Lets SWOT out some competitors!
- SB
- Feb 3, 2024
- 3 min read
"But we are all helping the needy. Why should we look at them as competitors?" - passionate CEO of non-profit
"Because you all are going for the same share of donor wallet, and volunteer time." - Me
Now, before you roll your eyes and think this is some dry MBA 101 lecture on SWOT analysis, hear me out. Sure, SWOT is so basic that no self-respecting strategy consultant would ever present it without gussying it up, but that’s the beauty of it—it’s simple, straightforward, and ridiculously effective, even for small non-profits like ours.
Why Even Small Non-Profits Should Embrace SWOT Analysis
In the world of non-profits, where resources are often limited and missions are grand, the importance of strategic planning cannot be overstated. Especially when you read that 30% - 50% of non-profits fail within 10 years, (depending on how good your Google search query was). One of the most effective tools in this planning arsenal is the SWOT analysis. Now it might seem like a method reserved for large organizations with extensive budgets, even small non-profits stand to gain significantly from regularly conducting SWOT analyses.
Let's dive into why every non-profit, no matter how small, should leverage this classic yet powerful tool.
What is SWOT Analysis?
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It’s a simple yet powerful framework used to identify the internal and external factors that can impact the success of an organization. By understanding these elements, non-profits can make informed decisions, allocate resources more effectively, and strategically plan for the future.
The Vectors of Analysis
Strengths:
What do we do well? This could include areas like a strong volunteer base, successful fundraising campaigns, unique programs, or skilled staff.
What resources do we have? Consider financial resources, physical assets, partnerships, and community support.
What are our unique capabilities? Think about specialized knowledge, community connections, or unique methodologies.
Weaknesses:
Where can we improve? Identify gaps in skills, resources, or processes that hinder your effectiveness.
What should we avoid? Recognize any practices or policies that may be outdated or counterproductive.
What are the limitations of our current resources? Consider financial constraints, staffing issues, or limited community reach.
Opportunities:
What external trends can we capitalize on? Look at changes in policy, community needs, or technological advancements.
Are there unmet needs in our community? Identify gaps that your organization can fill.
What partnerships can we form? Explore potential collaborations with other non-profits, businesses, or governmental agencies.
Threats:
What external challenges do we face? Consider economic downturns, changing regulations, or increased competition for funding.
What internal issues could hinder our progress? Think about staff turnover, donor fatigue, or program inefficiencies.
What are the risks in our environment? Identify any potential crises, such as natural disasters or public health issues, that could impact your operations.
Who Should Drive the SWOT Analysis?
The success of a SWOT analysis depends on involving the right people. People from the first two groups below should ideally drive, while key participants should be drawn from the others:
Board Members: Their strategic oversight and governance experience can provide valuable insights into strengths and weaknesses.
Executive Leadership: The executive director or CEO should drive the process, ensuring alignment with the organization’s mission and vision.
Staff Members: Frontline staff offer practical perspectives on operational strengths and weaknesses.
Volunteers: Volunteers often have unique insights into opportunities and threats from their interactions with the community.
Beneficiaries: Those who benefit from the non-profit’s services can provide critical feedback on areas for improvement and potential opportunities.
Partners and Donors: External stakeholders, including partners and donors, can offer an outside-in perspective, identifying opportunities for collaboration and potential threats.
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