GAP analysis is a procedure where we look at the present status of the system and we look to the target or goal where we want to reach. We note down the steps taken how to reach from present status to the target. Thus, bridging the gap between the two states.
GAP Analysis is simple method of comparing the present status of something and a desired status and then we determine the steps that must be undertaken to improve that state. There are several uses of GAP analysis which include project planning, process appraisals, marketing and strategy development.
The process is first we describe the area and then identify the areas to be improved and determine targets for the identified areas. You also describe improvement steps to reach the target and finally implement and come back and review these steps.
For example, let us consider the initial state of 0% development work done in the project today and 45% of the development work is done after 4 months. Now the improvement steps include training the staff to meet the requirement and the development work should be divided into modules to be completed in time.
Diagrams can also be used to illustrate GAP analysis. Example for a diagram includes Progress of the project, costs invested, customer satisfaction, staff trained and improvement programs.
You can also use forecast method to identify gaps i.e. what future performance could be and then identify the gaps between forecast and your targets. Prioritize your improvement steps using Pareto Analysis. During the implementation of your improvement steps, see to it that you include frequent reviewing of your progress or improvement. So basically GAP Analysis is used to analyze between is system and to be system.