Gap Analysis

Gap Analysis is a process performed by business analysts and project managers for a company or a line of business within a larger organization.  Gap Analysis is an assessment tool to find out the 'gap' between what exists verses what is needed or desired.

According to Business Dictionary it is a technique for determining the steps to be taken in moving from a current state to the desired future state.  It begins with

• listing of characteristic factors such as attributes, competencies, performance level of the present situation – “what is”,
• cross lists factors required to achieve the future objectives " what should be", and then
• highlights the gap that exist and need to be 'filled'.

While identifying the gap, a-before-and-after analysis must occur.  A Value Stream Map of current process is done.  Then A Value Stream Map of desired state is drawn.  The differences between the two form the `gap`.  Then the strategy is developed to move the company from its current state toward its desired future state.

Another tool to identify the gap is the "step-chart".  With the step-charts various “classes” of performance are identified, including world class status.  Then “current” state and “desired” state are noted on the charts – the differences between the two define the `gap`.

For example, take the issue of 'service quality', the perspective for this includes –

• Service quality gap,
• Management understanding gap,
• Service design gap,
• Service delivery gap, and
• Communication gap.

Implementing Gap Analysis: The steps involved in this are-

• Identification of customer expectations,
• Identification of customer experiences,
• Identification of management perceptions,
• Evaluation of service standards,
• Evaluation of customers’ communications.

The Importance of Service Quality Gap Analysis:

Measuring gaps is the first step in enhancing customer satisfaction.  Competitive advantages can be achieved by exceeding customer expectations.  Gap Analysis is the technique used to determine where companies exceed or fall below customer expectations. Gap Analysis is used to narrow the gap between perceptions and reality, thus enhancing customer satisfaction.

Product Application:

Gap Analysis can be applicable to any aspect of a company; also to address internal gaps; also to human relations management.  There can be a gap between employees’ expectations and what they actually experience.  This may lead to job dissatisfaction.

It is also a good marketing tool. Gap Analysis is not a standard process and needs to be tailored to suit the purpose for which it is used.  The goal is to use Gap Analysis to figure out what is needed to achieve and currently exists to the point what the company desires.

Gap Analysis helps the company to pin-point the missing links to bridge the gap.

Questions:

• How does Gap Analysis helps the company reach its objectives?
  
  
• What are the steps involved in implementing Gap Analysis.