If there’s only one thing that we learn in the hospitality game, it is this: you need to know where you are before you can navigate a route to where you want to go.
Not very profound perhaps, maybe even blazingly obvious to most people. But the number of businesses that could be doing so much better if they only had a proper fix on their current position would amaze you. Without accurate bearings in today’s business landscape is the equivalent of being lost in the Cairngorms at night with a 1987 AA road map and a candle. Not, it has to be said, a very pleasant place to be.
So how can we shed light on our position? What reference points or landmarks can we use?
A good place to start is by conducting a weekly SWOT report. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. You may also have heard it called a SOFT report where Weaknesses are replaced by Failures. It’s all a matter of taste.
By its nature a SWOT report is retrospective, so has to be carried out at the end of the week. Pick a relatively quiet time when you have some space to reflect on the happenings of the past seven days and put them into perspective. The first SWOT report will usually take around 20 to 30 minutes to complete, but subsequent ones will be a lot quicker once you get your head around the process.
Here’s one way to do a SWOT report. It’s quick and dirty, and gets the job done.
Get a sheet of blank A4 paper and divide it into four boxes with a pencil and ruler. Head the boxes Strengths and Opportunities in the first column and Weaknesses and Threats in the second column. Within each box aim to list around five to ten relevant items. Remember to date your report.
The purpose of the exercise is to build up a picture of what is currently good and poor about your business operations, to identify new possibilities and highlight the potential pitfalls to be avoided. Over time, SWOT reports can form the basis of a considered action plan to improve your business – and your profitability.
Initially, you may wish to complete a number of SWOT reports on your own in order to get a feel for the process and an idea of the outcomes. However, be aware this isn’t always the best course of action. You may be barking up the wrong tree about something, too optimistic or simply too subjective in your analysis and conclusions. If at all possible involve members of staff in the SWOT report. Their input will be invaluable in helping to move your business along. And who knows? You may, by having a quick brainstorming session each week, learn something you didn’t appreciate existed – a breakdown in communication, a shortcoming in procedures or staff with hidden talents or leadership abilities.
Not only that, however. By having staff pitch into the SWOT process, it helps create a sense of collective ownership of the results and the outcomes. If everyone buys into the idea then it will prove far easier to address not only the weaknesses and threats, but the opportunities as well.
Like so much in life, if you don’t ask, you won’t know. You may not like the answer, of course. But ignorance isn’t always bliss, especially if you’re halfway down a mountain and blundering around in the dark. Better to have your very own SWOT team on the case.
