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The Danger of SWOT Analysis for Quality Leaders

Pride and rose-colored glasses goeth before destruction

Credit: Kevin

Gleb Tsipursky
Tue, 01/21/2020 - 12:03
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In the context of our increasingly disrupted, globalizing, and multicultural world, quality leaders greatly appreciate the security and comfort of clear-cut strategic plans for the future. After all, following our in-the-moment intuitions frequently leads to business disasters, and strategic plans help prevent such problems.

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Tragically, popular strategic analyses meant to address the weaknesses of human thinking are deeply flawed. They give a false sense of comfort and security to quality professionals who use them, leading them into the exact business disasters that they seek to avoid.

Take one of the most popular of them, the SWOT analysis, where you try to figure out the strengths, weaknesses, opportunities, and threats facing your business. SWOT doesn’t account for the dangerous errors of judgement revealed by recent research in behavioral economics and cognitive neuroscience, what scholars call cognitive biases.

 …

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Comments

Submitted by Anonymous (not verified) on Tue, 01/21/2020 - 13:32

The Danger of SWOT Analysis

Thank you for this excellent article.  You were able to articulate many of my reservations about the SWOT method that I felt instictively but couldn't put my finger on.

  • Reply

Submitted by Jo Anne (not verified) on Tue, 01/21/2020 - 17:09

In reply to The Danger of SWOT Analysis by Anonymous (not verified)

Informative Article!

In an organization it is vital that leaders and the members of the organization should held strategic planning and one of the methods used is SWOT analysis. As I have read in this article, it it not enough that we rely on this method as we should also discuss cognitive biases. It means that before planning you need to identify existing biases that had affected the organization's performancce and potential biases that may occur. Then, you may use strategic decision making methods. This is such a good read. Very informative.

  • Reply

Submitted by Dr. Gleb Tsipursky on Wed, 01/22/2020 - 11:39

In reply to The Danger of SWOT Analysis by Anonymous (not verified)

I'm glad it was helpful!

I'm glad it was helpful! Consider using the alternative method to which I linked in the article. 

  • Reply

Submitted by Tasnuva Hoque Tonny (not verified) on Wed, 01/22/2020 - 03:15

Great Article by Dr. Gleb

Danger of SWOT Analysis for Quality Leaders is such a informative article. I agree that optimism Bios harms their ability to make effective strategic plans. Also agree that only through vigilance and discipline will you ensure that you can avoid the pride that goeth before a fall. Thanks for sharing this wonderful article. 

  • Reply

Submitted by Dr. Gleb Tsipursky on Wed, 01/22/2020 - 11:40

In reply to Great Article by Dr. Gleb by Tasnuva Hoque Tonny (not verified)

You're welcome!

You're welcome!

  • Reply

Submitted by Hannah (not verified) on Wed, 01/22/2020 - 05:38

Great artcle

Great article! I learned a lot  after reading this article.  I agree on focusing on addressing cognitive biases when assessing potential threats and opportunities and in doing strategic planning we should consider the dangers of the excessive confidence and optimism. Very informative. Thank you for sharing.

  • Reply

Submitted by Dr. Gleb Tsipursky on Wed, 01/22/2020 - 11:40

In reply to Great artcle by Hannah (not verified)

Glad this was helpful!

Glad this was helpful!

  • Reply

Submitted by Beatrice Sargin (not verified) on Wed, 01/22/2020 - 06:48

Pride truly goes before a fall.

There's an African proverb that says "He who intends to swallow a full coconut ought to have complete faith in his anus". In actual sense, what it implies in this article is that there's need to be vigilant and self-disciplined when it comes to our abilities as leaders. Indeed, SWOT allows leaders to sweep under the rug those areas of weakness and threats about which they feel defensive. Their optimism and overconfidence serve to justify failure to address these problems. It’s particularly problematic when SWOT is performed in a group setting as we have in our settings today since cognitive biases are often exponentially increased in such environments. One particularly big problem is known as groupthink, where groups tend to coalesce around the opinions of a powerful leader. Thanks for this article as it has stirred me up for be vigilant and disciplined as well as keep my self-confidence in check.

  • Reply

Submitted by Dr. Gleb Tsipursky on Wed, 01/22/2020 - 11:38

In reply to Pride truly goes before a fall. by Beatrice Sargin (not verified)

The African proverb is a

The African proverb is a great visual, and really reflects well the spirit of the article

  • Reply

Submitted by Beatrice Sargin (not verified) on Thu, 01/30/2020 - 02:08

In reply to The African proverb is a by Dr. Gleb Tsipursky

Sure it does!

Sure it does!

  • Reply

Submitted by Leonard Walker on Wed, 01/22/2020 - 06:55

SWOT as a subject headliner

As I agree that SWOT analysis 'could' send you down a path based on the context led off of Strenths, Weaknesses, etc.  I beleive most marketers, especially strategic marketers are not diving into a SWOT analysis like your presenting.  Instead, marketers are using the SWOT analysis as a means of a subject headliner.  As Strenghts in the typical description means of your company's positioning in the market place (why), it also dwells into other facets of the company that can bold well if utilized correctly.  Thus, a marketing plan including SWOT is more of a subject headler that can go in different tangents.  Marketers use this 'identification' as a guide to making sure they dwell into all aspects that eventually will lead to great campaigns and/or investments.

  • Reply

Submitted by Dr. Gleb Tsipursky on Wed, 01/22/2020 - 11:37

In reply to SWOT as a subject headliner by Leonard Walker

In my over 20 years of

In my over 20 years of consulting and coaching contracts, I've generally seen SWOT used as I describe above, not as a headliner. It's used as a tool that then determines the investments into and direction of the strategic plan. However, let me qualify that I don't often work with marketers, as I usually work with the leadership team on the strategic plan of the organization itself or of a business unit on the business unit's strategic plan. So perhaps there's something about marketers in particular that I don't know. 

  • Reply

Submitted by June Lyn (not verified) on Thu, 01/23/2020 - 06:31

Two Thumbs Up on this

Such a good read. It is not bad to have a SWOT analysis as long as you know the cognitive biases and how to address it. Thank you for sharing this article.

  • Reply

Submitted by shyam soni (not verified) on Fri, 01/24/2020 - 05:11

Alternative Method of SWOT analysis to avoid disasters

Everyone should read this topic, where we found an alternative method to make decisions or making plans. If you are making the plan with SWOT analysis and still don't have confidence in your plan. You should try this technique "Cognitive Biases" that can give you more effective results. 

  • Reply

Submitted by James (not verified) on Fri, 01/24/2020 - 09:29

Good read

We usually used SWOT analysis in our team, this article gives me an idea to address cognitive biases to prevent dangers in strategic planning.

Thanks.

  • Reply

Submitted by AlexVW (not verified) on Sun, 01/26/2020 - 04:00

Very Informative

This is a very sensible piece. You have to read it.

  • Reply

Submitted by john c (not verified) on Tue, 01/28/2020 - 07:44

Great Idea(s)

This is a worthwhile read. tHanks for sharing your thoughts on this as I am a SWOT person and I can't believe that you manage to gathered thoughts about it. Howp to hear more from you on this

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