SWOT done right: from drawer model to decision engine

If you have been involved in even a quarter of a strategy process at some point in your career, you will undoubtedly be familiar with the classic SWOT model: four boxes labelled Strengths, Weaknesses, Opportunities and Threats. You may have already participated in several SWOT processes over the years — enjoyable sessions where you brainstorm with others, write post-it notes and fill in the fields.

But then what? The form ended up forgotten in various drawers. At best, it was put up on a notice board, where it gradually became a little crooked with frayed edges. The inspiring process was neither fact-based nor used in practice.

Used incorrectly, working with a SWOT is, at best, a waste of time.

The SWOT as a conclusion model

The key insight from Strategy is Tangible is that a SWOT should never be the starting point of your strategy work — it should be the conclusion. Each element in your SWOT must have a clear reference back to structured, fact-based analysis of your external environment (using tools like PESTEL and Porter's Five Forces) and your internal situation (using tools like the four bottom lines and McKinsey's 7-S model).

This is what makes the difference between a "drawer SWOT" and a SWOT that actually drives strategic decisions.

How to build a fact-based SWOT

The method is straightforward but disciplined. For external analysis, you describe the factual situation, then describe how it affects your organisation, and only then formulate the opportunities and threats. For internal analysis, you describe the current state of the organisation and then derive strengths and weaknesses.

A critical rule of thumb: for each factor you describe, identify a minimum of one and a maximum of three SWOT elements. This constraint forces clarity. If you can articulate more than three opportunities from a single external factor, you probably haven't been specific enough about what actually matters to your organisation.

From SWOT to action: the TOWS model

Once your SWOT is prioritised, the TOWS model combines the elements into concrete actions. A strength paired with an opportunity creates a green traffic light — a business opportunity to pursue. A weakness paired with a threat creates a red traffic light — a burning platform that demands immediate action. Every action is traceable back through the SWOT to the original analysis. This is what the book calls "full traceability".

"The fact is that the inspiring SWOT process is often neither fact-based nor used in practice and therefore does not contribute to the strategy." — Strategy is Tangible