COEPD – Center of Excellence for Professional Development Happy Learning
GAP Analysis
GAP Analysis is nothing but comparing Actual Performance with Potential Performance. A GAP Analysis can help an Organization to understand where they want to be, the Gap between where they are now and where they want to be and hence, what steps to be taken to close the Gap.
If a Company or an Organization does not make the best use of its current resources, it may produce below its Potential. GAP Analysis identifies gaps between the optimized allocation and integration of the Inputs and the current allocation level. By this, can reveal which areas to be improved. It involves determining, documenting and approving the difference between business requirements and current capabilities.
Gap Analysis** can be conducted in different perspectives, such as:-
- Organization
- Business Direction
- Business Processes
- Information Technology
Gap Analysis provides a foundation for measuring Investment of Time, Money and Human Resources required to achieve a particular Outcome.
**If we observe the below diagram, can easily pluck the flower of GAP.
Wanna be Here
MARKET SHARE GAP FULFILLMENT PROCESS
Current Situation
TIME
#GAP Analysis Process#
There are some events as to take up the GAP Analysis. Continuously, as
- Describe Area– Firstly Describe the Area that where we have to start our Analysis, so that, can concentrate to take next step.
- Identify Specific Improvement Areas– After selecting Area, we should Identify key area that has to be required Improvement.
- Determine Targets– Set Targets for each specific Areas to improvise according to user requirements.
- Determine Current State– As an Organization/Firm, clearly determine Current state, so, can reach our targeted level.
- Determine Action Steps– Finally, we should aware that what steps to be taken to fill the Gap.
#GAP Analysis Example#
-Suppose we work in an electronics company, and we are investigating the customer satisfaction of customers who return faulty equipment to us within warranty for repair.
*GAP Analysis*
| Area Under Consideration | We are investigating the Customer Satisfaction of Faulty goods returned within Warranty. We are not considering Customer Satisfaction outside of Warranty. | |
| Desired State | Current State | Action Steps |
|
1. Customer Satisfaction Rate = 99% 2. Repair Time = 12 days |
1. Customer Satisfaction Rate = Unknown 2. Repair Time = 16 days |
1. Review findings and Set Customer Satisfaction Ratings 2. Implement New Repair System 3. Train Staff to use New Systems. |
#Pros & Cons of GAP Analysis#
- Advantage of GAP Analysis is that it can give Decision Makers to get Comprehensive Overview of entire Organization or particular function.
- On completion of the overview, the Organization can evaluate the data and segregate the most relevant information for ranking desired outcomes and objectives.
- Time and cost represent two of the major disadvantages of conducting a gap analysis.
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