SWOT/TOWS Analysis McMillan Matrix

SWOT/TOWS Analysis
McMillan Matrix
First Step
Assess your Organization
Assess your Environment
What to See in Your Organization
The Men
The Money
The Machines
The Methods
What to See in the Environment
Political issues and government policies
Economic Trends and Changing Donor’s
Preferences
Social and Cultural Trends
Technological Changes
SWOT
 Factors affecting the organizations can be
divided into four categories:
 Internal Factors that can help the organization =
Strengths
 Internal Factors that can harm an organization =
Weaknesses
 External Factors that can help the organization =
Opportunity
 External Factors that can harm the organization
= Threats
SWOT
By Government Departments
Now you know your organization and the
environment it is working in,
Now how to use it!!!
Do a TOWS.
Strengths
Weakness
1.
2.
1.
3.
Opportunities
1.
2.
3.
Links with Ministry
2.
3.
No links in other parts
of the Government.
Small Skill base
Little alternative in
case of absentees.
Maxi Max
Mini Max
Maxi Min
Mini Min
Working on topical
issue.
Government support
to NGO.
NGO support.
Threats
1.
2.
Availability of Time
Good Reputation of
Researcher
Reaction to Report.
Chances of
Nullification of
Findings by
Government
Departments
The WT Strategy (mini-min)
 In general, the aim of the WT strategy is to minimize both
weaknesses and threats.
 An organization faced with external threats and internal
weaknesses may indeed be in a precarious position.
 In fact, such a firm may have to fight for its survival or
may even have to choose liquidation.
 But there are other choices.
 For example, such a firm may prefer a merger, or may
cut back its operations, with the intent of either
overcoming the weaknesses or hoping that the threat will
diminish over time (too often wishful thinking).
 Whatever strategy is selected, the WT position is one
that any firm will try to avoid.
The WO Strategy (mini-max)
 The second strategy attempts to minimize the
weaknesses and to maximize tile opportunities.
 A company may identify opportunities ill the external
environment but have organizational weaknesses which
prevent the firm from taking advantage of an opportunity.
For example, lack of Skills/technology in certain areas.
 One possible strategy would be to acquire this
Skills/technology through cooperation with a firm having
competency in this field.
 An alternative tactic would be to hire and train people
with the required technical capabilities.
 Of course, the firm also has the choice of doing nothing,
thus leaving the opportunity to competitors.
The ST Strategy (maxi-min)
This strategy is based on the strengths of
the organization that can deal with threats
in the environment. The aim is to
maximize the former while minimizing the
latter.
This, however, does not mean that a
strong organization can meet threats in
the external environment head-on.
The SO Strategy (maxi-max)
 Any company would like to be in a position where it can
maximize both, strengths and opportunities.
 Such an enterprise can lead from strengths, utilizing
resources to take advantage
 Successful enterprises, even if they temporarily use one
of the three previously mentioned strategies, will attempt
to get into a situation where they can work from
strengths to take advantage of opportunities.
 If they have weaknesses, they will strive to overcome
them, making them strengths. If they face threats, they
will cope with them so that they can focus on
opportunities.
Macmillan Matrix
 The matrix is based on the assumption that
duplication of existing comparable services
(unnecessary competition) among nonprofit
organizations can fragment the limited resources
available, leaving all providers too weak to
increase the quality and cost-effectiveness of
client services.
 The matrix also assumes that trying to be all
things to all people can result in mediocre or
low-quality service; instead, nonprofits should
focus on delivering higher-quality service in a
more focused (and perhaps limited) way.
Macmillan Matrix
 The Components of the matrix are:
1.
2.
3.
4.
Fit
Program Attractiveness
Alternative Coverage
Competitive Position
1- Fit
 Fit is the degree to which a program
“belongs” or fits within an organization.
Criteria for “good fit” include:
1. Congruence with the purpose and mission of
the organization;
2. Ability to draw on existing skills in the
organization; and
3. Ability to share resources and coordinate
activities with programs.
2- Program Attractiveness
 Program attractiveness is the degree to which a
program is attractive to the organization from an
economic perspective, as an investment of
current and future resources (i.e., whether the
program easily attracts resources).
 Any program that does not have high
congruence with the organization’s purpose
should be classified as unattractive.
 No program should be classified as highly
attractive unless it is ranked as attractive on a
substantial majority of the criteria given on next
slide.
1. High appeal to groups capable of providing
current and future support
2. Stable funding
3. Market demand from a large client base
4. Appeal to volunteers
5. Measurable, reportable program results
6. Focus on prevention, rather than cure
7. Able to discontinue with relative ease, if
necessary (i.e., low exit barriers)
8. Intended to promote the self-sufficiency or selfrehabilitation of client base
3- Coverage
Alternative coverage is the extent to which
similar services are provided.
If there are no other large, or very few
small, Comparable programs being
provided in the
same region, the program is classified as
“low coverage.”
Otherwise, the coverage is “high.”
4- Competitive Position
 Competitive position is the degree to which the
organization has a stronger capability and potential to
deliver the program than other agencies – a combination
of the organization’s effectiveness, quality, credibility,
and market share or dominance.
 Probably no program can be classified as being in a
strong 3 competitive position unless it has some clear
basis for declaring superiority over all competitors in that
program category.
 Criteria for a strong competitive position include:
1. Good location and logistical delivery system;
2. Large reservoir of client, community, or support group
loyalty;
3. Past success securing, raising funds;
4. Superior track record (or (image) of service delivery;
5. Large market share of the target clientele currently
served;
6. Better quality service and/or service delivery than
competitors and a better price;
7. Superior skill at advocacy;
8. Superiority of technical and organizational skills needed
for the program;
9. Superior ability to communicate to stakeholders.