What is Gap Analysis?

Gap analysis is a strategy for identifying the difference or “gap” between a present state and a desired future state inside a business or organisation. 

It helps in knowing where the organisation stands in terms of processes, capabilities, and objectives, as well as where it needs to be to achieve its objectives.

The following are the major steps in doing a business analysis gap analysis:

1. Define the Current Situation: This entails extensively knowing the organization’s existing procedures, resources, systems, and performance measures.

2. Define the Future State: Clearly explain the organization’s goals, objectives, and expected outcomes. This establishes the scope of the investigation.

3. Identify the Gap: Compare the existing and future states to find gaps or discrepancies. This can be accomplished using a variety of methods, including surveys, interviews, data analysis, and process mapping.

4. Identify and Prioritize Gaps: Not all gaps are created equal. Prioritize the identified gaps based on their influence on the organization’s goals and their feasibility to close.

5. Develop Action Plans: Create action plans for each prioritized gap that detail the steps and resources required to bridge the gap. These strategies must be SMART (specific, measurable, achievable, relevant, and time-bound).

6. Implementation and Monitoring: Implement the action plans and track progress towards closing the identified gaps on a regular basis. Change strategies as needed.

7. Communicate and report: Keep stakeholders informed of the gap analysis’s progress and results. Communication is critical for gaining buy-in and support for needed changes.

8. Review and Iteration: Return to the gap analysis on a regular basis to review progress and make any necessary revisions to the strategies and action plans.

Gap analysis is a significant tool for organizations decision-making, strategic planning, and process development, assisting them in aligning their resources and activities with their broader goals.