Business Leaders Series: Assess Your Organization’s Weaknesses and Culture with a SWOT Analysis

Business Leaders Series: Assess Your Organization’s Weaknesses and Culture with a SWOT Analysis

By Nancy Padberg, MBA, President and CEO of Catholic Education Arizona

A SWOT analysis is one of the most practical tools a CEO has for building a healthy, sustainable organization. When your leadership team and board sit down together to name strengths and weaknesses honestly, you’re building trust and alignment. This process strengthens culture, which I believe every CEO should think about as much as the strategy itself.

A SWOT analysis is an honest look at your business or nonprofit’s Strengths, Weaknesses, Opportunities, and Threats. This breakdown makes leaders step away from the day-to-day tasks and reflect on the necessary areas of growth needed to thrive. 

Why a SWOT Analysis Matters For Nonprofits

Nonprofits often have tighter budgets than for-profits do, and the trust built between donors and contributors is hard to earn. With a SWOT, CEOs have a clear pathway to the improvements needed. Nonprofit leaders are often already navigating board relations, building healthy culture between associates, and assessing areas for growth. Investing time to perform a SWOT analysis is necessary for maintaining a healthy culture amongst associates, board members, and supporters. 

Here’s why, and how to put it to work.

Strengths: What are we already doing well?

Start your reflection internally. What does your organization do better than almost anyone else? For a nonprofit, this might not be a product. It might be the depth of relationships with donors or a reputation built over decades of service.

Examples:

  • Experienced senior leadership: Strategic, long-term decision-making informed by institutional knowledge.
  • Established reputation: Credibility and trust built over time with communities, partners, and funders.

Weaknesses: Where are our weak spots?

This quadrant may make some leaders uncomfortable. But true growth happens in discomfort. Your organization’s weaknesses may be structural, such as an overreliance on a single revenue stream. Or, the weakness may be cultural, such as unclear communication between departments or tension between associates.

Examples:

  • Costly overhead: Maintaining a large infrastructure can strain resources in tight financial climates.
  • Visibility challenges: Despite longevity, it may lack fresh branding or appeal to younger audiences and funders.

Opportunities: What are areas we haven’t tapped into yet?

Opportunities come from outside the organization, such as new partnerships, funding trends, a developing donor base, or new technologies. Opportunities may also come from within the organization, such as a talented staff member ready for more responsibility.

Examples:

  • Strategic alliances: Collaborating with peer organizations to share resources, scale impact, or amplify advocacy efforts.
  • Technology: Implement and scale AI across the organization.

Threats: What could hurt us if we don’t prepare?

Threats are the external forces a CEO can’t control but must plan around. A few examples may be policy or legislative changes, economic downturns, or new organizations competing for the same funding or families.

Examples:

  • Legislative changes: New laws may limit nonprofit tax-exempt status, increase compliance burdens, or restrict lobbying efforts.
  • Sector competition: An increasing number of companies are competing for the same demographic’s spending.

A SWOT analysis is only as good as what happens after it’s written down. I encourage CEOs to treat it as a living document. Revisit the analysis on a consistent basis with your leadership team and board, I suggest at least annually. Let it directly inform your strategic priorities: Which strengths are you investing in? Which weaknesses have you committed to addressing, and by when? Which opportunities deserve real resources? Which threats need a contingency plan now, before they become emergencies?

A Tool For Healthy Culture

The way you run a SWOT analysis says as much about your organization’s culture as the results do. If your team is afraid to name real weaknesses, or if leadership dismisses uncomfortable truths, the analysis won’t do what it’s meant to do. This is a time to be honest. If you can create a room where honesty is safe and expected, you’ll get more than a strategic plan. This practice builds a culture where associates trust one another enough to tell the truth. For a servant leader, this may be the most valuable outcome of all.