Evaluation Method for Dummies

Here's another buzzy buzzword: SWOT

Strengths
Weaknesses
Opportunities
Threats

If you are called to evaluate ANYTHING in the corporate environment, assess the four above characteristics. When presenting your findings, start with, "I performed a SWOT analysis on (topic at hand) and this is what I found..." Chances are your superiors and/or colleagues are familiar with the term and will be impressed. More likely is that it gets thrown around more than the Super Bowl football.

This is why you have to know what a SWOT can do. Its a term - like synergy - that gets used too frequently. Usage isn't questioned because of its impressiveness. But you are going to look head and shoulders ahead of the game if you can do this.

A SWOT evaluates an idea from the internal perspective by looking at your company's strengths and weaknesses in relation to that idea. Consider the strengths and weaknesses of Starbucks moving to a town of 3500 people. If you're the Starbuck's bigwig, you consider your company's strengths in collaboration with the idea (only name brand coffee shop, high commuting possibly for a drive thru feature.) Then look at the weaknesses of your COMPANY in relation to the idea. For example, Starbucks is a big corporation and maybe the small town in consideration is only friendly to local businesses. Maybe Starbuck's prices are above the average coffee drink prices in that town. Whatever the case, come up with a list that is as equal in strengths as weaknesses as possible. This will show you have a balanced opinion of both your company and its compatibility with the idea.

SWOT evaluates the idea's external perspective when it looks at the opportunities and threats that are present when opening a Starbucks in said small town. Opportunities for marketing may be cheaper in small town publications; PR work like sponsoring a soccer team gains big points for any business. What opportunities can this venture create? Then, look at any threats the external environment provides. Mabye the economy is poor and has closed several large employers in recent years, diminishing excess income. Perhaps their taxes have been steadily increasing for outside businesses in recent years and the venture would be more costly over time. What are factors over which you have no control that are going to penalize you for opening a Starbucks in a place like Boondocks, Wisconsin?

A list of all SWOT items can be condensed onto a 4 column grid on one sheet of paper. Then you can make your choice of whether or not to open your shop in the town, based on all available information. You are going to have a bias... you're only human. For example, I believe all small towns should have a Starbucks with a drive through window. But this research can support your opinion in a buzzy and intelligent manner. You will possess some wonderful supporting evidence. Even better, SWOT research often undoes your bias and shows you the best answer, even if its not your first one. Really, in a town where the average income is $25,000 and the average debt tolerance is low, are crowds going to swarm to pay $5 for a latte? Sadly but truly, no.