A gap analysis template is a tool used by businesses to better plan for the achievement of targets or goals. This tool has formatted in a way to assist the comparison process. Mostly, used created using MS Suite tools such as Excel and Word.
All the developing and developed businesses set certain goals to achieve. These goals are set to improve multiple factors of the business. However, gap analysis can be used to compare the two states of the company. Businesses can compare the existing state of the company with the ideal state to devise the best strategies for achievement.
Usually, a gap analysis template is used to make a comparison between the two states of a company. However, a business can add a milestone or an intermittent state. The current state of the business is referred to as a present state. Moreover, the goals or the ideal state of a business is referred to as a target state.
The purpose of this comparison is to make strategies for bridging the gap between the current and ideal state of the business. The gap is assessed and then the company defines the steps for bridging it.
There are many other terms used for the gap analysis such as need analysis, need assessment, and need-gap analysis.
Gap analysis isn’t a single tool. It is a group of tools that are used collectively to assess and bridge the gap between the current and ideal performance state of a business.
Table of Contents
- 1 What is a gap analysis?
- 2 How To Use Gap Analysis Template?
- 3 When to use a gap analysis template?
- 4 Who should use a gap analysis?
- 5 What is the importance of gap analysis?
- 6 Important Tool of Gap Analysis Template
- 7 How to make a good gap analysis template?
- 8 What needs to happen after the gap analysis?
- 9 How can you differentiate between SWOT and gap analysis?
- 10 Faqs (Frequently Asked Questions)
What is a gap analysis?
A gap analysis is an examination and assessment of your business’s current performance that compares the current state of business with the ideal state and informs you where you would like to be and highlights the opportunities for improvement.
Gap analysis provides you various benefits to your business such as it improves the efficiency of your business, your product, and your probability. It allows you to pinpoint the gaps present in your business. Once these gaps are filled out you can easily focus on your resources and energy.
How To Use Gap Analysis Template?
The visions and goals are set by the companies. However, it is important to efficiently track the performance of the company. Either the company is heading toward the goal or away from the goal.
The gap analysis can assess the gap between the states of a company with its competitor as well. After comparison, the results of the analysis can be used to achieve the goals.
The gap analysis follows a five steps method for implementation:
- Identification and Analysis of the Company’s Current State
- Identification and Setting of the Goal of Future State
- Compare the Company’s Current State with the Future State
- Find the Gaps between the two states
- Create and Devise the Strategies for Bridging the Gap between two states.
When to use a gap analysis template?
Whenever there’s a strategic objective or business goal to hit, you should use the gap analysis template. It helps to identify the necessary actions to reach that goal. You can use this versatile method for project management and business process improvement. When you have the most accurate picture of your current state, the gap analysis works best. With the help of project management software, you can get more details.
Who should use a gap analysis?
Many business settings use a gap analysis. Who uses gap analysis depends on where they will use it. For instance, a gap analysis will often be generated by project managers in IT environments. It is generally the owner who leads any strategic initiative while dealing with a business that’s looking to move to the next level. The relevant employees who can assist in building a more accurate picture of the current state of the business will involve them.
Software developers can also use the gap analysis template to note the services or other functions that may have been ignored. In compliance, gap analysis templates are often used. Moreover, a lot of business professionals can use this document to improve and perform their job better.
What is the importance of gap analysis?
Gap analysis provides various benefits to your businesses that are discussed below;
- A gap analysis helps you in finding shortcomings that need improvement.
- It will improve the efficiency of your business. It highlights any unexpected things that are going on.
- It will improve the efficiency of your business. It highlights any unexpected things that are going on.
- The gap analysis tool provides you an entire overview of your business or company. It allows the employers or HR managers to analyze either company has enough resources or not to meet its mission.
- Gap analysis is also used to compare performance with potential.
- With the help of the gap analysis process, there is more data on how to improve.
Important Tool of Gap Analysis Template
A company can use a set of tools for bridging the gap between the current and ideal states. There are different tools available for this purpose. However, the most recommended one involves the following:
- SWOT Analysis
- Ishikawa Diagram
- Mckinsey 7S Framework
- Nadler-Tushman Model
- PEST Analysis
SWOT analysis is the most common tool used in the gap analysis. SWOT stands for strengths, weaknesses, opportunities, and threats. It is used to analyze both the internal and external factors of a company.
The use of a gap analysis template is recommended by the professionals. As it is useful for all the business regardless of the business scale. Also, it allows the business to follow a stepwise approach. So, nothing gets ignored during the implementation of the approach.
How to make a good gap analysis template?
There are different types of content like text, images, videos, and links supported by a good gap analysis. To easily add or remove elements, it must be flexible for any analysis contributor. However, you can do it without a gap analysis template but reserve some time for prepping the analysis for the actual analysis work;
Current state
Determining the actual pain points and areas of your business that require improvement.
Desired state
Develop your business potential and visualize your future goals towards your goals.
Gap
Understanding the areas and opportunities for improvement and learning.
Action plan
In order to make a better action plan for your business, realign your goals to your current state, desired state, and gap.
What needs to happen after the gap analysis?
Let us discuss below what you need to do after the gap analysis;
Select a framework that assists in organizing your plans
A framework helps you map the gap analysis that reveals the problem areas. By having frameworks, you can stay organized and summarize the essential parts of your plan. For everyone, they make it easy to see the activities that play an important role in achieving a particular goal. There are a lot of strategic planning frameworks such as the Balanced Scorecard, Objectives and Key Results (OKRs), Porter’s Five Forces, and more.
The goals, measures, and projects that were determined in the gap analysis, develop your framework with them
Now, it’s time to fill out your framework with information. Some of them were identified in the gap analysis;
- Goals
- Measures
- Projects
Put your plan into action
Next, you have to put your plan into action and assess periodically how things are going. You should ensure that you have assigned sufficient resources to carry out the plan. Also, make sure that you delivered it to everyone in your organization.
In addition, you need a way to track your performance and manage the strategy execution process because they can be quite complicated.
How can you differentiate between SWOT and gap analysis?
SWOT analysis and gap analysis both are used for evaluating purposes in the businesses but in different aspects. SWOT analysis is often used by businesses while gap analysis is not used frequently.
- SWOT analysis is used for long-term goals while Gap analysis is to identify short-term threats and needs.
- Gap analysis evaluates internally to determine business performance deficiencies. On the other hand, SWOT analysis evaluates a business against its companion.
- SWOT analysis is frequently a huge study that evaluates many aspects and competitors while Gap analysis can be a very easy way for fine-tuning one process.
Faqs (Frequently Asked Questions)
The purpose of duration analysis is to identify the sensitivity of banks to the liquidity risk while gap analysis is used to identify the sensitivity of banks to the interest rate movements.
Let us discuss step-by-step how to perform/conduct a gap analysis;
Step#1: Firstly, you have to determine the current state of your business. Before making a strategy to reach your goal you have to know that where your business or organization currently. The most important thing at this step is to analyze the root of your problem.
Step#2: Secondly, determine the ideal future state. Once you have identified your company’s current state now it’s time to become more idealistic.
Step#3: Once you have done with the above steps then it’s time to compare both your current and ideal future state and identify what’s missing between your performance and potential. Then, find solutions to fill these gaps effectively. How to fill that gap will depend on your company’s and team priorities.
Step#4: In the end, make an effective strategy and implement it to bridge the gap.
There are four types of gap analysis;
1- Performance gap
2- Market gap
3- Profit gap
4- Personnel gap
The elements of a skills gap analysis are;
1- A set of responsibilities needed to perform the job effectively.
2- Identify the level of skill needed for each task.
3- Considering each employee’s competence in completing the tasks.
