The STOP program was designed to help you build a strong business case for change. This program will guide you through a proven framework for developing strategy. The STOP Cycle consists of the following steps:

1. Situation analysis

2. Objective(s)

3. Strategy(ies)

4. Action planning

5. Action taking

6. Gauging Impact

Assessment of Situation

The assessment of the situation is where critical questions must be answered

· What is happening?

· Why?

· What does it mean to us? What is the problem or opportunity?

· What is the scope?

This analysis is the key to the STOP™ process. If it is correct, all that follows tends to be correct. If it is wrong, all that follows tends to be wrong. A thorough situation analysis must include the following elements:

· Problem/opportunity statement

· Frame of reference

· External market factors

· Internal resource factors

· Thoroughness and iteration

· Synthesis (analysis, sorting, and organization).

Situational Analysis is where critical information is gathered, analyzed, sifted, sorted, re-analyzed, organized, and connected/linked.

Both focus (what are the root causes and/or driving forces) and linkage (how are these related to each other) are critical. It is difficult to achieve linkage of the six key components of the STOP process, if the analysis is not focused and vice-versa.

Problem/Opportunity Statement

A problem/opportunity statement is the typical starting point of a situational analysis. A problem statement is a straight forward declaration of the core issue(s) that must be addressed in order to resolve the situation.

An opportunity statement is a straight forward declaration for taking advantage of the key potential within the situation. It requires action.

A problem/opportunity statement is typically phrased as a question. It is likely the statement will be modified or altered significantly as you collect and interpret data and draw conclusions regarding the situation.

In some cases, you may be given a tentative objective, target, or strategy - which you must convert, or translate into a problem/opportunity statement

A well written problem/ opportunity statement should be:

· Understandable

· Clearly articulated

· Focused (limited to clearly defined parameters).

The problem/ opportunity statement provides focus (direction, scope, breadth, and depth) for the situational; analysis. If the statement is not clearly defined, the situation analysis will lack focus.

Once the situation analysis is complete, the problem/ opportunity statement should be "answered" by the objective. The problem/ opportunity statement should be rechecked several times during the situational analysis process for validity.

Frame of Reference

The frame of reference sets the boundaries for approaching the situational analysis and the rest of the STOP™ process. It puts a frame around what is, and is not, included in the situational analysis and is a powerful part of the STOP™ set-up. When a frame of reference is not clear, it can cause additional and unnecessary work. When it is clearly focused, it will help you decide which information should be considered and analyzed.

A clearly established frame of reference:

· Defines the parameters of what should - and should not be - included in the analysis

· Must reflect the point of focus identified in the problem/opportunity statement:

Wide enough to include all relevant data

Narrow enough to exclude all irrelevant data

· Includes a reference to time (nest 6 months, over 5 years, etc.)

These parameter can be defined by:

· Geography

· Customer/consumer

· Product/service attributes

SWOT Analysis

A SWOT Analysis is drawn from key take-aways in the situation analysis. There should not be any "new news". You should develop a SWOT Analysis for you and for your competitors. In making use of SWOT Analysis, start with overall strengths and weaknesses, then find the best combination of relative strengths (and the absence of critical weaknesses) to use against specific competitors in specific markets.

In developing a SWOT Analysis, either for yourself or a competitor, consider these points:

· Generally, even in most complex situation, there should be no more than 3-4 conclusions for each category of a SWOT.

· Both strengths and weaknesses are internal; they are within the direct control of the company

· Both opportunities and threats are usually external; they are outside the direct control of the company

· By definition, a key point for one category cannot be a key point for another category

· Strengths and weaknesses are relative and have limits. No strength or weakness applies against all competitors in all market situations.

Comparing the Competitors' SWOT Analysis to your own SWOT Analysis can be very enlightening in determining how to address the issue identified in the problem/opportunity statement.

These comparisons can also help to identify true strengths and opportunities for you and the competition. For example, if your analysis identified the same strength for you and a key competitor, it is possible that it is not a strength for either of you - but is actually a requirement for competing in this market.

Business Implications, Key Leverage Points & SCAs

Your SWOT and your competitors SWOT can be further synthesized into:

· Business Implications

· Key Leverage Points

· Significant Competitive Advantage

Business Implications (BIs) are:

· Negative or potentially negative take-aways so significant, that they must be addressed in strategies and/or plans. If not your proposed solutions can not go forward

· Derived from your Weaknesses and Threats and the competitor's Strengths and Opportunities

· Provide a complete answer to this statement:

To win, we must (address; fix; repair; correct) ...

In order not to lose, we must ...

Key Leverage Points (KLPs) are:

· Combinations of positive (or potentially positive), take-aways that provide you with greater opportunities than the competition. They can be build upon, extended, or expanded

· Usually derived from your Strengths and Opportunities and your competitors' Weaknesses and Threats

· Provide a complete answer to the statement:

"By leveraging... we will achieve our objective."

A Significant Competitive Advantage:

· Is a unique combination of factors that gives you/your company advantage over the competition

· Is a compelling reason to be (or not to be) in business

· Must be strategic and significant

· Helps if you are first

· Several Key Leverage Points (KLPs) can be an SCA

SCAs can be, but are not limited to:

· Technology/patent

· Geography

· Cost advantage/manufacturing process

· People skills/experience

· Brand name

· Relationships with key constituents

· Timing

· Trademark

· Product differential

· Synergy/Combination of factors

· Unique selling proposition

· Core competencies

The final part of the Situation Analysis are the:

· Conclusions

· Implications

Conclusions are the most important "learnings" or "take-aways" from the assessment that bear on what needs to be done. What the conclusions specifically suggest for our response to this situation re called implications - the "so what" that points to what we need to consider doing.

In part II we will discuss objective, strategies, plans of action, taking action and gauging results.

Brice Alvord has over thirty years experience as an internal and external performance improvement consultant. He holds a BA in Sociology/Psychology from Central Washington University and an MBA degree from City University of Seattle. He is the author of over two dozen books on continuous improvement and training.