gap analysis education definition

• Advice from educators

Conducting a Gap Analysis

• August 27, 2021

Home Educators Blog

Common buzzwords fly around in education as though a swarm of hornets have been thrust out of their hive and the understanding is often lost in translation. The word “gap” could be the queen bee of buzzwords. So, what does it mean to have an educational gap, close the gap, or define gap groups?

A gap in education can come from two different perspectives. There are students who perform below grade-level standards – meaning they do not have the skills or knowledge to meet expectations, and there is a gap in their knowledge. There are also instructional gaps. The state law indicates all students will receive instruction based on the state-adopted standards, so teachers create pacing guides, curriculum maps , and lesson plans based on that information.

The intended instruction does not always translate into implemented instruction or the actual instruction that takes place in the classroom. As a result, there are standards that students do not have the opportunity to learn due to extended time out of school, interruptions to schedules, or responsive teaching practices, and, as a result, instructional gaps manifest. So, what do we do to identify those gaps? We conduct a gap analysis, of course.

What is an Instructional Gap Analysis?

There is a process that educators may follow in order to identify the gaps in instruction that students have acquired as they move from one grade level to another. If we never address those gaps, students may have faults in their foundation, creating a shaky basis for building their knowledge and skills. Conducting an instructional gap analysis become imperative in order for a school to know what students have been taught and to be able to fill in the gaps in their learning.

Where do I begin?

In order to complete a gap analysis, you will need access to the standards, a pacing guide, lesson plans from the previous year, and/or a colleague who taught the previous grade. (On a side note, if teachers do not have common planning or do not plan together, this task is much greater because you would have to consider that students could have been taught different standards and are potentially missing different pieces of information. Common planning is a great tool to advocate for, if possible!)

In an ideal situation, this would be a building-level activity; however, if an administrator doesn’t provide this time for staff members, it is still imperative to consider what gaps your students may have before moving through your standards.

Beginning with the standards, look to insure all of the previous standards were included on the pacing guide. Some gaps are created because all of the standards are intended to taught. Once you know all of the standards have the potential and place to be addressed, you look to see which standards were actually taught based on the lesson plans.

Conversations with colleagues will help you to understand if a standard was taught to mastery or only introduced. I encourage teachers to discuss strategies utilized for instruction and what misconceptions students had.

Once you have analyzed which standards were taught, you look to see if any standards were not addressed in the curriculum in the previous year. There are two ways to address these gaps. If they are standards that were intended to be taught to mastery in the previous year and they were not, you will have add the standards at the beginning of the year and teach those to mastery; however, that can be very time consuming and create a greater gap the next year because you may not get the opportunity to deliver content to the intention of your standards for the current year, and over time, you will have lost chunks of instruction.

Another way to address the content is through pre-assessments to know which students need more instruction to get to mastery and those who have mastered the standard. For those students who need additional strategies, this could be a skill or content that could be addressed through an intervention time. If the standard is one that is introduced in the previous grade level but is not mastered or continued to be built upon in your current standards, then you can extend your intended lesson to include an introduction to the standard before you move into the grade-level learning. Regardless of the method you choose, students need a firm foundation in the power standards and the skills they will expand upon throughout their learning path.

How do I conduct a student gap analysis?

Students are different than standards, for obvious reasons, and how we address the gaps in student achievement require a different lens. Much like the instructional gap analysis, to consider what students know and don’t know, you should have a map of the standards and student mastery data.

If your school isn’t there yet, as an educator, I implore you to keep track of how your students are performing on standards. This task becomes much easier when you can look across a student’s performance and know if they are performing at mastery or not.

For our process, we identify the standard and learning target we are teaching each day. Through formative assessment, we track student performance. A student’s performance on the standard determines if they are green, yellow, or red on that particular standard, which also defines our next steps for small group , intervention, or enrichment planning, depending on how you instruct students.

What data do I use to make decisions about gaps?

Formative assessment data will provide you with in the moment performance data. For my teachers, they are given an option to assess each learning target each day and report daily. The other option is to provide instruction all week and give a formative assessment on Friday with each learning target identified on the assessment, and then report at the end of the week.

This is a preference for teachers. At the end of the week, as an administrator, I have the data available for my review, and I can plan conversations that need to occur prior to the next week’s instruction. Other sources of data are anecdotal records (running records, observations, etc.), universal screeners, end-of-course assessments, and pre-assessments, which all provide information to help see where students have gaps in their learning to help us to provide the best instruction for students.

Gap analysis, whether you are considering student performance data or instructional, are beneficial to determine how teachers can accelerate learning and grow students to the best of their abilities. The time we have with students is critical, and there is no place for wasting time with teaching skills and content that are lacking a foundation on which to grow. Making this a part of your teacher toolbox will help you to quickly become a master teacher who knows curriculum and students.

• #GapAnalysis , #StudentData

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Home Market Research

What is Gap Analysis: Definition, Method, and Template

It’s an old problem in business: you want to grow your company and put your strategy into action, but you need to know where or how to put your money to make it happen. Sounds familiar? You should do a gap analysis if this is the case.

An organization needs to make the best use of its resources, money, and technology to reach its full potential. A gap analysis can help in this situation.

A gap analysis also called a needs analysis, is important for the performance of any organization. It lets companies see where they are now and where they want to be. With a gap analysis, companies can look at their goals again to see if they are on the right track to achieving them.

So this blog will explain gap analysis, its methods, gap analysis template, and more.

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You will read in detail about the 5 gap analysis tools that your business might need to learn and identify the gaps in your business and excel by analyzing the data collected by following the steps on how to do a gap analysis. Let us first understand the tools needed to conduct a gap analysis.

Content Index

Gap Analysis: Definition

Importance of gap analysis, types of gap analysis, when to use a gap analysis.

• How to Do: A 5-Step gap analysis template with an example

Gap analysis tools

Gap analysis process using questionpro survey software.

The term “gap” refers to the space between “where we are” (the present state) and where “we want to be” (the target state). Gap analysis assesses the differences between the actual and expected performance in an organization or a business. It can also be called a need analysis, need assessment, or need-gap analysis.

In the 1980s, gap analyses were often used together with duration analyses. It is harder to use and less common than a duration analysis, but it can still be used to determine how exposed you are to different changes in the term structure.

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Consider hypothetically, as an organization, and you have manufactured product A. This product has reached the target audience in the market. Product A has all the qualities to excel in the market, including the right features, pricing margin, and demand. Yet the product didn’t perform well in the market for some reason.

Learn more: What is Market Research?

Gap analysis can be performed on:

• A Strategic Level – to compare the condition or level of your company with that of the industry standards
• At an Operational Level – To compare your business’s current state or performance with what you had desired.

Here is where a gap analysis process would play a crucial role in understanding internal and external factors, where the product is and what it lacks, where it needs to be to secure its place in the market and give a tough fight to any other competitor offering a similar product.

LEARN ABOUT:  Test Market Demand

Here are some key points that show how gap analysis is important:

• Gap analysis helps find areas for improvement in your processes, products, or services.
• It helps to develop good plans to close the gaps between what they want to do and what they do.
• It aids in setting priorities and effectively allocating resources.
• Pointing out areas where organizations need to be more compliant helps ensure compliance with rules and regulations.
• This can help improve performance, increase efficiency, and cut costs.
• It enhances decision-making and enables companies to make smart choices by providing data-driven insights.
• By identifying gaps in the market or customer needs, it can find opportunities for growth and expansion.
• The effectiveness of improvement initiatives over time can be tracked using it to gauge progress.

Gap analysis is useful for businesses that want to improve performance, get more done, and reach their goals.

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Businesses can use different kinds of gap analysis, depending on their needs and goals. Here are a few of the most popular:

1. Performance gap analysis

This type of analysis finds the difference between an organization’s or person’s expected performance and their actual performance.

2. Product gap analysis

This analysis finds the difference between the features and capabilities of a product and what the customer wants.

3. Market gap analysis

This analysis examines the gap between the market’s wants and the company’s products or services.

4. Compliance gap analysis

This analysis shows the difference between the required regulatory standards and what an organization does.

5. Strategic gap analysis

This type of analysis helps organizations find the gap between where they are now and where they want to be in the future regarding their strategic objectives and goals.

By choosing the right type of gap analysis, companies can learn important things about their performance, find places to improve, and develop effective plans to reach their desired state.

A gap analysis can be used in many situations, including:

• Process Improvement: When a business wants to improve its processes or operations, a profit gap analysis can find areas of inefficiency or performance that need fixing.
• Product Development: this can be used to evaluate customer needs and expectations to ensure a new product meets their needs.
• Compliance and Risk Management: It can help find regulatory gaps and ensure an organization follows all laws and rules.
• Organizational Change: When a company’s structure changes, it can help find areas of misalignment or gaps in research skills , knowledge, or resources that need to be addressed.
• Performance Management: It can help find areas where employees, teams, or departments aren’t performing as well as they could be and develop plans to improve performance and productivity.

LEARN ABOUT: Action Research

In these situations, companies can use it to find areas that need improvement, decide which actions to take first and develop effective strategic planning to reach their goals.

How to Do: A 5-step gap analysis template with an example

A gap analysis template shows employees where your company can improve by showing the difference between reality and target. It’s a terrific method to visualize data and illustrate where your company is suffering and excelling.

In our discussion of the gap analysis template below, we’ll cover the steps of conducting it that can be applied inside a department, your entire firm, or a particular process. The four phases in the template below will help you identify and fix your research problems .

The following steps of conducting a gap analysis template can be followed to analyze and identify loops in your entire business:

Step 1: Identify the area to focus on-

You need to know where to focus. That will be your primary requirement. Whether the issue is financing, product quality or marketing, etc, be specific so that you can focus better.

For example, suppose you want to identify the gaps in your ketchup business. In that case, you need to decide whether to focus on product quality or marketing to identify and eliminate those gaps.

Step 2: Identify what goals you want to achieve-

Now that you know the area to focus on, set your target or goals. Set realistic smart goals and make sure to align them with your business goals and needs. 

For instance, your ketchup manufacturing business aims to produce and sell 162000 units of ketchup in the next year compared to 120000 being sold this year.

Step 3: Know your current state-

Before you go any further, know where you stand currently. By looking into your business reports, you will know your current position in the market, brainstorm and gather as much data as possible on your business’s current performance.

In this case, your ketchup brand currently sells around 100000 units monthly.

Step 4: Determine where you want to be in the future-

Define and determine your parameters, and remember you have set smart goals. By achieving those goals, you will be able to achieve the desired position for your business in the future.

For instance, for your ketchup brand, answer the following question in this step:

Where do you foresee your ketchup manufacturing business in the next year? – The answer can probably be a 35% increase in monthly unit sales.

Step 5: Understand the gaps between the two states-

Now that you have a clear understanding of the attributes of where you stand currently (present state) and where you desire to be in the future (desired state), it is now easy for you to identify what is stopping you from achieving your targets. After you have identified your gaps, make yourself equipped to close those gaps.

You need to understand the drawbacks of your current situation compared to your aspirations. Understand factors such as: What are the efforts being made to achieve success? Or Are attempts being made to improve the quality of the product? Or What are the marketing activities being conducted to hike up the sales volume?

The production needs to ramp up along with a boost in marketing and sales activities. Many teams have to work in unison to sell 135000 units a month compared to the existing 100000 units. Marketing managers need to develop effective strategies for improvement on the basis of the identified strengths, weaknesses, opportunities, and threats in the business.

Learn more: Advanced Analysis with QuestionPro

If you are a business owner, ask yourself 

• How far have you come from the work you had planned at the beginning of the year?
• What products or services were you promised to roll out? 
• Are they already on the floor?
• Do you have an idea about what worked and what didn’t? And why?

This type of tool can help you compare your business or project’s actual performance against the performance you had planned to achieve. This way, you can figure out what worked for you and what didn’t, what decision you made right and what was not so right!

Learn more: Quantitative Market Research

Here are the 3 gap analysis tools you can use when conducting a gap analysis for your business or organization:

SWOT focuses on Strengths, Weaknesses, Opportunities, and Threats in the internal and external environment analysis , respectively. SWOT analysis helps you determine your current industry or market position.

How to carry out SWOT to analyze Gap?

• Gather a team of experts from the relevant department so that their expertise will help you identify the problem and the gaps immediately.
• Create a SWOT analysis matrix.
• Next, list down all the internal strengths and weaknesses.
• Note down the opportunities and threats that an external environment might cause.
• Rearrange each bullet point in order of highest priority at the top and the least important at the bottom.
• Analyze how you can use your strengths to minimize weaknesses and use the best available opportunities to avoid or eliminate threats.

Fig: SWOT Analysis Matrix

Learn more: Strategic Analysis for business research

• McKinsey 7s

McKinsey 7s can help you with the following gap analysis purpose:

• To help you understand the gaps that are evident and that may appear 
• To help you identify the areas to optimize and boost performance
• To align the respective processes during a merger or an acquisition, if you have had one recently or are planning to have one.
• Helps you examine the results of future changes within the business.

Learn more: How to do Market Research for a Business Plan

The 7s refers to the key interrelated elements of an organization. They are:

• Shared values

These elements are divided into two distinct groups: hard elements (tangible factors that can be controlled) and soft elements (intangible factors that cannot be controlled)

Hard elements are as follows:

• Strategy – the plan that will help your company gain an advantage over any of your competitors .
• Structure – the plan or the layout that will define your entire organizational chart structure.
• Systems – business and technical knowledge your employees already use to complete their daily tasks.

Learn more: Employee Evaluation Survey

Soft elements are as follows:

• Shared values – these are the set of beliefs or traits that the organization values.
• Style – A leadership style that defines the organization’s culture.
• Staff – people who are the backbone or the asset of an organization.
• Skills – The tool that the employees have to help you succeed.

How to apply McKinsey 7s?

• Start with gathering a competent team.
• Look for gaps and weaknesses and align the relationship between the elements.
• State where the elements will be optimally aligned. When we speak about elements, we are referring to the 7s.
• Come up with a suitable plan of action to realign the elements.
• Implement the changes or the solution you have come up with and reduce the gap.

Learn more: Human Resource Surveys

• Nadler-Tushman’s Congruence Model

This model is based on the principle that business performance is the result of 4 key elements: work, people, structure, and culture .

How to apply this model?

• First and foremost, gather all the data that point you toward any or all symptoms of poor performance.
• Specify inputs i.e, whether it’s environment, resources, or history that is causing these poor performances.
• Identify which outputs are required at the organizational level so that the organization can meet all strategic objectives.
• Now assess the degree of congruence among all the mentioned components.
• Strategize and put down a plan of action.

Learn more: Qualitative Market Research

QuestionPro market research survey software is a platform that helps you identify gaps in your business by making available the gap analysis template. A new question type has been added to the QuestionPro survey system to run comparisons between expectation and delivery specifically.

LEARN ABOUT:  Market research industry

In most cases, this realizes itself by asking customers/potential respondents to rate different attributes (Customer Service, On-Time delivery, etc.) on the importance and a satisfaction rating scale . We call this the side-by-side matrix question (the alternative name is a multi-dimensional matrix) — basically two (or more) matrix questions placed next to each other. Follow these simple steps to run a it .

How can you access Gap Analysis?

• Login » Surveys » Reports » Choice Modelling
• Select GAP Analysis .

Select the question from the drop-down menu and select the Gap analysis option.

Once you have analyzed the question, you can also download the report in excel, PowerPoint, or even print it.

Learn more: Trend Analysis

Gap analysis is one of the most effective ways to find growth opportunities. It gives your company a strategy based on data and the standards of your industry.

LEARN ABOUT: 12 Best Tools for Researchers

Meeting people’s expectations is never easy, but the analysis helps you make a plan by taking things one step at a time. It is a thorough, step-by-step process that gives you a detailed action plan. You can use it to fix a specific problem or just be proactive about making new strategies.

QuestionPro has useful tools that can help you do a good gap analysis. By using its survey and research tools, businesses can find out where they can improve and develop plans to close the gaps in their performance.

QuestionPro’s easy-to-use interface and customizable features make it a complete solution for companies that want to improve their processes and grow. So sign up now to get your desired outcome!

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Unveiling Gap Analysis in Education: A Comprehensive Guide

Table of Contents

Gap analysis is a fundamental tool used in education to identify gaps in knowledge, skills, and resources and develop strategies to bridge those gaps. It helps educational institutions and stakeholders understand where improvements are needed and how to allocate resources effectively. Gap analysis can be conducted through various frameworks and methods, such as the McKinsey 7Ss Framework, Nadler-Tushman Congruence Framework, SWOT Framework, PESTEL Framework, and Fishbone Framework. These frameworks provide a structured approach to assess different aspects of education and develop targeted solutions.

As an essential part of educational planning, gap analysis plays a crucial role in driving improvements and ensuring that education meets the needs of students and society. By uncovering areas of improvement and identifying opportunities for growth, educational institutions can develop targeted interventions, allocate resources effectively, and enhance the overall quality of education. With the intersection of AI and learning, education becomes more individualized, engaging, and inclusive, opening up new possibilities for students of all backgrounds.

Key Takeaways:

• Gap analysis helps identify gaps in knowledge, skills, and resources in education.
• It informs decision-making, resource allocation, and policy development in educational institutions.
• Gap analysis provides a structured approach to assess different aspects of education and develop targeted solutions.
• The intersection of AI and learning in education enhances personalized learning experiences and makes education more accessible and inclusive.
• Conducting a skills gap analysis in education helps align curriculum with industry demands and foster student success.

Exquisitive Education offers comprehensive resources and expertise in gap analysis and educational planning to support institutions in their pursuit of excellence.

Understanding the Gap Analysis Process in Education

The process of conducting a gap analysis in education involves several key steps. First, educational goals and objectives are identified, providing a clear direction for the analysis. This step sets the foundation for the entire process, ensuring that the focus is on the areas that require improvement. By defining the goals and objectives, educational institutions can prioritize their efforts and allocate resources effectively.

Once the goals and objectives are established, the next step is to evaluate the current state of education. This includes an assessment of various factors such as the curriculum, teaching methods, available resources, and student performance. By thoroughly examining these aspects, institutions gain valuable insights into the existing gaps and areas that require attention. This evaluation serves as the basis for identifying the specific areas that need improvement.

After evaluating the current state, the desired state of education is defined. This step involves outlining the ideal outcomes and standards that the institution aims to achieve. By clearly defining the desired state, institutions can set benchmarks for success and have a clear vision of where they want to be. This step ensures that the gap analysis is aligned with the institution’s long-term goals and aspirations.

With the current and desired states defined, the next step is to compare the two and identify the gaps that need to be addressed. This comparison reveals the areas where educational institutions are falling short and helps prioritize the areas that require immediate attention. By understanding these gaps, institutions can develop targeted strategies and action plans to bridge them effectively and improve the overall quality of education.

The Role of Gap Analysis in Educational Planning

Gap analysis plays a crucial role in educational planning by informing the development of strategic plans and policies. It provides educational institutions with the necessary insights to make informed decisions about curriculum development, resource allocation, and staff training. By identifying the gaps in knowledge, skills, and resources, institutions can develop tailored strategies to address these gaps and improve the quality of education. Gap analysis ensures that educational planning is data-driven and aligns with the current state of education, making it an invaluable tool for educational leaders and policymakers.

Steps to Conduct Gap Analysis in Education:

• Identify educational goals and objectives
• Evaluate the current state of education
• Define the desired state of education
• Compare the current state with the desired state and identify the gaps
• Develop strategies and action plans to bridge the identified gaps

By following these steps, educational institutions can conduct a comprehensive gap analysis that will guide their decision-making, resource allocation, and policy development. Gap analysis is a powerful tool that helps improve the quality of education and ensures that institutions are equipped to meet the needs of students and society.

Benefits of Conducting Gap Analysis in Education

Conducting a gap analysis in education offers numerous benefits that contribute to the overall improvement of the education system. By identifying gaps in knowledge, skills, and resources, educational institutions can develop targeted interventions to enhance teaching and learning outcomes. Gap analysis provides valuable insights into the strengths and weaknesses of the education system, allowing educators and policymakers to make informed decisions about resource allocation and policy development.

One of the key benefits of conducting a gap analysis in education is the effective allocation of limited resources. By identifying the most critical gaps, educational institutions can ensure that resources are directed towards addressing those areas where they are needed the most. This ensures that resources such as funding, technology, and personnel are utilized efficiently, maximizing their impact on student learning and development.

Benefits of Conducting Gap Analysis in Education:

• Identifies gaps in knowledge, skills, and resources
• Develops targeted interventions for improved outcomes
• Provides insights into the strengths and weaknesses of the education system
• Informs resource allocation and policy development
• Ensures effective utilization of limited resources

Furthermore, gap analysis tools such as the McKinsey 7Ss Framework, Nadler-Tushman Congruence Framework, SWOT Framework, PESTEL Framework, and Fishbone Framework provide a structured approach to data analysis and decision-making in education. These frameworks help educators and policymakers assess different aspects of education and develop targeted solutions based on the findings of the gap analysis.

Overall, conducting a gap analysis in education is crucial for continuous improvement and progress in the education system. By addressing the identified gaps, educational institutions can enhance the quality of education, better prepare students for the challenges of the future, and ensure that every student has equal opportunities to succeed.

Gap analysis plays a crucial role in educational planning by informing the development of strategic plans and policies. It enables educational institutions to identify their strengths, weaknesses, opportunities, and threats, providing a comprehensive understanding of the current state of education. By conducting a gap analysis, institutions can make informed decisions about curriculum development, resource allocation, and staff training, ensuring that their educational goals and objectives align with the needs of students and society.

One of the key benefits of using gap analysis in educational planning is its ability to provide a data-driven approach. Through the systematic evaluation of the current state of education, institutions can identify gaps in knowledge, skills, and resources. This information serves as a foundation for developing targeted strategies and action plans to address the identified gaps. Gap analysis also helps institutions prioritize their resources, ensuring that limited resources are efficiently allocated to areas that require improvement.

When using gap analysis in education, it is important to follow a structured process. This involves clearly defining educational goals and objectives, evaluating the current state of education, defining the desired state, and comparing the two to identify gaps. Once the gaps are identified, institutions can develop strategies and action plans to bridge those gaps and improve the overall quality of education. It is essential to involve stakeholders, such as educators, policymakers, and students, in the gap analysis process to ensure a comprehensive and collaborative approach.

Key Points:

• Gap analysis plays a crucial role in educational planning by informing the development of strategic plans and policies.
• It provides a data-driven approach to identify gaps in knowledge, skills, and resources in the current state of education.
• Following a structured process is essential when conducting gap analysis in education, involving key stakeholders in the process.
• Gap analysis enables institutions to develop targeted strategies and action plans to bridge identified gaps and improve the overall quality of education.

Understanding the Importance of Gap Analysis in Education

Gap analysis is a cornerstone in education that plays a vital role in identifying areas of improvement and opportunities for growth. By conducting a thorough analysis of the current state of education, institutions can gain valuable insights into the gaps that exist in curriculum, teaching methods, resources, and student performance. This information serves as a foundation for educators and policymakers to develop targeted interventions and allocate resources effectively in order to address these gaps.

One of the key reasons why gap analysis is important in education is its ability to ensure that educational systems are aligned with the needs of students, the workforce, and society as a whole. By understanding the gaps that exist, educational institutions can develop strategies to bridge them and ensure that their programs and initiatives are preparing students for the challenges and opportunities they will face in the future. This alignment between education and real-world demands is crucial for the success and progress of individuals and society as a whole.

Gaining a comprehensive understanding of the importance of gap analysis in education can be facilitated through the use of structured frameworks and methodologies. These frameworks provide a systematic approach to data analysis and decision-making, allowing educators and policymakers to make informed choices based on reliable information. By leveraging these tools, institutions can maximize the impact of their gap analysis efforts and drive meaningful change to improve the overall quality of education.

• Gap analysis helps identify areas of improvement and opportunities for growth in education.
• It ensures that educational systems are aligned with the needs of students, the workforce, and society.
• Structured frameworks and methodologies provide a systematic approach to data analysis and decision-making.

Exploring the Intersection of AI and Learning in Education

The intersection of Artificial Intelligence (AI) and learning in education has revolutionized the traditional approach to teaching and learning. AI-powered systems, such as learning management systems, have transformed the way educational content is delivered and personalized to meet the unique needs of each student. With AI, personalized learning experiences are now possible, opening up new avenues for student engagement and growth.

AI technology has the capability to analyze students’ learning patterns, preferences, and strengths, allowing for the creation of tailored coursework and interventions. This personalized approach enhances the learning experience, as students receive content and support that resonates with their individual learning styles and challenges. By adapting instructional materials and resources to the specific needs of each student, AI-powered systems ensure that learning is optimized and meaningful.

Moreover, AI plays a pivotal role in making education more accessible and inclusive. With tools like speech recognition and text-to-speech capabilities, students with special needs can engage with educational content in a way that suits their abilities. AI eliminates barriers to learning by providing alternative means of communication and interaction, ensuring that no student is left behind.

The Benefits of AI in Education:

• Personalized learning experiences tailored to individual student needs
• Improved student engagement and motivation
• Enhanced accessibility and inclusivity for students with special needs
• Efficient and data-driven decision-making for educators and institutions
• Ability to scale education to reach a wider audience

By harnessing the power of AI, education can become more individualized, engaging, and inclusive for all students. It has the potential to transform the way we teach and learn, unlocking new possibilities and paving the way for a more equitable and innovative educational landscape.

Bridging the Educational Equity Gap with AI

The educational equity gap has long been a challenge in our society, with students from disadvantaged backgrounds often facing barriers to accessing quality education. However, with the advancement of artificial intelligence (AI), there is now an opportunity to bridge this gap and provide equal learning opportunities for all students.

AI in education has the potential to revolutionize the way we teach and learn. By leveraging AI-powered systems, educational institutions can identify learning gaps and provide targeted assistance to ensure that every student has access to the resources and support they need to succeed. Tools like personalized learning platforms can analyze students’ individual learning patterns and adapt coursework accordingly, providing a tailored learning experience that caters to their unique needs.

Companies like BYJU’s are at the forefront of using AI in education to make learning more accessible and affordable. Their AI-powered platforms ensure that students from all backgrounds have access to quality educational materials and resources. This not only helps bridge the equity gap but also empowers students to reach their full potential.

Advantages of AI in Education

• Personalized learning experiences: AI can analyze students’ individual strengths and weaknesses to provide targeted support and customized learning materials.
• Accessible and inclusive learning: AI-powered tools, such as speech recognition and text-to-speech capabilities, assist students with special needs, making education more inclusive for all.
• Efficient resource allocation: AI can help educational institutions allocate resources more effectively by identifying areas where additional support is needed and optimizing resource distribution.

By harnessing the power of AI, educational institutions can work towards creating a more equitable educational landscape. Through equal access to quality education, we can empower students from all backgrounds to succeed and contribute to a more inclusive society.

Conducting a Skills Gap Analysis in Education

A skills gap analysis in education is a crucial process that helps educational institutions identify the disparity between the skills possessed by students and the skills needed to meet educational goals. By conducting a comprehensive skills gap analysis, institutions can gain valuable insights into the strengths and weaknesses of their students, as well as develop targeted training programs to bridge the identified gaps.

The benefits of conducting a skills gap analysis in education are numerous. Firstly, it allows institutions to align their curriculum with the demands of the industry, ensuring that students are equipped with the necessary skills for future careers. Additionally, a skills gap analysis enables institutions to make informed decisions about resource allocation, directing funding and support towards areas where the gaps are most prominent.

So, how does one conduct a skills gap analysis in education? The process begins by identifying the educational goals and determining the key skills and competencies required to achieve those goals. Then, an assessment of the current skill levels of students is conducted, which involves evaluating their performance, capabilities, and knowledge. By comparing the desired skills with the current skill levels, institutions can identify specific gaps that need to be addressed.

Benefits of Skills Gap Analysis in Education:

• Align curriculum with industry demands
• Make informed decisions about resource allocation
• Identify specific gaps in skills and knowledge
• Develop targeted training programs
• Improve student readiness for future careers

By conducting a skills gap analysis in education, institutions can ensure that their programs are effectively preparing students for the challenges and opportunities of the future. By addressing and bridging the identified gaps, educational institutions can foster student success and contribute to a more skilled and competent workforce.

In conclusion, gap analysis in education is an essential process that helps identify and bridge gaps in knowledge, skills, and resources. By conducting a thorough analysis of the current state of education and comparing it to the desired outcomes, educational institutions can make informed decisions and allocate resources effectively. Gap analysis plays a vital role in educational planning, enabling institutions to develop strategies and policies that address the identified gaps and improve the quality of education.

The importance of gap analysis in education cannot be overstated. It helps uncover areas of improvement and opportunities for growth, ensuring that educational institutions are equipped to meet the needs of students, the workforce, and society. By conducting a skills gap analysis, institutions can further enhance the quality of education by aligning curriculum with industry demands and fostering student success.

Furthermore, the intersection of AI and learning has revolutionized education by providing personalized learning experiences and bridging the educational equity gap. AI-powered systems can analyze students’ learning patterns and provide targeted interventions, making education more accessible and inclusive for all. By leveraging the benefits of both gap analysis and AI, education can be transformed, better preparing students for the challenges and opportunities of the future.

For further information on how to effectively implement gap analysis and enhance the quality of education, visit Exquisitive Education. They offer comprehensive resources and insights to support educational institutions in their pursuit of excellence.

What is gap analysis in education?

Gap analysis in education is a fundamental tool used to identify gaps in knowledge, skills, and resources and develop strategies to bridge those gaps.

What is the importance of gap analysis in education?

Gap analysis helps educational institutions and stakeholders understand where improvements are needed and how to allocate resources effectively, leading to improved outcomes and better preparation for future challenges and opportunities.

What is the gap analysis process in education?

The gap analysis process in education involves identifying goals and objectives, evaluating the current state of education, defining the desired state, comparing the two states to identify gaps, and developing strategies and action plans to bridge those gaps.

What are the benefits of conducting gap analysis in education?

Conducting gap analysis in education helps institutions gain a deeper understanding of strengths and weaknesses, develop targeted interventions, ensure effective resource allocation, and enhance decision-making and policy development.

How can gap analysis be used in educational planning?

Gap analysis plays a crucial role in educational planning by informing the development of strategic plans and policies, helping institutions identify strengths and weaknesses, aligning goals with the current state of education, and developing targeted strategies to improve the quality of education.

Why is gap analysis important in education?

Gap analysis is important in education because it helps uncover areas of improvement, identify opportunities for growth, and ensure that education is aligned with the needs of students, the workforce, and society.

How does AI intersect with learning in education?

AI-powered systems, such as learning management systems, can analyze students’ learning patterns and provide personalized coursework and interventions, making education more individualized, engaging, and inclusive for all students.

How can AI bridge the educational equity gap?

AI-powered systems can help identify learning gaps and provide targeted assistance, ensuring that all students have access to quality education, regardless of their socio-economic backgrounds.

What is a skills gap analysis in education?

A skills gap analysis in education is a systematic process that helps identify the difference between the skills that students possess and the skills needed to meet educational goals, enabling institutions to develop targeted training programs and align curriculum with industry demands.

About The Author

Ethan Emerson

Ethan Emerson is a passionate author and dedicated advocate for the transformative power of education. With a background in teaching and a love for writing, Ethan brings a unique blend of expertise and creativity to his contributions on ExquisitiveEducation.com .His articles are a delightful mix of insightful knowledge and engaging storytelling, aiming to inspire and empower learners of all ages. Ethan's mission is to ignite the spark of curiosity and foster a love for learning in every reader.Ethan Emerson, is your companion in the realm of general education exploration. With a passion for knowledge, He delves into the intricate world of Education Expenses & Discounts , uncovering financial insights for your educational journey. From the vitality of Physical Education to the synergy of Education & Technology , Ethan's here to bridge the gap between traditional and innovative learning methods. Discover the art of crafting impressive Resume & Personal Documentation in Education , as well as insights into diverse Career Paths, Degrees & Educational Requirements . Join Ethan in navigating through a sea of Educational Courses & Classes , exploring the nuances of various Education Systems , and understanding the empowering realm of Special Education . With an eye on Teaching & Teachers , He offers a glimpse into the world of educators who shape minds. Let's unlock Studying Tips & Learning Methods that turn education into a delightful journey of growth with Exquisitive Education .

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• Capella Systems
• May 6, 2022

Curriculum Gap Analysis: What It Is and How to Do It

Curriculum gap analysis is a vital process that evaluates the content of a curriculum against the actual skills and knowledge that students are expected to acquire by the end of their learning journey. By identifying potential gaps, educators can implement interventions to ensure all students have the opportunity to succeed. This blog post will outline the steps involved in conducting a curriculum gap analysis, discuss different types of curriculum gaps, and offer strategies to address these gaps effectively.

OfSTED's Expectations in Curriculum Planning: OfSTED expects education providers to deliver a thoroughly planned curriculum that is fit for purpose and caters to the needs of all learners, including those with special educational needs and disabilities (SEND). As part of the curriculum review process, inspectors will assess the inclusiveness of the curriculum and whether it enables all students to make good progress.

Conducting a Curriculum Gap Analysis

Curriculum gap analysis is an essential process that helps educators identify the gaps in the current curriculum and implement improvements to ensure that the curriculum is effective and relevant.

Here is a detailed step-by-step guide on how to conduct a curriculum gap analysis:

Step 1: Review the current curriculum content and pinpoint the skills and knowledge learners should possess at the end of their learning.

The first step in conducting a curriculum gap analysis is to review the current curriculum content. This involves analysing the curriculum framework, syllabus, and other relevant documents to determine the expected learning outcomes. The expected learning outcomes should be specific, measurable, achievable, relevant, and time-bound (SMART). Identifying the specific skills and knowledge that students should possess upon completing the curriculum is essential.

Step 2: Compare this against the actual skills and knowledge learners have demonstrated.

The next step is to compare the expected learning outcomes against the actual skills and knowledge that learners have demonstrated. This can be done through various assessment methods such as exams, projects, and assignments. Using reliable and valid assessment methods is essential to ensure accurate results.

Step 3: Identify any gaps between the expected and actual outcomes.

After comparing the expected and actual outcomes, the next step is identifying gaps between them. The gaps can be identified by analysing the assessment results and comparing them with the expected learning outcomes. Identifying the areas where learners are struggling and the reasons for the gaps.

Step 4: Implement interventions to address the identified curriculum gaps.

The final step in conducting a curriculum gap analysis is implementing interventions to address the identified gaps. This can be done by revising the curriculum content, modifying teaching methods, providing additional resources, or offering remedial classes. The interventions should align with the identified gaps and improve learning outcomes.

Monitoring and evaluating the interventions' effectiveness and making necessary adjustments are essential. Curriculum gap analysis is an ongoing process, and reviewing and revising the curriculum regularly is essential to ensure it remains effective and relevant.

Different Types of Curriculum Gaps

When conducting a curriculum gap analysis, it is crucial to be aware of the various types of curriculum gaps that may exist:

Content gaps: These refer to deficiencies in the curriculum content, such as missing topics or skills that should be covered.

Implementation gaps: These involve shortcomings in how the curriculum is being executed, such as inadequate opportunities for learners to practice and apply their learning.

Achievement gaps: These represent disparities in student achievement, where some learners may not meet the expected standards.

Addressing Curriculum Gaps

After identifying the curriculum gaps, it is essential to implement appropriate interventions tailored to the nature of the gap:

Content gaps: Revise the curriculum to incorporate missing topics or skills, ensuring a comprehensive learning experience.

Implementation gaps: Provide more opportunities for students to practice and apply their learning, strengthening their understanding and skillset.

Achievement gaps: Offer targeted support to help learners catch up, including additional tutoring, differentiated instruction, or individualised learning plans.

Monitoring Progress and Re-evaluating Curriculum Gaps

Once interventions are in place, monitoring their effectiveness and continuously assessing the curriculum for any emerging gaps is crucial. This process includes:

Collecting and analysing data on student performance and engagement.

Identifying patterns and trends in student achievement across various demographic groups.

Adjusting interventions and strategies as needed to address persistent or new gaps.

Involving stakeholders, such as teachers, parents, and learners, in the evaluation process to gain insights and feedback.

Developing a Culture of Continuous Improvement

A successful curriculum gap analysis process requires a culture of continuous improvement, where all stakeholders are committed to ensuring the success of every learner. This culture can be fostered by:

Encouraging open communication and collaboration among teachers, administrators, and other stakeholders.

Providing professional development opportunities for educators to enhance their understanding of diverse learners' needs and effective instructional strategies.

Establishing clear expectations and accountability measures for addressing curriculum gaps.

Celebrating successes and recognising the hard work and dedication of educators and students in achieving their goals.

Curriculum gap analysis is critical for ensuring all students have equal opportunities to succeed in their educational journey. By identifying and addressing content, implementation, and achievement gaps, education providers can create a more inclusive and effective curriculum that meets the diverse needs of all learners. No matter what type of curriculum gap you are dealing with, it is crucial to take action to address it. By doing so, you can help ensure that all students have the opportunity to succeed.

• Curriculum Planning
• Instructional Design

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Gap analysis explained: what is a gap analysis + why your strategic plan needs one, gap analysis defined:.

What is a gap analysis? A gap analysis examines the key gaps in your organization’s current state – like capability , resources , or talent – that you need to overcome to achieve your desired future state.

A gap analysis is designed to help you identify what core competencies, resources, or capabilities you need to achieve your bold vision of the future.

The three core questions you need to answer as you conduct a gap analysis are:

• Where are we today ( our current state )?
• Where do we want to be in the future (our bold vision of the future )?
• What do we need to accomplish or acquire to move from our current state to our bold vision of the future?

It is an effective tool to help organizations determine what they are doing well , what they need to improve on , and what they are missing or need to invest in to achieve their desired future state.

Keep reading as we break down the various elements of a gap analysis report and outline how this tool is used in different sectors of business.

Your strategic plan is like a flight of stairs.

A gap analysis is not merely a 2-step process that focuses on where the organization is now versus where you want it to be in the future, but a fully thought-out action plan to elevate your organization.

Think of your gap analysis as a flight of stairs–the bottom level where you’re starting is your current state and your desired state is the landing of the floor above. The steps in between that lead from where you are to where you want to be are your action plan or strategy.

Without the steps in between , you’ll never reach the next level. A gap analysis helps you measure and define each step of the staircase and create a strategy that will allow you to climb to your desired future state in a steady and attainable manner. This ultimately allows business to outline clear and realistic goals that they can meet incrementally to achieve sustainable, long-term success.

When to Use a Gap Analysis

A gap analysis is best used when organizations seek to:

• Develop a strategy to achieve a vision of success.
• Implement a change management process.
• Assess organizational performance or employee skills and training.

A full gap analysis can help identify potential challenges, risks, or shortcomings when implementing organizational change. It helps organizations develop strategies to address these gaps and ensure a smoother transition during the change management and strategic planning process.

This tool identifies areas of strength and areas of improvement within an organization’s performance , skills , or overall efficiencies and allows organizations to assess the skills and competencies of their employees, and ultimately, identify gaps in knowledge or training .

This analysis helps plan targeted training and development programs to bridge the gaps and ensure employees have the necessary skills to perform their roles effectively.

Further, it can be used to evaluate existing processes and identify gaps in efficiency, effectiveness, or compliance. This allows organizations to prioritize process improvements and implement changes to close the gaps and streamline operations. It can also guide the allocation of resources and efforts towards streamlining overall performance .

Importance of gapanalysis to strategic planning.

A gap analysis is helpful during any strategic planning process to help organizations align what they currently have with what they need to achieve their long-term vision.

A gap analysis can also be used to compare one’s own organization with one’s competitors to determine what gives their competitors an edge in the industry.

3 Benefits of a gap analysis to drive performance and business improvement.

A gap analysis is important to your overall business strategy in several ways:

• Surfacing Areas of Improvement It helps organizations and businesses pinpoint which aspects of their business process or performance fall short of expectations and guides them in assessing areas of improvement .
• Resource Allocation Resource allocation is an essential aspect of strategic planning and conducting a gap analysis before moving forward with your strategic planning process ensures that you can determine the best way to utilize those resources effectively.
• A Place to Hunt for Goals A gap analysis helps organizations determine realistic goals and define what is achievable. ( This is not to say you can’t set lofty ambitions, but creating a strategy informed by your own gap analysis tools allows you to set achievable goals that bring you closer to your big, bold vision in a way that is sustainable and longer lasting.)

Areas to Assess for Your Gap Analysis

It’s not enough to just say, “ I want to earn $X amount of revenue by this timeframe” or “ We want to be the leading provider of (insert service) in our market ”.

Those are fine goals to have – but they’re too vague to be useful in a gap analysis, which calls for more defined targets. A gap analysis works best when your goals are specific .

A good starting point could be to focus on specific areas of your organization that need improvement or development. A gap analysis can ultimately be used to look at both internal and external factors or shortcomings within the organization regarding how the organization meets customer or market needs.

Borrowing from the balanced scorecard method, you can break down your areas of focus to these key areas in your organization, such as financial, customer, business processes, and organizational capacity. Here are some more specific examples:

• Skills of your staff that need improvement.
• Roles within the organization that need to be filled.
• Product gaps.
• Market gaps.
• Business processes or systems that need more efficiency.
• Technology utilization.

Examples of gap analysis areas of focus.

By looking at specific focus areas, you can see which initiatives are proving successful versus what initiatives need improvement. We’ll go more into these examples below:

Performance gap analysis

A performance gap analysis evaluates the difference between the performance level that an organization currently holds versus its desired future performance. A few practical gap analysis examples:

• Shipping and fulfillment times.
• Marketing performance data, like SEO rankings, web traffic, conversions.
• Sales conversion rates or lead conversion rates.
• Profit margins.
• Customer retention data.

Marketing gap analysis

This is a sector that assesses how well your product or company meets the needs of the market or customers, whether by services or products offered . It analyzes gaps between customer expectations versus company fulfillment. A few practical examples:

• Product expansion opportunities.
• Market expansion opportunities.
• Market segmentation.

As shown in the illustration above, here is what an example of a marketing gap analysis may look like:

Ideal Future State: Be a top 10 ranked project management software in the SaaS market for the construction, architecture, and engineering space.

Current State : We’re currently ranked in the top 25 by independent reviewers and are currently outside of page 1 rankings for keyword searches on Google.

• Action Item 1: Invest in a website overhaul emphasizing SEO-optimization to improve our brand visibility in Q1 of 2024.

Resource requirements : An outside agency to manage our SEO and develop pages to rank better. SEM to rank our site better until we earn organic rankings.

• Action Item 2 : Increase our organic brand presence by creating a content marketing strategy to feed a lead nurturing funnel from Q1 of 2024 to Q4 of 2025.

Resource Requirements : A content marketer to develop a holistic content marketing strategy and hard collateral that includes a library of blog posts, whitepapers, and webinars.

• Action Item 3: Improve our independent rating from 18 to 8 in Q4 of 2025.

Resource Requirements : 3 core new application features that are missing from our tech stack are required to break the top 10 threshold. This is a development investment of $90,000.

PR Strategy: Collecting user reviews and submitting them to commonly used software ranking sites to improve our ranking. This is a hard cost of $15,000.

Future State : Ranked in the top 10. Be a top 10 ranked project management software for the construction, architecture, and engineering space in 2026.

Skills gap analysis

This analyzes the current skillset of current employees versus the skills needed to meet the growing demands or goals of the desired future state. This may assess training needed for current employees or roles and positions that may need to be filled by new hires or outsourced companies .

• AI capabilities
• Technological capabilities
• Service delivery capabilities

Product gap analysis

This analyzes the gap between features, pricing, and overall qualities of a product or service against the customer needs and the competition in the market. It can even include product upgrades that haven’t been done by your competition, like utilizing AI features in your software products.

• Product/market fit

5 Key Components of a Gap Analysis

There are a few different approaches one can take to perform a gap analysis, but in general, it consists of these five main components:

Your organization’s current state

Once you know where you want your organization to go , you must assess the point from which you’re starting .

Evaluate your current performance in the desired focus areas by gathering data, conducting surveys, reviewing processes, and assessing the efficiency of your own current processes, systems, and resources.

Your desired future state.

Where do you want to see your organization in the next 3-5 years ?

Clearly define the goals and the level of performance you would like your organization to achieve. You can base this on your levels of achievement or on your competition and how you’d like to gain an edge over them.

A careful analysis can provide a benchmark for comparison and define the gaps that need to be filled.

Time frame to get there.

It is also helpful to set timelines for achievement. How long do you expect (or hope) to get to your future state? Set both long-term goals and short-term benchmarks to track your progress along the way.

The gap between where you are now vs. where you want to be.

Now that you’ve identified where you want to go and where you are, you can assess in which areas you’ve already met your goals and in which areas you still have work to do . Within these, you can now determine the gaps and deficiencies in your organization. It’s also a good idea to consider the underlying causes of the gaps so that you can determine how to move forward.

When identifying your gaps, analyze the root causes that create them–maybe your organization lacks the technology or human resources side, or you need to hire or outsource people skilled in a specific area.

Conduct interviews, research, polls, or employee surveys to gain insight into your employees, customers, and stakeholders.

The strategy to bridge the gap.

Now that you’ve identified the gap and the cause, you can begin to build an action plan to address it. This type of planning and strategizing can be done through various methods, but generally, you should execute these three steps:

• Set clear goals.
• Identify resources needed.
• Outline the steps that need to be taken to address the deficiencies.

Once the action plan is in place, be sure to implement regular reviews and find a way to monitor your progress. Regular monitoring and evaluation help track the effectiveness of your strategy and help you determine when to adjust it. The gap analysis process should be dynamic in order to meet the changing needs of the organization.

Tools to conduct a gap analysis.

There are different elements of a gap analysis to consider that would need various tools. Conducting a gap analysis requires efficient organization of ideas and data points using a gap analysis template . Use our free gap analysis template to begin your process. After you fill out your template, you need to have a means of measuring progress and performance indicators.

A strategic planning software is just what you need for the task! OnStrategy’s strategic planning software allows you to track progress of your goals and initiatives through OKRs, KPIs, and other methods of measurement. Assign certain people to tasks and make them the owners of tracking the performance of their assigned tasks. You can also utilize a project management software to help keep projects aligned with your overall goals.

What Is the Difference Between a Gap Analysis and a SWOT Analysis?

When discussing a gap analysis, some people may think they are exactly like a SWOT analysis . However, there are some general differences. A SWOT helps companies determine their competitive advantages by assessing both their internal strengths and weaknesses as well as external opportunities and threats.

A gap analysis , as we’ve stated, looks primarily at the deficiencies the organization has that prevents them from moving from its current state to its desired future state, and goes a step further by outlining the steps to bridge those deficiencies.

A gap analysis is primarily forward focused, while a SWOT looks at the current condition.

A gap analysis and SWOT analysis can be used together to perform a comprehensive assessment and develop effective strategies for improvement. As a SWOT identifies weaknesses in a company’s current strategy or business process, it can be used with a gap analysis to pinpoint the gaps and areas of improvement.

Strategic vs. short-term gap analysis.

Strategic and dynamic gap analyses differ in a few ways:

Purpose and scope

A strategic gap assesses the needs and requirements for an organization to achieve its vision and long-term goals.

In contrast, a short-term, or “dynamic gap analysis” examines an organization’s dynamic aspects and aims to improve efficiency , effectiveness , and agility in response to changing circumstances – How must you change the short term to meet your efficiency, effectiveness, and agility targets?

Timeframe and frequency of analysis

A strategic analysis typically considers long-term or future-oriented gaps. It examines the gaps between its current state and its desired state over an extended period, often involving strategic planning cycles. Due to its long-term focus, a strategic gap analysis is typically conducted periodically, such as annually or during strategic planning cycles.

A dynamic analysis, on the other hand, considers shorter-term gaps. It focuses on identifying immediate or near-term gaps to improve specific processes or systems within a relatively shorter timeframe. Dynamic analysis is often performed more frequently and on an ongoing basis.

Level of detail

A strategic analysis often takes a broader perspective, encompassing the overall organization and its strategic objectives. It provides a high-level view of the gaps that need to be addressed to align the organization with its strategic goals.

A dynamic analysis tends to be more detailed and specific. It may involve examining specific processes, functions, or systems within the organization, dissecting them to identify gaps, and proposing targeted improvements.

Conducting a gap analysis is an essential step in developing and executing a strategic plan. It helps you understand where your organization currently stands, identify areas of improvement, and bridge the gap between your current state and future goals. By conducting a thorough analysis and evaluation of your business needs, market trends, and skills, you can make informed decisions and implement effective changes to propel your strategic plan forward.

A gap analysis can be an effective tool to help your team realistically assess the deficiencies in your organization that are currently interfering with your ability to reach your future goals. It helps you create a clear, actionable strategy with attainable steps to bridging the gaps in your organization.

Read the next article, Gap Analysis Template to Elevate Your Strategic Plan for instructions and examples to assist you with your own gap analysis.

Gap analysis is a powerful tool to drive your strategic plan forward. By comparing your current state with future objectives, it identifies performance gaps and areas for improvement. This data-driven process guides strategic planning, informs decision-making, and facilitates goal setting for successful initiatives.

To successfully conduct a thorough analysis, you need to use a gap analysis template to organize your initiatives, create action items, and determine key areas of focus. After your template is complete, you need a reliable means of measuring progress, performance, and completion of initiatives. We recommend a strategic planning software tool that allows you to track OKRs, performance indicators, and your goals.

The five elements that make up a gap analysis include the current state, future state, time frame to completion, gaps to bridge, and strategy/action plan.

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Getting back on top of things

Learning Ladders Blog Getting back on top of things

What is a Gap Analysis in education?

It’s a big question: how can teachers plan lessons that meet the different experiences, contexts and gaps in learning that exist for all pupils?

We reflect on the tools available at Learning Ladders to support teachers in identifying gaps – before they become a barrier to learning. 

A Gap Analysis is an important part of any School Improvement Plan, that allows teachers to drill down into their data at an objective level for every pupil in every subject. 

But where does the information come from? Does it involve more work?

Milestones pull through into the report ✓  

Patterns in data are easily identified with the use of familiar settings of colour codes, numbers and descriptors ✓ 

Assessments pulled through for every subject ✓ 

Gaps in prior rung years clear to plan for potential misconceptions and solid foundations ✓ 

Filtering by KPIs provides insight into milestones met for these key objectives ✓

How can Gap Analysis improve learning outcomes?

The Curriculum Lab, accessed from within Gap Analysis, surfaces high-quality resources from our partners (including the BBC and Oak Academy), saving teachers time and engaging pupils in learning. It proves most valuable in planning for specific and measurable interventions. Pupils receive targeted support by informed practitioners using the insight gained.

Moreover, exporting this data creates a springboard for dialogue in pupil progress meetings; addressing CPD needs, resourcing, or further provision to begin to close the gap.

In short this blog may serve as a refresher of the benefits of using Gap Analysis or as a discovery of new ways that Learning Ladders can support teachers.  Above all, Learning Ladders will be here to help reduce teacher workload, producing meaningful reports to ensure progress for all children, whatever 2021 might bring… 

For more information about how to use the Gap Analysis Tool, read our help articles here .

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The Complete Guide to Gap Analysis

By Joe Weller | October 17, 2018 (updated September 17, 2023)

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A gap analysis is a tool that can help businesses identify where they aren’t living up to their potential, and then use that information to plan ways for improvement. Learn how gap analyses work, find examples, and follow our step-by-step guide to perform one for your company.

What Can a Gap Analysis Do for You?

A gap analysis measures actual against expected results to identify suboptimal or missing strategies, processes, technologies, or skills. Use the results of a gap analysis to recommend actions that your company should take to meet its goals.

By comparing the current state with the target state, companies, business units, or teams can determine what they need to work on to make their performance or results better and get on the right path quicker. Companies can also use the gap analysis process to elevate individual or team performance, and look at attributes such as task competency, performance level, and productivity. Other names for the process include need-gap analysis, needs analysis, and needs assessment.

As opposed to a risk assessment , which tend to be forward-looking, a gap analysis examines the current state. ANSI (American National Standards Institute), ASIS (American Society for Industrial Security), and RIMS (Risk and Insurance Management Society) standards say that risk assessment includes the identification, analysis, and evaluation of uncertainties to objectives and outcomes of an organization.

You can also look at a gap analysis as a means of comparing performance to potential. In other words, how far did a person, group, or product fall from their capacity? Did the resources fall short of the needs?

Gap analysis is a process that, when applied to other business processes, becomes a reporting process used for improvement. When applied to manufacturing or production, a gap analysis can help balance the allotment and integration of resources from their current allocation level closer to an optimal level. Those resources can be time, money, material or human resources.

Concrete vs. Conceptual

You can perform a concrete gap analysis thats looks at the real world, or a conceptual one that examines hypothetical scenarios. While you can use the same template in both exercises, when performing a conceptual gap analysis, you’ll need to make assumptions about which parameters to use. Conversely, use real facts and data for a concrete analysis.

Strategic vs. Operational

A gap analysis can be strategic and focus on the overall organization and the planning and execution at that level, or it can be operational and focus on the day-to-day work of a team or department. Since both methods are based on real-world situations, there’s no need to make assumptions.

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Gap Analysis Examples

Many business departments use the gap analysis process, including accounting, sales, customer service, and human resources. Below you’ll find a few specific examples of scenarios in which a company can use a gap analysis:

New Product Launch : After a company launches a new product, they might do a gap analysis to determine why sales didn’t meet forecasts.

Productivity : When a factory’s productivity is not meeting expectations, targeted customer needs, or the set of business requirements that were laid out a gap analysis can help determine what process to fix.

Supply Management : If a hospital finds itself running short of supplies on a regular basis, they could perform a gap analysis to identify the reason why.

Sales Performance : A manufacturer can look at the sales performance of their catalog of products to make sure they are producing the right mix, and use the result to maximize their production–possibility frontier.

Individual Assessment : A team leader at an accounting firm can have each member perform a gap analysis on themselves, and use those results not only to find targets to improve each person’s performance, but also to draw out the best practices that everyone can adopt.

Product Evaluation : A software company might perform a gap analysis of their product to ensure that all features and functions outlined in the business requirements are present and working as expected.

Why Do Businesses Perform a Gap Analysis?

Businesses perform gap analyses to identify the difference between where they are with where they want to be. You can use a gap analysis to evaluate those differences, identify the causes, and inform the steps needed to bridge the gap.

In project management, the difference between the way a company is performing a task or activity and the ideal way it could be performed is called CΔV (pronounced “C delta-V”), or the current gap vision . The difference between a target for a metric and the actual metric performance is called AΔT (pronounced “A delta-T”), or the actual gap target .

Below are some reasons that a company might perform a gap analysis:

Benchmarking : Comparing results against external criteria. A computer company may want to see where they stand against industry performance criteria, or a candy company may want to compare their reputation with their competitors.

Portfolio Analysis : Examining their product portfolio to look for new sales opportunities, a company can use a gap analysis to identify new products to sell. In the opposite direction, they can also look for existing products that are not selling well, use a gap analysis to find out why, then promote them (e.g. feature them more promentilty in marketing or put them on sale), change them to better meet customer needs, or remove them from their portfolio.

Profits : If a forecast profit percentage isn’t reached, a company can use a gap analysis to determine what went wrong, and whether it was in planning or execution. Was the organization paying higher-than-expected expenses for materials, or having to lower prices due to unexpected competition?

Processes : A gap analysis can help reveal the shortcomings of processes, so that the real outcomes match the expected outcomes. A shipping firm could examine their AP process to see why so many of their vendors are not getting paid on time, or examine their billing processes to see why many of their suppliers don’t get their invoices until after the due date.

Performance Indicators : A gap analysis can also be applied to key performance indicators like new customer acquisition, average order amount, or return on investment (ROI) . A mobile carrier could look for the reasons that caused them to miss their customer acquisition goal, or a seafood company could seek the reasons they didn’t process as much salmon as expected.

Usage Gaps : A usage gap is the difference between current market size for a product or service, and the potential market size. A gap analysis in this area can help an organization see why they are not reaching the full potential. Is a company's reputation pushing down sales? Or did management misread the demand for a product?

What Is a Market Gap Analysis?

A market gap analysis is a method of researching sales opportunities where the demand outweighs the supply. An organization can use these analyses, which can be performed internally or externally, to make decisions based on market facts, rather than opinion.

A market gap analysis differs from market research in that it’s proactive rather than reactive. Business to consumer (B2C) companies take advantage of this process often. The market they might investigate can be geographic (there’s nobody selling anything like our product on the west coast), product based (there was a time when no one was selling mobile phone cases that doubled as wallets), service based (there may a lot of dogs in a city, but not many dog walkers or other pet care businesses), or look for a way to better utilize existing resources (think of Uber launching Uber Eats).

What Is a Strategic Gap Analysis?

A strategic gap analysis compares a company’s strategy to that of its competitors. A business can then adopt the top-performing aspects of its competitors’ approaches and integrate these aspects within the most successful parts of its own existing strategy.

When to Perform a Gap Analysis

A company can perform a gap analysis at any time, but be thoughtful about timing to maximize its effectiveness. Conduct gap analyses on a regular basis, before a period of strategic planning, or whenever a department or venture is underperforming.

A gap analysis is often a key part of strategic planning , which is a process that helps an organization define a strategy to accomplish its goals. By looking for issues via a gap analysis, the business can adjust its strategy to better fit the situation, or update the company's processes to align with the strategy.

When an organization is looking for problems with their performance, a gap analysis can be a key tool in identifying where things are falling short. For example, if a company wants to start a marketing campaign to improve their reputation or apply for a loan, they could perform a market gap analysis to help determine their impact on the their local economy and use that data as part of their campaign or loan application. Similarly, when a company is preparing for an audit or other oversight activities, a gap analysis is a proactive way of showing the auditors which regulations the company is complying with, and that it has a plan to meet the rest.

Benefits and Challenges of a Gap Analysis

Gap analyses benefit organizations in many ways, such as identifying growth opportunities and prioritizing resources. They can also be difficult and time consuming, and require in-depth knowledge of the department they’re targeting. We’ve outlined the top benefits and challenges below:

Insight into areas that need improvement, such as efficiency, products, profitability, processes, customer satisfaction, performance, participation, and competitive advantage

Ensuring that project requirements have been met

Finding areas of weakness and shortcomings to address

Uncovering differences in perception vs. reality

Providing information to guide decision makers, which can lead to better decisions

Finding the best places to deploy resources and focus energy

Prioritization of needs

If performed well, the results of a gap analysis are clear and easy to understand

While valuable, gap analyses are not perfect. Some challenges related to the gap analysis process include the following:

Successful completion depends on knowledge and persistence of the people involved in the process.

While the process may expose some causes, if it doesn't go deep enough, the proposed resolutions will not address the real root cause or can miss the complexities behind them. For example, when evaluating sales performance, an analysis might conclude that sales reps are not offering a new product enough, but may not find out why. Are they not familiar enough with the product? Are customers unwilling to change from an exsisiitng product? Or does the new product not work as advertised?

The analysis can be inaccurate, as the ground is constantly shifting (especially in large organizations or in fast-moving industries)

How to Perform a Gap Analysis

Performing a gap analysis is straightforward. First, identify the area to evaluate and state its ideal outcome. Next, analyze its current state. Compare that with the ideal results, and quantify the difference. Finally, make a plan to bridge the gap.

In larger organizations, the gap analysis process is generally the responsibility of business analysts, project managers, process improvement teams, or management. But with a little training, and a well-designed gap analysis template , anyone can work through the process.

Some organizations may already have a process outlined that you can follow. However, the basic steps for performing a gap analysis are explained below.

Identify the area to be analyzed and identify the goals to be accomplished . For example, you may want to figure out why your factory is not meeting its output target. The goal will be to discover the causes that contributed to targets not being met, and recommend how to remove the causes.

Establish the ideal future state . If everything worked according to plan, where would you be?

Analyze the current state . What causes contributed to the targets being missed? For example, were the workers not trained well enough? Was the production floor short-staffed? Were required materials consistnelty available? Did the layout of the production floor slow things down?

Compare the current state with the ideal state . How far from the target was actual production? For example, did you expect to produce 1,000 units per hour, but only managed to produce 800 units per hour?

Describe the gap and quantify the difference . In the unit production example (described in step 4), there would be a 20 percent shortfall. After researching the potential causes, outline the contribution of each to the gap. In this example, we may find that insufficient training caused 5 percent of the gap, staffing problems caused 7 percent, material shortages caused 2 percent, and inefficient layout of the factory floor caused 14 percent. Companies can use other ratings systems to quantify the difference that can be as basic as simple terminology like good, fair, and poor, to something more detailed like a 1-50 scale.

Summarize the recommendations and create plan to bridge the gaps . Decide what needs to be changed and determine what steps need to be taken to fix things. In this example, the team performing the analysis may decide the layout issue is the easiest to tackle and will have the greatest impact, so they might recommend ways to address it. Then they could work with the supply chain and staffing teams to create recommendations for those issues as well. They would summarize their ideas and present it to management to begin planning the improvements.

Gap Analysis Best Practices

When performing a gap analysis, be thoughtful about which areas, items, and processes to analyze, and which recommendations to adopt. Understand that the changes you make may affect others. Ensure your goals are specific, measurable, achievable, relevant, and time-bound (SMART).

Back up your recommendations with supporting data from your analysis to increase the likelihood that your company will adopt them. Use charts to illustrate your data and make it easier to understand. It’s also imperative to consider cost, resources, and consequences when recommending problems to address and solutions. Remember, if a solution is out of reach, the company is unlikely to adopt it.

Assign an owner to each part of the process to ensure that you complete each step. By digging deep into the proposed solution, you’ll find it might not be easy to achieve. Look beyond the obvious to see if there are other possible solutions. 

Learn more about how creating SMART goals can ensure that your gap analysis is as effective as possible.

Frameworks for Gap Analysis

You can use a framework for your gap analysis, like the Nadler-Tushman Model and the PESTEL framework, to simplify the process. Use each framework listed below as an organizing principle for both the causes you discover and your proposed solutions.

McKinsey 7Ss Framework The McKinsey framework has seven categories: strategy, structure, systems, shared values, skills, style, and staff. The first three are considered “hard” and the rest are considered “soft.”

An example of a misalignment might be if a production line requires 20 people to operate at full capacity, but the graveyard shift only has 15 people available. In this case, there's a misalignment between systems and staff.

Nadler-Tushman Congruence Framework This model breaks a company's’ performance into four areas: work, people, structure, and culture. Note each area’s strengths and weaknesses, and then compare them to the other areas. The goal is to find out if the work being done in each area supports the others. For example, if a compliance group is performing their tasks at a high level and finds areas where the company is not following certain laws and regulations, but the company’s organization doesn't have any way to implement these changes, the people and structure are not congruent.

SWOT Framework SWOT is an acronym that stands for strengths, weaknesses, opportunities, and threats. While some experts see gap analysis and SWOT analysis as separate tools, SWOT is a useful tool for organizing both the the causes and the recommendations. However, the threat portion veers into risk assessment, and as mentioned previously, a gap analysis is not a risk assessment.

Download a free SWOT analysis template to get started with this framework.

PESTEL Framework PESTEL is another acronym and stands for political, economic, social, technological, environmental, and legal. While it can be a standalone analysis, a company can also use it as a gap analysis framework.

Fishbone Framework The fishbone diagram is a tool created by Kaoru Ishikawa, a Japanese quality control expert. The method is designed to identify problem causes and divide them into categories, similar to the other frameworks above. While the image above illustrates six categories that are used in manufacturing, there are other sets of categories that other business areas use. A couple of these are outlined below.

The 8 Ps of Product Marketing

Physical evidence

Performance

The 4 Ss of Service

Surroundings

What Is a Gap Analysis for a Bank?

In the banking sector, a gap analysis evaluates risk by looking at the balance of assets and liabilities. The analysis determines if there is a negative gap (when liabilities exceed assets) or a positive gap (when assets exceed liabilities).

The banking gap analysis doesn’t take potential interest rate changes into account, and generally focuses on near-future time periods (one month out, three months out), so it is a limited tool.

What Is a Gap Analysis in the Pharmaceutical Industry?

A gap analysis (also known as validation gap analysis ) in the pharmaceutical industry looks at the difference between regulatory requirements affecting a company, and the practices and processes that a company currently uses.

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Learning Gap

Closely related to achievement gap and opportunity gap , a learning gap is the difference between what a student has learned—i.e., the academic progress he or she has made—and what the student was expected to learn at a certain point in his or her education, such as a particular age or grade level. A learning gap can be relatively minor—the failure to acquire a specific skill or meet a particular learning standard , for example—or it can be significant and educationally consequential, as in the case of students who have missed large amounts of schooling (for a more detailed discussion, see learning loss ).

Generally speaking, learning gap refers to the relative performance of individual students—i.e., the disparity between what a student has actually learned and what he or she was expected to learn at a particular age or grade level. Achievement gap refers to outputs—the unequal or inequitable distribution of educational results and benefits—while opportunity gap refers to inputs—the unequal or inequitable distribution of resources and opportunities.

One of the more consequential features of learning gaps is their tendency, if left unaddressed, to compound over time and become more severe and pronounced, which can increase the chances that a student will struggle academically and socially or drop out of school. In addition, if foundational academic skills—such as reading, writing, and math, as well as social and interpersonal skills—are not acquired by students early on in their education, it may be more difficult for them to learn these foundational skills later on. As students progress through their education, remediating learning gaps tends can become more difficult because students may have fallen well behind their peers, or because middle school or high school teachers may not have specialized training or expertise in teaching foundational academic skills. For these and other reasons, many educators, school reformers, researchers, and policy makers have called for greater investments in early childhood education, including universal access to prekindergarten programs.

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What is gap analysis? 4 steps and examples to use

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What Is a gap analysis?

A gap analysis process helps organizations determine how to achieve their business goals. It compares the current state with an ideal state, which highlights shortcomings and opportunities for improvement.

How do you know what to trim, fix, expand, or change to get your business to the next level? You do a gap analysis.

You might have lots of guesses about what’s going on, and your team might have different opinions on how to meet your objectives. Rather than groping around in the dark, a gap analysis leads you through a detailed examination of where your organization is currently and where you want to be so you can act on facts, not assumptions, to reach your potential. 

If you’re wondering how to do a gap analysis, follow these four simple steps. Regardless of your industry, you’ll be able to apply these tips across any discipline and meet your business goals.

1. Analyze your current state

For example, your company wants to become the most loved in your industry, but your customer support team reports that many calls and customer interactions end with customers feeling frustrated. 

Is your product the problem or does your support team need more training on handling difficult calls? You won’t know until you dig in, which will mean talking to the people involved, gathering data, and scrutinizing your KPIs. To make sense of this information and visualize your current state, use a gap analysis tool––a customer journey map, empathy map, service blueprint, or process flow. 

If you wanted to find out what causes customer frustration, you might gather quantitative information, like your company’s NPS score or the number of negative calls handled each week. You might also look at qualitative information, like customer comments or feedback from your support reps on the current call process.

Even if you’re looking to analyze a more strategic area of your business, the process remains the same. A sales team with the same company vision––becoming the best-loved company in the industry––might examine the sales reps’ product pitch as well as sales growth, targets, and conversion rates. 

What’s most important at this stage is understanding the root of the problem, which is much easier to see once you’ve laid out all the contributing factors. In fact, your gap analysis process should evaluate everything you currently do so you get the “big picture.” 

Study and visualize your current state to increase your efficiency and performance.

2. Identify the ideal future state

Once you have the big picture figured out and understand how your team or organization currently functions, you need to become idealistic. Where would you like to be? What’s not happening that should be? Don’t worry yet about how you’ll get there; that’s the next step. Right now, the sky’s the limit, and you should dream big.

Maybe you have an exceptional marketing team that outsources all its content, but after performing a content audit, you realize that your brand is no longer cohesive because it’s handled by a disparate group of freelancers. Your dream could be to regain control of the content creation process in order to reclaim your brand identity. 

Another example might be of a warehouse needing to meet certain safety regulations, but the production and human resource managers decide that they want to do more than meet them. Their ideal would be to exceed what’s mandated so they can attract and retain more talented and dedicated workers.

In both scenarios, current performance clearly falls short or needs to be changed. But instead of charging blindly ahead or slapping a Band-Aid on the situation, picturing the ideal helps you reach a higher potential. A good gap analysis tool here would be a brainstorming board or a mind map to really capitalize on your team’s creativity.

But how do you really get to the ideal? That’s where the hard work comes in.

3. Find the gap and evaluate solutions

Completing the first two steps in isolation won’t get you great results––the status quo can seem inescapable, and goals can feel lofty and unattainable. Putting them together, however, exposes what’s missing between your performance and your potential. You also need to decide which solutions will most effectively bridge the gap.

Returning to our example in step 2 involving a marketing team, a gap analysis would bring up the following question: How do we go from a muddled brand voice to one that’s unified and under our control? 

Several solutions for bridging this gap present themselves, though not all are created equal:

• You could bring content creation back in-house by hiring more full-time writers, which would be more expensive than using freelancers.
• You could reevaluate all of your freelancers to determine which ones are worth keeping and which are falling short of your standards. This option would require some time and might result in not having enough freelancers to handle your needs.
• You could tighten your brand creation guidelines and retrain your freelancers. This option would also require time and doesn’t necessarily guarantee an improvement in the content created by your freelancers.

If guaranteed control matters most, then the first solution is best. On the other hand, if cost tops the list, then the first solution will be out, and your team might choose the second or third solution. A helpful gap analysis tool would be a decision tree as it calculates costs and benefits based on conditional probability.

In the end, how you bridge the gap will depend on your organizational and team priorities. Work together to find what works best. 

4. Create and implement a plan to bridge the gap

After you’ve charted out the possible ways to bridge the gap and decided which would be best, you likely still need to convince others in your organization of that as well. The changes that you’ll implement may also affect other teams and departments, so it’s important to come up with a plan. 

Establish a clear strategy and actionable objectives to help you get everyone on board. 

For example, when presenting to management or executives, have a timeline or schedule for rolling out the planned changes. You could also create a more comprehensive action plan that assigns specific tasks to teams or individuals. 

Keep reading about organizational change management , or use the tools described below to help you during this gap analysis process.

Gap analysis tools

Many tools exist to help you bridge the gap. Whichever tool you choose, visualize and document each step of your gap analysis to keep your organization moving forward.

SWOT analysis

SWOT analysis is perhaps one of the oldest textbook-marketing assets. SWOT stands for strengths, weaknesses, opportunities, and threats. You can perform a SWOT analysis both quantitatively and qualitatively. This process will help you determine internal and external threats to your organization and see where and how you stand out against the competition. Try our SWOT analysis template or competive analysis template to help you organize your research.

Fishbone diagram

Named for their distinctive shape, fishbone diagrams (also known as Ishikawa, cause-and-effect, or herringbone diagrams) explore the possible causes of a root problem. This type of diagram would be especially valuable when examining your current situation.

The most commonly used categories for investigation are: 

• Measurements
• Environment

You can choose any categories that make sense for the central problem or effect you’re examining, as shown in the example below.

McKinsey 7S framework

The McKinsey 7S framework was developed by its eponymous consulting firm. It helps determine whether a company is meeting expectations. It works through seven aspects of an organization to see what values cross over. Additionally, this framework bridges the gap between the company’s present and desired states.

Nadler-Tushman Model

Perhaps the most dynamic of the models, the Nadler-Tushman model examines how each business process affects another and identifies which gaps affect efficiency. It creates a holistic view of your organization’s operational processes from beginning (input) to end (output).

The model finds gaps by dividing your organization's processes into three groups:

• Input: Entire company culture and workforce, all resources used to create product/service, and operational environment
• Transformation: The systems, teams, and processes that take the input value(s) and turn them into the output product
• Output: The final product or service

PEST analysis

Similar to SWOT, PEST analysis helps you identify threats and opportunities by examining the four primary external factors of your business environment: 

• Sociological
• Technological

This approach eliminates gaps by pinpointing current issues, highlighting opportunities for change, and minimizing risks in the market.

If you want to do a more in-depth analysis of your market environment, try a PESTLE analysis instead, as it adds legal and environmental factors to the PEST analysis.

The gap analysis process is essential for any business to streamline their operations for efficiency and cost-effectiveness. 

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What is a gap analysis, and how can you use it to get closer to your goals?

Last updated

14 May 2023

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Organizations use gap analysis to analyze their performance and determine whether they’re meeting business objectives and using resources effectively. 

Gap analysis can aid management in creating an action plan that can assist the organization in figuring out how to fill in these performance gaps and improve business operations. 

While the process may appear complicated, it’s not as complex as it seems. When organizations do a gap analysis properly, they can move closer to their goals. 

• What are the types of gap analysis?

Regarding gap analysis, the "gap" refers to the space between a company's actual and desired outcomes. However, you can identify different types of gaps with a gap analysis.

Some of the more critical gaps include the following: 

A performance gap is also called a strategy gap, referring to the space between actual and desired performance.  

A profit gap is the difference between targeted profit and actual profit.  

A manpower gap is the difference between the exact number of personnel and the required personnel to complete a project. It can also mean the difference between the actual and desired workforce performance.  

• When to use a gap analysis?

While companies can use a gap analysis to study numerous business areas, the aim is to understand performance gaps. 

This ensures organizations create effective strategies to reduce gaps and achieve their goals.  

Organizations perform gap analysis at these levels:

The strategic level to compare the current output or condition of the business with industry standards

The operational level to compare the current state of the business' performance with goals and projections

• Gap analysis tools

Once you identify the gaps in your business, learn why they exist and how to fix them. 

Some gap analysis models you can use to complete this task include:

SWOT analysis

SWOT stands for strengths, weaknesses, opportunities, and threats. 

This analysis allows companies to identify their internal strengths and weaknesses and external opportunities and threats. This ultimately enables entities to understand their situation and determine where they stand within the industry. 

The analysis can also help companies come up with plans and decision-making strategies. 

Fishbone diagram

The fishbone diagram, also called a cause-and-effect diagram (Ishikawa diagram), helps companies identify many possible causes for a problem or effect.

Companies can use it to structure team meetings to discuss how to solve these issues. This type of diagram is useful when examining an organization's current situation. 

Common categories that investigate an entity's current situation include:

Environment

Measurements

McKinsey 7S Framework

The McKinsey 7S Framework helps entities:

Better understand the gaps that may appear

Figure out areas they need to optimize to boost business performance

Determine how to align processes and departments during an acquisition or merger

Examine the results of future changes within an organization

The sevens in this process refer to two groups of essential interrelated parts of an organization: Hard and soft elements. 

The hard elements are tangible and controllable. It includes things like strategy, organizational structure, and daily task systems. 

In comparison, softer elements are intangible, uncontrollable elements. They include things like staffing, employee skills, company leadership style, and shared organizational values. 

Nadler-Tushman Congruence Model

This model identifies gaps based on the principle that an entity's performance results from four elements: 

Business culture 

Higher compatibility between these elements equals greater performance. 

The PEST analysis

PEST stands for political, economic, social, and technological. 

This analysis measures external factors that could impact a company's profitability. Typically, it’s more effective with larger businesses that are more likely to experience the effect of macro events. Businesses commonly use it together with SWOT analysis. 

• How to conduct a gap analysis

The following steps can help you perform a gap analysis and figure out how to meet your business goals:

Analyze your current state

Before you can devise a plan to reach your goals, you must choose an area of your business to focus on. Find out what your company's current state is in this area. This can help you understand where to apply a gap analysis model and what you want from it.  

For instance, if you want to enhance the efficiency of your current operations, a performance gap analysis may help. 

On the other hand, if you want to analyze staffing levels, a manpower gap analysis can provide detailed insight.

Identify the ideal future state

Next, determine the company's goals and how its future will look. To accomplish this, you’ll have to consider the company’s current state and where you want it to be within a reasonable timeframe. 

Ultimately, your goal should be an improvement over the current state, and it should be measurable so you’ll know when you reach it. 

One way to determine your ideal future state is to look at industry standards. From the track record of other companies, you’ll know this goal is possible once you’ve addressed business problems. 

Another method is to look at your company's historical data. For example, if your sales have been growing over 10% each year but suddenly drop, your goal may be to return these sales to 10%. 

Find the gap and evaluate solutions

When you define your current and desired states, you need to compare them to calculate the gap you’re trying to close. If a gap is small, you may only need minor tweaks to fix operations, or you may determine that significant operational changes are necessary. 

Regardless, this step will help you figure out the hurdles to overcome, the extent of these challenges, and how much time you need to complete these changes. 

Create and implement a plan to bridge the gap

Once you uncover why the gap exists, it’s time to determine the course of action to close it. Since you clarified the hurdles to overcome, you can prepare solutions for these issues. 

Some critical gap analysis tools that can turn your findings into actions include the SWOT analysis and fishbone diagram. 

The SWOT analysis can help you organize the problem areas and the recommendations you obtained to fix these issues.

The fishbone diagram allows you to map the root cause of each problem and develop solutions. 

• Benefits of gap analysis

A gap analysis can help companies in several ways, including allowing them to review current strategies and determine what is working and what’s still needed to achieve their objectives. 

Common benefits of this analysis include:

Identify weak points:  If your company is not performing as expected, a gap analysis can help your organization discover the root cause of the performance gaps.

Measure current resources : If an organization has a surplus of resources, a gap analysis can determine how to allocate resources to use them more efficiently.

Figure out potential plans : When organizations create a gap analysis, they can create possible action plans for their goals.

• Example of gap analysis

Gap analysis is a great tool if you’re looking for ways to improve your business. Here are some real-life examples of when companies perform gap analysis: 

Project management

When planning projects or reviewing different stages of project management, you can use gap analysis to uncover lagging areas. This can help you allocate resources effectively. 

Human resources

A gap analysis can help you with the hiring process if you're in human resources. It can reveal what’s lacking within your team, allowing you to figure out what you need in a new candidate. 

Product launches

Following a product launch , you can use a gap analysis to learn why sales didn’t meet company expectations.  

Customer satisfaction

To improve customer satisfaction , you can use a gap analysis to determine why there’s dissatisfaction and develop ways to serve customers better. 

Employee performance

As a team leader, you can perform a gap analysis to improve employee performance. The results can help you determine business best practices to boost workforce performance.

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How to Conduct a Gap Analysis: Definition, Steps & Example

Table of Contents

What is gap analysis, how to conduct a gap analysis in 4 steps, gap analysis template, gap analysis example, types of gap analysis, gap analysis tools.

Plan all you want. But once that project or business plan is being executed, you’ll need a gap analysis to assess whether you’re meeting the requirements or you could be in trouble. As its name suggests, the gap analysis is a method to look at where you are and where you want to be. Between those two points is the gap you have to close. A gap analysis can be used in projects or for an organization to meet its targets.

It’s important to analyze whether your progress is at a pace to meet your objective or if you need to make adjustments to bridge that performance gap. Let’s learn more about how gap analysis can help your business.

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Use this free Gap Analysis Template for Excel to manage your projects better.

Gap analysis is a formal study of how a business or project is currently progressing and where it plans to go in the future. There are various perspectives that can be analyzed, from business direction to business processes, from information technology to product management.

When talking about management, gap analysis is a means to compare a current state with a future state in terms of performance. Factors that impact performance include resource planning , capital investment, technology, etc. What a gap analysis does is identify the gaps between the optimized allocation and integration of resources to the current allocation level.

It’s by doing such measurements that a pathway towards improvements can be cleared. To do this involves determining, documenting and improving the difference between requirements and capabilities at the current time. Real-time data is going to improve how you understand the progress of your project.

ProjectManager is cloud-based work and project management software that helps with gap analysis by using live project data. Our real-time dashboard requires no setup and automatically collects live data, crunches the numbers and displays six project metrics in colorful graphs and charts. Get started with your gap analysis today for free with ProjectManager.

When you’re doing a gap analysis, you’re really asking yourself a few questions: Where are we now, where do we wish we were and how are we going to get there? So, it’s not merely a picture but a roadmap to improve production.

There are four basic steps that you take when conducting a gap analysis. They can be boiled down to the following.

1. Identify Current State

The first step is knowing where you are at the present time. So, be clear as to what is being described and what is not. This will avoid scope creep and keep your analysis focused. Then comes collecting contextual information. That means collecting qualitative information, such as what are your team processes and methodologies.

Also, quantitative information is important, meaning anything that can be counted and measured. That includes everything you’re currently doing. Yes, it’s a lot of data to gather, but the more you gather, the sharper the picture of your current state.

2. Identity Where You Want to Go

The point of a gap analysis is to figure out where you want to go and if you’re getting there. This is the desired state, future target or stretch goal. To get there you need to know about your current state and what a reasonable timeframe is to get from there to the goal you’ve set for yourself.

But first, you must mark that point in the future that you’re aiming for. Think about where that should be, what’s not happening that needs to happen, what could be happening that hasn’t before or has changed, and what needs to happen to get there.

3. Identify the Gaps 

You know where you are and where you want to go, the space between those two marks is the gap you must bridge to reach your target. This is when you want to figure out why there is a gap. To do that you need to be very specific about the gap. Also, dig deeper and determine why the gap happened. Ask yourself questions that are applicable to your business and answer them honestly.

4. Bridge the Gap

You’ve done the due diligence, and now it’s time to act. You know why there’s a gap, so you must now devise a way to close it. To do this, you can follow the guidelines of basing all improvements on the information you discovered when you identified the gap. Also, consider the cost of implementation for each solution that you come up with; you might not have the capital or capacity to achieve it. Finally, figure out the date at which the gap will be closed. If you don’t have a deadline, it will get overlooked or ignored.

After doing all the work, don’t neglect the follow-through. That is, follow up on the improvements you’re making by doing a gap analysis. If you don’t, then you’re doomed to repeat them. Also, it’s important not to try and close too many gaps at once. If you put too much stress on any organization, it’s going to break.

Manage the process with our free gap analysis template for Excel . It will help you meet the business targets that have been set for your project and streamline that process. You can add the current item stage and the future item state. Then use our dropdown menu to note the gap percentage. There are even action steps, assignments and statuses. But other templates fill out those steps.

Let’s examine gap analysis by creating a hypothetical gap analysis example. For instance, let’s say Company X has developed Widget and has gone to market and it wants to do a gap analysis on the deviations from its sales objects of this new product launch and make the required improvements.

• First, they have to gather market data and do customer surveys to discern what the problem is that prevents Company X from selling the number of Widgets they forecasted.
• Next, comes the analysis of that data and the current state of the sales problems.
• From there, Company X will figure out the future state it hopes to reach in terms of Widget sales.
• With these two points mapped out, Company X can now calculate the gap percentage.
• This information will drive the action steps necessary for the company to achieve its target, which might include adding to its sales force, further investment in marketing or even changes to the product.
• Once the action plan is set up, Company X will implement and monitor its progress as it bridges the identified gap.

What gap analysis is doing is providing a way to measure the investment in time, money and human resources that are needed to achieve an outcome. There are a number of different gaps and outcomes that gap analysis can target.

• Gap analysis can be used to classify how well a product meets its targeted need.
• Gap analysis can also help identify gaps in the market. It can compare the forecast profits to the desired profits and reveal a planning gap.
• Gap analysis can be used to analyze a usage gap. The usage gap is the gap between the total potential for the market and the actual use at the present time. This includes data, such as market use and existing use. Existing use measures the consumer use for the full market. It comes from doing in-depth marketing research, and sometimes data from government or industry studies.
• Gap analysis can also target a product gap. The product gap is the part of a market that excludes you, for whatever reason. This exclusion can occur because the product that you offer lacks certain features that are required by a customer base, or maybe certain customers just don’t align with your company’s mission statement or general policy.

There are gap analysis tools that can help a project manager identify the gap between the current state of the project and its future goals and objectives. These tools will also help to make clear the required tasks that are necessary to close that gap.

One such tool is a SWOT analysis , which is an acronym for strengths, weaknesses, opportunities and threats. By using a SWOT analysis both quantitatively and qualitatively, you can determine internal and external threats to the project.

Fishbone Diagram

Another tool is the fishbone diagram , which is also called a cause and effect diagram. It is a way to visualize and categorize the potential causes of a problem. Then you can go about identifying its root causes. It’s a helpful tool when brainstorming to keep the conversation focused.

McKinsey 7-S Framework

The McKinsey 7-S Framework can be used to improve performance, examine effects of future change, align departments and processes and determine how best to implement a proposed strategy. It can be applied to teams or a project by looking at the seven interdependent factors of the tool.

PEST Analysis

One more tool is the PEST analysis , which is another acronym that stands for political, economic, social and technological. This allows one to make a framework of macro-environmental factors for the purpose of designing effective environmental strategies, which would apply to projects that are applicable.

More Free Templates For Better Gap Analysis

Gap analysis requires collecting and analyzing data. But that’s only the start. Next, you have to create a plan in order to act on what you’ve learned and then monitor the progress of that plan to make sure you’re meeting your milestones. Project management software can do all this and more but if you’re not ready to take that leap then you can use these free templates for gap analysis project management.

Action Items Template

The action items you sketched out in the gap analysis template can be fully realized in this free action items template for Excel. It provides the who, what and when for the plan, like a to-do list but more robust. You can list all the action items, assign them to your team, set the priority to help organize what gets done when add directions and even show the status of the work. But for greater detail on progress and performance, there’s our next free template.

Project Dashboard Template

You’re going to want to monitor your action plan as you execute it. Our free project dashboard template for Excel can help you track time on tasks, cost and workload. Unlike with project management software, though, you’re going to have to do all the inputting yourself, but it’s worth the effort to help stay on schedule. This free template can also be used to gather data on your gap analysis, so we’ve come full circle.

Progress Report Template

Don’t forget to keep your stakeholders updated on your progress in closing the gap. Use our free progress report template for Word. It’s a document that captures where you are in the project to update stakeholders and manage their expectations. You get a section in which to summarize the project scope, schedule, cost and any risks. Then you can dig down deeper into individual tasks and their status.

How ProjectManager Helps With Gap Analysis

ProjectManager is a cloud-based work and project management software that can help you close the gap in your gap analysis. Our tool organizes your action plan into tasks on a timeline that can be assigned and monitored while reporting back to stakeholders on the progress of your objective to meet that gap target.

Gantt Charts for In-Depth Planning

Use our interactive Gantt chart to map your plan on a visual timeline that links dependent tasks to avoid bottlenecks later in the project. Gantt charts are essential project management tools that set milestones and much more. But unlike other Gantts, ours can filter for the critical path without any complex calculations and then set a baseline to see planned effort against your actual effort once the project is executed. That helps you stay on schedule.

Multiple Views to Execute Work How You Want

Once the project is in the hands of your team they might not want to use a planning-intensive tool, such as the Gantt. Our software has multiple project views that share data in real time so teams can work how they want. Robust task lists show everything from priority to status while the visual workflow of a kanban board fosters collaboration on sprints and allows teams to manage their backlog.

Report on Progress in Minutes

No one is more invested in the success of your plan to close the gap in your gap analysis than the stakeholders of the project. Project managers must manage their expectations in order to do their jobs. Our one-click reports are completely filterable to show only the data stakeholders need to see and then they’re easy to share how stakeholders want, as PDF attachments or even printed out. Keep stakeholders updated and keep your focus on the project.

Managers get transparency into their team’s process and teams are given a collaborative platform that helps them work better together with task-level commenting and file sharing. Automated workflows and task approvals give managers control and email and in-app notifications keep everyone on the same page. Mind the gap and meet your objectives with ProjectManager.

Gap analysis is a great tool to help make better decisions. ProjectManager is a cloud-based project management software that allows you to implement those decisions more effectively with real-time data and online Gantt charts. See how it can help you bridge the gap by taking this free 30-day trial today.

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Gap Analysis

What is Gap Analysis

Gap Analysis is the examination and comparison of two views of a business system: the current or ‘ as is ’ view – the situation as it exists, and the desired or ‘ to be ’ view – a conceptual, desired future.

The aim of Gap Analysis is to determine where the current situation has problems or ‘gaps’ that need to be resolved. The differences identified between the two views provide the basis for defining the actions needed to implement/improve the future view.

Gap Analysis is a systematic process that follows the following steps:

Why use Gap Analysis

By performing a Gap Analysis, organizations benefit from a high-level view of the business that identifies suboptimal or missing strategies, processes, technologies, or skills. By discovering such gaps early, corrective actions can be taken in advance.

Some of the reasons why a business might choose to perform a Gap Analysis are [3],[4] :

• Assess gaps between new strategies and existing resources to guide informed adjustments for successful shifts.
• Analyze gaps caused by market shifts, enabling timely adjustments to stay competitive.
• Identify gaps when introducing or updating products, ensuring seamless integration and success.
• Uncover process gaps for targeted enhancements, boosting efficiency and productivity.
• Evaluate gaps during mergers, harmonizing strategies, and processes for smooth integration.
• Respond to unexpected gaps swiftly, adapting to emerging challenges or opportunities.
• For benchmarking – comparing results against external criteria, for example – industry performance or competitors.
• Examining product portfolio to look for both – new product opportunities as well as existing products that are not selling well.
• Determine reasons why a company is/was unable to achieve targeted profits.
• Performance indicators-based Gap Analysis such as new customer acquisition, average order amount, or return on investment (ROI).
• Analyze usage gaps, such as the difference between the current market size for a product or service and the potential market size.

Types of Gap Analysis

As seen from its applications, a Gap Analysis can be performed for different reasons and can tackle specific challenges and opportunities within an organization. They are classified as shown in the figure below:

Performing Gap Analysis

Step 0: internal capabilities analysis.

Prior to performing a Gap Analysis, a good understanding of the organization’s mission, objectives, and tactics becomes necessary. This can be achieved by analyzing the documentation or liaising with the leadership team.

The MOST technique [5] can be used in this step. MOST involves defining the M ission, O bjectives, S trategy and T actics of an organization and helps analyze its direction.

Mission defines the sole purpose for which the firm exists. For example, McDonald’s mission is to deliver/serve reasonably priced fast food with consistent quality worldwide.

The Objective contains clear long and short-term goals and obligations that the firm wants to achieve. For example, a bank’s long-term goal can be to attain a high level of asset quality. A short-term objective can be to reduce paper transactions to 20% while an obligation could be to contribute to price stability in the region.

Strategy generally refers to a long-term plan of action to achieve long-term goals. An example of strategy can be “use technological advancements to maximize performance and improve operations.”

Tactics are short-term plans of action. For example, “Engineer a system to cater to real-time monitoring of social media posts.”

Having analyzed the organization’s internal capabilities, the way Gap Analysis is conducted depends upon the techniques used to represent the two views (‘as-is’ and ‘to-be’).

The process typically involves the following steps: ( tools referred to in these steps are explained later in this article )

Step 1: Investigating and modeling the existing situation

This involves the use of diagrammatic techniques such as Mind Maps and Rich Pictures that help effectively represent the range of issues inherent within an existing situation, including cultural and personal issues.

A set of ‘as is’ Business Process Models are also used to represent a process view of the existing situation.

The POPIT model is another effective tool that sets out the five areas to consider – Process, Organization, People, Information, and technology.

It is important to acknowledge that no one tool addresses the investigation and modeling process. A variety of techniques are needed to depict the range of issues present in an existing business situation.

Step 2: Analyze and develop a representation of the desired situation

This step involves the analysis of perspectives, concerns, and objectives, and developing a representation of the desired situation. The techniques used in this step should provide a conceptual representation of a future business situation. This is sometimes referred to as the ‘target’ model.

Business Activity Modeling could be used for this purpose as it provides a holistic view of a business system and is a conceptual modeling technique.

Sometimes ‘to be’ Business Process Models are used, but they can only provide a process perspective rather than a target operating model for the entire business system. While they explain ‘how’ the work is carried out, they do not cover all the required areas, such as the planning and enabling activities. As a result, they should be supplemented by other techniques, such as organization charts and Business Capability Models .

Step 3: Compare

Compare and contrast the two views to identify the differences and the actions that would be required to move from the existing situation to the target situation.

A Gap Analysis contrasts the existing and target views by considering the following questions:

• Do the desired activities, processes and tasks exist in the current business system?
• Do the current activities, processes and tasks work well, or are there problems?
• How extensive is the problem with the current activities, processes and tasks?

When a Business Activity Model is developed, each of the activities on the model should be classified into one of the following categories:

• Existing and satisfactory.
• Existing but not satisfactory.
• Not existing.

Prioritizing the gaps

Once the activities have been classified, they must be prioritized for further, more detailed analysis. It is possible that some areas are of low priority due to little room for improvement or because they are not within the scope of the study.

Gaps that are of priority can be further analyzed by asking the following questions:

• What work should the activity cover, as compared with what it currently covers?
• How important is the activity and how imperative is it to business success?
• What business events should the activity handle?
• Is there an existing process that carries out this activity and handles this event?
• What are the gaps between the existing and future processes (represented by ‘as is’ and ‘to be’ process models) to handle these business events?
• Are there any standards (internal or external) that should be followed when performing this activity?
• Are there any existing performance measures to be monitored and are there any new ones to be defined?
• How well do the IT systems support the activity?

This analysis work often requires additional investigation of the activities and processes to clarify the gaps and problems.

Gap Analysis results in a list of change actions that need to be made to bridge the gap between the current and desired business system. These change actions form the basis for the next step, which is Options Identification [1] to bridge the gap.

Tools and Techniques for GAP Analysis

Gap Analysis can apply at different levels, depending upon the situation and may call for a localized or extensive change. The extent of the change determines the scope of the Gap Analysis activity and the tools/techniques used to represent the existing and target situations.

Approaches to Gap Analysis for localized and extensive change can be separated as follows:

1. Task Analysis

Task analysis [6] is a technique used to analyze the work conducted during a given task. The analysis considers the event that triggers the task, the input information, outputs, steps, measures and decisions.

Task analysis is also a useful technique for uncovering the decisions made while performing a task and identifying the alternative scenarios that may result. A task definition must typically include the following elements:

Task identifier: A unique identifier for the task. This is usually a combination of an identifier for the business process within which the task is conducted and the individual task; for example, 2/1 would indicate that this is process number 2, task number 1

Name : The name of the task as shown on the process model. This name should use the format <imperative verb, noun>; for example, ‘Review complaint’

Actor : The title of the actor who performs the task; for example, ‘Customer services manager’

Prerequisites : Anything that must be true before performing the task; for example, there must have been a prior discussion with the customer. The complaint must have been made formally in writing.

Business event : The trigger that initiates the task; for example, ‘Complaint received’.

Inputs : The information used to perform the task or, in physical processes, resources such as materials that are needed to perform the task. Some inputs may be received during the task. Inputs also include documents used during the task.

Output : The information created by the task or the artifacts that result from the task; for example, the decision regarding the complaint. This may also include documents created or updated during the task.

Goals : The goals to be achieved by the task; for example, to resolve the complaint in line with company regulations.

Performance measures : The measures used to evaluate the performance of the task. These may be concerned with accuracy or productivity; for example, each complaint must be resolved within 48 hours.

Steps : The individual steps required to conduct the task, including those to handle alternative scenarios. These steps may be documented as a list or a diagram.

Decisions/ business rules : The decisions to be made when conducting the task and the rules that determine which decisions are correct.

Having defined the task, its analysis begins with understanding where the task sits within the business process model of which it is a part. This helps to obtain a context for the task by understanding which tasks have preceded it and which will follow.

In a Gap Analysis, this helps clarify aspects such as the name of the actor, any essential prerequisites and the initiating business event, and any outputs that will be used by any following tasks.

2. Prototypes and Wireframes

Prototyping [7] involves building simulations of a process or system in order to review them with the business representatives and thereby increase understanding of the requirements. There are three aspects to be considered when building prototypes:

• Scope to be covered by the prototypes – is it to demonstrate how a particular screen should look, or is it a prototype of an entire system or process?
• High or low-fidelity – prototypes can range from sketches drawn on paper to detailed simulations of actual screen displays developed using the application software.
• Functionality – how extensive should the functionality of the prototypes be? Should the prototype access and use data, and if so, will the data be created solely for the purpose of the demonstration or should the prototype access fully operational system data?

Wireframes [8] offer a similar approach to prototypes but are created primarily to show the layout of a screen, document, or website page and to indicate how the elements and any navigation between them might work.

Wireframes usually lack images, colors, or graphics, so they may be viewed as outline prototypes. They may be created using software applications designed for drawing purposes or may be created by hand using paper or a whiteboard. Collaboration tools, such as digital whiteboards, may also be used to create wireframes.

In a Gap Analysis, prototypes and wireframes offer a way of demonstrating how the new processes or system might work and by providing a concrete basis for evaluation and discussion.

3. Use case, User story & Requirement description

A Use Case [10] is something that an actor wants a system to do and describes the interaction between the actor and the system. Each use case has a stated goal and contains a description of the actions that a system must perform to achieve this goal.

Use cases are shown as ovals and represent the functions that the system should perform in response to a triggering event initiated by the actor. The ‘verb noun’ convention is used to name use cases. For example, ‘Set up project’ or ‘Book room’ etc.

A User Story [12] is used to define requirements for Agile software development projects. Compared to the ‘use case’, they are much smaller functional units.

User stories are hierarchical and employ a standard syntax as below:

• As a (role or actor – the ‘who’);
• I want (the capability that is required – the ‘what’);
• So that (the business value that is being delivered – the ‘why’).

This standard syntax provides a basis for a rich conversation about the user’s story between business actors and developers.

User stories always come with a ‘confirmation element’, which is essentially the addition of test and acceptance criteria that allow confirmation that the user story is complete and satisfies the business need.

Similarly, a Requirement Definition [13] also provides a communication channel between the business actors and those developing and testing the solution. They provide a clear definition of what is required from the solution and enable the creation of test plans and expected results.

A key quality criterion for a requirement is that it is ‘testable’, which means that the requirement is defined such that the solution may be tested to confirm that the requirement has been satisfied. To facilitate this, each requirement description should include relevant acceptance criteria.

In a Gap Analysis, use cases, user stories, and requirement descriptions clarify the current system state, user needs, and desired features. They aid Gap Analysis by revealing existing gaps, prioritizing improvements, and guiding development toward the desired future state.

4. Mind Maps

A Mind map (also known as a semantic network or concept map) is a visual representation of a set of ideas, words, things or tasks and the relationships between them [14] .

A mind map can be used in several situations, from analyzing dependencies to conducting workshops to organizing information. The range in style from hand-drawn to computer-generated and from simple text to highly illustrated. Hand-drawn mind maps can be used when taking personal notes or for display and discussion purposes during meetings.

A mind map starts with a central idea that represents the ‘trunk’ of the model. It then shows the subsidiary themes, the main ‘branches’ of the idea. These branches can then be developed into more and more detail. Cross-connections can be made between the different ‘twigs’.

The below diagram shows an example of a mind map:

Example of a mind map. More example types can be found in Wikipedia [15]

Creator Tony Buzan [16] claims that mind maps work because they reflect the way the human mind organizes information – a central theme leading to subsidiary concepts that extend into further levels of detail.

In performing a Gap Analysis, they help provide focus, clarity, and brevity whereas more conventional notes sometimes obscure key issues and information with irrelevant details.

5. Fish Bone Diagram

The fishbone diagram is a problem-analysis technique designed to help uncover the underlying causes of an inefficient process or a business problem. It has similarities to a mind map but its purpose is strictly diagnostic rather than recording.

The technique was invented by Dr Kaoru Ishikawa and the diagrams are sometimes known as Ishikawa diagrams [17] . Fishbone diagrams are used to analyze the root causes of specific business problems.

In any business problem, while some of the causes may be obvious or the stakeholders may be aware of the root causes of their problems, sometimes it is only the symptoms that are highlighted by the stakeholders because the causes are deep-rooted or have proved difficult to isolate.

Fishbone diagrams help in identifying where the problems are and discovering their underlying causes. An example of a fishbone diagram showing possible reasons for poor customer satisfaction is shown below:

A fishbone diagram is drawn by putting the business problem in a box on the right-hand side of the diagram. A line is drawn from this box towards the left of the page and represents the backbone of the ‘fish’. Radiating up and down from this backbone are spines, each of which suggests possible areas where the causes of the problem may be found.

Several approaches may be used when labeling the spines, such as:

• The 4Ms: Manpower, Machines, Measures And Methods
• An alternative 4Ms: Manpower, Machines, Materials And Methods
• The 6Ps: People, Place, Processes, Physical Evidence, Product/Service and Performance measures
• The 4Ss: Surroundings, Suppliers, Systems, Skills

These categories help list areas that have been found to be the sources of inefficiencies in many business systems. Data for this analysis can be found from workshops, interviews, observation, activity sampling and special-purpose records.

As with mind maps, the spines may have more detailed elements associated with them. Each category along a spine is examined, and the factors within that category that may be affecting the problem are added to the diagram. The resultant diagram is shaped like a fishbone – hence the name ‘fishbone diagram.’

In performing a Gap Analysis, a fishbone diagram aids in identifying key causes of problems or gaps that may hinder the performance of an organization.

6. Rich Pictures

Rich pictures [18] capture in pictorial form a holistic view of a business situation or problem and facilitate discussion and analysis. There are no rules as to what may be captured in a rich picture or which symbols should be used – it is a completely free format technique.

The standard aspects to represent in a rich picture include:

• The principal actors in the business process or system.
• The views, ideas, and concerns of those actors.
• Anything uncovered about the structure of the organization, including the type of structure in place, the geographical locations, and the levels of management.
• Information and impressions about the business processes, such as the IT support systems, whether the processes are bureaucratic or very informal etc.
• An impression of the culture and climate of the organization. For example, is it a supportive environment or does a blame culture exist?

Rich pictures provide a mental map of a situation and summarize a significant amount of information, which could be many pages long if captured as text. It is a summary of the information that has been discovered in the initial situation investigation and the issues that may need to be investigated further.

When using rich pictures, organizational culture and the communication preferences of key stakeholders must be first considered. As the technique is highly visual, it may not be well received by non-visual thinkers or within organizational cultures that support highly formal approaches to communication.

In Gap Analysis, rich pictures can be used to capture current processes and express them in a highly visual form.

7. Business Process Models

A Business Process Model (BPM) [19] gives organizations a simple way to understand and optimize workflows by creating data-driven visual representations of key business processes. It is also known as a business process map, swim-lane diagram, or cross-functional diagram.

BPMs show the interactions between different actors and departments and illustrate the key elements of a business process, such as:

• The business event that initiates the process.
• The tasks that make up the process.
• The actors that carry out the tasks or activities.
• The sequence or flow of the tasks.
• The decisions that lead to alternative process flows.
• The endpoint or outcome of the process.
• Optionally, a timeline for the business process (shown at the bottom of the diagram).
• ‘Forks’ and ‘joins’ – when two or more tasks are performed in parallel.

There are numerous approaches to business process modeling, and they each have their own notation set. The most commonly used notations are the Unified Modeling Language (UML) [20] and the Business Process Model and Notation (BPMN) [21] .

BPMs are built to represent the organizational response to each event within the initial set. The process of building BPM uncovers additional business events for which further business process models may need to be created.

BPMs are used for many purposes, including:

• To document an existing process.
• As a basis for training members of staff.
• To understand how the process works and where any problems lie.
• To provide a basis for business process improvement.
• To identify who carries out the work of a process.
• To show the sequence of process flow and the alternative flows.

When building a BPM, it is important to understand the event that initiates the process, the required outcome, and any possible alternative outcomes. The model is then built by considering each task within the process in turn.

The business event triggers an actor to carry out the initial task. At the conclusion of that task, the responsibility for the next piece of work passes to another actor and the flow between these tasks is represented in the model.

If the work could be passed to more than one actor, the decision point is shown with the reasons for the alternative process flows. Analysis of the tasks and their outcomes continues until the endpoint for the process is reached for all alternative paths.

As a visual documentation technique, BPMs are extremely useful when building a consensus view of processing.

In a Gap Analysis, BPM helps by accurately depicting the current as-is situation, including actors, processes, and interactions.

8. Value Stream Diagrams

Value stream analysis is a conceptual modeling technique that shows the set of core activities required to offer a value item to an internal or external stakeholder. A value item may be defined as the product or service delivered by an organization that offers potential value to stakeholders.

In a Gap Analysis, Value Stream Diagrams (VSD) can be used to model either the current or target state. The activities modeled within a VSD are focused on the delivery of the product or service and do not dwell much on the supporting activities.

VSDs help to think creatively about how an organization might deliver value items and the potential for offering new value items in the form of new products or services. The activities that form a value stream are performed in collaboration with stakeholders, some of whom may be external to the organizational boundary.

Value stream diagrams should comply with the following guidelines:

• They should be stakeholder-focused – each stage should move towards the provision of the value item that offers benefit to the stakeholder.
• They should take a holistic, conceptual view – value stream stages should not include representations of detailed processes.
• They should facilitate further decomposition of stages – high-level stages on the value stream may be decomposed to help identify additional stakeholders and their value.
• They must identify where business capabilities may be utilized – all stages of a value stream are enabled by business capabilities.
• They should focus initially on the ultimate customer for the value item. This focus should then move to consider the internal and external stakeholders required to carry out the work of the value stream.

9. POPIT model

The POPIT [23] model identifies the five key elements to be analyzed when investigating and defining organizational change. These are People, Organization, Processes, Information and Technology.

Any organization or business system consists of these five elements that need to work in tandem. Changing one of these inevitably has an impact on the other four. All aspects need to work together in synergy for a business to be successful.

These five elements are described below:

Following are some of the example questions that can be asked while performing a situational investigation to construct a POPIT model:

• What are the skills and knowledge required of the business actors?
• What are the motivation levels of the business actors?
• How do individuals communicate with each other?
• To what extent do the business actors understand the organization’s strategy?

Organization:

• What is the organization’s leadership and management style or business area?
• What is the culture of the organization?
• Is the structure of the organization, roles, and responsibilities documented and communicated? Is the structure optimal?
• Who are the key partners and suppliers?
• What is the nature of the relationship with each of these? Is this optimal?
• What resources does the organization have or rely upon?
• What is the business model of the organization? Is this optimal?
• Are processes efficient, documented and well-communicated?
• Do processes meet the expectations of stakeholders?
• Do processes rely upon other resources (such as technology, information or data)?

Information:

• How variable are the outputs of processes?
• Do people have the information and data that they need to make decisions to work effectively?
• Are the information and data accurate?
• Are information and data seen as an asset?
• Are the information and data secure?

Technology:

• How well does technology support business processes?
• Is the technology usable and accessible?
• Does the technology enable the organization to meet strategic goals and objectives?
• Does the technology meet stakeholder needs and expectations?

In a Gap Analysis, the POPIT model can be used to identify the difference between the current and target states. It helps by defining the elements that need to be considered during a situation investigation to provide a holistic view of the business situation.

10. Business Activity Model

A Business Activity Model (BAM) [24] builds on the ‘transformation’ element of a CATWOE technique and presents a conceptual view of the business activities required to fulfil the worldview captured in the stakeholder perspective.

The CATWOE [25] technique is an approach to understanding the various perspectives of each stakeholder within a business and usually uncovers the following elements through interviews with each stakeholder: Customer(s), Actor(s), Transformation, World view, Owner and Environment.

A BAM model shows the high-level activities and the logical dependencies between them. This conceptual or idealized view can then be compared with representations of the current business situation to identify areas where, potentially, the performance of the organization could be improved.

A BAM is created after the initial investigation of the situation has taken place and the stakeholder perspectives have been analyzed. In a Gap Analysis, BAM provides a basis for identifying options for business improvement by showing what an organization would need to do to fulfill a stakeholder’s perspective.

A BAM model, however does not show how the activities are carried out. There are five types of business activity shown on a BAM as described below:

A BAM does not represent an actual or required business system but a conceptual view of the activities required to fulfill a stakeholder’s worldview. If there are several different world views among the stakeholders, it may be necessary to build several BAMs to explore these differences and negotiate an agreed worldview and BAM.

When building a BAM it can be useful to apply a numbering system to the activities for identification and cross-referencing purposes. This can also be used to indicate the type of each activity. In the example shown below, E1 is an enabling activity and M2 is a monitoring activity.

In a GAP analysis, a BAM provides a conceptual view of an agreed future state when compared to a representation of a current state.

11. Business Capability Model

A Business Capability Model (BCM) [26] , also known as a capability model, provides a high-level abstract representation of the capabilities possessed by an organization. These capabilities enable the organization to deliver products and services, each of which offers value to customers.

BCM shows what the organization can do, not how , who or where this is done. It provides a static view and does not show the movement of work, materials, or data.

In principle, there should be only one business capability model for an organization (or business domain under study) with each capability rationalized into a unique definition. The model covers the entire scope of the organization.

When an organization works with external suppliers and partners to deliver its products or services, the business capability model represents the capabilities that are available across the entire ecosystem.

Defining a BCM helps businesses respond to changes in the business environment effectively and rapidly by being able to assess more accurately the impact and difficulty level of any proposed changes earlier and before too many resources have been expended.

Following guidelines must be followed for producing a BCM:

• Capabilities must always be defined in business terms.
• Capabilities must be at a higher level of abstraction than the actual end-to-end business processes that support them.
• Capabilities should always be named using a noun/noun structure (for example, ‘complaint management’ rather than ‘manage complaint’).
• Capabilities must be unique across the entire capability model.

BCM is represented as a hierarchical taxonomy and is developed using the following approach:

• Foundation-level capabilities are first identified within each of the three main strata. (In the example below, Sales is identified under Core/Customer-facing capability).
• The foundation-level capabilities are expanded and the lower-level capability groups they contain are identified (Sales is an agglomeration of 7 level 2 capabilities in the example below).
• The re-usable standalone business capabilities within the capability groups emerge and are added to the model (Levels 3, 4 and 5 in the example below).

Irrespective of the level of definition for capabilities, the acronym SUAVE helps to ensure that they are described well and consistently:

• Stable : The capability should represent the essence of the business, which does not change significantly over time.
• Unique : The capability should be distinctive and not duplicated across the organization. Each capability must occur once in the model; this encourages a standard implementation of the capability across the organization.
• Abstracted : The capability should not be concerned with the detailed process, people and technology required to conduct the work.
• Value – driven : The capability should be focused on the delivery of service to the end customer.
• Executive : The capability should be of interest to the organization’s management.

In a Gap Analysis, each subsequent decomposition of a capability provides a more granular view of what a business can do. This helps highlight where the gaps are and to identify which changes may not be feasible.

12. McKinsey’s 7S model

The 7S model [27] provides a representation of seven elements that collectively make up an organization. These seven elements offer different perspectives that may be analyzed to identify areas for improvement or gaps when implementing business change.

Three elements – strategy, structure and systems are often described as ‘hard’ because they are tangible, and four elements – shared values, style, staff and skills are described as ‘soft’.

All seven elements require attention if changes are to be executed successfully because where one element changes, others are inevitably affected.

The elements are described below:

Structure: This is the organizational management structure which includes functional, divisional, matrix and virtual structure. Structures may be centralized or decentralized, flat or tall. Each structure determines how information is communicated and distributed and where management responsibilities lie.

Systems : The processes, tasks, procedures, applications, and data that enable the organization to carry out its work. This element is considered within the Processes POPIT dimension (processes, tasks and procedures) and the Information and Technology dimensions (applications, data).

Style: The leadership approach adopted by senior executives. Possible styles include collaborative or directive.

Skills : The skills of the people within the organization and the capabilities of the organization itself. People skills are covered within the People POPIT dimension, while capability is part of the Business Capability Model.

Staff : The type of people employed within the organization and how they are appraised and developed. This is covered within the People POPIT dimension.

Shared values (also known as ‘superordinate goals’): This dimension concerns the values, beliefs and behavioral norms of the organization or business area. They are the guiding concepts and fundamental ideas of the organization.

Strategy : The actions that an organization decides upon to respond to changes in its external business environment. These changes may include actions taken by competitors or new requests from customers. Strategy concerns the planned approach an organization adopts in order to improve its competitive position.

While performing a Gap Analysis, key aspects of the McKinsey model are not only the individual elements but the lines that connect them.

For example, unless the shared values are explicit and communicated, they will not effectively drive other areas, such as the systems and structures. Likewise, the style reflected by the management approach and culture also needs to be in line with the values and the strategy.

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What Is a Gap Analysis?

• How It Works

How to Conduct a Gap Analysis

When to use a gap analysis.

• Gap Analysis in Finace
• Gap Analysis FAQs

The Bottom Line

• Corporate Finance
• Financial Analysis

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Investopedia / Yurle Villegas

A gap analysis is the process that companies use to compare their current performance with their desired, expected performance. This analysis is used to determine whether a company is meeting expectations and using its resources effectively.

A gap analysis is the means by which a company can recognize its current state—by measuring time, money, and labor—and compare it with its target state. By defining and analyzing these gaps, the management team can create an action plan to move the organization forward and fill in the performance gaps.

Key Takeaways

• Through gap analysis, an organization examines its current performance vs. its target performance.
• A gap analysis can be useful when companies aren’t using their resources, capital, or technology to their full potential.
• By defining the gap, a firm’s management team can create a plan of action to move the organization forward and fill in the performance gaps.
• There are four steps to a gap analysis: defining organizational goals, benchmarking the current state, analyzing the gap data, and compiling a gap report.
• Gap analysis can also be used to assess the difference between rate-sensitive assets and liabilities.

Understanding Gap Analysis

When organizations aren’t making the best use of their resources, capital , and technology, they may not be able to reach their full potential. This is where a gap analysis can help.

A gap analysis, which is also referred to as a needs analysis, is important for any type of organizational performance. It allows companies to determine where they are today and where they want to be in the future. Companies can reexamine their goals through a gap analysis to figure out whether they are on the right track to accomplishing them.

Gap analyses were widely used in the 1980s, typically in tandem with duration analyses. A gap analysis is considered harder to use and less widely implemented than a duration analysis, but it can still be used to assess exposure to a variety of term structure movements.

There are four steps in a gap analysis, ending in a compilation report that identifies areas of improvement and outlines an action plan to achieve increased company performance.

The “gap” in a gap analysis is the space between where an organization is and where it wants to be in the future.

Some gap analysis models break the following steps into four processes. Others are a little more elaborate and expand the analysis into a few additional steps. In either case, a gap analysis entails understanding your current position, determining where you want to end up, and devising a plan on how to arrive at the desired endpoint.

Step 1: Identify Your Current State

A gap analysis starts by focusing on where your organization is currently operating at. This includes researching the products it offers, customers it serves, geographical locations it reaches, and benefits it offers to its employees. This information can be quantitative (i.e., financial records as part of required filings) or qualitative (i.e., surveys or feedback from key stakeholders ).  

Often, a company will perform a gap analysis because it is already aware of an issue. For example, customer feedback surveys have generated poor results, and a company wants to investigate why and implement remedies. Before it can dream of what it wants to become, it must understand why these errors are happening, when issues are arising, and who the change management leaders must be.

Step 2: Identify Your Future State

The crux of gap analysis resides in this step, where a company must identify what it wants to become. This stage must be done with great care, as the identity that a company wants to have will dictate the strategic steps that it must make to obtain those goals.

In gap analysis, a company must make specific, measurable goals to yield the greatest long-term success. For example, in the situation above, it would do the company little good to set the goal of “becoming better at customer service.” Instead, the company must identify more trackable metrics , such as “achieve customer satisfaction of 90% within 12 months.”

Another way of identifying the desired outcome is to analyze what competitors or other market participants are doing. It may be easier to identify when another company is doing something well and attempt to emulate that.

Step 3: Identify the Gaps

With the current state and future state defined, it’s time to bridge the two and understand where the most critical differences lie. In our running example, it’s in this stage that a company realizes it may be woefully understaffed, has not provided enough staff training, or does not have the technical capability to keep up with customer inquiries.

Step 4: Evaluate Solutions

Now that a company has defined its deficiencies, it’s time to come up with plans on how it will reach its target state. Sometimes, there may only be one solution; other times, the gap analysis may call for several simultaneous changes that must work in tandem.

To gauge whether a solution will work, it must often be quantifiable with ways to measure change. Our example of improving customer service may have an easy metric, such as customer satisfaction percentage. Other gap analysis findings such as deficiencies in brand recognition may require more creative, thoughtful solutions that can still be evaluated.

Step 5: Implement Change

Once the best ideas from Step 4 are chosen, it’s time to put them into action. In this stage, the company attempts to close the gap identified in the analysis. By putting the solutions in place, the company attempts to become better at a targeted area of business or overcome a deficiency.

This implementation stage often entails following a detailed set of processes at a specific cadence. As part of the gap analysis, the company has a defined outcome, and careful steps must be taken to ensure that more damage isn’t caused instead of cured. For example, consider employees feeling overwhelmed and discouraged from laborious training. An effort of making workers more proficient may lead to loss or productivity or decreased morale.

Step 6: Monitor Changes

For this reason, the company must also conclude its gap analysis by monitoring any changes. Sometimes, the company took exactly the right steps. Other times, the gap might have been wider than the company thought or the company failed to adequately assess its current position. In any case, gap analysis can be a circular process where after changes have been made, the company can reevaluate its current position and where it compares against regarding other future states.

A gap analysis often contains sensitive information; therefore, companies will often not disclose their gap analysis model. In addition, the analysis would tip off competitors about the direction of the company.

Types of Gap Analysis

Market gap analysis.

Also called product gap analysis, market gap analysis entails making considerations about the market and how customer needs may be going unmet. If a company is able to identify areas where product supply is not meeting consumer demand , then the company can take measures to personally fill that market gap. This type of analysis may be performed by external consultants who have more expertise in these areas of business in which the company may not currently be operating.

Strategic Gap Analysis

Also called performance gap analysis, strategic gap analysis is a more formal internal review of how a company is performing. The analysis often entails comparing how a company has done against long-term benchmarks such as a five-year plan or a strategic plan .

A strategic gap analysis may also be performed to compare how a company is faring against its competitors. This type of analysis may unearth ways that other companies are utilizing personnel or capital in more strategic, resourceful ways. This type of information may be hard to come by, especially if departed employees have signed nondisclosure agreements and the company does not publicly disclose much information about processes. 

Financial/Profit Gap Analysis

A company may choose to directly analyze where its company may be falling short compared to competitors by looking specifically at financial metrics. This may include pricing comparisons, margin percentages, overhead costs, revenue per labor, or fixed vs. variable components . The ultimate goal of a profit gap analysis is to determine areas in which a competitor is being more financially efficient. This information can then be used in further, broader gap analysis types.

Skill Gap Analysis

Instead of looking at the financial aspects of a company, a business may choose to look at the human element instead. A skill gap analysis helps determine if there is a shortfall in knowledge and expertise with current personnel. A skill gap analysis must clearly define the goals of the company, then map how current laborers may fit into that design. A skill gap analysis may lead to the recommendation of simply training existing staff to incur new skills or seeking outside expertise to bring in new personnel. 

This type of analysis is especially important for innovative companies that must rely on having direct skill sets to continue to be competitors (or leaders) in their industry. In addition, skill gap analysis is critical for small companies that must rely on a smaller staff to operate. In this case, individuals must often have diverse, flexible talents that can be useful in many different aspects of the business.

Compliance Gap Analysis

Often leveraging internal audit functions, a compliance gap analysis evaluates how a company is faring against a set of external regulations that dictate how something should be getting done. For example, a company may internally evaluate its accounting and reporting functions in advance of seeking an external auditor to provide an opinion on its financial statements.

Compliance gap analysis tends to be preventative and defensive as opposed to more strategic forms of gap analysis. For example, instead of performing a gap analysis to attempt to gain a greater percentage of market share, compliance gap analysis often has the intention of meeting regulations, avoiding fines, meeting reporting requirements, and ensuring that external deadlines can be met successfully.

Product Development Gap Analysis

As a company builds new products, gap analysis can also be performed to analyze which functions of the products will meet market demand and where the product will fall short. This type of gap analysis is often associated with the development of software products or items that take a long time to develop (in which the market demand may have shifted).

During product development gap analysis, a company may also evaluate which aspects of the product or service have been successfully implemented, delayed, intentionally eliminated, or still in progress. With a blend of multiple types of gap analysis above, the company can then perpetually evaluate how its product plan is changing and whether it has the internal resources to meet the internal gaps needed for product development completion. 

Gap Analysis Tools

To assist with the gap analysis process, companies have an assortment of tools at their disposal. The tools listed below have an intended use that is best suited for a specific aspect of a gap analysis.

SWOT Analysis

One of the more recognizable analysis tools, SWOT analysis determines a company’s strengths, weaknesses, opportunities, and threats. As a gap analysis tool, a company can evaluate both internal and external factors that it can improve upon or realize its lead on.

In a SWOT analysis, a company evaluates its strengths and weaknesses as part of internal analysis. During a gap analysis, a company may choose to divert resources from its strengths, especially if it feels comfortable with its current market lead. On the other hand, companies may be more interested in what its weaknesses are and how far behind it may be from outside parties. In some cases, companies may decide that its weaknesses cannot be overcome due to barriers of entry, massive capital investment requirements, or consumer preferences.

The other half of a SWOT analysis relates to external forces often outside of the control of a company. The opportunities and threats that a company faces are often the uncontrollable forces that pose risk of the findings of a gap analysis not materializing. For example, a company may outline the plan to capture greater market share by releasing a new product. Should the threat of a government tariff on the product increase the per-unit cost, the company’s gap may be more difficult to close. 

Fishbone Diagram

A fishbone diagram , also called a cause-and-effect diagram or an Ishikawa diagram, is useful to identify what might be causing problems. It is also helpful to encourage creative thinking when sleuthing through a business constraint.

A fishbone diagram is created by determining the problem at hand and writing that at the center of an area. Then, major categories are written on branches that expand away from the main problem. Eventually, additional branches are added to these branches that identify why problems within each category exist. In the end, the fishbone diagram attempts to break a large, complex problem into various aspects that can be more easily approached and solved.

McKinsey 7S

The McKinsey 7S framework identifies seven elements that are key to determining how well a company performs and what has an impact on how it operates. The model contains three “hard elements” of strategy, structure, and systems, along with four “soft elements” of shared values, skills, style, and staff.

Using the McKinsey 7S model, a company can identify how each area fits into prevailing gaps and how the company can influence each aspect to better conform to long-term objectives. As adjustments are made, it’s often recommended to iteratively monitor and review company performance.

Nadler-Tushman Model

The Nadler-Tushman model is used specifically to identify problems, understand how a company may be underperforming, and determine how to address that performance. The core of the Nadler-Tushman model is based around the concept that aspects within a company should be aligned and work together; otherwise, the company will not be as successful.

The model is centered around different components, including culture, work, structure, and people. These four core principles receive data that is input (a company’s strategy) as well as output (a company’s performance). The end goal is to determine how each of the four components are working together.

PEST Analysis

A PEST analysis entails gauging external factors and how they may impact the profitability of a company. PEST stands for political, economic, social, and technological. A common variation of PEST analysis is PESTLE analysis, which also incorporates legal and environmental concerns.

PEST analysis can help with a gap analysis, as a company may not be considering external factors that may cause, exacerbate, or solve current gaps. For example, government legislation may cause a company’s product to become much more expensive to export. In this case, a company may have a potential gap should external forces shift in a way that adversely impacts the company.

Companies often use a combination of these tools, as findings from one tool may contribute to the analysis in another.

Companies should perpetually evaluate the products it offers, the customers it serves, the market need it fills, and the efficiency of its operations. However, there may be certain times when a more formal gap analysis is warranted. These times include:

• During project management . As a company moves from the starting phase to the ending phase of a project, it may continually evaluate that the project has sufficient resources, knowledge, talent, and information to be completed successfully. Because some products with multiyear development cycles face risk of changing external situations, company are well-suited to perform gap analysis during a long-term project.
• Planning for strategic endeavors . Whether forming long-term budgets, contemplating corporate restructurings, or lining up a potential acquisition, gap analysis is informative when attempting to make strategic decisions. This ensures that proper resources are allocated to the right areas to ensure long-term success. For example, expansion into a new geographical area may pose political risk, geographical risk, currency risk, and culture risk. A company should perform gap analysis to understand how severe these risks are and what additional resources (if any) are needed to handle each area.
• Wanting to understand performance deficiencies . In addition to strategic benefits, gap analysis can unearth areas of operations where shorter-term, day-to-day functions can improve. Although this type of use is more reactionary, companies can choose to preemptively attempt to better understand areas of operation. For example, a specific cost center may come in substantially over budget; the company may simply want to better understand what happened and what steps need to be taken to become more successful.
• Marketing to external parties . Though gap analysis holds most benefit to internal parties, it may also be used to communicate plans to external investors. For example, private companies can identify where its shortfalls occur. After forging an internal plan, this plan can then be revealed to outside parties as part of a capital investment request or seed funding round. By being open, transparent, and strategic about its shortfalls, a company may find outside parties more willing to partner and invest in its growth. 

Benefits of Gap Analysis

Because gap analysis can be used in an assortment of ways, it carries with it a wide variety of benefits. Each benefit listed below may pertain to only one specific type of gap analysis. Still, companies performing gap analysis may experience:

• Improved profitability . Companies that assess gaps and preemptively determine shortfalls can be better prepared to incur spending at optimal times, have resources on hand (instead of having to pay extra capital to secure later), and run more efficiently.
• Better manufacturing processes . Realizing and preventing gaps from building in the manufacturing process leads to stronger production, more efficient delivery logistics, raw materials being on-site at the correct location when they are needed, and the avoidance of bottlenecks due to any shortfall along the process.
• Increased market share . By combining the first two benefits, a company can have an improved presence in the market by having increased sales, revenue dollars, customers, and market share.
• Happier employees and customers . Instead of being reactionary to employee or customer needs, companies that perform gap analysis can address these potential issues before they strain relationships or cause individuals to turn to competitors.
• Operational efficiency . By better understanding where it may not be operating well, a company can make changes to improve day-to-day functions. 
• Decreased risk for long-term endeavors . By identifying the resources needed and potential shortfalls, companies can plan for gaps and identify problems before they occur.

Gap Analysis in Finance/Asset Management

Gap analysis is also a method of asset liability management that can be used to assess interest rate risk (IRR) or liquidity risk , excluding credit risk . It is a simple IRR measurement method that conveys the difference between rate-sensitive assets and rate-sensitive liabilities over a given period of time. This type of analysis works well if assets and liabilities are composed of fixed cash flows . Because of this, a significant shortcoming of gap analysis is that it cannot handle options , as options have uncertain cash flows.

Consider a situation where a company wants to make an investment but wants to ensure that it has enough capital on hand to cover contingent situations. The company can review cash flows, determine risks, and assess where potential cash flow shortfalls may occur. This is especially prevalent in long-term projects, high-risk projects, or projects sensitive to macroeconomic or external forces.

Example of Gap Analysis

For years, GameStop Corp. held its place in the market as a competitor in the video gaming industry. Customers could enter a physical location to either trade in video games from their existing collection or buy games, consoles, or gaming merchandise.

There is little public disclosure regarding the analysis or strategy performed by company management. However, in July 2022, the company released its non-fungible token (NFT) marketplace, allowing gamers, creators, collectors, and community members to buy and sell NFTs. Though this business endeavor was launched primarily relating to artwork, the marketplace is expected to expand into gaming endeavors with a variety of NFT usages.

To have made this business decision, GameStop could have performed a gap analysis. It could have:

• Analyzed its current position in the market. Realizing how digital transformation has reshaped many industries, it may have realized that its existing business model of in-store business may not be sustainable (although the company also has a website to buy goods).
• Analyzed where it would like to be. The company may have determined that it wanted to maintain its presence as industry leader in the video game distribution industry. This likely would have resulted in the company realizing that the shift to digital gaming, including the rise of NFTs in a gaming context, could be the next potential market disruptor.
• Determined a plan to get from today to the future. This would have entailed the release of the NFT marketplace in addition to other, potentially not yet disclosed strategic endeavors.
• Execution of the plan. In addition to releasing the NFT marketplace, GameStop announced relationships with several Ethereum Layer 2 -based entities in addition to bringing on a variety of staff with experience relating to digital assets and blockchain.

Though the ultimate internal discussions around the NFT marketplace are not known, one can infer that GameStop performed a gap analysis to understand that its existing position as a brick-and-mortar store could be enhanced with a new, digital marketplace.

Why is a gap analysis performed?

A gap analysis is performed to understand where a company may be lagging against its goals or objectives. It’s a form of analysis that evaluates what it will take for a company to get from its current position to its future dream state.

What are the types of gap analysis?

Gap analysis can be performed in an assortment of business situations. Most often more strategic in nature, gap analysis can be performed to better understand market positioning, product success, labor needs, or long-term financial positioning. Gap analysis can also be used to analyze more operational aspects such as short-term budget deficiencies or current employee satisfaction. 

What are the fundamental components of a gap analysis?

Gap analysis must always start with an analysis of a company’s current position. Without understanding where it currently is, a company can’t adequately make a plan to get to where it wants to go. In addition to identifying where it is today and where it wants to be in the future, gap analysis entails crafting a plan with implementation steps that can be tracked and measured to hold change managers accountable.

How do gap analysis and SWOT analysis differ?

SWOT analysis is a tool that is often used as part of gap analysis. As part of SWOT analysis, a company identifies its strengths and weaknesses. Then, the company should understand whether those strengths and weaknesses are suitable to where the company wants to be. Gap analysis is the plan that attempts to change a company’s strengths and weaknesses. In addition, the opportunities and threats identified as part of a SWOT analysis are the risks that the plan outlined as part of a gap analysis will not be successfully carried out.

What is static vs. dynamic gap analysis?

These two terms often refer to analyzing the performance and risks associated with banks or financial firms. Static gap analysis looks at the firm’s sensitivity to changes in interest rates. Dynamic gap analysis looks at the firm’s discrepancy between its assets and liabilities.

A gap analysis is a technique that companies can use to evaluate their current position, decide their dream position, and formulate a plan on how to bridge the gap. A company may choose to perform a gap analysis if it is struggling operationally or if it simply wants to become more strategic. In either case, there are several tools, such as SWOT analysis, PEST(LE) analysis, or a fishbone diagram, that can help the company formulate and execute a long-term plan.

GameStop Investor Relations. “ GameStop Launches NFT Marketplace .”

GameStop Investor Relations. “ GameStop Forms Partnership with FTX .”

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• Project planning |
• How to use a gap analysis to achieve bu ...

How to use a gap analysis to achieve business goals

A gap analysis is the process of comparing your actual business performance with your desired performance to see what’s missing. You can use these analyses to create company strategies and identify possible shortcomings in your business. Learn how a gap analysis can help fortify your business goals and the four steps to perform your own.

Here's a scenario: your team is about to start their strategic planning initiatives for the next year, but they don't really know where to start. What do you do next?

A gap analysis (also known as a needs analysis) is the process of comparing your current business performance with your desired performance. It helps you identify the "gap" between where your business currently stands versus where you want your business to be. In short, you’re looking for what’s missing.

What is a gap analysis?

A gap analysis (also known as a needs analysis) is the process of comparing your current business performance with your desired performance. The "gap" in a gap analysis is where your business currently stands versus where you want your business to be. 

Creating a gap analysis can help your business in a few ways. Here's how:

Brainstorm strategies . Creating a gap analysis can help strategic teams figure out potential action plans they can use to hit their goals. 

Identify weak points . If your business didn't perform as expected, using a gap analysis can help your team figure out the root cause of certain performance gaps. 

Benefits of using a gap analysis

Creating a gap analysis is a way to review your current strategies to see what’s working, and what’s still needed. Performing one can help your business in a number of ways, including:

Identifying weak points . If your business didn't perform as expected, you can use a gap analysis to help your team figure out the root cause of performance gaps. 

Measuring current resources . If your team has a surplus of resources at the end of the year, a gap analysis can help identify specifically how resources were allocated so they can be used more efficiently in the future.

When to perform a gap analysis

A gap analysis is a useful project management tool to help you identify how to get from point A to point B. While a gap analysis can be used at any time, you can get the most out of your analysis when you apply it strategically to a specific project or initiative. Here are a few scenarios where using a gap analysis can help you gather the contextual data you need to improve your business.

During strategic planning

If your team is looking to create a strategic growth plan, using a gap analysis early ‌in the strategic planning process can help give your team a good starting point. A gap analysis provides data-driven guidance on how your team goes from their current state to a specific end goal. For example, if you’re planning next quarter’s strategy, you can use a gap analysis to review what you achieved in the current quarter. Compare that to the goals you had originally set and you’ll be able to identify opportunities to improve in the coming months.

When you encounter performance issues

If your team is unexpectedly underperforming, a gap analysis can be a useful tool to identify any shortcomings. Once you identify the root cause of the gap in your current situation, your team can improve processes to fix the issue without interrupting production. For example, a project manager at an assembly line may notice that production is not meeting expectations. After completing a gap analysis, they find the root cause to be an issue with some machinery. Now they know exactly what to fix to improve production.

When stakeholders need additional context

If your team is compiling business information for investors or for other business requirements, a gap analysis can be an extremely helpful tool. A gap analysis is useful in this situation because it provides more contextual information than just hard numbers. If management is worried that your team is underperforming for whatever reason, a gap analysis can quell any worries with a detailed plan of how your team is going to close the gap. 

Gap analysis examples

The best time to use a gap analysis is when you’re looking for ways to improve, or you’ve realized something isn’t working quite as expected. In practical, real-life examples, here’s what that might look like:

Software development: Gap analyses can show you missing items in your software, helping you to potentially catch errors before you go to market.

Project management : Use gap analyses during the project planning or review stages of project management to show you the areas that aren’t up to speed with the rest of your project. Then, you can make requests for and allocate resources to that work as needed.

Human resources: If you’re on an HR team, you can use a gap analysis during the hiring processes to show you what’s lacking on a team, which in turn, you can look for in a new candidate. 

Team leads : As a lead, you’re often looking at the big picture problems. So sometimes, details slip through the cracks that can cause delays or issues down the line. A gap analysis can help you identify when you may have overlooked something, and it might be able to catch them before they create a bigger problem.

Competitive research: Competitive analyses are important tools to boost customer satisfaction. One way to perform the necessary competitive research is through a gap analysis, where you look at the market gap for your industry and strategize ways that your business can fill it.

The 4 steps of a gap analysis

While it may seem complex, using the gap analysis process is not as complicated as it seems. Try this four-step process to create a gap analysis for your team.

​1. Define your business goals

In order to compare current performance to desired performance, you first need to define what your ideal future state looks like, or, in other words, set goals. Any goal setting methodology works. If you don’t already use one, try using objectives and key results (OKRs) or key performance indicators (KPIs) to create targeted, specific metrics and business goals . Regardless of which goal type you use, make sure your objectives are SMART: specific, measurable, achievable, realistic, and time-bound. The goals you're setting here define how you’ll measure performance and represent the desired state you want for your business.

2. Benchmark your current business performance

Use goals, historical data, and past gap analyses to benchmark your current business performance , processes, or workflows , and set the standard for how you work. 

At the same time, evaluate your current processes with a business process analysis (BPA). If you're aiming to make process improvements as part of your strategy, looking at the current state of your business process is important. This can help you identify which process improvement methodology your team should use to reach the desired target state.

3. Analyze gap data

Remember that the “gap” in a gap analysis is the difference between where your business currently stands and where you want your business to be. Now that you understand the difference, it’s time to hypothesize different strategies and tactics your team will need to close that gap. 

The next step in this process is to ensure your goals are actually achievable, and not too far out of your team’s reach. You don’t want to set a goal so high that it feels impossible. In the same vein, it’s important to ensure that your team is able to complete their goal in the set time period. If you make changes to your current performance strategy, will your team still be able to achieve the goals you set based on the desired time frame?

It's during this step when you meet with your stakeholders to brainstorm strategic planning initiatives to hit your goals. 

4. Compile a detailed report

Once you've solidified all of your numbers and business goals, create an action plan that clearly dictates how your team plans to close the gap. It's important to use both quantitative data, like the benchmark data you compiled in step two, in addition to qualitative data, such as current processes and past process improvement strategies. 

What is the difference between a gap analysis and a SWOT analysis?

A SWOT analysis is a type of gap analysis that’s commonly used in project management to identify strengths, weaknesses, opportunities, and threats for a business. Usually, people complete a SWOT analysis via a 2x2 matrix.

Once this matrix is filled, use it to identify gaps that come to light as your team brainstorms each quadrant of the matrix. 

Other common gap analysis tools

Mckinsey 7s model.

Developed by Robert H. Waterman and Tom Peters, the McKinsey 7S framework is a management model that is often used for organization analysis. The idea is that an organization needs seven elements that are all aligned and reinforcing one another. If one part of the seven elements is off, it can affect the entire business. 

The seven S's in this model stand for:

Structure : How your business is organized. This could mean how activities are divided and how teams communicate with each other. 

Strategy : The hard set of plans that your team uses to move the business forward. 

Systems : How performance is measured, along with procedures the team uses to do business.

Skills : The competencies your team members provide for your business. 

Style : The behavior patterns of certain groups within your business.

Staff : The individuals that work for you. This also refers to their characteristics and ways the company nurtures and develops their team.

Shared values : Values are the core principles that define how your company approaches work. 

You can use this model by testing the relationship between each of the seven S’s. When you change something in strategy, how does that affect systems? Performing a gap analysis here can give you concrete answers to how each of these facets of your organization relate to each other. 

Nadler-Tushman congruence model

The Nadler-Tushman congruence model is a business management tool that identifies the root cause of performance issues. It was developed by organizational theorists David A. Nadler and Michael L. Tushman in the early 1980s. 

The idea of the Nadler-Tushman model is that there are four main elements to a business and they each have unique relationships to one another. 

Those four main elements are:

Work : All of the individual tasks that make up your business's performance. There are two different perspectives on how to look at work: what is done and how that work is processed. 

People : The interaction of individuals during work. Some examples of this include a manager and their direct report, or a team lead and a contractor.  

Organizational structure : How your business organizes itself, like how work is delegated , what teams work on what, and how processes are built. 

Culture : This is how your team implements group norms , best practices, ideals, and shared values throughout your company.

The Nadler-Tushman model then pairs each of these elements off into six different combinations, so teams can analyze how their business is performing. Those six pairs look like this:

Work and people : This looks at which employees are doing what work. Are the right people completing the right tasks?

Work and structure : This is how your team develops processes to complete work. Is there enough structure and organization that clearly dictates what work needs to be completed?

Work and culture : This focuses on the environment that's created. Does your company culture promote habits that are beneficial to performance?

People and structure : This identifies the organizational structure of your team. Is your team organized in such a way that individuals can produce their best work?

People and culture : This focuses on the attitudes of employees. Are your employees working in a culture that is productive for them? Are they able to identify resources to help themselves be successful at work? 

Culture and structure : This pair relates to how culture and company organization may affect one another. Does the organization of your business compete with the company culture , or help it? 

Similar to the McKinsey 7s model, when you pair off each of the elements of the Nadler-Tushman model, you can see how those two relate to each other and how changing one facet can affect the other.

Craft gap analyses with a work management tool

Gap analyses work best when shared with stakeholders in a convenient and organized manner. A work management tool like Asana can help your team organize information and streamline communication with stakeholders, so everybody is on the same page. Learn more about how you can use Asana to assist with work management. 

Related resources

Smooth product launches are simpler than you think

What is stakeholder analysis and why is it important?

How Asana uses work management to optimize resource planning

Understanding dependencies in project management

How To Perform A Gap Analysis: 5-Step Process (+ Free Template)

Most of us have at least a rough vision of where we'd like to take our organization. But sometimes, knowing where and how to begin can be challenging. This is where the process of gap analysis comes into play.

Gap analysis is a great strategic analysis tool that gives us a broad framework for defining not just where we are today, but more importantly where we want to be and how we're going to get there.

⚠️ Don't just identify the gap, close it! Understanding strengths and weaknesses is key, but translating insights into action is where the magic happens. Cascade Strategy Execution Platform bridges the gap between analysis and execution. Talk to a strategy expert and see how to turn your gap analysis into real progress.

In this article we’ll cover:

What is a gap analysis, what are the benefits of a gap analysis, gap analysis use cases & examples, types of gap analysis, how to do a gap analysis: the 5-step process, gap analysis tools & frameworks, free gap analysis templates to download, close the gap through execution 🚀.

A gap analysis is a process of comparing your current state to your desired future state. This process includes assessing the actual performance of your organization to determine whether business goals or objectives are being met and, if not, creating an action plan that will bridge the identified gap.

It's a great tool to use as part of the internal analysis of your company. Almost all major businesses usually assign the completion of a gap analysis template to project managers or business analysts.

Conducting a gap analysis is actually quite simple, but it can also have its challenges. That’s why it’s useful to follow a step-by-step approach to ensure your strategic planning is well-structured and meaningful in assessing your business goals.

Gap analysis forces you to think about your current situation, your desired future state, the root causes of the gaps between the two, and the action plan to bridge that gap in a very structured and clear manner.

Think about it as the bridge that will get you from point A (your current state) to point B (your desired state).

But apart from that, it presents a framework for collaborating on creating a strategic plan and a common execution roadmap that is visible and aligned with all stakeholders. When multiple people are involved in strategic planning and execution, their different approaches can sometimes conflict with each other.

A gap analysis can also be used as a way to analyze historical performance . The first time you run a gap analysis process, you will explicitly capture the current performance of your business (in both qualitative and quantitative forms). So the next time you do one, you will have a benchmark against which you can compare your most recent performance to efficiently set goals.

To streamline your gap analysis process, we've developed a free gap analysis template . This handy tool poses thought-provoking questions that guide you in developing a robust strategic plan, integrating all the pieces seamlessly.

So, everything sounds great. But, when is the best time to go through the gap analysis process?

Gap analysis is most useful when you need to:

• Create a new strategy for your team and want to understand where you currently sit
• Figure out the right areas of focus to achieve your business goals
• Develop a new product understanding the gap between your current offer and what customers want
• Find out why you aren't meeting important KPIs and strategic objectives
• Develop a change management strategy , but you need first to identify the gap between the current and desired state.
• Identify opportunities to improve current processes or workflows
• Prepare for an audit and showcase how you are proactively addressing any gaps
• Prepare a strategic plan and prioritize resource allocation

These are, of course, just some use cases... Gap analysis is a versatile tool that can be applied to multiple different scenarios. The best part is that it’s suitable for companies and teams of all sizes and industries.

Let’s check out some “real-life” scenarios where a gap analysis would be a great option:

‍ Example 1: Technology Company New Product Launch

A technology company plans to launch a new mobile app to expand its product offerings and reach a wider audience. To ensure the app's success, they conduct a gap analysis to evaluate their current app development processes, features, and user interface compared to competitors in the app market.

By identifying gaps and areas for improvement, they refine the app's functionalities, enhance user experience, and align it better with customer needs, positioning it as a standout solution in the competitive app market.

Example 2: Human Resources Strategic Plan

The Human Resources (HR) team at a medium-sized organization faces challenges with employee retention and satisfaction. To improve the HR department's performance, they conduct a gap analysis to assess their current practices, employee feedback mechanisms, and talent management strategies.

By pinpointing gaps between existing practices and desired outcomes, they develop a strategic action plan. This plan includes implementing effective employee engagement programs, talent development initiatives, and performance management systems, leading to improved retention rates and increased employee satisfaction.

Example 3: Digital Transformation In Manufacturing

A manufacturing company aims to undergo a digital transformation to enhance operational efficiency and adapt to evolving industry demands. They perform a gap analysis to evaluate their current technology infrastructure, data management processes, and workforce skills in relation to the digital transformation objectives.

By identifying gaps in technology and skills, they develop a comprehensive digital transformation strategy . This includes upgrading technological capabilities, implementing data analytics systems, and providing relevant training to employees, facilitating a successful transition to an advanced and digitally enabled manufacturing environment.

In each of these scenarios, gap analysis plays a crucial role in identifying areas for improvement and guiding strategic decisions. By bridging the identified gaps, these organizations can effectively meet their goals, improve their overall performance, and stay competitive in their respective industries.

As you can probably imagine from the previous examples, gap analysis comes in different forms, and each serves a unique purpose to tackle specific challenges and opportunities within an organization.

Here are some types of gap analysis you might find helpful:

• Performance Gap Analysis : Evaluates the difference between an organization's current performance and its desired future state to identify areas for improvement and enhance overall efficiency and effectiveness.
• Market Gap Analysis : Focuses on analyzing the gap between customer expectations and the products or services offered by a company, helping to identify opportunities to meet market demands and gain a competitive edge. ‍
• Product Gap Analysis : Assesses the features, pricing, and qualities of a product or service against customer needs and expectations to identify gaps and prioritize improvements or innovations. ‍
• Skills Gap Analysis : Analyzes the existing skill sets of employees in an organization and compares them with the skills required to meet organizational goals, leading to targeted training and development initiatives. ‍
• Compliance Gap Analysis : Evaluates an organization's adherence to relevant laws, regulations, and industry standards, identifying areas of non-compliance and guiding efforts to meet legal requirements. ‍
• Financial Gap Analysis : Compares an organization's current financial performance with its financial objectives, uncovering discrepancies and guiding financial planning and decision-making. ‍
• Technology Gap Analysis : Assesses an organization's technology infrastructure, systems, and capabilities, comparing them with the technology required to support its strategic goals and digital transformation initiatives. ‍
• Environmental and Social Gap Analysis : Focuses on an organization's environmental and social impact, identifying gaps in sustainability practices and providing insights for implementing responsible and eco-friendly strategies.

Before we dive in, grab our free Gap Analysis Template to have a better idea of what the final outcome should look like. Follow the step-by-step guide below and fill the template with your own data or use it as a reference to build your own template.

Step 1: Define your focus areas

The first step in creating a gap analysis is to set some boundaries. You can also think of this as defining the scope of your analysis.

It would be easy to talk about your desired future state in general grandiose terms:

“My desired future state is to be the biggest and best company in Asia!!!”

There's little value in these kinds of exercises. Instead, you should have a rough idea of which areas you want to improve.

While we've written extensively about how to create strategic focus areas , here are some typical areas that people often settle on:

• Financial growth
• Customer excellence
• Employee happiness
• Scientific achievement
• Community impact

In short, focus areas should quickly describe what you are trying to improve with your gap analysis.

🤓 Want to dive deeper into focus areas? Read our go-to guide on how to define focus areas .

Step 2: Identify your desired future state

Whoa...hang on a second - shouldn't we be starting with the current state rather than the future state? You'd think so, wouldn't you - and indeed, most of the other gap analysis guides tell you to do that. But there's a problem...

Your organization doesn't have one single current state - it has thousands depending on which team, which measure, or even which person you're talking about.

So despite what you might read in other gap analysis guides, defining your current state without any idea of your future state is, at best, a useless process (and, at worst, an impossible one).

So instead, we start our own gap analysis process with the definition of our future state.

This is where having strategic focus areas really comes in handy. Let's assume that you selected 'Innovation' as one of your focus areas.

You'll want to start by framing your desired future state for 'Innovation' in fairly broad terms (we'll be getting more specific later on).

Broadly speaking, my desired future state for 'Innovation' is:

“To be recognized as one of the most innovative SaaS platforms in the industry.”

Remember, we're keeping things fairly high-level at this stage - so try to avoid adding any specific KPIs or measures to this part of your gap analysis.

Here are a few more examples of desired future states for a range of focus areas:

My desired future state for 'Customer Excellence' is:

“To achieve market-leading customer retention and referrals.”

My desired future state for 'Community Impact' is:

“To make lasting & meaningful changes to the lives of people in the community.”

Once you have identified a high-level desired future state for each of your focus areas, it's time to move on to the next stage of our analysis process.

Step 3: Assess your current state

The next part of performing a gap analysis involves getting a better understanding of where you are today - your current state .

Once again, we'll be using the focus areas that we defined in Step 1 to scope our gap analysis. We'll be starting off high level and then getting more specific in Step 4 .

For each of your focus areas, write a sentence that gives a realistic summary of your current state. Try to use similar language and structure to the one you used when defining your desired future state above.

For example, for our 'Innovation' focus area, we might summarize our current state as:

“We are not currently known for innovation; however, our software does contain a couple of unique features.”

For our 'Customer Excellence' focus area we might say:

“We have high customer satisfaction and retention in our Enterprise segment, but our smaller customers are significantly less satisfied with their experience .”

Or finally, for our 'Community Impact' focus area we might say:

“Most members of the local community are not currently aware of our presence.”

Remember that for this part of your gap analysis, it's more important than ever to be 100% honest and realistic about your strengths and weaknesses.

You might already be aware of your current state because you’re experiencing a particular problem you’re trying to solve (a specific gap you’re trying to close). But it’s not always the case.

🔎There are numerous tools, methodologies, and internal/external analysis frameworks you can use to assess your current state (like SWOT Analysis, PEST, McKinsey 7-S, etc) . These do not replace your gap analysis but rather help you make a good diagnosis of your company to clearly see where your gaps are. We’ll cover some of these tools in the following section: Gap Analysis Tools & Frameworks .

Step 4: Apply metrics / KPIs to your gap analysis

It's time to get specific about what we want to achieve and how we're going to do it by adding some specific metrics or KPIs (Key Performance Indicators) for each one of our focus areas.

Here are a few tips on how to select the right KPIs for your gap analysis:

• Select KPIs you can actually measure, and decide on your measurement approach
• Choose KPIs you already have a baseline for, so that the gap can be easily measured
• Apply both leading and lagging KPIs to achieve a complete set of measures for each focus area

Let's dive into some specific KPI examples that you can use as part of your gap analysis. We'll start by defining the targets for our desired future state, and underneath write down how this looks for our current state.

Focus area 1: 'Innovation'

1. Leading KPI: Dedicate at least 50% of our developer resources to creating new features.

(current state: <10% of developer resources are on creating new features)

2. Lagging KPI: Achieve an 'Innovation' score of over 80% on at least one customer review website.

(current state: Our 'Innovation' score on g2crowd.com is less than 60%)

Focus area 2: 'Customer Excellence'

1. Leading KPI: Achieve an average customer NPS score of at least +7.

(current state: Our NPS score is less than 3 on average)

2. Lagging KPI: Decrease our overall gross % customer churn to less than 10% per annum.

(current state: Our gross % customer churn is greater than 20% per annum)

Focus area 3: 'Community Impact'

1. Leading KPI: Raise our community awareness to 70%.

(current state: Our community awareness is less than 20%)

2. Lagging KPI: Get directly involved in at least 3 major political initiatives.

(current state: We’re not participating in any political initiatives currently)

The 'gap' component of your gap analysis is the variance between the KPIs of your current state and your desired future state.

For example, you could say that we have a gap of 50% between our current level of community awareness (20%) and our desired future state of community awareness (70%).

Step 5: Create an execution-ready action plan and roadmap

Creating a gap analysis leads to the crucial step of formulating an action plan and roadmap to address the identified gaps. This process involves defining specific projects for each focus area, aiming to close the gaps identified in Step 4 .

Think of your gap analysis action plan as a series of projects that directly contribute to achieving the Key Performance Indicators (KPIs) set in the previous step for each focus area.

Let's brainstorm some specific examples of projects you could add to yout action plans for each focus area:

• Project 1: Hire four additional developers dedicated to new feature development.
• Project 2: Implement an 'Innovation Check' for all new features to ensure they meet the definition of “innovation”.
• Project 1: Launch an automated survey to gather reasons for customer cancellations.
• Project 2: Establish a dedicated retention team in customer service to handle cancellation requests.
• Project 1: Launch a local TV advertising campaign.
• Project 2: Increase our spend on online advertising by $5,000 per month.

It's up to you how many projects you want to create, but typically, you'll have at least two for every gap. You'll also have to use your own best judgment about whether these projects are likely to close the gap!‍

Now, let's talk about the roadmap .

As you create the action plan, it's essential to establish a clear time frame for each project and determine realistic deadlines and milestones to track progress effectively. This roadmap will guide your organization on the sequence of actions to take, the allocation of resources, and the expected time frames for achieving those significant milestones. Having a well-defined roadmap will help your team stay focused, organized, and motivated throughout the implementation process.

🎁Bonus step: Execute, monitor and adapt your plan

Congrats! You’ve developed your action plan and set targets and KPIs to measure success.

What’s next?

Well, now it's all about the execution – the heartbeat of your plan.

Make sure everyone in your organization is on board and has clear visibility over the plan. But it's not just about sharing the big picture; you’ll have to provide clarity on the specific actions needed to close the gaps you identified during your analysis. Encourage a collaborative spirit where different teams are accountable for the KPIs that drive progress.

Now, here's the secret sauce: continuous monitoring of your progress and being open to adapt when needed. Keep a close watch on how things are unfolding, and if they don't go as planned, don't panic! Be ready to tweak your plan swiftly to get back on track.

You can monitor and track your results with spreadsheets, but in an era when change is the new normal, simply relying on them may not be enough. It will be hard to keep everyone on the same page and adapt quickly.

Our suggestion? Check out Cascade 😉

Cascade is your organization’s brain. It is the only platform that spans the entirety of your ecosystem to understand the relationships between your business inputs (e.g., metrics, initiatives, investments) and outputs (e.g., expected results, forecasted revenue, margins, etc.).

For example, Cascade helps you to monitor progress toward your targets and identify performance gaps before it’s too late. And even though it has tracking functionalities that allow you to track your progress in real-time, like dashboards and reports , it’s not just another tracking tool like the ones out there... It’s the key to centralized visibility over your execution engine.

👉🏻 Learn more about strategy execution software here !

Want to take Cascade for a spin? Sign up today for a free forever plan or book a guided 1:1 tour with one of our Cascade in-house strategy execution experts.

The gap analysis template that we've created is a great starting point. But there are a few different frameworks and tools that you can also use to help you get more specific about the gaps you're trying to resolve.

These frameworks are conceptual approaches that you can 'layer' onto your organization to help you categorize your activities and more easily identify gaps.

SWOT analysis

SWOT means strengths , weaknesses , opportunities , and threats analysis. It assesses both internal and external factors, offering insights into current and future opportunities.

SWOT analysis serves as a solid foundation for the gap analysis process by offering a comprehensive snapshot of your organization's current state since it gives a realistic and fact-based look at how the organization positions itself within the industry. For it to be successful, it needs to focus on real-life evidence and contexts.

👉🏻 Check out this article where you can learn more about SWOT analysis and grab a FREE SWOT Analysis Template.

PEST/PESTLE analysis

Understanding industry threats and opportunities can be challenging in a SWOT analysis without proper industry knowledge. But a PESTLE or PEST analysis can enhance your understanding of external factors by considering the following aspects:

• Technological
• Environmental

As you research each of these elements, you'll gain a better understanding of threats and opportunities within your industry and a birds-eye view of the entire environment to accurately assess your current state.

PESTLE analysis is particularly valuable in guiding strategic decision-making and identifying gaps related to changes in the external environment.

👉🏻 Check out this article to learn more about PESTLE analysis.

McKinsey 7-S Framework

The McKinsey 7-S framework is a management model that assesses seven interconnected elements within your organization to understand its effectiveness and alignment.

These elements include:

• Shared Values

The framework emphasizes the importance of considering all these components together, as they are interdependent.

When conducting a gap analysis using the McKinsey 7-S framework, you can identify discrepancies in how these elements are aligned and how they impact the overall performance and success of your organization.

👉🏻Check out this article where you can learn more about McKinsey 7-S framework.

Nadler-Tushman model

The Nadler-Tushman model is another organizational framework that focuses on inputs, transformational processes, and outputs to assess organizational effectiveness. The model examines how inputs like people, technology, and resources are transformed into outputs such as products, services, and outcomes.

By using this model for gap analysis, organizations can pinpoint areas where processes may be inefficient or ineffective, leading to gaps in performance or output.

Fishbone Diagram

The fishbone diagram, also known as the Ishikawa or cause-and-effect diagram, helps identify potential root causes of a problem or gap in the organization. It is particularly useful for identifying complex and interconnected factors that contribute to the identified gap.

By visually mapping out all possible causes, organizations can better understand the underlying issues and develop targeted solutions.

McKinsey’s Three Horizons

Another framework for complementing your gap analysis could be McKinsey's Three Horizons of Growth.

This framework forces you to think about your business progression over a series of time-based horizons that help you isolate your mandatory business-as-usual activities from your truly innovative drivers of growth.

The 3 Horizons are:

• Horizon 1 : Maintain and defend the core business
• Horizon 2: Nurture emerging business
• Horizon 3 : Create genuinely new business

By using this framework, organizations can identify gaps in their growth plans and ensure a balanced approach to innovation and sustainability.

👉🏻Check out this article where you can learn more about McKinsey’s Three Horizons.

Balanced Scorecard

A balanced scorecard is a useful tool for categorizing your business activities into a series of outcome-focused quadrants (also named "perspectives"):

You can then mirror these same quadrants to categorize and prioritize your gaps and their associated action plans.

By using the balanced scorecard for gap analysis, organizations can identify gaps in each perspective, understand how they relate to the overall strategy, and prioritize actions to address these gaps effectively.

👉🏻Check out this article where you can learn more about the Balanced Scorecard.

Note these frameworks are not substitutes for performing a gap analysis, but can rather add an additional layer of depth on top of your gap analysis.

The following are additional gap analysis templates you may find useful, depending on your needs:

Gap analysis template for business process improvement

Gap analysis is often used for improving business processes. However, the framework needs some adjustment. We are introducing a bit different approach that’s best used for optimizing business processes.

👉🏻 Download the free Gap analysis template for business process improvement

Skills gap analysis template for your team

Businesses use gap analysis to identify the skills that an individual team member (or a team) needs but don’t necessarily have to perform certain jobs effectively.

With a skills gap analysis, organizations can uncover gaps in their teams and set career development goals. Thus, it is mainly done by the Human Resources (HR) department.

The process is fairly simple, and it’s mostly focused on identifying the current state. Create an assessment scale for each skill. Then, assign points to your employees for every skill. It’s the fastest way to identify which skills are underdeveloped on the organizational level.

Once you’ve identified the missing skills, you can implement training plans or set up your hiring plan accordingly.

👉🏻 Download the free skills gap analysis template here!

Product gap analysis template

Product gap analysis is used to highlight the gap between your product and customers’ expectations. It will help you prioritize the next steps and meet those expectations set in the first place.

👉🏻 Download the product gap analysis here!

Financial gap analysis template

Financial gap analysis pretty much follows the standard template. However, we added some finance-related examples for easier navigation.

👉🏻 Download the financial gap analysis here!

Gap analysis is a great tool for identifying gaps and deciding what you should do to improve performance. However, it’s only half the work!

Once you've conducted the analysis, identified gaps, and created a well-crafted action plan and roadmap, the real work begins. You need to execute those projects and make steady progress toward the metrics and KPIs that will lead you to achieve your business goals - ultimately closing the gap.

The most important thing is to remember that no matter how good your action plan is, it's the strategy execution that counts the most .

So here are our recommended steps to ensure you effectively close the gaps:

• Download your FREE gap analysis template to streamline your gap analysis process
• Put your action plan into Cascade (for FREE!) to achieve centralized observability and effective execution

By combining a well-structured action plan with robust execution through tools like Cascade, you equip your organization with the resources needed to close the gap and achieve your desired outcomes.

What is a ‘needs analysis’ and how is it related to gap analysis?

A needs analysis is a process of identifying specific requirements and deficiencies within an organization to address challenges and meet objectives. It focuses on understanding what is lacking or needs improvement.

Needs analysis is related to gap analysis as both methods assess the current situation compared to the desired future state. However, needs analysis is more focused on identifying specific needs and improvement areas, while gap analysis helps develop action plans to close the gaps between the current and desired states.

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