakness. This will force you to take a deeper look at the areas that you need to improve.

Opportunities

By considering your SWOT analysis based opportunities, you get to play god with your future. It’s all too easy to look at opportunities with rose-tinted glasses and predict opportunities that don’t actually exist. Instead, look at the opportunities that are available to you today.

Threats

Again, as with SWOT weaknesses, when you consider your SWOT threats, you have to take a cold hearted look at some of the things that you’d probably rather ignore.

Conclusion

The SWOT is a valuable tool that in the right hands and with the appropriate level of effort can provide a valuable insight into current and future strategy.

Remember to consider the results of the SWOT analysis as just one tool in a variety of analysis methods that can form together to create a more realistic analysis of your organization

A Guide to SWOT analysis

5 common mistakes in SWOT analysis

http://rapidbi.com/swot

The SWOT analysis is one of the most common diagnostic tools used in business. Its four simple titles provide a framework which is easy to follow and yet the tool is so often misunderstood.

SWOT – Strengths, Weaknesses, Opportunities and Threats.

The Strengths and Weaknesses are internal factors, the opportunities and threats are external factors. Some advocate the use of PRIMO-F to identify Strengths and Weaknesses and PESTLE for external factors…

so PRIMO-F + PESTLE = SWOT

Simple rules for a successful SWOT analysis

• Be realistic about the strengths and weaknesses of your organization
  
• The Analysis should distinguish between where your organization is today, and where it could be in the future.
• Be specific. Avoid grey areas
• Always analyse in relation to your competition i.e. better than or worse than your competition
• Keep your SWOT short and simple – but only as short and simple as the application or situation demands – it is about ‘fitness for purpose’
• Avoid unnecessary complexity and over analysis
• There is little point in listing an Opportunity (O) if the same opportunity is available to competitors
• It is pointless to say you have Strengths (S) if your competitors have the same

The Top 5 mistakes:

1. An unclear goal
2. Maintaining too narrow of a focus
3. Neglecting input from others
4. Performing an analysis only once
5. Reliance on SWOT as a holistic diagnostic strategy

A concise SWOT Analysis

Keep your SWOT analysis short and focused. If it becomes too long-winded, you’ll soon forget some of the more important points and it will become less effective in the long term.

Great SWOT Strengths

When considering your SWOT strengths, it’s all too easy to congratulate yourself and identify what you think it is that makes you great. Instead, flip the coin and consider what it is that your customers do/will think are your strengths.

Few Weaknesses

Having written a long list of SWOT analysis strengths for your organization, it’s also very easy to become a bit jaded and quickly fly over your weakness, without a critical eye. As a result, count up the number of SWOT analysis strengths, and then write twice as many weakness. This will force you to take a deeper look at the areas that you need to improve.

Opportunities

By considering you SWOT analysis opportunities, you get to play god with your future. It’s all too easy to look at opportunities with rose-tinted glasses and predict opportunities that don’t actually exist. Instead, look at the opportunities that are available to you today.

Threats

Again, as with SWOT weaknesses, when you consider your SWOT threats, you have to take a cold hearted look at some of the things that you’d probably rather ignore.

Conclusion

The SWOT is a valuable tool that in the right hands and with the appropriate level of effort can provide a valuable insight into current and future strategy.

Remember to consider the results of the SWOT analysis as just one tool in a variety of analysis methods that can form together to create a more realistic analysis of your organization

A Guide to SWOT analysis