Internal Factor Evaluation (IFE) matrix is a strategic management tool for auditing or

evaluating major strengths and weaknesses in functional areas of a business.

IFE matrix also provides a basis for identifying and evaluating relationships among those
areas. The Internal Factor Evaluation matrix or short IFE matrix is used in strategy
formulation.

The IFE Matrix together with the EFE matrix is a strategy-formulation tool that can be
utilized to evaluate how a company is performing in regards to identified internal strengths
and weaknesses of a company. The IFE matrix method conceptually relates to the Balanced
Scorecard method in some aspects.

How can I create the IFE matrix?

The IFE matrix can be created using the following five steps:

Key internal factors...

Conduct internal audit and identify both strengths and weaknesses in all your business
areas. It is suggested you identify 10 to 20 internal factors, but the more you can provide for
the IFE matrix, the better. The number of factors has no effect on the range of total
weighted scores (discussed below) because the weights always sum to 1.0, but it helps to
diminish estimate errors resulting from subjective ratings. First, list strengths and then
weaknesses. It is wise to be as specific and objective as possible. You can for example use
percentages, ratios, and comparative numbers.

Weights...

Having identified strengths and weaknesses, the core of the IFE matrix, assign a weight
that ranges from 0.00 to 1.00 to each factor. The weight assigned to a given factor indicates
the relative importance of the factor. Zero means not important. One indicates very
important. If you work with more than 10 factors in your IFE matrix, it can be easier to
assign weights using the 0 to 100 scale instead of 0.00 to 1.00. Regardless of whether a key
factor is an internal strength or weakness, factors with the greatest importance in your
organizational performance should be assigned the highest weights. After you
assign weight to individual factors, make sure the sum of all
weights equals 1.00 (or 100 if using the 0 to 100 scale weights).

The weight assigned to a given factor indicates the relative importance of the factor to
being successful in the firm's industry. Weights are industry based.

Rating...
Assign a 1 to X rating to each factor. Your rating scale can be per your preference.
Practitioners usually use rating on the scale from 1 to 4. Rating captures whether the factor
represents a major weakness (rating = 1), a minor weakness (rating = 2), a minor strength
(rating = 3), or a major strength (rating = 4). If you use the rating scale 1 to 4, then strengths
must receive a 4 or 3 rating and weaknesses must receive a 1 or 2 rating.

Note, the weights determined in the previous step are industry based. Ratings are company
based.

Multiply...

Now we can get to the IFE matrix math. Multiply each factor's weight by its rating. This will
give you a weighted score for each factor.

Sum...

The last step in constructing the IFE matrix is to sum the weighted scores for each factor.
This provides the total weighted score for your business.

Example of IFE matrix

The following table provides an example of an IFE matrix.

Weights times ratings equal weighted score.

What values does the IFE matrix take?

Regardless of how many factors are included in an IFE Matrix, the total weighted score can
range from a low of 1.0 to a high of 4.0 (assuming you used the 1 to 4 rating scale). The
average score you can possibly get is 2.5.
Side note...

Why is the average 2.5 and not 2.0? Let's explain using an example. You have 4 factors,
each has weight 0.25. Factors have the following rating: 1, 4, 1, 4. This will result in
individual weighted scores 0.25, 1, 0.25, and 1 for factors 1 through 4. If you add them up,
you will get total IFE matrix weighted score 2.5 which is also the average in this case.

Total weighted scores well below 2.5 point to internally weak business. Scores
significantly above 2.5 indicate a strong internal position.

What if a key internal factor is both a strength and a weakness in

IFE matrix?
When a key internal factor is both a strength and a weakness, then include the factor twice
in the IFE Matrix. The same factor is treated as two independent factors in this case. Assign
weight and also rating to both factors.

What are the benefits of the IFE matrix?

To explain the benefits, we have to start with talking about one disadvantage. IFE matrix or
method is very much subjective; after all other methods such as the TOWS or SWOT
matrix are subjective as well. IFE is trying to ease some of the subjectivity by introducing
numbers into the concept.

Intuitive judgments are required in populating the IFE matrix with factors. But, having to
assign weights and ratings to individual factors brings a bit of empirical nature into the
model.

How does the IFE matrix differ from the SWOT matrix method?
More is better...

One difference is already obvious. It is the weights and ratings. This difference leads to
another one. While it is suggested that the SWOT matrix is populated with only a handful of
factors, the opposite is the case with the IFE matrix.

Populating each quadrant of the SWOT matrix with a large number of factors can lead to
the point where we are over-analyzing the object of our analysis. This does not happen with
IFE matrix. Including many factors into the IFE matrix leads to each factor having only a
small weight. Therefore, if we are subjective and assign unrealistic rating to some factor, it
will not matter very much because that particular factor has only a small weight (=small
importance) in the whole matrix.

It is important to note that a thorough understanding of individual factors included in the

IFE matrix is still more important than the actual numbers.

Are there other models I should know about?

The IFE matrix goes side by side with so-called EFE matrix which together lead into the IE
matrix.

You might like to read about the SWOT matrix analysis, BCG matrix model, and Product
Life Cycle.

By Mike Morrison - Last updated: Saturday, January 2, 2010 - Save & Share - 8 Comments

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SWOT analysis for teachers, schools and education

Strengths, Weaknesses, Opportunities and Threads in an educational environment.

A SWOT analysis is a tool that can provide prompts to the governors, management teachers
and staff involved in the analysis of what is effective and less effective in the schools systems
and procedures, in preparation for a plan of some form ( that could be an audit, assessments,
quality checks etc.). In fact a SWOT can be used for any planning or analysis activity which
could impact future finance, planning and management decisions. It can enable you (the
governors and management) to carry out a more comprehensive analysis.

Definitions

Strengths Factors that are likely to have a positive effect on (or be an enabler to) achieving
the schools objectives
Weaknesses Factors that are likely to have a negative effect on (or be a barrier to)
achieving the schools objectives
Opportunities External Factors that are likely to have a positive effect on achieving or
exceeding the schools objectives, or goals not previously considered
Threats External Factors and conditions that are likely to have a negative effect on
achieving the schools objectives, or making the the objective redundant or un-achievable.

Before starting any planning or analysis process you need to have a clear and SMART goal or
objective. What is it that you need to achieve or solve? Ensure that all key stakeholders
(relevant to the issue being explored) buy into this objective or goal.

Then undertake a PESTLE analysis (or PESTLE in Schools), this will provide you with the
external factors (OT).

Use the PRIMO-F model to ensure all internal factors are considered

Conducting a SWOT analysis in a school

One of the most effective ways to conduct a SWOT analysis is not in isolation, but with a
team effort. When the goal is shared, then a brainstorming session can be run.

Ensure than when running such a session it is

facilitated by a person not involved with the content this is best with an independent person.
If budgets do not allow this then talk to another establishments head, and arrange a contra
deal.

Do this activity in a number of phases:

1) Share the goal

2) Data collection (no filtering or comments record verbatim) consider all areas of PRIMO-
F

3) Take a break of at least 1 hr

4) Filter, sort and analyse into the 4 areas SWOT be critical and SMART avoid
ambiguous statements or ideas at this stage

5) Prioritise the elements

Have a second session where the planning phase takes this data and puts it into a realistic
plan.

IMPORTANT TIP,do not hide or underestimate threats or weaknesses if you ignore them
or underplay them now they will come back to haunt you at some stage probably when they
can do most damage!

The goal of any session like this is not necessarily to neutralise any weakness or threat that
is impossible but to have it on your radar and where possible take avoiding action. To
some extent it is all about risk.

What sort of tasks and issues can this be used for?

At its most complex and comprehensive, it can be used for business planning, however it is
also of value to solving localised issues and challenges.
An Example

We will use an example of a teacher working within a first school who want to improve the
relationships with parents of his pupils.

TASK

1. Define the goal and measurable outcomes i.e. to have more than 50% of
parents spending one day in class per term
2. Consider the current activities you have in place to encourage parent-
partnerships within your class/ school.
3. Complete a SWOT analysis, identifying your current strengths and
realistically appraising your current weaknesses. This can only be done
involving other teachers, pupils and parents.
4. From the current analysis identify factors which could be improved
5. Identify opportunities that could be created
6. Put a plan and set of measures in place.

The school identified the following objective:

To improve parent-partnership by encouraging parents to visit the school and become active
members of the community.
Outcome to have more than 50% of parents spending one day in class per term

Currently, the school holds an open day once each year. It uses this as a way to encourage
parents to visit the school and engage with school staff. The following is the initial SWOT
Analysis.

Strengths Weaknesses

Highly-skilled teachers. Teachers not available to meet

History of successful Open day events
School has a strong ethos of
openness, sharing and commitment
to increasing parental confidence
Parents wanting to get involved
PTA willing to participate
parents often enough
Current open days events not
increasing voluntary activity
Not enough staff time to plan more
events
Staff not clear of their role in the
parent relationship
Narrow focus on open events not
partnership activities
Curriculum too stretched for
additional activity

Opportunities Threats

Active volunteer committee willing to Confidentiality is at risk

 plan and organise events Pupil coercion to do things they do
Pupils active in the schools Pupil not wish to do
Participation Project can be asked for
their opinions and suggestions.
Head Teacher is willing flex
curriculum to free up teacher time
Use parents to contribute to
curriculum delivery

The next step is to develop a plan with interested stakeholders

SWOT Analysis templates for schools &

education

SWOT Analysis Template/ Worksheet use these templates to start

your SWOT process

SWOT Analysis on ____________________ (organisation name or

product/ service/ project)

School/ establishment/ organisation Background/ situation

____________________________________________________
________________________________________________________
__________________________________
________________________________________________________
__________________________________
(usual business partners, relationships, channels to market,
assumptions etc)

Date PESTLE completed ____________________

Date of SWOT Analysis ____________________

____________________v

INTERNAL

Under each of the Strengths (PRIMO-F) Weaknesses (PRIMO-F)

PRIMO-F factors list
the relevant People People (teachers,
(teachers, parents, PTA etc)
strengths and
parents, PTA _______________
weaknesses. etc) ____
_____________ _______________
List the Opportunities ______ ____
and threats from _____________ _______________
______ ____
your PESTLE analysis
_____________ _______________
below. ______ ____
_____________ Resources
Then considering the ______
combination of these _______________
factors generate Resources ____
some options or _____________ _______________
alternative strategies ______ ____
_____________ _______________
for action.
______ ____
_____________ _______________
______ ____
_____________ _______________
______ ____
_____________ Innovation & Ideas
______ _______________
Innovation & ____
Ideas _______________
_____________ ____
______ _______________
_____________ ____
______ _______________
_____________ ____
______ _______________
_____________ ____
______ Marketing(commun
_____________ ications)
______ _______________
Marketing ____
(communication _______________
s) ____
_____________ _______________
______ ____
_____________ _______________
______ ____
_____________ _______________
______ ____
_____________ Operations(day to
______ day running)
_____________ _______________
______ ____
Operations (day _______________
to day running) ____
_____________ _______________
______ ____
_____________ _______________
______ ____
 _____________ _______________
______ ____
_____________ Finance
______ _______________
_____________ ____
______ _______________
Finance ____
_____________ _______________
______ ____
_____________ _______________
______ ____
_____________ _______________
______ ____
_____________
______
_____________
______

E Opportunities SO Alternatives / WO Alternatives /

Strategies Strategies
X _____________
______ _____________ _______________
_____________ ______ ____
T ______ _____________ _______________
_____________ ______ ____
E ______ _____________ _______________
_____________ ______ ____
R ______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
N _____________ ______ ____
______ _____________ _______________
A _____________ ______ ____
______ _____________ _______________
L _____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________
_____________ ______ _______________
______ _____________
 _____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
______ ____
_______________
____

Threats ST Alternatives / WT Alternatives /

Strategies Strategies
_____________
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
______ _____________ _______________
_____________ ______ ____
 ______ _____________ _______________
_____________ ______ ____
______ _______________
_____________ _____________ ____
______ ______ _______________
_____________ _____________ ____
______ ______ _______________
_____________ _____________ ____
______ ______ _______________
_____________ _____________ ____
______ ______ _______________
_____________ _____________ ____
______ ______ _______________
_____________ _____________ ____
______ ______ _______________
_____________ _____________ ____
______ ______ _______________
_____________ _____________ ____
______ ______ _______________
_____________ _____________ ____
______ ______ _______________
_____________ _____________ ____
______ ______ _______________
_____________ _____________ ____
______ ______ _______________
_____________ ____
______

Try our business SWOT analysis tool for free NOW Or return to our main
SWOT analysis page

SWOT Analysis Template / Worksheet 2

SWOT Analysis on ____________________ (School/ establishment organisation na

project)

Background/ situation_________________________________________________
___________________________________________________________________
 __________________________________________________________________

(usual operational partners, relationships, channels to market, assumptions etc)

Date PESTLE completed ____________________

Date of SWOT Analysis ____________________v

INTERNAL

Under each of the PRIMO-F factors list the relevant strengths Strengths
and weaknesses.

List the Opportunities and threats from your PESTLE analysis
below.

Then considering the combination of these factors generate

some options or alternative strategies for action.

E Opportunities SO Alternatives /
X Strategies
T

E
R
N
A Threats ST Alternatives /
L Strategies

Try our business SWOT analysis tool for free NOW - Or return to our main
SWOT analysis page

SWOT Analysis Template / Worksheet 3

 SWOT analysis Strengths, Weaknesses, Opportunities and threats

Date

Company/

Department name

Internal Factors

Our Strengths Ways to Our Ways to

exploit Weaknesses reduce

External factors

Our Ways to Our Threats Ways to

Opportunities
exploit reduce

This sample SWOT analysis is based on the relatively new concept of SWOT. The definition
of SWOT analysis is to evaluate the qualitative (non-number) aspects of strengths,
weaknesses, opportunities and threats of a company or organization. The purpose is to
determine if your organization is capable of taking advantage of an opportunity that has
presented itself. The answer is only yes if you decide that your strengths are greater than your
weaknesses and the opportunity is greater than the threats. The SWOT analysis sample shown
here goes a step farther than the traditional SWOT analysis. It requires that you put numbers
to these very nebulous concepts.

The SWOT Analysis Example

Let's assume that you are a small janitorial firm with 6 employees. Your company has been
servicing 20-25 small business buildings in a suburban area. You have recently found out that
a large office building nearby is looking for a new janitorial service. It would be a very
lucrative contract, but you would have to triple the size of your company overnight to handle
it. You don't want to jeopardize what you already have. Here is your SWOT analysis of the
situation:
 Strengths

1. What are your organization's core

Know how to do janitorial work well
strengths?

Have close relations with another

2. What unique resources are available?
janitorial company.

Could contract with other janitorial

3. What strengths can be acquired?
companies to meet the load.

Weaknesses

1. What are the perceived weaknesses? Not experienced servicing large facilities.

2. What resources are inadequate? Not enough manpower.

3. What weaknesses cannot be

Time conflicts with current contracts.
overcome?

Opportunities

1. What is the value of the present

The contract would be very lucrative.
opportunity?

2. Is value enhanced by evolving market- There are many new office buildings

technology conditions? being constructed.

3. Is value enhance by your organization's

core strengths?

Threats

1. Are there market-technology There are a limited number of available

conditions that reduce the value? workers.

2. What is the level of competition? Competion is moderate.

 3. Will your weaknesses limit your
Must be able to find additional workers.
success?

After you have answered each of the questions, it is necessary to put a score or value to each
answer. Pick a number from 1-10 that corresponds with your feeling of the value of each of
the answers. These numbers are then entered on the calculator below. The result is a number
that represents your judgement of the value of the new opportunity. Obviously the larger the
number the more attractive the project is. Please remember that you are making subjective
judgements of the values. The final number should be used as a guide for comparison with
other projects and not an absolute.

Project Score = Strengths - Weaknesses + Opportunities - Threats

Your browser can't display this example. Please allow popups or update!
 Apply This SWOT Analysis Template

To Your Opportunity

It is a simple manner to use the above sample SWOT analysis to your project. First answer
the questions in the above sample. Score each answer in light of subject opportunity. Enter
the scores in the sample calculator above. Print out the results. When you attach the answers
and details of the project, you will have a basic assessment of whether you will likely succeed
in your new endeavor. If you have several opportunities available, you can compare each of
them using the above steps. You should then eliminate the weaker ones. The strong ones
remaining can propel you to the success that you want.

Summary

This SWOT analysis example has shown you the value of this approach. The example
showed that answering some simple questions about your situation and your opportunity can
help you come closer to making a good decision. This process will work for you, because you
can make small incremental judgements that add up to your overall assessment. Using this
simple logical approach to evaluating new opportunities can help you better make wise
decisions that grow your business
 Key Points

The depth of analysis for each SWOT increases from the Classic SWOT to a Decision
Matrix.

I recommended that you use the simplest approach that will help your team decide your
strategic focus and prioritize the work that needs to be done.
 Techinques Advantages and Disadvantages

The Classic SWOT Analysis

Pros

Easy to prepare for and construct

Can compare multiple opportunities
Assigns priorities when folks vote to identify the top five strengths,
weaknesses, etc.

Cons

Folks tend to focus on activities to be fixed inside the firm, rather than to benefits the
customer
Folks tend to be too generic about strengths and weaknesses, like "excellent management"
or "poor communications."
Overused, too often just a snap shot with no indication of the momentum, direction and
history.

Side by Side SWOTs

Pros

Comparing your best two or three opportunities

helps you agree a strategic focus "kill two birds
with one stone"
 Timing and funding priorities become apparent
Helps rehearse each opportunity as folks conceptualize what needs to be done

Cons

Can be very tedious to compare five or more opportunities, too much detail

Comparing Critical Success Factors - You and Your Competitor

This variation on the Classic SWOT

compares the firm's performance to the
competition or against an industry
average for each of the industry's
critical success factors and shows the
history. Then, for the opportunities, it
anticipates a competitors responses.
The strategic planning team needs to anticipate the competitor's responses.

Pros

Easy to use quantitative performance measures to make comparisons

Focuses on core competencies and your distinctive core competency, which helps measure
the customer's perception of your value
Educates a business unit or a large department about the firm's big picture

Cons

Fewer specific details or issues are apparent can be too generic, too status quo
Innovations, solutions or strategic routes may not evolve from the analysis
Does not provide a big picture of trends in you strategic or industry spaces

Decision Matrix for Complex, Costly Strategies

The Decision Matrix takes detail from a SWOT and is used to

determine an opportunity's (option, alternative, etc.) relative value
compared to other opportunities. In the example, seven criteria are
evaluated to compare two options and for each criteria, the options
were scored as excellent (3), neutral (2) or poor (1). Supporting data
can be included in a cell to amplify why it was scored. This technique
allows the strategic planning team to integrate the SWOT with
competitive inteligence, market trends. As a strategic planning facilitator, I use this
frequently with experienced teams.
 Pros

A structured method to compare

complex alternatives, a thoughtful
coarse comparison
In my experience, constructing the
matrix educates and rehearses the team
about the subtleties of each option, and
Assigning weights educates the team about the senior leaders' perspectives

Cons

The weights are subjective and will likely "draw fire" when presented to folks outside the
core planning team
The matrix implies quantifiable accuracy: to make it "scientific" is very expensive and time
consuming
Too many criteria (more than seven) dilutes the value of the weights. In the example, there
are four items with a weight of 10%. Fewer criteria is better.

Which SWOT Analysis is Best for Your Team

The goal of strategy formulation is to be clear and specific about the firm's strategic focus, or
if you are part of an organization, your focus to support the strategy. Strategy specifics
(called tactics) evolve as you develop action plans.

If you are developing scenarios, it is usually premature to develop a SWOT. Once the way is
clear or you are down to two likely routes, that is the time to do a Side-by-side SWOT.

An Entrepreneur or a Bottom-Up effort in a firm would use a Classic SWOT or Side-by-side.

Within a firm, with a clear future and well established competitors, the team could use any of
the variations. The considerations are:

If many folks need to be involved, use the Classic SWOT more detail will come to the team
If there are several good opportunities, explore the specifics of how your strengths and
weaknesses play out. Use the Side-by-side SWOT to get into the detail
If you have a strong competitor in a high growth or mature industry, add the competitor to
you assessments
If you have very expensive, complex alternatives where you have a variety of techniques, use
the decision matrix to identify the best alternatives, then apply judgment
 Strategy Formulation

Action Plans Templates

In the Meetings chapter, I discussed three key steps in the

strategic planning process:

The Customer Benefit study and assess your market

pick your best opportunities that will sustain earnings
share assets to align the firm

Strategic Action Plans support the last two steps of strategy

formulation: you rehearse the action step, share
responsibilities and communicating the plan. Action plans are the core tool for
implementation and alignment, strategic or for that matter, for any plan.

This chapter shows the strategic planning team how to draft a Action Plan. As a strategic
planning facilitator, I learned to keep action plan presentation simple assume the decision
maker will quickly grasp its essence.

Think of the action plans as the script for the

strategy, where you block out the play, rehearse,
make sure the cast gels as a team, and estimate
the costs and benefits