Gap Analysis

calender iconUpdated on November 29, 2023
corporate finance and accounting
financial analysis

Gap analysis is a process of comparing the current state of a system or organization with its desired future state. It identifies the gaps between the current and desired states and creates a plan for bridging them.

Purpose:

  • To assess the current capabilities and limitations of the system or organization.
  • To identify areas where improvement is needed.
  • To define goals and objectives for future development.
  • To create a roadmap for achieving the desired state.

Key Steps:

  1. Define the desired state: Identify the specific goals and objectives that the system or organization should achieve in the future.
  2. Assess the current state: Evaluate the current capabilities, processes, and resources.
  3. Identify gaps: Compare the current state with the desired state and identify areas where there are gaps.
  4. Prioritize gaps: Rank the gaps based on their severity and impact.
  5. Develop a plan: Create a roadmap or plan for bridging the gaps, outlining the necessary steps, resources, and timeline.

Example:

A company wants to improve its customer service. In a gap analysis, they find that the current service level is unsatisfactory, with long wait times and frequent customer complaints. The desired state is to provide prompt and efficient service. To bridge the gap, the company needs to implement measures such as increasing staff, improving training, and implementing new technologies.

Benefits:

  • Provides a clear picture of the current and desired states.
  • Facilitates goal setting and planning.
  • Improves accountability and alignment.
  • Enhances decision-making.
  • Tracks progress and identifies areas for improvement.

Tools:

  • Gap analysis templates
  • Project management software
  • Requirements gathering tools
  • Stakeholder engagement platforms

Conclusion:

Gap analysis is a valuable tool for identifying and addressing gaps between the current and desired states. It is essential for ensuring that organizations and systems are aligned with their goals and can achieve desired outcomes.

FAQ's

What is gap analysis?

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Gap analysis is a method used to compare current performance or outcomes with desired goals or standards. It identifies gaps between “where we are” and “where we want to be,” providing insight into areas needing improvement.

What are the five basic steps in the gap analysis process?

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What is the main objective of a gap analysis?

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What should be included in a gap analysis report?

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