SWOT analysis is a simple framework to help answer the question, "What are the prospects for success?" The approach recognizes that any project should be examined for both positive and negative influences from internal and external perspectives. A SWOT framework prompts you to look in detail at both sides of the coin. That is, the strengths and weaknesses of your project are only meaningful in terms of the opportunities and threats in its environment.

A way to identify strengths and weaknesses. To obtain this knowledge about yourself (strengths and weaknesses) and others (opportunities and threats) requires identifying the SWOT elements and analyzing them in depth. This is typically done in interactive groups where people can discuss, assess, and elaborate on what is identified in each category.

A method for maximizing the positive and minimizing the negative. The analysis and deliberation are designed to identify ways to take advantage of strengths and exploit opportunities, as well as minimize the impacts of weaknesses and protect against threats.

Testing feasibility. SWOT analysis is best suited to a stage in business case development when the nature of the objective is reasonably well known. It is a useful way to test the feasibility of project objectives and methods.

Determining how to move forward. This type of analysis helps you start to identify what is needed to move your project to the next phase armed with a good understanding of both internal capabilities and environmental factors and their interaction.

Expressing different viewpoints. The interactive process can provide people with an opportunity to express their views about the project and discuss their implications. Advocates of usually emphasize strengths and opportunities. Opponents tend to emphasize weaknesses and threats. Neither view alone creates the balanced or comprehensive analysis needed to make the right choices. The SWOT framework provides legitimate exposure for both perspectives and an opportunity to reconcile opposing points of view.

A basis for further planning. The results of a detailed SWOT analysis also provide valuable material for continued planning and support-generating activities. The strengths can be presented and emphasized to potential supporters. Discussion of weaknesses and threats provides useful information for strengthening the project or business plan where possible. Conversely, problems and weaknesses that cannot be eliminated become better understood. As a result mitigation plans and contingency planning can take place.

Information quantity and quality. The key to effective SWOT analysis is the sufficiency and quality of available information. Participants' understanding of your project, its resources, and weaknesses must be deep and detailed. Similarly, analysis of the environment in terms of opportunities and threats must be based on extensive experience, thorough scanning, and collection of data from a wide variety of sources.

The future cannot be predicted precisely. Complete information about the environment is never available and projections about future events and trends are always subject to error. So the SWOT analysis must include consideration of the reliability of the information used and the conclusions reached. Considerable technical resources may also be needed in some circumstances to provide forecasts and projections for assessing the opportunities and threats in the environment.

Assumes shared goals. The process of SWOT analysis is based on the assumption that the participants all share the same goals. This, of course, is not always true. Because the process depends information provided by participants, as well as their collaboration, the analysis may be vulnerable to disruptive or subversive behavior.

Collett, Stacy (1999) "SWOT Analysis". Computer World 33 (29) p. 58.

Stewart, R., S. Mohamed, and R. Daet (2002) "Strategic implementation of IT/IS projects in construction: a case study." Automation in Construction 11, 681-94.

Management Sciences for Health and UNICEF. "SWOT Analysis". http://erc.msh.org/quality/ittools/itswot.cfm [Retrieved July 7, 2003].

About.com's site addressing how to perform a SWOT Analysis. http://businessmajors.about.com/library/weekly/aa123002a.htm [Retrieved July 7, 2003]