Unlike the traditional use of SWOT and TOWS, here we provide strategy suggestions, not finalized plans. These ,,strategy suggestions” are included in the OKR Briefing, giving each team member a holistic view and aiding them in formulating their own objectives and key results.

Understanding SWOT and TOWS

• SWOT Analysis is a strategic planning tool that enables organizations to evaluate their current position and potential growth prospects by identifying their:
  • Internal-Strengths
  • Internal-Weaknesses
  • External-Opportunities
  • External-Threats
• TOWS Matrix is used to generate strategies by leveraging the insights of the SWOT-Analysis. TOWS matrix focuses on four key strategies:
  • Strength — Opportunity: How can strengths be maximized to seize opportunities?
  • Strength — Threat: How can strengths be maximized to mitigate threats?
  • Weakness — Opportunity: How can opportunities be utilized to offset weaknesses?
  • Weakness — Threat: How can weaknesses be minimized to mitigate threats?

Executing SWOT and TOWS

1. Executing the SWOT Analysis - 90 Min.

SWOT analysis example - double click to zoom in

1. Invite team members who work at the intersection between strategy and execution (e.g. team leads) for a well-rounded perspective.
2. Start an open discussion using the SWOT-Analysis template and document your team’s statements for the following key aspects of your business:
   • Internal Strengths: Identify your advantages in product innovation, sales performance, marketing reach, available resources, team capabilities or financial robustness.
     • For a more detailed analysis of strengths click ⬇️.
   • Internal Weaknesses: Highlight areas for improvement such as product offerings, sales processes, marketing strategies, resource availability, team skills or financial standing.
     • For a more detailed analysis of weaknesses click ⬇️.
   • External Opportunities: Explore customer segments, emergent market trends or competitors' weaknesses that could be capitalized on.
     • For a more detailed analysis of opportunities click ⬇️.
   • External Threats: Identify hurdles like shifting customer behavior, evolving market trends or competitors' moves that could pose risks to your business.
     • For a more detailed analysis of threads click ⬇️.
3. Once there are no more statements to add, start merging similar ones for a clearer view in the SWOT-Analysis template.
4. Prioritize the statements in each box based on their significance and impact on the organization.

<aside> 💡 Note that the SWOT analysis will be more effective if based on factual data rather than personal opinions.

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2. Creating a TOWS Matrix

TOWS matrix example - double click to zoom in

1. Transfer your SWOT analysis findings to the TOWS Matrix template.

   <aside> 💡 The TOWS matrix builds on the results of the SWOT analysis and is best conducted immediately after the SWOT analysis.

   </aside>

2. Divide your team into groups and assign each one a specific pairing: Strengths-Opportunities (SO), Weaknesses-Opportunities (WO), Strengths-Threats (ST), or Weaknesses-Threats (WT).

3. Ask each group to come up with a maximum of three strategies for the next quarter based on their pairing:

   • Strength — Opportunity: How can we use our strengths to capitalize on opportunities?
   • Strength — Threat: How can we leverage our strengths to counter threats?
   • Weakness — Opportunity: How can we take advantage of opportunities to address our weaknesses?
   • Weakness — Threat: How can we reduce our weaknesses to avoid threats?

4. As a team, have a brief discussion and if needed refine these strategies.

<aside> 💡 Keep in mind: This isn't about perfect strategy. It's pre-work for the OKR briefing to help everyone—even non-participants—identify their own strategies for effective OKR formulation.

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After analyzing the company's situation through SWOT and deriving strategic suggestions via TOWS, it's time to create an OKR briefing for your team. This briefing should include the necessary to enable them to derive their OKRs. Here's how you can do that ✌🏼