A Data-Driven Approach to Identifying Future Leaders SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Communication
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of A Data-Driven Approach to Identifying Future Leaders
This is an MIT Sloan Management Review article. Many executives believe they are good at identifying leadership talent. However, when asked how they make their decisions, they often cite intuition or "gut"instincts. Social science research, on the other hand, suggests that individuals are often prone to cognitive biases in such decisions. Rather than just relying on the subjective opinions of executives, some companies are using assessment tools to identify high-potential talent.
Swot Analysis of "A Data-Driven Approach to Identifying Future Leaders" written by Stacey Philpot, Kelly Monahan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Identifying Talent facing as an external strategic factors. Some of the topics covered in A Data-Driven Approach to Identifying Future Leaders case study are - Strategic Management Strategies, Leadership development, Strategy and Communication.
Some of the macro environment factors that can be used to understand the A Data-Driven Approach to Identifying Future Leaders casestudy better are - – supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, there is backlash against globalization,
technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of A Data-Driven Approach to Identifying Future Leaders
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in A Data-Driven Approach to Identifying Future Leaders case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Identifying Talent, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Identifying Talent operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of A Data-Driven Approach to Identifying Future Leaders can be done for the following purposes –
1. Strategic planning using facts provided in A Data-Driven Approach to Identifying Future Leaders case study
2. Improving business portfolio management of Identifying Talent
3. Assessing feasibility of the new initiative in Communication field.
4. Making a Communication topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Identifying Talent
Strengths A Data-Driven Approach to Identifying Future Leaders | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Identifying Talent in A Data-Driven Approach to Identifying Future Leaders Harvard Business Review case study are -
Ability to lead change in Communication field
– Identifying Talent is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Identifying Talent in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Identifying Talent has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Identifying Talent to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Identifying Talent is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Stacey Philpot, Kelly Monahan can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Digital Transformation in Communication segment
- digital transformation varies from industry to industry. For Identifying Talent digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Identifying Talent has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Training and development
– Identifying Talent has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in A Data-Driven Approach to Identifying Future Leaders Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Learning organization
- Identifying Talent is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Identifying Talent is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in A Data-Driven Approach to Identifying Future Leaders Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Identifying Talent has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study A Data-Driven Approach to Identifying Future Leaders - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the A Data-Driven Approach to Identifying Future Leaders Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Sustainable margins compare to other players in Communication industry
– A Data-Driven Approach to Identifying Future Leaders firm has clearly differentiated products in the market place. This has enabled Identifying Talent to fetch slight price premium compare to the competitors in the Communication industry. The sustainable margins have also helped Identifying Talent to invest into research and development (R&D) and innovation.
Organizational Resilience of Identifying Talent
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Identifying Talent does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Identifying Talent is one of the leading recruiters in the industry. Managers in the A Data-Driven Approach to Identifying Future Leaders are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Identifying Talent has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in A Data-Driven Approach to Identifying Future Leaders HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses A Data-Driven Approach to Identifying Future Leaders | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of A Data-Driven Approach to Identifying Future Leaders are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study A Data-Driven Approach to Identifying Future Leaders, it seems that the employees of Identifying Talent don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High cash cycle compare to competitors
Identifying Talent has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study A Data-Driven Approach to Identifying Future Leaders, in the dynamic environment Identifying Talent has struggled to respond to the nimble upstart competition. Identifying Talent has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study A Data-Driven Approach to Identifying Future Leaders that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case A Data-Driven Approach to Identifying Future Leaders can leverage the sales team experience to cultivate customer relationships as Identifying Talent is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Identifying Talent, firm in the HBR case study A Data-Driven Approach to Identifying Future Leaders needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Identifying Talent products
– To increase the profitability and margins on the products, Identifying Talent needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As A Data-Driven Approach to Identifying Future Leaders HBR case study mentions - Identifying Talent takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Increasing silos among functional specialists
– The organizational structure of Identifying Talent is dominated by functional specialists. It is not different from other players in the Communication segment. Identifying Talent needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Identifying Talent to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Identifying Talent needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High bargaining power of channel partners
– Because of the regulatory requirements, Stacey Philpot, Kelly Monahan suggests that, Identifying Talent is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Skills based hiring
– The stress on hiring functional specialists at Identifying Talent has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities A Data-Driven Approach to Identifying Future Leaders | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study A Data-Driven Approach to Identifying Future Leaders are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Identifying Talent can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, A Data-Driven Approach to Identifying Future Leaders, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Identifying Talent has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Building a culture of innovation
– managers at Identifying Talent can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Communication segment.
Manufacturing automation
– Identifying Talent can use the latest technology developments to improve its manufacturing and designing process in Communication segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Creating value in data economy
– The success of analytics program of Identifying Talent has opened avenues for new revenue streams for the organization in the industry. This can help Identifying Talent to build a more holistic ecosystem as suggested in the A Data-Driven Approach to Identifying Future Leaders case study. Identifying Talent can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Communication industry, but it has also influenced the consumer preferences. Identifying Talent can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Communication industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Identifying Talent can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Identifying Talent can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Identifying Talent to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Identifying Talent in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Communication segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Identifying Talent to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Identifying Talent to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Identifying Talent to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Identifying Talent can use these opportunities to build new business models that can help the communities that Identifying Talent operates in. Secondly it can use opportunities from government spending in Communication sector.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Identifying Talent in the consumer business. Now Identifying Talent can target international markets with far fewer capital restrictions requirements than the existing system.
Threats A Data-Driven Approach to Identifying Future Leaders External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study A Data-Driven Approach to Identifying Future Leaders are -
Easy access to finance
– Easy access to finance in Communication field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Identifying Talent can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Identifying Talent needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Communication industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Identifying Talent in the Communication industry. The Communication industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study A Data-Driven Approach to Identifying Future Leaders, Identifying Talent may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communication .
Shortening product life cycle
– it is one of the major threat that Identifying Talent is facing in Communication sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Identifying Talent can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study A Data-Driven Approach to Identifying Future Leaders .
Consumer confidence and its impact on Identifying Talent demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Identifying Talent with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Identifying Talent in the Communication sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Identifying Talent has witnessed rapid integration of technology during Covid-19 in the Communication industry. As one of the leading players in the industry, Identifying Talent needs to keep up with the evolution of technology in the Communication sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Identifying Talent will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing wage structure of Identifying Talent
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Identifying Talent.
Weighted SWOT Analysis of A Data-Driven Approach to Identifying Future Leaders Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study A Data-Driven Approach to Identifying Future Leaders needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study A Data-Driven Approach to Identifying Future Leaders is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study A Data-Driven Approach to Identifying Future Leaders is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of A Data-Driven Approach to Identifying Future Leaders is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Identifying Talent needs to make to build a sustainable competitive advantage.
