If strategic planning is the blueprint for using the tools an organization has to carry out its mission, then strategic analysis is the method for which staff can test the efficiency of those tools. Conducting a strategic analysis of a given organization helps leadership and staff process how well they operate by judging the organization’s impact. An organization or business should always strive for reaching 80 to 100% maximum impact as measured by how many goals are achieved in a fiscal year. If the organization is not operating at maximum efficiency in meeting goals planned, conducting an internal strategic analysis or hiring an auditing firm to do the research for the staff is a great option for progressing forward. In this post, I will examine two commonly used analysis methods, SWOT and STEP, as well as spotlight other forms I’ve researched this week.

A SWOT analysis is useful in helping to evaluate an organization based on both internal and external environmental factors: strengths, weaknesses, opportunities, and threats. SWOT is a method that is mostly favored among businesses more so than non-profits.

The strengths outlined in the analysis help businesses to define how well they fair competitively by measuring success. This includes:

1. Positive brand recognition and reputation among customers
2. Favorable network access to new markets
3. Cost advantages

The weaknesses outlined are direct and indirect absences of strengths:

1. Ongoing product launch failure
2. Expenses outweighing profits
3. Lack of access in distribution services

Likewise, defining the opportunities a business helps to place options on the table as to what can help it succeed and grow. Recognizing industrial threats helps to outline customer needs that have yet to be fulfilled and the different barriers caused by outside influences that hinder profit-making.

Non-profits and NGOs who are involved with social causes and/or political advocacy may benefit more from analysis such as STEP. A STEP analysis focuses exclusively on external environmental factors: social, technological, economic, and political.

Social factors in STEP or PEST analysis are those concerning demographics, population, and culture that have an effect on how the organization functions and reaches its goals. In looking at social factors, organization leadership and staff should ask themselves:

1. What are the basic demographics of the community we serve?
2. What is the age distribution of our target population?
3. What attitudes does the community we serve have in regards to our work?

Technological factors are becoming increasingly important in how an organization designs future fundraising and promotional campaigns as more Americans are relying on smartphones, apps, software, and social networking to obtain information. Analyzing technological factors include:

1. Software used by the organization to complete tasks
2. Rate of technological change and the effects on the group
3. Response from target audience on social network platforms

For organizations that serve working class or low-income populations, Political and economic factors in a STEP analysis are the most significant in evaluating work. For example, Political factors may include how your target population is effected by recent tax, education, or employment policies locally, statewide, and federally. Also, how the community being served is fairing economically may influence the success of a fundraising or donor campaign sponsored by the organization.

Strategic analysis works best when the stakeholders involved come to the table with an open mind and are willing to be challenged. Hosting a biannual or quarterly meeting to get staff and board member input is recommended to introduce and kickstart analysis in program modeling.

In closing, I want to stress this point: the analytical method used must lead to clear action steps for new program changes if any. In addition, there should be sufficient time given to the staff of a business or organization to implement any new strategy that leadership comes up with. Customer and staff feedback about new program implementations will be equally important for strategic analysis sessions and meetings that occur in the future.