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Strategy tools refresher 2: Know Your Gap Analysis

Gap Analysis


Know Your Gap Analysis

It is the comparison of the actual performance of an organization with potential or desired performance. This refers to the current state, the desired state and the future state. A vital aspect of Gap analysis is identifying what needs to be done in an organization for it to move from its current state to a desired or future state.

Also called as needs assessment analysis, Gap analysis is a process of examining business practices and identifying areas that need improvement. It consists of the following factors:

– A list of characteristic factors of the current situation or position of the organization

– A list of factors needed to achieve future objectives

– A highlight of the gaps that exist and needs to be filled.

What are the benefits of Gap Analysis?


Helps the organization achieve desired goals

Gap analysis helps in identifying a significant difference between two situations and to determine how the organization is being managed in an actual manner and what should be done to achieve desired performance.

Enhances performance

It helps in identifying particular areas of the organization that does not meet the desired performance. This enables the business to improve its current situation and enables the business to perform in the future. This can only be achieved if the current activities are monitored and evaluated on a regular basis.

Can be used at anytime

Certain problem solving methods are only applicable in certain situations. However, this is not the case with Gap analysis because it can be applied at any time. Most organizations use Gap analysis in strategic planning process to identify existing problems, gaps and how to fill those gaps.

It is a framework for problem solving

A framework is basically a skeleton of interlinked outlines which support an approach to achieve certain objectives. It can be modified if need arises. Gap analysis gives you specific steps to follow in order to achieve a desired outcome. If you have a problem in your organization, Gap analysis enables you to look into those problems, and provides you with steps to follow in order for you to solve the issues.

Greater efficiency

This is one of the benefits you will get once you apply Gap analysis in your organization. The major aim of this process is to identify problem areas that exist in your organization and its processes. In most cases, such problems lead to inefficiency, wastage of resources and losses in the long run. Once you have identified the inefficiencies, you will be able to identify ways to reduce and prevent them in totality.

Gap analysis gives you the power to streamline your processes, eliminate inefficiency, and enhance productivity.