Jani’s Journal Issue 39: Becoming a "Fly" SWOT-er
2/4/2025
I’ve always secretly pictured a flyswatter in my head whenever I hear the term “SWOT Analysis.” And now you probably will, too. You’re welcome! 😂
SWOT Analysis: A Strategic Imperative for Nonprofits
A SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) is a powerful tool for nonprofits, serving as the foundation of strategic planning and organizational growth. Also known as environmental scanning, it provides a structured way to assess both internal factors (strengths and weaknesses) and external influences (opportunities and threats) that impact the organization’s ability to fulfill its mission.
To be truly effective, a SWOT analysis (or any other type of environmental scan) must be comprehensive, covering all facets of the organization—stakeholder engagement, internal operations, learning and growth, and financial health—to ensure well-rounded, actionable strategies. While key areas such as donor engagement, service quality, and operational efficiency are critical, overemphasizing one area can lead to unbalanced planning. Casting a wide net in the information-gathering stage enables nonprofit leaders to identify the most pressing trends, leverage core strengths, and mitigate risks with a strategy that is mission- and values-aligned as well as sustainable to achieve your vision.
This edition of Jani’s Journal is dedicated to making YOU the fly-est SWOT-er in your organization!
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A special note regarding use of the term "competitor."
“Competitor” or “competition” is a common term within SWOT Analyses, but when nonprofits hear the word "competitor," it can feel out of place. After all, we’re mission-driven, not profit-driven! But in the context of a SWOT analysis, "competitor" simply refers to any organization—nonprofit, for-profit, or government—that shares a similar focus, serves overlapping interested or affected populations, or seeks funding from the same sources. This could include organizations with similar programs, grant applications, or donor appeals—not because we’re working against them, but because understanding the broader landscape helps us identify opportunities for collaboration, differentiation, and strategic growth. In fact, many “competitors” today may become valuable partners tomorrow! Assessing who else occupies the same space facilitates strengthened missions, filled service gaps, and organizations positioned for long-term impact.
Jani’s Jackpot!
If you only have time to read one article, Jani’s Jackpot promises the ultimate payout!
🔗 What is PESTEL Analysis? 🔗
This Jani’s Jackpot article is a great primer on an alternative to a SWOT Analysis which focuses on the external environment (the “O” and the “T” part of the SWOT). A PESTEL analysis (Political, Economic, Social, Technological, Legal, Environmental) is a strategic tool used to evaluate external factors that can impact an organization's operations and long-term planning. For nonprofits, understanding these external influences is crucial for mission sustainability, fundraising, regulatory compliance, and community engagement. A well-conducted PESTEL analysis helps nonprofits anticipate challenges, leverage opportunities, and align strategies with external trends.
SWOT Perspectives
🔗 Are Your Company's Strengths Really Weaknesses? 🔗
This Harvard Business Review article by my favorite NYU Strategy Professor Adam Brandenburger challenges traditional SWOT analysis by introducing a new, more dynamic framework that accounts for shifting market forces. The revised model recognizes that strengths can become threats, weaknesses can become opportunities, and competitors’ strengths and weaknesses also shape strategic positioning. This approach is particularly relevant for nonprofits, which often face rapidly changing funding landscapes, policy shifts, and disruptive innovations in service delivery. By embracing a more dynamic SWOT approach, nonprofits can develop strategies that ensure resilience, growth, and continued impact in an ever-changing world.
Rethink Strengths & Weaknesses. A nonprofit’s biggest assets (e.g., long-standing programs, established funders) can become liabilities if they hinder adaptation, while perceived weaknesses (e.g., lack of resources) can drive innovation and agility.
Leverage External Forces. Competitors' strengths can be turned into advantages (e.g., forming partnerships with well-resourced organizations), while their weaknesses may pose hidden threats (e.g., gaps in service delivery could invite disruptive new entrants).
Prepare for Disruption. Just as online learning has disrupted traditional higher education, nonprofits must stay ahead of shifts in donor expectations, digital transformation, and policy changes.
Balance Flexibility with Structure. Strategy requires both adaptability and discipline. Nonprofits must hold multiple perspectives while systematically testing assumptions to make informed decisions.
🔗 Weakness or Opportunity? 🔗
This MIT Sloan Management Review article challenges the way organizations approach weaknesses in SWOT analysis, arguing that many mislabel weaknesses as opportunities or avoid discussing them altogether. Effective strategic planning requires distinguishing between weaknesses that can be addressed and those that cannot, ensuring resources are allocated wisely rather than wasted on unchangeable deficiencies. For nonprofits, this is particularly relevant as they often operate with limited funding and must be strategic in leveraging strengths while mitigating real challenges. Organizations that embrace an honest assessment of weaknesses can develop a more realistic and effective path toward achieving their long-term vision. Keys to accurately identify and address weaknesses:
Don't Ignore Weaknesses – Avoid the temptation to reframe every weakness as an opportunity; instead, assess them objectively.
Differentiate Between Fixable vs. Permanent Weaknesses – Some weaknesses, like staffing shortages, can be addressed, while others, like regulatory constraints, may be unchangeable or require disproportionate effort and resources to influence.
Strategic Resource Allocation – Investing in addressable weaknesses is valuable, but pouring resources into unchangeable limitations can hinder progress.
Balance Strengths and Weaknesses – Use existing strengths to offset weaknesses where possible, rather than trying to eliminate every shortcoming.
Cultivate a Culture of Honest Self-Assessment – Nonprofits must embrace open discussions about weaknesses to improve effectiveness rather than avoiding tough conversations.
“You Can SWOT Anything!”
SWOT Alternatives
🔗 From SWOT to TOWS: Answering a Reader's Strategy Questions 🔗
This Harvard Business Review (HBR) article challenges the traditional SWOT analysis framework, advocating for a TOWS-first approach—starting with Threats and Opportunities before assessing Weaknesses and Strengths. The author found that reversing the order focuses teams on external realities first, leading to more actionable insights rather than abstract self-assessment. This shift ensures that nonprofits develop strategies aligned with external changes, rather than just internal perceptions. Given that nonprofits operate in dynamic funding, policy, and community landscapes, this structured approach can help organizations proactively address risks and capitalize on opportunities for mission-driven success.
🔗 Four Alternatives to a SWOT 🔗
Strategic planning is essential for nonprofits to stay mission-focused and responsive to their external environment. While SWOT analysis is a common tool, NMBLStrategies.com offers alternative approaches such as SOAR, PESTEL, Five Forces, and NOISE analyses that can better align with nonprofit needs. These methods can help organizations identify strengths, plan for growth, and develop effective strategies while ensuring a positive, action-oriented approach to challenges.
SOAR Analysis: Focuses on Strengths, Opportunities, Aspirations, and Results, making it a forward-thinking, action-oriented tool for nonprofits developing their identity or expanding their mission.
PESTEL Analysis: Evaluates Political, Economic, Social, Technological, Environmental, and Legal factors to understand external influences on nonprofit sustainability and adaptability. See Jani’s Jackpot article above for more on the PESTEL Analysis.
Five Forces Analysis: Examines competition, suppliers, customer influence, and market dynamics, which can be useful for fundraising, partnerships, and positioning within the nonprofit sector.
NOISE Analysis: Highlights Needs, Opportunities, Improvements, Strengths, and Exceptions, shifting the focus to solution-based strategic planning and fostering a positive, growth-oriented mindset.
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