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GAP Analysis

GAP Analysis: Involves the comparison of actual performance with potential or desired performance. It compares the current state with an ideal state or goals, which highlights opportunities for improvement. Basically it is known as the performance gap.

The given diagram shows the performance gap in the sales of the company.

 

 

The two “W” and one “H” questions arises whenever the gap analysis is discussed, they are:

  • Where are we?
  • Where do we want to go?
  • How do we achieve?

These 3 questions should be known by the company then only target can be achieved in a better way. Every companies follow the gap analysis on their project as it gives efficiency and completion of the project at the given time. Higher authority of the company measures the gap analysis based on their actual performance with the desired performance of the company. Gap Analysis is a great tool to use as part of an internal analysis of the organization.

GAP Analysis has the various template in the organization. One of the common adopted Gap Analysis template is as follows.

Focus Areas Desired Future Results Current State Identified Gap Action Plan
What are we focused on i.e. goals? Where would we like to be? Where are we now? Difference between desired and current state What measures to be followed to fill the bridge gap?
         

 

It forces the organization to think about the current state, desired future state, and the gaps between the two and organization’s action plan in a very clear structured form. It also focuses the company to make a strategic plan for the better output of the company. It is one of the technique that businesses use to determine what steps need to be taken in order to move from current state to the desired state and also it needs proper assessment at every points. It also gives the company’s future image and where they want to be in future with the proper business strategy. It helps the company to achieve its target. The best example of GAP Analysis is in retail sector and it is best applicable to achieve the sales target in every month.

Lack of Communication, Poor Leadership, Lack of Teamwork, etc. arises the gap for the company. It can be solved with the skilled employee, good communication skill and best teamwork so that they can achieve the desired result.

There are various tools through which GAP analysis can be mitigated. They are as follows:

  • SWOT Analysis
  • Fishbone Diagram
  • McKinsey 7S Framework
  • PEST Analysis

Most of the organization follows the McKinsey 7S framework to identify the gap of their organization.

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