How To Perform A SOAR Analysis

How To Use A SOAR Analysis To Transform Your Business

 

Are you tired of feeling like your business is running you, instead of the other way around? Are you ready to take control of your revenue, your time, and your destiny? Well, my friends, you have come to the right place!

 

Today, we are going to be walking through the powerful SOAR analysis and how it can help you propel your business forward in four simple steps.

 

We’re going to discuss:

 

✅ The benefits of performing a SOAR analysis.

✅ Why you would need to perform a soar analysis.

✅ When you should perform a soar analysis.

✅ How to perform a SOAR analysis.

✅ The differences between a SOAR analysis and a SWOT analysis.

 

The SOAR analysis acronym stands for Strengths, Opportunities, Aspirations, and Results. Unlike a traditional SWOT analysis, which focuses on identifying weaknesses and threats, SOAR analysis is all about building on your strengths and opportunities to achieve your business's aspirations and desired results.

 

By focusing on what your business does well and what it wants to achieve, SOAR analysis can help you develop a more positive and proactive approach to strategic planning.

 

And who doesn't want that?!

 

What are the Benefits of Performing a SOAR Analysis?

 

There are several benefits to performing a SOAR analysis in a business:

 

Identifying Strengths: A SOAR analysis helps a business to identify its strengths, which are the areas where it excels. By understanding these strengths, a business can leverage them to gain a competitive advantage, improve its market position, and increase customer loyalty.

 

Spotting Opportunities: A SOAR analysis helps a business to identify potential opportunities in the market, such as emerging trends or changes in consumer behaviour. By taking advantage of these opportunities, a business can develop new revenue streams, expand its customer base, and improve its overall performance.

 

Clarifying Aspirations: A SOAR analysis helps a business to clarify its long-term goals and objectives. By defining these aspirations, a business can create a clear roadmap for achieving them and ensure that all of its strategies and tactics are aligned with its ultimate vision.

 

Setting Measurable Results: A SOAR analysis helps a business to set clear and measurable results, such as revenue growth or customer satisfaction. By tracking these results, a business can evaluate its performance and make adjustments as needed to ensure that it is on track to achieve its goals.

 

Creating a Strategic Plan: A SOAR analysis also provides a foundation for developing a strategic plan that is based on the business's strengths, opportunities, aspirations, and results. By creating a strategic plan, a business can prioritize its initiatives, allocate its resources effectively, and ensure that everyone in the organization is working towards the same goals.

 

Why Would You Need To Perform a SOAR Analysis?

 

Performing a SOAR analysis in your business can provide several benefits that can help you improve your overall performance and achieve your goals. Here are some reasons why you might need to perform a SOAR analysis:

 

To identify your strengths: By identifying your strengths, you can determine what sets your business apart from your competitors and how you can leverage those strengths to gain a competitive advantage. This can help you to improve your market position, increase customer loyalty, and enhance your overall performance.

 

To spot opportunities: By spotting opportunities, you can identify potential areas for growth and improvement, such as emerging trends or changes in consumer behaviour. This can help you to develop new revenue streams, expand your customer base, and improve your overall performance.

 

To clarify your aspirations: By clarifying your aspirations, you can create a clear roadmap for achieving your long-term goals and objectives. This can help you to ensure that all of your strategies and tactics are aligned with your ultimate vision and that everyone in your organization is working towards the same goals.

 

To set measurable results: By setting clear and measurable results, you can evaluate your performance and track your progress towards achieving your goals. This can help you to identify areas where you need to improve and make adjustments as needed to ensure that you are on track to achieve your objectives.

 

To create a strategic plan: By creating a strategic plan based on your strengths, opportunities, aspirations, and results, you can prioritize your initiatives, allocate your resources effectively, and ensure that everyone in your organization is working towards the same goals. This can help you to improve your overall performance, stay competitive, and achieve your long-term objectives.

 

So, performing a SOAR analysis can provide valuable insights into your business that can help you to improve your performance, stay competitive, and achieve your goals. It can also help you to develop effective strategies and tactics that are aligned with your strengths, opportunities, aspirations, and results, which can help you to succeed in a rapidly changing market.

 

When Should You Perform a SOAR Analysis?

 

The great news is a SOAR analysis is flexible and can be performed at various stages of your business's growth journey.

 

Here are some scenarios when you should consider performing one:

 

When starting a new business: A SOAR analysis can help you to identify your business's strengths, opportunities, aspirations, and results as you launch your venture. This can help you to develop a clear roadmap for achieving your goals and ensure that you are building your business on a solid foundation.

 

When entering a new market: A SOAR analysis can help you to assess the market landscape and identify potential areas for growth and improvement. This can help you to develop strategies and tactics that are tailored to the specific market you are entering, and improve your chances of success.

 

When facing challenges or changes: A SOAR analysis can help you to identify potential solutions to challenges or changes that your business is facing. By assessing your strengths and opportunities, you can develop strategies and tactics that address these issues and improve your performance.

 

When evaluating your business performance: A SOAR analysis can help you to evaluate your business's performance and identify areas where you can improve. By setting measurable results and evaluating your progress towards achieving them, you can identify areas where you need to make adjustments and take action to improve your performance.

 

On a regular basis: Performing a SOAR analysis on a regular basis, such as annually or bi-annually, can help you to stay competitive and ensure that your strategies and tactics are aligned with your strengths, opportunities, aspirations, and results. This can help you to stay ahead of the curve and achieve your long-term objectives.

 

In a nutshell, performing a SOAR analysis can provide valuable insights into your business's strengths, opportunities, aspirations, and results at various stages of your business's development. It can help you to develop effective strategies and tactics, improve your performance, and achieve your goals.

 

How To Perform a SOAR Analysis

 

Whether you're flying solo or have a team by your side, we're about to get into the nitty-gritty of how to start this process.

 

But hold up, before we get started, let me ask you this: Do you have a team backing you up?

If so, awesome! They're going to be your secret weapon in completing this exercise. If not, no worries, I’m here to help you soar to success.

 

Now, let's get to it! As someone who's been there and done that, I highly recommend bringing your team onboard. Trust me, their insights and ideas are invaluable and will take your analysis to new heights.

 

So, buckle up, grab your team, and let's take flight!

 

STEP 1: Gather Your Team (if you have one)

 

Well, the first step is to gather a team that brings diverse perspectives and expertise to the table.

 

You'll want to include key stakeholders like managers, employees, and subject matter experts from different departments or areas of the business. Why? Because having a variety of perspectives ensures that the analysis is comprehensive and covers all aspects of the business.

 

But wait, there's more! You want team members who have a vested interest in the success of the business and who can contribute to the analysis. Each member should bring a unique perspective to the table and have the necessary skills and knowledge to provide valuable insights and recommendations.

 

For example, if you have a subject matter expert in marketing, they can provide valuable insights on your business's marketing strategy. And if you have an employee in operations, they can give you insights on how your business can improve its processes and efficiency.

 

Once your dream team is assembled, it's time to define their roles and responsibilities. Assign specific tasks and timelines to each team member, and make sure everyone is aware of their responsibilities. This helps to ensure that the analysis is completed on time and that everyone involved understands the process.

 

STEP 2: Define The Scope of The SOAR

 

Let's talk about the first step in performing a SOAR analysis - defining the scope. This step is crucial because it ensures your analysis is focused and aligned with your business's goals and objectives.

 

So, what exactly does defining the scope involve? Well, it's all about identifying the key areas of the business that need to be analysed. These may include marketing, operations, finance, and/or human resources. By looking at these areas, we can be sure that the analysis covers all aspects of the business that impacts its performance.

 

But that's not all!

 

We also need to determine the timeframe for the analysis. This means deciding on the period that the analysis will cover - it could be the current year or the next 5 years, for example. Defining the timeframe helps to ensure that the analysis is relevant to the business's current situation and future goals.

 

And last but not least, it's crucial to identify the goals and objectives the business hopes to achieve through the analysis.

 

Maybe your business wants to improve profitability, increase customer satisfaction, or expand into new markets. Whatever the goals may be, defining them helps to ensure that the analysis is aligned with the business's overall strategy and provides actionable insights to achieve those goals.

 

For instance, let's say you’re opening a new restaurant, and you want to perform a SOAR analysis to ensure your success. By defining the scope, you can determine the key areas to analyse, such as menu development, staffing, and customer service. You can also decide on a timeframe, such as the first year of the restaurant’s operation. Finally, you can also set your goals and objectives, such as increasing revenue and earning positive reviews on social media platforms.

 

So, with a clearly defined scope, the SOAR analysis will be focused and provide actionable insights to help your restaurant achieve its goals.

 

STEP 3: Identify Your Strengths

 

Let's talk about how businesses can identify their strengths and use them to achieve their goals.

 

First things first, identifying strengths means pinpointing what a business is really good at. This could be anything from having fantastic products or services to having a stellar reputation or expert employees.

 

For example, if your business is known for its amazing customer service, then that's definitely a strength you can use to your advantage!

 

But it's not just about knowing what a business is good at, it's also about understanding what makes it unique. This could be its innovative approach, top-notch quality, dependable reliability, excellent customer service, or competitive pricing strategy.

 

Whatever it is that sets your business apart from your competitors, that's a strength worth noting.

 

In short, identifying your strengths is an essential part of performing a SOAR analysis. By knowing what your business is good at and what makes it unique, your business can leverage its existing advantages and build on them to achieve your goals. So, take some time to identify your strengths and see how you can use them to improve your overall performance and gain that competitive edge.

 

STEP 4: Identify Your Opportunities

 

If you want to perform a successful SOAR analysis, you need to identify the areas where your business can improve and grow. This means looking for external factors that could have a positive impact on your business, like changes in the market or emerging trends.

 

So, how can you identify these opportunities? Well, start by considering the current market trends, the needs and wants of your customers, and the overall economic and social conditions.

 

Ask yourself questions such as:

 

💡What new technologies are emerging that could benefit my business?

💡Are there new markets that I could enter?

💡Are there any emerging competitors that I should be aware of?

 

You can also conduct a market analysis to help identify potential opportunities. This involves researching the market trends and looking for areas where your business can capitalise on emerging opportunities. This analysis can give you insights into new products or services you can offer and help you identify areas where you can grow and expand your business.

 

Once you've identified your opportunities, it's time to develop strategies to capitalise on them and improve your performance.

 

For example, if you see an opportunity to expand into a new market, you can develop a market entry strategy and invest in marketing and promotion to attract new customers.

 

So, don't be afraid to keep your eyes open for new opportunities. Identifying them and taking action can be the key to success for your business!

 

STEP 5: Clarify Your Aspirations

 

One important step in performing a SOAR analysis is to identify your aspirations. Let's break it down now.

 

Identifying aspirations means defining your long-term vision and goals.

 

Ask yourself, what do you want to achieve in the future? Maybe it's expanding into new markets, increasing market share, or becoming a market leader in your sector.

 

Whatever it is, it's essential to align your aspirations with your overall mission and values, and the needs and expectations of your stakeholders, such as your clients, employees, and shareholders.

 

To identify your aspirations, you can easily conduct a simple visioning exercise. It's similar to a brainstorming session to define your long-term vision and goals. This exercise will help you pinpoint your aspirations and provide a clear direction for your future growth and development.

 

Once you've identified your aspirations, it's time to create a roadmap to plan how you will achieve them. For instance, if your aspiration is to become a market leader in your industry, you could invest in research and development to innovate new products and services. You could also develop marketing strategies to build your brand and attract customers.

 

By identifying your aspirations, you'll develop a powerful vision for your business and be better equipped to create a roadmap to achieve your goals.

 

STEP 6: Set Measurable Results

 

Are you looking to boost your business's success? Then listen up, because identifying results is a crucial step in performing a SOAR analysis!

 

When we talk about identifying results, we're talking about defining the specific outcomes that your business hopes to achieve. This could be anything from increasing sales to improving customer satisfaction or enhancing your brand reputation. The key is to set Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals that align with your business's overall strategy and aspirations.

 

To help you identify your results, you have a range of tools and techniques at your disposal.

 

You can use key performance indicators (KPIs), metrics, surveys, or feedback from customers and stakeholders. By using these data tools, you can ensure that the results you identify are objective and reflect the needs and expectations of your business.

 

Once you've identified your outcomes, you can then go on to develop strategies to achieve them and monitor your progress over time.

 

For example, if you want to increase your sales by a certain percentage, you can develop marketing and sales strategies to achieve this goal and track your progress using KPIs and other performance metrics.

 

STEP 7: Analyse Your Results

 

So, you want to now understand how to achieve your desired results, right? Well, developing ongoing strategies is a crucial step in performing an effective SOAR analysis and it's the key to identifying the actions you need to take to make it happen!

 

So, what does developing strategies actually involve? It means coming up with a set of action plans that outline the specific steps your business needs to take to achieve its goals.

 

And trust me, that is where the magic happens!

 

To create these strategies, you need to think about your strengths, opportunities, aspirations, and results.

 

Let's say for simplicities sake that you run a small coffee shop that's known for its amazing espresso. Your strengths are obviously your delicious coffee, but your opportunities could be expanding your product line to include pastries or baked goods.

 

Your aspiration might be to open a second location, and your desired result is increased revenue.

 

Once you have a clear understanding of these factors, you can develop strategies that will have the most significant impact on your business.

 

For example, you might decide to develop new products or services, expand into new markets, improve customer service, or enhance your brand reputation.

 

To help you develop these strategies, there are many other tools and techniques you can use to support your SOAR analysis, such as the SWOT analysis, the TOWS analysis Porter's Five Forces analysis, or conventional market research.

 

These methods will ensure that your strategies are based on sound analysis and reflect the needs and expectations of your clients and overall business.

 

And after you've developed your strategies, it's time to put them into action and monitor their progress over time. This means assigning responsibilities to those who will measure them, setting timescales, and allocating resources to ensure that your strategies are implemented effectively and efficiently.

 

And there you have it! By developing strategies that are tailored to your business's unique strengths and opportunities, you can achieve your desired results and take your business to new heights!

 

STEP 8: Prioritise Your Initiatives

 

Let's dive into the next step of performing a SOAR analysis, shall we? It's all about prioritising the actions you’ve created through this flurry of analysis activity.

 

Now, prioritising actions is a super critical part of the process because it’ll help your businesses to figure out which actions are most important to take in order to achieve your desired outcomes.

 

Think about it this way - you want to make sure you're putting your time, money, and energy into the actions that will give you the ROI, right?

 

So, to prioritise your actions, you'll need to evaluate the strategies you developed in the previous step and figure out which ones will have the greatest impact on your business performance.

 

You should also consider things such as the potential impact of each action, the resources required to implement it, and your overall priorities and objectives. This will help you make sure that the actions you take are aligned with your strategic goals and ultimate aspirations, and that you're allocating your resources effectively.

 

Luckily, there are a bunch of different tools and techniques you can use to prioritise your actions. For example, you could try creating a cost-benefit analysis, a decision tree, or a prioritisation matrix.

 

These tools will help you make sure that the actions you take are based on solid analysis and reflect the needs and expectations of your business.

 

Once you've prioritised your actions, it's time to put them into action! This involves assigning responsibilities, setting timelines, and allocating resources to make sure that everything gets done effectively and efficiently. And don't forget to monitor your progress over time to make sure you're on track to achieving your desired outcomes.

 

STEP 9: Create Your Action Plan & Implement It

 

Now that you’ve identified your Strengths, Opportunities, Aspirations, and Results (SOAR) for your business, the next step is to put those plans into action.

 

Implementing actions is a crucial phase of the SOAR analysis. It’s where the rubber meets the road and where you start to see real progress.

 

But how do you do it?

 

Well, first things first, you need to clearly communicate your goals and objectives to your people and other stakeholders. This helps to ensure that everyone is on the same page and working towards a common goal.

 

For example, if your goal is to increase customer satisfaction, your team should know the steps they need to take to support you to achieve that goal, like providing exceptional customer service or improving your product quality.

 

Assigning responsibilities, setting timelines, and allocating resources are all vital parts of implementing actions.

 

For instance, if your goal is to improve your website's loading time, you need to assign responsibilities to your IT team, set timelines for completion, and allocate resources to ensure the job gets done.

 

And to ensure that your actions are carried out effectively, you need to have a clear plan of action. This includes outlining the specific steps that need to be taken, the resources required, and the timelines for completion.

 

Having a clear plan helps to ensure that everyone involved in the implementation process knows their responsibilities and that the actions are carried out efficiently. Everyone is on the same page.

 

Once you’ve put your plans into action, it’s important to monitor progress and evaluate effectiveness. Tracking key performance indicators (KPIs) and metrics can support you to ascertain whether your actions are achieving their desired outcomes.

 

For example, if your goal is to increase sales, you might track KPIs such as the number of leads generated, conversion rates, and of course, revenue. If your KPIs aren't performing where you want them to be, you can tweak your actions accordingly.

 

So, there you have it! Keep communicating, planning, and monitoring to ensure that you're achieving your business goals.

 

STEP 10: Evaluate Your Outcomes

 

Alright, let's talk about how to evaluate the outcomes of your SOAR analysis! This step is super important because it helps you figure out whether your hard work has paid off and whether you're on the right track to achieving your goals.

 

To evaluate your outcomes, you'll want to compare the actual outcomes you've achieved against the desired outcomes you defined in the previous step as this will help you identify any gaps or areas where you can improve.

 

For example, let's say you were trying to increase social media engagement. Your desired outcome might be to get 500 likes on every post, but you only ended up with an average of 300. That's a gap you'll want to address as part of your evaluation.

 

So, how do you go about evaluating your outcomes?

 

Well, one way is to track and measure your key performance indicators (KPIs) and metrics. These will help you see how effective your actions have been and whether you're making progress towards your goals.

 

For instance, if you were trying to boost your subscriber open rates, you might track the number of people who opened your latest email.

 

Don’t forget, it's also important to analyse any data you collect during the evaluation process. This can help you spot any patterns or trends that might indicate areas where you can improve.

 

For example, if you notice that your subscriber email open rates are consistently low on Tuesdays, you might want to experiment with sending your emails on a different day.

 

So, by evaluating your outcomes, you'll be able to determine whether your actions have been successful and identify areas where you can improve. This will help you keep improving your performance over time and stay responsive to changes in the external environment.

 

So, don't skip this step! It's the key to making sure your SOAR analysis is a success.

 

STEP 11: Implement and Track Your Progress

 

Almost there! Congratulations are in order after you’ve made it through the hard work of identifying your business's Strengths, Opportunities, Aspirations, and Results through your SOAR analysis.

 

Now, it’s time to take all that valuable information and adjust your business growth strategy.

 

Adjusting your growth strategy is essential to keep up with changes in your marketplace and ensuring that your business remains relevant and effective over time.

 

It’s like a GPS for your business; guiding you towards your big picture goals.

 

So, how do you adjust your business growth strategy?

 

Well, start by analysing the insights you gained from the previous steps and identifying any changes external to your business that may require you to change your strategy.

 

Let's say again that you’re a restaurant owner and you’ve identified that one of your strengths is your friendly and attentive staff, but due to the global recession, you’ve had to reduce your staff to save on your operating costs.

 

You could perhaps adjust your strategy by training your remaining staff to provide an even better service, or by implementing a new ordering system to reduce the need for staff.

 

It’s also important to consider any new opportunities or threats that have emerged since your last analysis.

 

For example, let’s go back to the restaurant, if a new trend has emerged for plant-based alternatives, you might adjust your menu to include more vegetarian and vegan options to appeal to this growing trend.

 

So, by adjusting your strategy, you can make sure that your business remains relevant and effective over time. This allows you to take advantage of new opportunities and navigate any challenges that may arise.

 

Remember, a successful business is one that can adapt to change and continue to grow!

 

What is the Difference Between a SOAR Analysis and a SWOT Analysis?

 

Do you know the difference between the two? OK. Let me break it down for you.

 

Firstly, the main difference between SOAR and SWOT analysis is their focus. SWOT analysis focuses on identifying a business's Strengths, Weaknesses, Opportunities, and Threats, while the SOAR analysis focuses on identifying a business's Strengths, Opportunities, Aspirations, and Results.

 

But it's not just the focus of the acronyms that sets them apart. SWOT analysis tends to have a negative tone, as it involves identifying weaknesses and threats that need to be addressed. You’ll also see the SWOT performed as a standard in much larger corporate organisations.

 

On the other hand, SOAR analysis takes a more positive and agile approach by focusing on strengths and opportunities that can be built upon. The positive aspect of the SOAR analysis is great for innovative businesses, or those looking to scale quickly.

 

The approach used in each analysis is also very different. SWOT analysis involves quit a structured process of identifying and analysing data, while the SOAR analysis encourages innovative thinking and brainstorming to generate ideas and insights.

 

And lastly, the purpose of the two analyses is quite different as well. A SWOT analysis is typically used to identify strategic initiatives, and the SOAR analysis is often used to develop a strategic plan.

 

So, let's use an example for this.

 

Say you're running a coffee shop and you want to assess your business's current landscape. A SWOT analysis would help you identify your weak points, such as low sales during certain times of the day, and external threats like a new coffee shop opening up across the road.

 

On the other hand, a SOAR analysis would help you identify your strengths, such as a loyal customer base, and opportunities to expand your business, such as introducing a new line of baked goods.

 

You can probably see that both SOAR and SWOT analyses are great tools for businesses, but the key differences lie in their focus, approach, tone, and purpose. Both are as valid as the other.

 

So, depending on your needs, you can choose the right tool to help you assess and improve your business's internal and external focus.

 

Summary & Key Takeaways

 

OK, so we've come to the end of our walk through on how to tackle a SOAR analysis! I hope you're feeling energised and ready to take your business to the next level. The SOAR is a game-changer when it comes to building on your strengths, identifying new opportunities, and setting ambitious yet achievable goals.

 

By taking a proactive approach to strategic planning, you're putting yourself in the driver's seat and positioning your business for success in a constantly evolving marketplace. Don't forget to involve your team in the process and encourage them to think creatively to generate new ideas and insights. The more brains you have working on the SOAR analysis, the better!

 

Remember, I’m here to support you on your growth journey so if you would like my team and I to facilitate a SOAR workshop for you in your own business, or work with you to create your growth strategy then don't hesitate to reach out. We are always happy to help.

 

Thanks for joining me today, and until next time, keep on soaring!

 

Lor Bradley