Gap analysis is an assessment tool and method that focuses on the difference between a current performance and its desired performance. Gap analysis can help companies to better understand their needs, identity risks and prioritize the necessary improvement efforts to close the gap and reach the desired, future performance.
When used correctly, a gap analysis can be applied to a wide variety of situations where a company wants to improve such things as:
Allocation of resources
Application development
Security compliance requirements
Launching new products
Improving customer service
There are several gap analysis tools on the market, and the particular tool a company uses depend on its target objectives. The following are gap analysis methods:
McKinsey 7S Model is a framework for organizational effectiveness that postulates that there are seven internal factors of an organization that needs to be aligned and reinforced in order for it to be successful. This model examines the seven internal elements of an organization strategy, structure, systems, staff, style, skills and shared values. These seven elements are categorized as hard or soft. You would analyze each of the seven elements to determine if they are effectively aligned with the others. Your company can then implement a targeted solution to bridge that gap.
Strengths, Weaknesses, Opportunities, and Threat known as SWOT is a strategy used to identify the internal and external factors that favorable or unfavorable related to business competition or project planning. SWOT analysis often asks and answers questions about the company’s strengths, weaknesses, opportunities and threats. Addressing these problems in these terms often points the way toward a solution by showing you how to avoid potential threats while using strengths to exploit an opportunity.
Performing a gap analysis can vary by company or industry, and it’s a great tool that provides an in-depth look at your business to help it grow. The benefit of a gap analysis can be years of success for your company.
