Confrontation matrix: the combinations that really count
Set strengths and weaknesses against opportunities and threats, and see what weighs most.
Step 6 of 18: Online business plan
Video: how to fill in the confrontation matrix in the Business Planner.
A list of strengths and opportunities is not a strategy yet. Only when you set them against each other do you see where your business can really make a difference, and where it is exposed. That is what the confrontation matrix is for. The planner places your SWOT points in the matrix automatically, so all you have to do is score.
Where the method comes from
The confrontation matrix builds on the TOWS matrix. Heinz Weihrich, professor of management at the University of San Francisco, described the approach in 1982 in the journal Long Range Planning. His idea: internal strengths and weaknesses only gain meaning once you link them to opportunities and threats in the environment. Each combination leads to a different type of strategy.
Four types of strategy
Exploit
Strength and opportunity. Use what you do well to seize an opportunity. This is often where your growth lies.
Defend
Strength and threat. Use a strength to fend off a threat before it hurts your position.
Strengthen
Weakness and opportunity. The opportunity is there, but a weakness holds you back. Work on that weakness first.
Survive
Weakness and threat. This is where your business is most exposed. Limit the risk or find a way out.
How to score in the planner
- Rows and columns: your strengths and weaknesses are in the rows, the opportunities and threats in the columns.
- Score per cell: you choose from minus two (strongly negative) to plus two (strongly positive).
- For strengths: does the strength help you seize the opportunity or counter the threat? Usually you score zero, plus or double plus.
- For weaknesses: does the weakness hold back an opportunity, or make a threat bigger? Usually you score double minus, minus or zero.
- Totals: the planner adds up the scores for each row and each column.
How the salon scores
In the demo, the combination of regular clients and a haircut subscription gets a double plus: a loyal client base makes a subscription likely to work. The dependence on the owner for color work, on the other hand, gets a double minus against the opportunity of more color and care treatments: before the salon can seize that opportunity, it has to train a second color specialist. That way, the matrix shows you where the priorities lie.