Gap Analysis

Definition

Gap analysis is a technique used to examine the performance of an organization or system by comparing its actual or current state to its desired, optimal, or target state. It involves identifying the gaps between the current and desired states, and then developing strategies to address those gaps.

5 Must Know Facts For Your Next Test

1. Gap analysis is a crucial step in the strategic planning process, as it helps organizations identify areas for improvement and develop targeted strategies to achieve their desired objectives.
2. The Gap Model of Service Quality is a framework that uses gap analysis to identify discrepancies between customer expectations and perceptions of the service provided.
3. Gap analysis can be applied to various aspects of an organization, such as financial performance, operational efficiency, customer satisfaction, and employee engagement.
4. Effective gap analysis involves gathering and analyzing data from multiple sources, including customer feedback, industry benchmarks, and internal performance metrics.
5. The outcome of a gap analysis is typically a set of recommendations or action plans that address the identified gaps and help the organization move closer to its desired state.

Review Questions

• Explain how gap analysis is used in the context of developing a strategic plan.
  • In the context of developing a strategic plan, gap analysis is used to identify the gaps between the organization's current state and its desired future state. By examining factors such as financial performance, market position, and operational capabilities, gap analysis helps the organization understand where it needs to improve or change in order to achieve its strategic objectives. The insights gained from the gap analysis then inform the development of targeted strategies and action plans to bridge the identified gaps and move the organization closer to its envisioned future.
• Describe how the Gap Model of Service Quality utilizes gap analysis to assess service quality.
  • The Gap Model of Service Quality uses gap analysis to identify discrepancies between customer expectations and their perceptions of the actual service delivered. The model outlines five key gaps that can occur: 1) the gap between customer expectations and management's understanding of those expectations, 2) the gap between management's understanding and the translation of those expectations into service quality specifications, 3) the gap between service quality specifications and the actual service delivery, 4) the gap between the delivered service and what is communicated to customers about the service, and 5) the gap between customer expectations and their perceptions of the service received. By analyzing these gaps, organizations can pinpoint areas for improvement in their service delivery and better align their offerings with customer needs and expectations.
• Evaluate how the insights gained from a gap analysis can inform an organization's strategic decision-making.
  • The insights gained from a comprehensive gap analysis can significantly inform an organization's strategic decision-making. By clearly identifying the gaps between the current state and the desired future state, the organization can prioritize areas for improvement and develop targeted strategies to address those gaps. This may involve allocating resources more effectively, implementing new processes or technologies, enhancing employee capabilities, or adjusting customer-facing activities. The gap analysis also helps the organization benchmark its performance against industry standards or competitors, enabling it to make more informed choices about where to focus its efforts and investments. Ultimately, the strategic decisions informed by gap analysis can help the organization bridge the identified gaps and move closer to achieving its long-term goals and objectives.

Related terms

Needs Assessment: The process of identifying and evaluating the needs or requirements of an organization or system to determine the gaps between the current and desired states.

Strategic Planning: The process of defining an organization's strategy, or direction, and making decisions on allocating its resources to pursue this strategy.

Service Quality: The degree to which a service meets the expectations and needs of the customer or client.