Internal analysis: this short article provides a practical explanation of the concept of internal analysis. In addition to explaining what it is (meaning and definition), this article also highlights well-known models, how to perform an internal analysis, the concept as a strategy, and tips. Enjoy reading!
Internal analysis: this short article provides a practical explanation of the concept of internal analysis. In addition to explaining what it is (meaning and definition), this article also highlights well-known models, how to perform an internal analysis, the concept as a strategy, and tips. Enjoy reading!
Why does one organization perform better than another, even though on paper they have the same resources? The answer often lies in the internal organization. A successful strategy starts from within. An internal analysis allows you to systematically map out an organization’s strengths and weaknesses, processes, structures, and resources. This provides valuable insights that form the basis for targeted strategic choices.
But what exactly is an internal analysis? Which models can you use for this? And how do you carry out one yourself within your organization? In this article, you will read the definition of internal analysis, discover the most commonly used models, and receive a practical step-by-step plan to get started yourself.
An internal analysis is an analysis that focuses on the factors within the organization that influence its functioning and performance. It is more than just identifying strengths and weaknesses. It is a structured assessment of the five most important building blocks of an organization, namely structure, people, resources, culture, and processes.
Common questions addressed to the components in an internal analysis are:
An internal analysis provides direction: it shows where opportunities lie and which internal bottlenecks need to be resolved first before strategic choices can be effectively implemented.
When conducting an internal analysis, it is important to provide structure and direction. That is why many organizations use different models, each of which provides insight into the functioning of the organization in its own way. Below, we highlight four commonly used internal analysis models:
SWOT analysis is a classic model in which an organization’s strengths and weaknesses are weighed against opportunities and threats from the external environment. The internal part of the SWOT (strengths & weaknesses) often forms the starting point for an internal analysis. Advantage: easy to apply and suitable as a basis for strategic choices.
The Business model canvas is particularly suitable for organizations that want to improve their revenue model or positioning. The model encourages you to systematically think about the core of your organization and how you deliver customer value. Advantage: quick insight into how the organization creates and delivers value.
Porter’s value chain analysis helps organizations break down their internal activities into primary and support processes. This reveals which parts actually contribute to customer value and where potential inefficiencies or areas for improvement lie. Advantage: helps identify strategic competitive advantage by analyzing internal processes.
The McKinsey 7S framework examines an organization from the perspective of seven internal elements. It reveals where there are tensions or imbalances between, for example, strategy and employee skills. Advantage: reveals connections between ‘hard’ and ‘soft’ organizational components.
Conducting an internal analysis does not have to be complex. Start by formulating a clear research question or objective. What exactly do you want to gain insight into? Once that is clear, gather relevant internal information and choose a suitable model to structure your findings.
Then analyze where the strengths and weaknesses lie and what connections there are between processes, people, resources, and culture. Conclude by translating these insights into concrete recommendations so that the organization can make targeted improvements and strategic choices are well-founded.
An internal analysis is not an end in itself, but a powerful tool for guiding an organization’s strategy. Whether you want to improve, grow, or innovate, understanding your own organization is always the first step.
Gaining insight into strengths, weaknesses, processes, and resources creates a clear starting point for targeted improvement and growth. Combining these insights with an external analysis lays the foundation for a future-proof strategy. This allows you to work not only on immediate improvements, but also on sustainable long-term growth.
A good internal analysis is only truly valuable when you know how to apply the models. Our platform provides a concrete example for each model to help you translate theory into practice. This allows you to see, step by step, how organizations analyze internal processes, structures, and resources using well-known models.
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