Engages and motivates the team

Stagnant businesses are prone to losing great team members because there isn’t a meaningful
vision for the future. Don’t simply look at a situation analysis as a decision-making tool; use it to
get your team talking and innovating. Ultimately, your team has the most insight about what is or
isn’t working in the business. Let them guide you toward opportunities you might otherwise
overlook.
Set achievable business goals. A situation analysis gives you the insight to identify more
realistic and advantageous goals. It’s an unfortunate blunder for business teams to conduct
analyses but then do little with the information. For every analysis, develop an implementation
plan and get sign-off from major stakeholders.
Reduces wastefulness
Knowing the ins and outs of the business is the only way to continuously refine your operations.
Analyzing your resources, processes, and position in the market at least once a year allows you
to cut out projects that aren’t profitable or beneficial to clients. If you face pushback from some
stakeholders, the analysis provides data-based evidence for your decisions. Other benefits
include:
● helps to detect problems and provides solutions
● helps to get desired results
● helps to move from the initial state to the desired state
● helps to strategise and reach set goals
● provides you with steps to take when working on a project
● summarizes your organisation's growth
Understand the full scope of problems
All too often, managers are aware of organizational problems but assume they aren’t bad enough
to require immediate attention. A thorough analysis can help you uncover the source of ongoing
issues and evaluate their impact on different aspects of the business.

However, the subjective nature of a situation analysis makes it important to gather information
from as many sources as possible. If you fail to gain a clear picture of your strengths and
weaknesses, you won’t succeed at making your business more competitive. Use a combination of
concrete data and feedback from internal and external stakeholders, so you can draw accurate
conclusions.