What Is a SWOT Analysis? And How to Run One

At some point, every leader hits a moment where things feel unclear. The team is busy, decisions are being made, but underneath is all, there’s a sense that something isn’t fully aligned.  

If you’re moving forward without a clear picture of where you stand, a SWOT analysis is a simple way to pause, step back, and see your current reality more clearly. This article breaks down what a SWOT analysis is, when to use it, and how to run one that leads to action. 

Key Takeaways

• A SWOT analysis helps you evaluate your strengths, weaknesses, opportunities, and threats.  
• The best SWOT sessions are honest and collaborative. 
• A SWOT analysis is not just a worksheet. It’s a leadership tool for strategic thinking that should carry on past a workshop. 

What Is a SWOT Analysis?

A SWOT analysis is a simple framework used to evaluate a business, team, or project from four angles: 

• Strengths: What you’re doing well 
• Weaknesses: Where you’re struggling or lacking 
• Opportunities: External factors you can take advantage of 
• Threats: External risks that could hold you back 

Think of it as a structured way to answer one big question: “Where are we right now, and what should we do about it?” 

Breaking Down the Four Parts of SWOT

Before you jump into completing a SWOT, it helps to really understand what each section is asking. This is where many teams rush and miss real value. 

1. Strengths (Internal)

Strengths are the internal advantages your team or organization has today. These are the things you can rely on, build on, and lean into when making decisions.  

Think about the things that consistently create value, either for your customers, your team, or your business. They might be:  

• Capabilities your competitors don’t have 
• Processes that run smoothly and efficiently 
• Relationships you’ve built with customers or partners 
• Skills, experience, or expertise within your team 
• Assets like technology, tools, or intellectual property 

Strong leaders push their teams to go beyond surface-level answers here. Instead of saying, “We have a great team,” ask what specifically makes that true. Is it experience? Collaboration? Problem-solving ability? The clearer you are, the more useful this section becomes.  

2. Weaknesses (Internal)

Weaknesses are internal limitations that hold you back or create risk. These are gaps between where you are and where you need to be.  

This is often the most difficult section because it requires honesty. Teams sometimes soften this conversation or avoid it altogether, but that’s where the exercise loses its impact.  

Weaknesses can show up as:  

• Inefficient or unclear processes 
• Skill gaps on your team 
• Lack of alignment across leadership 
• Limited resources (time, budget, tools) 
• Inconsistent customer experience 

The goal is not to assign blame, but to understand reality. Strong leaders create an environment where people feel safe naming what’s not working. Without that, you’ll only get partial answers, and partial clarity leads to poor decisions.  

3. Opportunities (External)

Opportunities are external factors that you can take advantage of to grow, improve, or move forward. These are not things you control, but they are things you can respond to. 

Opportunities often come from:  

• Market trends or shifts in demand 
• Changes in customer behavior 
• New technology or innovation 
• Gaps your competitors aren’t filling 
• Strategic partnerships or collaborations 

This section should really stretch your thinking. Don’t get stuck on just what’s obvious today. Think about what could be possible if you positioned yourself well. Where is the industry heading? What problems are customers starting to face? What could you do that you’re not doing yet? 

4. Threats (External)

Threats are external risks that could negatively impact your business or slow your progress. Like opportunities, they’re outside your control, but ignoring them won’t make them go away.  

Common threats are:  

• Increased competition 
• Economic uncertainty 
• Supply chain issues 
• Talent shortages 
• Changing regulations or policies 

The purpose of this section isn’t to create fear, but to build awareness so you can plan ahead. What could disrupt your business if you don’t prepare? Where are you most vulnerable? What risks are you underestimating? 

When you name threats clearly, you give your team a chance to respond proactively instead of reactively. 

SWOT Example

Strengths (Internal) – Strong company culture – Experienced leadership team – High customer satisfaction – Unique technology	Weaknesses (Internal) – Lack of clear processes – Gaps in leadership alignment – Limited resources – Communication breakdowns
Opportunities (External) – Emerging markets – New technology adaptation – Strategic partnerships – Growing customer demand	Threats (External) – Increased competition – Economic uncertainty – Talent shortages – Industry regulation changes

When Should You Use a SWOT Analysis?

A SWOT analysis isn’t something you do once and forget. It’s most helpful during moments of change or decision-making, such as:  

• Strategic planning sessions 
• Launching a new product or service 
• Entering a new market 
• Evaluating team or company performance 
• Navigating challenges or uncertainty 

How to Run a SWOT Analysis

A SWOT analysis is only as good as the way it’s run. That’s why many organizations bring in an outside facilitator for the exercise. Here’s a simplified version of what our process looks like.  

Step 1: Get the Right People in the Room

Include a mix of perspectives from leadership, team members from different functions, and people close to customers or operations. You want honest input from multiple levels, not just top-down thinking. 

Step 2: Set Clear Context

Before you start, define the focus. Are you analyzing the whole company, a specific team, or a product/initiative? Clarity here will help you keep the conversation focused. 

Step 3: Create the SWOT Grid

Draw a simple four-quadrant box, like the one above. Like, actually draw it.  

• Top left: Strengths
• Top right: Weaknesses
• Bottom left: Opportunities
• Bottom right: Threats

You can do this on a whiteboard, flip chart, or digital tool. 

Step 4: Brainstorm Each Session

Work through each section at a time, encouraging open discussion and specific examples. Don’t filter too early. Capture everything first, then you can refine later. 

Step 5: Prioritize What Matters Most

Once you have a full list, step back and ask:  

• What stands out?
• What shows up more than once?
• What will impact us most?

Narrow each section down to the top 5-ish points.  

Step 6: Turn Insights into Action

This is where most teams fall short. Don’t stop at the list! Instead, ask:  

• How can we use our strengths to take advantage of our opportunities? 
• How can we reduce weaknesses that expose us to threats? 
• What actions should we take next?  

Create clear next steps with owners and timelines and keep accountability long after the initial exercise.  

Common SWOT Mistakes to Avoid

Even though the concept of a SWOT analysis is simple, it’s easy to get wrong. Avoid these common mistakes:  

• Being too vague
• Avoiding hard conversations
• Treating it as a one-time exercise
• Not taking action

Turn Your Insights into Action

A SWOT analysis gives you clarity, but clarity alone isn’t enough. The real value comes from what you do next.  

Strong leaders don’t just identify strengths and challenges — they act on them. They bring their teams into the process, make decisions with intention, and follow through.  

If your team is struggling to get aligned and move forward with confidence, you don’t have to figure it out alone. At Leading by DESIGN, we help leaders build the skills, structure, and strategy needed to lead with purpose. Learn more about our SWOT analysis and leadership coaching services here.