Examples of Gap Analysis in Business
Using gap analysis to make improvements to your current company performance does not have to be a difficult job. Using these simple gap analysis examples and steps will help you craft a well organized gap analysis.
While numerous techniques for performing a gap analysis start by actually looking at the organizational performance, it is useful to first have a clear goal and objective in mind prior to performing the evaluation process. Yet, some businesses will look at the best practices used by other businesses and they will attempt to execute similar approaches.
After you have cleared up the strategic goals, you should collect more information on the present situation for each of your strategic objectives. Analyze areas of insufficiency and produce plan for improvement dependent upon these types of areas with the available resources.
Once your gap analysis and plan are in place, you will report the findings with the suitable and relevant data. Prior to starting out your gap analysis, almost all objectives must be crystal clear so that the gaps may be easily tracked and measured.
The final step within the gap analysis is writing out all possible ways for closing the gap between your current as well as ideal state of performance.
Gap analysis may be an efficient tool with regard to analyzing as well as understanding businesses. It is especially relevant within new business establishments. New companies will find it particularly helpful for gaining ideas in to exactly how to arrange and plan their limited resources.
Gap Analysis Examples
Current state examples:
Sales: Our current annual sales are $25,000,000
Profit: Our current annual profit is $3,000,000
Future state examples with timeline:
Sales: We need to increase our sales to $30,000,000 in the next 12 months
Profit: We need to increase our profit margin by 10% in the next 6 months
Sales: Our current gap is $5,000,000
"While the structure of these gap analysis example is pretty straightforward and simple to understand, the real question for you is where to focus your efforts."
This goes back to your business strategy!
The above examples are relevant for a company where the strategy is focused on sales growth.
Finally, the real value of gap analysis is in finding alternative solutions to close the gaps. This is why the purpose of your gap analysis will be developing appropriate action plan to achieve the goals (close the gap).
Your action plan needs to answer the question – how can we effectively close the gap?
In the above example of $5,000,000 sales growth, many alternatives might be available such as hiring new sales reps, creating new products, entering new markets, reconsidering the current pricing models, new marketing and advertising strategies, etc. However, the best alternative will be the one or few that will achieve the goal effectively with minimum risk and high probability.
More on Analytics