TY - JOUR
T1 - The origins of SWOT analysis
AU - Puyt, Richard W.
AU - Lie, Finn Birger
AU - Wilderom, Celeste P.M.
N1 - Funding Information:
Robert W. Smith, assistant director of SRI's Economics Research, invested some of his budget to find out why companies grow. This initiative, based on ideas developed at the Stanford Graduate School of Business, was launched in January 1959, and drew market support for a new research-based, syndicated report service. Smith ‘fathered the Long Range Planning Service (LRPS)’, initially with 50 subscribing member corporations. Soon afterwards, many additional corporations signed up as charter members and sponsors. The readers also reviewed early drafts of the LRPS reports and suggested new topics or questions (Bruce, 1962).
Publisher Copyright:
© 2023 University of Twente
PY - 2023/6
Y1 - 2023/6
N2 - The origins of SWOT analysis have been enigmatic, until now. With archival research, interviews with experts and a review of the available literature, this paper reconstructs the original SOFT/SWOT approach, and draws potential implications. During a firm's planning process, all managers are asked to write down 8 to 10 key planning issues faced by their units. Each manager grades, with evidence, these issues as either safeguarding the Satisfactory; opening Opportunities; fixing Faults; or thwarting Threats: hence SOFT (which is later merely relabeled to Strengths, Weaknesses, Opportunities and Threats, or SWOT). Subgroups of managers have several dialogues about these issues with the instruction to include the needs and expectations of all the firm's stakeholders. Their developed resolutions or proposals become input for the executive planning committee to articulate corporate purpose(s) and strategies. SWOT's originator, Robert Franklin Stewart, emphasized the crucial role that creativity plays in the planning process. The SOFT/SWOT approach curbs mere top-down strategy making to the benefit of strategy alignment and implementation; Introducing digital means to parts of SWOT's original participative, long-range planning process, as suggested herein, could boost the effectiveness of organizational strategizing, communication and learning. Archival research into the deployment of SOFT/SWOT in practice is needed.
AB - The origins of SWOT analysis have been enigmatic, until now. With archival research, interviews with experts and a review of the available literature, this paper reconstructs the original SOFT/SWOT approach, and draws potential implications. During a firm's planning process, all managers are asked to write down 8 to 10 key planning issues faced by their units. Each manager grades, with evidence, these issues as either safeguarding the Satisfactory; opening Opportunities; fixing Faults; or thwarting Threats: hence SOFT (which is later merely relabeled to Strengths, Weaknesses, Opportunities and Threats, or SWOT). Subgroups of managers have several dialogues about these issues with the instruction to include the needs and expectations of all the firm's stakeholders. Their developed resolutions or proposals become input for the executive planning committee to articulate corporate purpose(s) and strategies. SWOT's originator, Robert Franklin Stewart, emphasized the crucial role that creativity plays in the planning process. The SOFT/SWOT approach curbs mere top-down strategy making to the benefit of strategy alignment and implementation; Introducing digital means to parts of SWOT's original participative, long-range planning process, as suggested herein, could boost the effectiveness of organizational strategizing, communication and learning. Archival research into the deployment of SOFT/SWOT in practice is needed.
KW - Management history
KW - Stakeholder analysis
KW - Strategic planning
KW - SWOT analysis
U2 - 10.1016/j.lrp.2023.102304
DO - 10.1016/j.lrp.2023.102304
M3 - Article
AN - SCOPUS:85152936222
SN - 0024-6301
VL - 56
JO - Long range planning
JF - Long range planning
IS - 3
M1 - 102304
ER -