SOAR and SWOT are frameworks development of a strategy that is used by entrepreneurs and consultants for bringing clarity to the current situations of business strategies, the structure of sales and any other aspect that a person wants to improve. The frameworks are to provide a complete evaluation of 3600 to the current situations of business based on its goals and objectives. Often SOAR framework is considered to be a replacement to SWOT analysis.
What is a SWOT framework?
It is a framework that is used to make a complete analysis or understand the perspective of the current situation of the business and also have an honest look at one’s self and the organization to assess the bridge between the current situations of your business and your goals and objectives. The components of SWOT analysis are-
- Opportunities, and
What is the SOAR framework?
SOAR framework is used to make an analysis of the strengths mainly to have a look at the strategic planning and create a perspective of the future from the present. The main components of SOAR analysis are- Strengths, Opportunities, Aspirations, and Results.
Now, there are certain differences between SOAR and SWOT analysis, the first being the components. Let us see a few more difference below:
- The SOAR analysis is done with a collaborative mindset while the SWOT analysis is done with a competitive mindset.
- While SOAR analysis involves strategic improvement on the basis of strength and vision, SWOT analysis involves the strategic improvement of weaknesses.
- In SOAR analysis, leadership-focus is done on what can be done best. On the other hand, SWOT analysis involves management-focus in certain areas that are to be improved.
- While SWOT analysis utilizes a tactical action plan, SOAR analysis involves a visionary based action plan.
- SOAR analysis focuses on possibilities and SWOT analysis focuses on limitations.
In order to achieve the best possible results in SOAR analysis, an organization needs to do quite well to conduct the analysis with a diverse group. For example, people from various levels of the organization possess different perspectives on a situation. Along with employees from various departments, stakeholders such as customers, suppliers, partners and any other associated person can be involved. An effective SOAR analysis requires a minimum of one hour to be completed involving the whole process from brainstorming to prioritizing actions. However, framing an initial plan of action can also take up to one hour.
It is important to make a company profile before beginning with SWOT analysis which is a primary description of what the company does and aims to do. Once the basic procedures are done, the management team can start working on the four elements of SWOT analysis. The management team can brainstorm and find out ways to increase opportunities for improvement of strengths. SWOT analysis gives a precise view of the present situation of the organization and the most important factor in the analysis of SWOT is the quality of data. Therefore, all the components of SWOT analysis have to be captured accurately.