BSC SWOT, or the Balanced Scorecard SWOT analysis, was first introduced, in 2001, by Lennart Norberg and Terry Brown.
BSC SWOT is a simple concept that combines the two powerful tools BSC (Balanced Scorecard) and SWOT analysis when identifying factors that drives or hinders strategy. The four perspectives in BSC is combined with the four dimensions of SWOT in a matrix where findings may be inserted.
Example:
- To identify FINANCIAL (first perspective of the BSC) STRENGTHS (the first dimension of SWOT analysis).
- Or to identify INTERNAL PROCESS (third perspective of the BSC) WEAKNESSES (the second dimension of SWOT analysis).
The full matrix looks like this:
| STRENGTHS | WEAKNESSES | OPPORTUNITIES | THREATS | |
|---|---|---|---|---|
| FINANCIAL | financial strengths | financial weaknesses | financial opportunities | financial threats |
| CUSTOMER | customer strengths | customer weaknesses | customer opportunities | customer threats |
| INTERNAL PROCESSES | internal strengths | internal weaknesses | internal opportunities | internal threats |
| PEOPLE1 | people strengths | people weaknesses | people opportunities | people's threats |
The traditional SWOT analysis would look at external factors when looking at opportunities and threats. However the BSC SWOT would consider these attributes from both an external and internal perspective. Each field in the matrix may be looked upon as a question. For instance: 'What are my internal strengths?' or 'What opportunities do I have with my people?'. The BSC SWOT concept works best if a full understanding of BSC and SWOT analysis exists in order to create the right outcome.
Read more about BSC SWOT: Using BSC SWOT