LESSON 2: GAP Analysis

Lesson 2: GAP Analysis

A gap analysis is a strategic tool used to identify the difference between where an organization is currently positioned, and where it desires to be in the future. More specifically, a gap analysis can be used to help organizations identify areas in need of improvement, and develop strategies for how to close the gap.

There are many different ways to conduct a gap analysis, but all approaches share some common steps:

1. Define the desired future state:This step involves clearly articulating what the organization wants to achieve in the future.
2. Assess the current state:Once the desired future state is defined, the next step is to take a close look at the organization’s current state. This can be done through a variety of methods, including surveys, interviews, focus groups, observations, document analysis, and data analysis.
3. Compare the current state to the desired future state:Once the current state is assessed, it can be compared to the desired future state. This comparison will help to identify any areas where there is a gap between the two.
4. Develop a plan to close the gap:The final step is to develop a plan to close the identified gaps. This plan will require the identification of specific actions that need to be taken in order to improve the organization’s current state. This plan will be different for every organization, but some common steps include setting goals, developing action plans, allocating resources, tracking progress, and making adjustments as needed.

Gap analysis is a powerful tool that can be used to help organizations achieve their desired future state. By taking the time to clearly define the desired future state, assess the current state, and compare the two, organizations can identify areas where improvement is needed. Once these areas are identified, a plan can be developed to close the gaps and achieve the desired future state.

Gap: Examples

A gap analysis is a tool that businesses can use to compare where they are to where they want to be. This process can be used in various departments within a company, such as accounting, sales, customer service, and human resources, in order to identify areas in need of improvement. Below are a few specific examples of scenarios in which a company might use a gap analysis.

• Launch of a new product:After a company launches a new product, they might do a gap analysis to determine why sales didn’t meet forecasts. This analysis can help the company to understand what went wrong and how to improve sales in the future.
• Productivity: If a factory’s productivity is not meeting expectations, a gap analysis can help determine which process needs to be fixed in order to target customer needs or the set of business requirements laid out.
• Assessment: A team leader can have each member perform a gap analysis on themselves to find targets to improve each person’s performance. In addition, the leader can use the results of the gap analysis to draw out the best practices that everyone on the team can adopt.
• Quality: A company can perform a gap analysis of its product to ensure that all features and functions outlined in the business requirements are working perfectly.
• Customer satisfaction: A company can use a gap analysis to figure out how to better meet customer satisfaction. This involves looking at the current level of dissatisfaction and finding ways to improve.

Let’s take a detailed look at one more example and go through all four steps of the gap analysis. Let’s assume you want to tackle the customer retention of your company.

Step 1: Define the desired future state.
The goal of the customer support team is to be the best in the market at retaining customers. We want users to stay loyal customers.

Step 2: Assess the current state.
We have poor customer retention. Our customers are unhappy with their experience and often cancel their subscriptions during the trial period.

Step 3: Compare the current state to the desired future state
We’ve been looking at our desired future state and current state in a very general way, but now it’s time to start getting specific with some specific measures (KPIs).
Currently, 80% of our customers cancel their subscriptions within their trial period. However, we would like at least 50% of them to keep their subscription.

Step 3: Develop a plan to close the gap

Action 1: To better understand why customers are canceling their subscriptions, we will be launching a new automated survey that will be sent to all customers who cancel their subscriptions. We hope to gain valuable insights from this survey that will help us improve our service.

Action 2: We will create a team in our customer service area that is dedicated to handling customer cancellation requests. This team would be responsible for helping customers who want to cancel their subscriptions. They would also offer discounts or additional trial periods for customers that want to give our service another try.

Action 3: Send a 25% discount code to customers one month after they cancel their subscription.

As you can see, creating action plans to address the gaps identified in a gap analysis is relatively easy. This is why it is such a powerful tool for identifying areas in need of improvement and developing strategies for closing the gap.