SLEPT Before SWOT?

The Smart Leader's Guide to Strategic Planning

Nov 15, 2024

Hello again, my lovely! 👋🏻🤩

Today, we're diving into a crucial but often overlooked step in the strategic planning process: the SLEPT analysis.

If you're scratching your head wondering, "SLEPT? Isn't it all about SWOT?" - stick with me. I'm about to show you why conducting a SLEPT analysis before your SWOT can be a game-changer for your business strategy.

What the Heck is SLEPT Anyway?

SLEPT is an acronym that stands for Social, Legal, Economic, Political, and Technological factors.

It's a framework for analyzing the external macro-environment that you and your business operates in - and particularly the external factors that could have an impact on your ability to not just survive but scale.

Think of it as taking the pulse of the world your business operates in.

Here's a quick breakdown of each factor:

🎯 Social: Demographics, cultural trends, lifestyle changes
🎯 Legal: Laws, regulations, industry-specific legislation
🎯 Economic: Economic growth, inflation, interest rates, exchange rates
🎯 Political: Government policies, political stability, trade restrictions
🎯 Technological: Emerging technologies, R&D, automation

Why SLEPT Before SWOT?

Now, my sweet summer child, you might be wondering, “Why can't I just jump straight into my SWOT analysis?”

Good question!

Here's the deal:

Context is King: SLEPT provides the broader context in which your business operates. It's like setting the stage before the main act (your SWOT) begins.
Opportunity Spotting: By understanding the external environment, you're better positioned to identify potential opportunities that might not be immediately obvious.
Threat Detection: Similarly, SLEPT helps you spot potential threats on the horizon before they become immediate concerns.
Informed Strengths and Weaknesses: With a clear picture of the external environment, you can more accurately assess your organization's strengths and weaknesses in relation to the current market conditions.
Future-Proofing: SLEPT analysis encourages you to think about future trends and changes, helping you create a more forward-looking strategy.

The SLEPT-SWOT One-Two Punch

Think of SLEPT and SWOT as a dynamic duo.

SLEPT sets the scene, providing the external context, while SWOT zooms in on your organization's internal factors and how they relate to that external context.

By doing SLEPT first, you're essentially saying, “Here's what's happening in the world. Now, how does our organization fit into this picture?”

It's a powerful approach that can lead to more robust, realistic, and effective strategies.

How to Conduct a Killer SLEPT Analysis

Ready to give it a go? Here's a step-by-step guide to conducting your own SLEPT analysis:

☑️ Gather Your Team: This isn't a solo mission. Get diverse perspectives from across your organization.

☑️ Set the Scope: Decide on the timeframe and geographical area you're analyzing.

☑️ Research, Research, Research: Use reliable sources to gather data on each SLEPT factor - now is not the time to rely on your instinct and gut feel. And if you’re using AI to help you with this, for heaven’s sake make sure you use one that gives you citations so you can check the veracity of what you’re being told1… 🙄

☑️ Identify Trends: Look for patterns and trends in each area - again this is a great time to use the right kind of AI. It can shave days off your analysis.

☑️ Assess Impact: Evaluate how these trends might impact your business.

☑️ Prioritize: Not all factors will be equally important. Focus on those most likely to affect your business.

☑️ Document: Record your findings in a clear, accessible format.

☑️ Review and Update: The external environment is always changing. Make SLEPT analysis an ongoing process.

At the very least you should do it once a year, and it should be your highest priority when you hit one of those “OMG everything’s about to change moments 🤯” - like right now.

Pro Tips for SLEPT Success

I’ve been doing this for my own businesses, and for clients, for longer than I care to think about. I think the first time was when (what was then) the insurance giant Commercial Union (now Aviva), asked our team at Firn Crichton Roberts to look at expanding into new markets both in the UK and Eastern Europe (so about 1994 - and, yes, I was nobbut a comparative bairn then… 😳).

Here’s what I’ve found works best:

🎯 Stay Objective: Try to set aside your biases and look at the data objectively.
🎯 Think Long-Term: While immediate factors are important, don't neglect long-term trends.
🎯 Consider Interconnections: The SLEPT factors often influence each other. Look for these connections.
🎯 Use Diverse Sources: Don't rely on a single source of information. Cast a wide net.
🎯 Involve Stakeholders: Consider getting input from customers, suppliers, and other stakeholders.
🎯 Visualize: Use charts, graphs, and mind maps to make your analysis more digestible.
🎯 Keep It Relevant: Focus on factors that are most pertinent to your industry and business model.

There are certain questions that everyone should ask though, my lovely, and to save you having to re-invent the wheel I’ve compiled them into a wee guide for you:

The Slept Framework Template Questions

5.64MB ∙ PDF file

Download

Enjoy - and use it wisely, my sweet summer child 😎

From SLEPT to SWOT: Making the Connection

Once you've completed your SLEPT analysis, you're primed for a killer SWOT. Here's how to bridge the gap:

Opportunities: Look for positive trends in your SLEPT analysis that your business could capitalize on.
Threats: Identify negative trends or potential obstacles revealed by your SLEPT analysis.
Strengths: Consider how your organization's strengths align with the external factors identified in SLEPT.
Weaknesses: Evaluate your weaknesses in light of the external environment described by SLEPT.

Remember, your SWOT is no longer happening in a vacuum - it's grounded in a solid understanding of the external environment.

And also, never forget that there’s absolutely no point in doing all this, unless you are then going to a) assess and update your current strategy and business plan in light of everything you’ve uncovered AND b) turn this into a SMART action plan for delivery.

The Bottom Line

My lovely, here's the truth: in today's fast-paced, interconnected world, understanding your external environment isn't just helpful - it's essential. By conducting a thorough SLEPT analysis before diving into your SWOT, you're setting yourself up for strategic success.

You're not just planning in the dark anymore. You're shining a light on the bigger picture, allowing you to create strategies that are not only ambitious but also grounded in reality.

So, next time you're gearing up for some strategic planning, remember: SLEPT before SWOT. Your future self (and your business) will thank you.

Now, go forth and analyze! And don't forget to share your SLEPT experiences in the comments. I'd love to hear how this approach works for you.

Equally, if you want a hand in getting started - or fancy doing this as part of a growth challenge leading up to the New Year - then