Sales in the office are otherwise good, so the manager wants to find out what the issue is with the new product. Evaluate the gaps between where you are and where your goals should take youįor example, a financial service firm can’t understand why it isn’t having success in selling the latest annuity rollout.Identify the important metrics you want to look at.There are four primary steps to a gap analysis: The gap would be the makeup of the current workforce versus the workforce needed to succeed. This is sometimes called an HR gap analysis because it looks at the company’s personnel resources to determine whether or not it has enough people with the right skills to meet the goals of the company. It’s a way for a business to correct its course of action where necessary. By analyzing the gap, the company does a deeper dive into why the goals are not being met rather than just looking at the numbers on their own. This is a common gap analysis that looks at the profit goals compared to the actual profits. This analysis often benchmarks the company to competitors to see what you are doing versus what they are doing, to seek out opportunities to add services or products that fit the overall mission of your business. It measures the actual performance versus the anticipated performance. The strategic gap analysis is also called a performance gap analysis. A company will use a market gap analysis to discover underserved markets that it can capitalize on. Product gaps look for opportunities where supply is less than the demand. This can be done internally or externally by an analyst. This is also called a product gap analysis and looks at the actual sales versus the budgeted sales. Let’s explore the four types of gap analyses. By digging in with a gap analysis, you can get very specific about problems and come up with solutions that move you closer to goals. But when goals aren’t achieved, it’s important to understand why. Most business leaders are good at setting goals.

When Is a Gap Analysis Necessary?Ī gap assessment is a useful tool that helps you identify why certain goals are not being reached. These would be specific gaps that need to be addressed.

For example, a sales team might not hit desired sales numbers or a customer service department may spend too much time on each call, causing long waiting periods. You can use a gap analysis in any department in your organization. In many ways, a gap analysis is an efficiency tracker and looks to improve what you don’t do well. With that information, you are able to create an action plan that closes the gaps. It considers where you are, where you want to be and looks for the reasons preventing your success. Via Wrike's Secure Website Gap Analysis DefinedĪ gap analysis looks for the reasons you aren’t achieving certain business goals.

Gapped meaning