SWOT and A’WOT analysis Quality of Life sub-module Petri Kainulainen EUREKA 2013, Mosonmagyarovar, Hungary

Background - SWOT Widely used planning tool which can provide a good basis for strategic formulation Systematic approach and support for a decision situation Shows interactions between internal and external environments Qualitative analysis performed mostly in planning phase Often only a listing of internal and external factors Can be used to identify the development issues in your project or case villages

Background - SWOT Strengths: - Weaknesses: Opportunities: Threats: Internal, you can influence External, you cannot influence Positive Negative

Background - SWOT Strengths: should be used to achieve objectives should be strengthened more Weaknesses: should be avoided to achieve objectives should be removed is possible could be changed into strengths Opportunities : should be exploited to achieve objectives Threats: organization should defend itself against threats to achieve objectives

Example 1 – from first EUREKA One case village from the area of Ylä-Savo in Finland Strengths: - Active village/people - Good location - Nature - Safe environment Weaknesses: - Bad roads - Old age of the occupants - Strong small social groups -Downward trend of agriculture Opportunities: - Utilization of the environment - New occupants - EU projects - Co-operation Threats: - Decreasing number of occupants - Young people move away - Old people can’t cope their life - envy/greediness

Example 2 – real world Strengths: Ylä-savon Veturi Ry: Rural Development Program 2007 – 2013, SWOT for Ylä-Savo area Strengths: - Well functioning rural area - Clean nature and safe environment - Communization, helping neighbors, long traditions - Positive attitude for rural development - Strong agriculture and forestry - Attitude and commitment of rural entrepreneurs for the development work - Renewable natural resources - Food industry - Forest and wood industry - Good educational supply for the needs of the area

Example 2 – real world Weaknesses: Ylä-savon Veturi Ry: Rural Development Program 2007 – 2013, SWOT for Ylä-Savo area Weaknesses: - Bad roads and lack of public transportation - Migration and aging - Low level of education / lack of specialized employees - Lack of jobs specially for women - Deficiencies in business knowledge - Capacity and transport problems caused by small size of the companies - Lack of co-operation (chain) of development projects and investments

Example 2 – real world Opportunities: Ylä-savon Veturi Ry: Rural Development Program 2007 – 2013, SWOT for Ylä-Savo area Opportunities: - Utilization of nature, culture and traditions in business and free time - Increasing use and production of bioenergy - Horses as a business and hobby - Planned development of villages - Increasing multiplicity of service needs and the capability of the rural people - Specialization, networking and supply chains of small companies - Fast internet connections and high technology - People who move to the rural areas and summer cottages - Multiculture

Example 2 – real world Threats: Ylä-savon Veturi Ry: Rural Development Program 2007 – 2013, SWOT for Ylä-Savo area Threats: - Infrastructure and public services will weaken more - People are moving away from rural areas and aging - Lacking and tiredness of active interest groups - Closing of small schools -> no common premises - Continuation of companies with retiring entrepreneurs - Lack of development of small companies - Management of the farms as a full company - No utilization of multiculture - Development of focused on centers

Short SWOT excercise Make a SWOT table on your own group Use flap What are the Strengths that you could use even more? What are the Weaknesses that you should eliminate? What are the Opportunities that you could utilize? What are the Threats that you should avoid? Use flap Time for preparing: 20 mins Time for presentations: 5 mins

A’WOT Basics Why A’WOT SWOT analysis is a qualitative method which can be hard to evaluate – its highly depending on the on the capabilities and expertise of the persons participating the process SWOT usually pinpoints the number of factors within the group instead of the most important group SWOT does not provide the importance of the factors or to assess decision alternatives according to the factors A’WOT is an extension to SWOT and it gives SWOT more analytical scope makes it easier to compare different strategies it gives more objective results – numerical weights to SWOT factors

A’WOT Basics A’WOT is an analytical extension to the SWOT analysis The standard version of A’WOT integrates Analytic Hierarchy Process (AHP) with the SWOT Based on the pairwise comparisons of the SWOT factors Yields analytically determined priorities for the factors of the SWOT Alternative strategic decisions can be prioritised We use a simpler method called Simple Multi-Attribute Rating Technique (SMART) More straightforward Suitable when there large number of decision alternatives and persons defining the priorities (no pairwise comparisons) The main idea is to prioritize the SWOT factors to find out the most important factor groups to compare different decision strategies -> each future scenario would have its owm SWOT and A’WOT We can measure the quality of life in the different target groups (villages) and compare them with each other We can prioritize the development issues in the respect of QoL

A’WOT Steps Define SWOT table 5-10 factors per each SWOT group Determine weights for each factor within each SWOT group decide first which is the most important and give 100 to that one scale (0-100) other factors relative to the most important one -> e.g. 50 has the half of the importance compared to one with 100 Determine weights for each SWOT group pick the most important factor from each SWOT group decide which of the them is the most important and give 100 to that one others relative to the most important SWOT group (as in previous step) Scale weights between 0-1 for each SWOT group between 0-(SWOT group weight) for each factor within SWOT group see the following example Calculate Quality of Life index (Strengths + Opportunities – Weaknesses - Threats) Make a list of overall priorities for the SWOT factors

Determine weights for SWOT groups and scale them Strength: S1: 100 S2: 80 S3: 60 S4: 20 ----- 260 Weakness: W1: 100 W2: 60 W3: 50 W4: 20 230 Opportunity: O1: 100 O2: 40 O3: 20 O4: 10 170 Threat: T1: 100 T2: 60 T3: 20 T4: 10 190 S1: 100 => 100/280 = 0,357 W1: 80 => 80/280 = 0,286 O1: 60 => 60/280 = 0,214 T1: 40 => 40/280 = 0,143 ------ 280

Scale factors within each SWOT group 100 => (100/260)*0,357 = 0,137 80 => (80/260)*0,357 = 0,110 60 => (60/260)*0,357 = 0,082 20 => (20/260)*0,357 = 0,027 ------- 0,356 W (0,286): 100 => (100/230)*0,286 = 0,124 60 => (60/230)*0,286 = 0,075 50 => (50/230)*0,286 = 0,062 20 => (20/230)*0,286 = 0,025 0,286 O (0,214): 100 => (100/170)*0,214 = 0,126 40 => (40/170)*0,214 = 0,050 20 => (20/170)*0,214 = 0,025 10 => (10/170)*0,214 = 0,013 0,214 T (0,143): 100 => (100/190)*0,143 = 0,075 60 => (60/190)*0,143 = 0,045 20 => (20/190)*0,143 = 0,015 10 => (10/190)*0,143 = 0,008 0,143

Calculation of well-being index Strengths – Weaknesses + Opportunities – Threats Strengths: 0,357 Weaknesses: 0,286 Opportunities: 0,214 Threats: 0,143 index = 0,357 – 0,286 + 0,214 – 0,143 = 0,142 ====

Short A’WOT excercise Make an A’WOT analysis for your own group Based on the SWOT made yesterday The steps Give weights within SWOT groups Give weights between SWOT groups Scale weights between groups Scale weights within groups Calculate QoL index