For the article titled-State Medicaid Financing and Access to Large Assisted Living Settings for Medicare-Medicaid Dual-Eligible. Using this link: https://journals.sagepub.com/doi/10.1177/1077558720987666

AND for article titled SWOT Analysis: The Annual Check-Up for a Business **See pics

physician's check-up to protect our health. Similarly, successful business owners and managers understand the importance of scheduling an annual SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to ensure optimum business health. BY SARAH L. SIMONEAUX AND scan-a look "in the mirror" (internal) and "out the CHRIS L. STROUD door" (external)-paying particular attention to key factors that determine a successful retirement services Sarah L. Simoneaux, CPC, and Chris L. Stroud, MSPA, business. The SWOT analysis allows a company to MAAA, EA, provide consulting services to third party admin- assess where it is today and where it wants to go, istrators and financial institutions through Simoneaux & Stroud which are integral components of a living, breathing Consulting Services. The firm specializes in strategic business business plan. Once the current position is defined, planning, general consulting, industry research, customized brain- storming sessions, and professional development workshops and milestones can be set to help get the company to Webcasts for the retirement services industry. They are both past where it needs to be. presidents of ASPPA. Before diving into the details, review the vision, mission, and values statements of the company described in the business plan. These timeless state- 75 A SWOT analysis is an important aspect of ments serve as a moral compass to help guide com- strategic business planning and should pany decisions and direction and to keep the SWOT always be performed in conjunction with the process from veering off-track. For example, the initial creation of a company's business plan. On an goals and objectives of a firm valuing price and effi- ongoing basis, performing an annual SWOT review to ciency (the "Wal-Mart" model) will be different from update the business plan ensures that the business plan one who values consultative customer service (the will remain a living, breathing document that the "Nordstrom's" model). firm and the employees can follow. The information learned through the analysis Key Factors to Consider creates the business plan's goals, objectives, and The key factors to be considered can vary depend- strategies. A company-wide SWOT analysis should ing on the type of company and its primary focus. be performed at least once a year. A more limited For most businesses in the retirement services indus- SWOT analysis can be conducted as needed to tar- try, the following areas are worthy of review and get a single business unit or a specific item, like evaluation: the potential launch of a new product or consider- ation of an acquisition. One of the key advantages Corporate culture of the SWOT process is that it promotes proac- Management team tive thinking and planning rather than reactive Depth of staff decision-making. Experience/knowledge level of staff Operational efficiency The SWOT Framework Utilization of technology In today's retirement services industry, change is Ability to innovate the only constant. The SWOT analysis is an effect Quality of work tive tool for managing change, determining strategic Customer service direction, and setting realistic goals and objectives. Cost/benefit of products and services The analysis requires a comprehensive environmental Marketing and distribution channelsSales part of the external environmental scan is to identify Financial stability and recognize not just the current opportunities and . Reputation threats but also potential future considerations. Client base Opportunities typically represent areas in which the company could grow or increase profitability or You can start identifying strengths and weak- efficiency. Threats are typically comprised of external nesses at a high level by looking at each of the factors forces that could cause significant stress or economic listed above, adding or deleting categories as desired. downturn to a business. Assign a rating for your firm in each area (i.e., excel- Since a company can only handle a finite number lent, good, needs improvement). Then drill down into of initiatives at any one time, it is extremely impor- details for each item and look at specific strengths and tant to prioritize opportunities and threats in order to weaknesses related to each topic. determine the most critical strategies for success. Strengths and Weaknesses The SWOT Process The "internal" review to determine strengths and By following these simple steps, a company can weaknesses consists of an honest assessment of the conduct a very efficient SWOT analysis meeting. company's structure, capabilities, resources, and skills. Just like many of us don't like to see ourselves in pho- Step 1: Select a Facilitator tographs, we don't always like what we see when we The facilitator can be someone who works at the do an in-depth look into our own company. However, company (typically a high level manager) or an outside when it comes to a company's self-analysis, it is nec- consultant. Although additional costs are involved essary to identify the good, the bad, and the ugly. when utilizing an outside consultant, the advantages Ideally, the internal review will be conducted with often outweigh the cost. A consultant is more willing a 360 degree concept-considering viewpoints from to address tough issues and can offer a more objective employees, outside consultants or advisors, customers, opinion about many issues. Also, employees are often and also factoring in how the company measures up more willing to speak their mind when talking to against its competitors. an external facilitator instead of talking directly to a The strengths should identify positive charac- superior. teristics that give the business a competitive edge. Weaknesses are areas that can put the firm at a dis- Step 2: Create a SWOT Team advantage if they are not corrected. The goal is to Don't worry-no need for weapons with this maintain and leverage strengths in ways to benefit the SWOT team! Simply assemble a group of employees, company and to determine which weaknesses need representing different business units and job functions. to be remedied in order to improve the company's Teams are typically at least five people and can be as position. large as the entire company.Weaknesses are areas that can put the firm at a dis- Step 2: Create a SWOT Team advantage if they are not corrected. The goal is to Don't worry-no need for weapons with this maintain and leverage strengths in ways to benefit the SWOT team! Simply assemble a group of employees, company and to determine which weaknesses need representing different business units and job functions. to be remedied in order to improve the company's Teams are typically at least five people and can be as position. large as the entire company. In some firms, a characteristic may represent a strength in one case and a weakness in another. For Step 3: Select the Venue for the SWOT Analysis example, having a large number of older, more expe The SWOT analysis can be conducted in an open rienced (Baby Boomer) employees can be a strength meeting environment if the team selected is a rela- when it comes to work quality and knowledge level; tively small group. If most or all of the employees however, if it also signifies a lack of younger employ- are participating, then an off-site company retreat is ees (Gen Y), the company might have a weakness rela- ideal. A brainstorming session environment is also tive to innovation and utilization of new technologies. very effective, where a larger team can be broken down into smaller teams for "brainstorming" and then reas- Opportunities and Threats sembled for analysis and prioritization. An external review should be conducted to identify opportunities and threats, which are typically created Step 4: Assemble the Tools by "external" forces. They can be attributed to such At a minimum, a number of flip charts (with adhe- things as political climate, economic shifts, laws and sive on backs of each page), markers, and easels are regulations, technology, industry trends, target mar- needed. Each smaller group (if breaking into multiple kets, distribution channels, competition, etc. A critical groups) should have at least one flip chart and easel. BUSINESS BEST PRACTICES 77 Step 5: Perform the Environmental Scan to facilitate summarization of ideas from multiple Utilize the SWOT Framework to identify groups. Look for common themes and summarize the Strengths, Weaknesses, Opportunities, and Threats items into a more refined list. and document the lists of each on the flipcharts. Some firms also choose to analyze several of their Step 7: Analyze and Prioritize primary competitors using the SWOT technique The analysis can often be as simple as "matchmak- to determine how the firm stacks up against the ing" Strengths and Weaknesses with Opportunities competition. and Threats. Separate the strengths into two groups- those that can help the firm capitalize on opportuni- Step 6: Summarize ties and those that can help you counter potential As the meeting progresses, flip charts can be stuck threats. Similarly, you can divide the weaknesses into to the walls and moved around the room as needed two groups-those that require improvements to78 JOURNAL OF PENSION BENEFITS allow you to take advantage of opportunities and those SWOT exercise, which can help you in marketing and that should be addressed quickly in order to avoid communication efforts. immediate or potential threats. A successful SWOT analysis will help you recognize Lastly, narrow down the lists. Identify the priorities areas where your capabilities and resources are strong and create strategies that will incorporate what has and your potential to capitalize on opportunities is been learned from the SWOT analysis. The SWOT the greatest. Of course, you will need to factor in your strategies matrix can be used to document the strate- company's financial strength and corporate culture gies that were identified during the "matchmaking" before undertaking any new strategy. process of the SWOT analysis. Most importantly, involve your employees! If you fail As strategies are solidified, goals and objectives to to communicate the goals and objectives that arise from carry out each strategy will need to be developed. the SWOT analysis, the employees will be working in the dark. Set aside a half day for a structured brain- The Outcome storming session specifically focused on the results of Just having a list of things you are good at is not the SWOT exercise. Ask for staff input on development enough. The SWOT process forces you to focus and of new goals to fulfill the strategies and ask how they capitalize on the firm's strengths that are most valued can help get you there. The employees are the engine by customers. You will also be better able to articulate that drives the train of your business, and they are an your firm's core competencies after going through the essential part of implementing SWOT strategies. "