SWOT and BADD Analysis
SWOT Analysis BADD & SWOT
BADD (Business Attention Deficit Syndrome) : The failure of many businesses to thrive as they should—or even survive at all--is attributable to a lack of focus on what the company is really good at doing. One way to combat the proclivity toward “BADD” is to perform a SWOT analysis of your overall business (and focus in particular on marketing and sales). SWOT is not panaceas that magically points to the best choices, but they are invaluable tools to: Focus and prioritize business activities and resources from Marketing and Sales--to Operations, Finance, Customer Service, etc Listen to a range of different “voices” instead of only one or two top executives Push aside company politics (if only temporarily) and present ideas that may not be brand new but may have been perceived inappropriate for discussion Uncover a gem or discover a gap or two--that might be very small or very large—that immediately contributes to the business Challenge the status quo, and in particular, the level of sales and profits—and shake things up to get moving again SWOT Examines Where You Really Stand Today and What Some of the Alternatives Are to Grow and Become More Profitable!
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SWOT Analysis Why It’s Difficult to SWOT Yourself
Can you SWOT your business yourself? Sure, if you’re really willing to check your ego(s) at the door, truly step back, and take an objective no-holds-barred look at your business: the good and the bad. It’s very difficult to do internally, but certainly possible. I’d guess, though, that fewer than one in four businesses can do it alone. Why is a SWOT so tough to do yourself? As part of the company, you’re simply too close to the action. Yes, you know your business better than any “outsider” ever will, but you’ve been looking at it the same way for so long that you’re not really seeing what you need to see. And you probably take for granted some assumptions that may not be relevant (any longer). You may not have enough reference points to be able to evaluate your business and compare it to others. Someone needs to drive the process. Unfortunately, unless you invest in an outside professional, too often the SWOT just doesn’t happen—or is not well done. SWOT can bruise egos. A good SWOT almost always helps identify some overlooked strengths, but also rocks the boat. A consultant can push the process and avoid getting bogged down in personality and political issues. Whether you attempt it yourself or get some help, a SWOT is a quick-and-dirty, super-objective look your successes, your failures, the market, and your competitors Page 3
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SWOT Analysis BADD & Focus
BADD: the evil twin of Business Focus Lack of focus, or what I call Business Attention Deficit Disorder (BADD), is the Achilles heel of most businesses—large and small--that end up NOT making it. From little start-up technology companies (perhaps with genuinely “cool” and useful stuff) to multi-billion dollar corporations like Vivendi (the one-time water and waste management company that sought foolishly to transmute into an entertainment conglomerate), lack of focus is the crux of their problems and often their death knell. All the water in France won’t save Vivendi from burning down and disintegrating into pieces at this point. And the technology world is littered with tens of thousands of neat “tools, “applications,” and “solutions” that no one ever sat down and figured out 1) a specific, concrete need for “it” 2) how to market and sell the thing at a profit. Focus—A definition Webster’s defines “focus” as: “…to fix or settle on one thing; concentrate…or to direct one’s thoughts or efforts; concentrate.” The common theme of focusing or concentrating is limiting one’s attention, resources and effort toward one thing. Not fifty-four things. ONE Thing
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SWOT Analysis BADD & Focus (Cont.)
BADD remains rampant Lack of business focus is still rampant even after thousands of dot.com companies melted down and escalating numbers of technology and other companies have shown that their “success” (that is, temporary survival) was a complete sham. BADD is: Trying to do too much, too fast. Trying to diversify beyond current expertise, competence, and skills. Trying to expand, way beyond current strengths--without the resources. Trying to jam a couple companies together without any tangible strategic or financial plan. Trying to get bigger (usually increasing customers and revenues without a lot of concern about debt or added costs)—hence little concern for profits. Saying to the marketplace that we do tons more than the business really does (or should be doing)—just to get a next customer. Does Anyone Believe Our Customers Would Not Recognize A Lack Of Focus?
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SWOT Analysis BADD, Focus & Leadership
But we can’t limit ourselves! We can do it all! Some business executives say, “If we say we only do this, then we’re limiting our potential.” Or they say, “We have no choice but to innovate at the speed of light.” These are the laments of true business fools. Not focusing—although very seductive and soothing to some corporate egos—is the perfect recipe for failure. Here’s what else the fools who don’t make it (other than unethically, for a time) say: “Sure we can do that (anything you want).” “Ya gotta think big and shoot for the moon—or you’ll never get anywhere.” “We aren’t going to put all our eggs in one basket.” “The “solution” we’re offering is infinite customization—just tell us what you want.” “Growth is all we need now, not profits. We’ll figure that out later.” The synergies are obvious; we’ll figure out how to make it work (financially, operationally, culturally, etc) later.”
Lets Learns From The Mistakes Of Other Business Leaders!
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SWOT Analysis “BADD” Starts at The Top
BADD always starts with the top folks and then becomes contagious across the company. But a high percentage of these executives can’t really even tell you about the crux of their business, what they do (well), AND how they make money (profit, that is). Whereas they typically adore flirting from deal to deal, these deals often produce nothing of intrinsic value—or even worse, deflect the business from focusing on what it does best. BADD executives are always busy but lack focus, and hence, so do their respective businesses. Many bankers, VC’s, and other investment types have fostered (virtually required) unfocused BADD business practices over the past several years. They’ve demanded business plans that show outrageously huge, potential market caps and phenomenal growth curves--and could have cared less about ongoing, lasting profitable business successes. But their game of guaranteed fees and quick exits (for their firms and a few top executives) is grinding to a halt. It’s no longer possible to condone such BADD foolishness, though, especially in this day and age of a depressed stock market, breakdown in corporate ethics, and the general poor financial performance of technology companies, in particular. I wish that I could discover the pill (maybe another use for Prozac?) that immediately improved executive-level attention deficit disorder. It would be more lucrative than hundreds of thousands of stock options in the old days of Enron or Global Crossings.
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SWOT Analysis Why BADD Companies Fail?
BADD companies are in (or say they are in) too many products and services, or too many unrelated types of products or services, or too many vertical markets or too many geographic markets. BADD executives really delude themselves (and fool others) that they can make anything happen in their own “space.” What does happen, though, is one or more of the following: No customer growth because nothing tangible ever gets out the door and/or no one out there believes the pitch. Customer and revenue growth, but without profits. Customer growth without ability to deliver (and hence the creation of unhappy customers) Markets that don’t understand what the company does or the value that it provides and/or just don’t believe it. Mass internal confusion, turmoil, and turnover (and then layoffs). Some BADD companies can hang on for quite some time, but the downward spiral is inevitable
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SWOT Analysis Outside Expertise?
If you decide to use an outside expert to help SWOT: Use a pro who knows not only Marketing and Sales, but is also business-savvy. Give them access to the information and people they need and tell it to him/her straight. You can fool even some of the best if you really want to, like a patient who doesn’t divulge symptoms to a physician, and then shouldn’t expect to get a very good diagnosis. Don’t expect all of THE answers: expect objectivity and unbiased analytical thinking, and someone who will put the time and effort into doing the SWOT right.
Leaders Use Lean Six Sigma To Counter BADD Leadership!
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About The Author
Steven Bonacorsi is a Senior Master Black Belt instructor and coach. Steven Bonacorsi has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies.
The AIT Group, Inc. Steven Bonacorsi, Solution Provider Lean Six Sigma Master Black Belt 3135 South Price Road, Suite 115 Chandler, AZ 85248-3549 Phone: +(1) 888.826.2484 E-mail: americas@theaitgroup.com http://www.theaitgroup.com
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About The AIT Group
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