Businesses use gap analysis to decide what to expand, what to trim and how to change the business process as it goes to the next level. Teams do have their opinions recorded, although it is the gap analysis that provides concrete facts on where the business is, ought to be, going and how.
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The process of gap analysis permits enterprises to decide the path to best achieve business strategies and goals by comparing the ideal state with the current state of business goals. This gap analysis template allows for basing decisions on facts to highlight the improvement opportunities and shortcomings, filling the gap analysis meaning.
To conduct a gap analysis, one needs to undertake the following steps.
Several gap analysis tools help its definition by helping identify the gaps, factors causing them and the best-path solutions. The top 5 gap analysis tool are-
SWOT analysis: The full form of SWOT analysis is a listing of Strengths, Weaknesses, Opportunities and Threats. The analysis can be both qualitative and quantitative and helps identify both external and internal threats and opportunities in what is meant by gap analysis.
Fishbone diagram: The fishbone diagrams are also called the herringbone, cause-and-effect and Ishikawa diagrams for their distinctive shape while exploring the probable causes of a root/ primary problem. Especially of use in evaluating the current situation, the contributing investigative arms could be Materials, Measurements, People, Methods, Machines and Environment. For any category being examined, use the contributing factors to draw up the Fishbone chart.
McKinsey 7S framework: Another popular tool is the McKinsey 7S framework propounded by its consultancy firm. It helps define if expectations are being met and the shared values of the enterprise. It uses the seven S’s of the enterprise to see which of these values are forming the gaps and attempts to bridge the gap between the desired and present states bringing in immense benefits of gap analysis.
Nadler-Tushman Model: The dynamic Nadler-Tushman model examines the correlations and dependencies of each business process on the others while pinpointing the gaps crucial to efficiency. Thus one gets a high-level view of all processes that are operational, ending in output and beginning from the inputs. The model’s gap analysis algorithm divides processes into 3 parts, namely the
PEST analysis: This method is similar to the other methods of gap analysis but uses the 4 external primary factors of a business environment to do the analysis. The factors considered to identify opportunities and threats are Sociological, Political, Technological and Economic. It finds the current issues, opportunities for change and the actions required to minimize market risks. For in-depth market environment analysis, one can use the PESTLE analysis in place of the PEST analysis adding in the environmental and legal factors.
The article just expanded on what do you mean by gap analysis and how to do a gap analysis. Gap analysis is a crucial exercise for business processes to streamline operations and snags and reach the ideal state.
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