Gap Analysis is a process used by companies to weigh the difference between the current state of their organizational performance and where they ultimately want to be. This type of comparison is done in order to identify any deficiencies in their actual performance which may be hindering them from reaching their desired goals. It helps organizations to measure the gap between their current reality and where they ultimately want to be. Through gap analysis, businesses can also develop strategies and solutions to close the gap and make progress towards achieving their goals.

The first step in gap analysis is to define the current and desired organizational goals. Goals define the ultimate aim that the organization is trying to reach. Through gap analysis, the organization will identify the areas where there is the largest gap between their current performance and the desired performance. Once the goals are established and agreed upon, the organization can begin to benchmark the current state and set a baseline for comparison.

The second step of gap analysis is to benchmark the current state of the organization, examining the areas where the organization is falling short from reaching their goals. This is done by evaluating the gaps in the current process, performance, customer service and quality needs, organizational structure, and other areas. This helps the organization to identify how the current state of their goals falls short of the desired outcomes. This step helps to identify areas of improvement and ways to bring the organization closer to reaching their goals and objectives.

The third step in gap analysis is to analyze the gap data. This step involves analyzing the data that was gathered during the benchmarking stage and understanding what the gaps mean. Some types of gap analyses include customer satisfaction gap analysis, performance gap analysis, process gap analysis, and strategy gap analysis. By analyzing the gap data, the organization can gain a better understanding of what is causing the gaps and where the organization can begin to close them.

The fourth and final step in gap analysis is to compile a gap report. This report summarizes the areas of gap analysis and includes the findings, conclusions, and any recommendations for improvement. Once the analysis is complete, it is important to review the report and develop a plan for closing the gaps. This includes creating a timeline for reaching the desired goal, assigning responsibilities, and allocating resources to close the gaps.

By conducting a gap analysis, organizations can more effectively utilize existing resources, capitalize on opportunities, and create a plan of action to fill in the gap. Gap analysis offers organizations insight into the current performance of their organization, allowing them to set achievable goals and implement plans to reach those goals in an efficient manner.