A gap analysis helps an organization assess its alignment with strategic objectives to determine whether the current execution is in line with the company’s mission and long-term vision. Gap analyses then help reach a target performance by assisting organizations to use their resources better. A good gap analysis is a powerful tool to improve execution.
Gap analyses also help to assess how in line is the company’s organization vs. the action plan defined in the stage of planning. Thus, helping reach target goals given the current state. The gap between the target objectives and the current state needs to be broken down in steps, small enough to be executable and measurable.
Gap analysis to identify focus areas
Gap analyses also help to identify focus areas and simplify the execution strategy. Indeed, while business planning tends to complicate things, a gap analysis is useful to identify a few key areas of interest for the upcoming strategy initiatives.
Gap analysis and process improvement
Gap analyses also help with improvement in business processes. Indeed, gap analyses can help identify organizational inefficiencies thus identify quality management processes such as Lean, Scrum, Kaizen, or Six Sigma.
Gap analysis and KPIs
The gap analysis starts also by determining a future state the company is envisioning, which can follow several principles, and in general, that needs to be ambitious yet reachable, measurable, and breakable.
Gap Analysis Frameworks & Tools
Read: SWOT Analysis
Read: PESTEL Analysis
Read: Ansoff Matrix
Read: Growth Matrix