Gap Analysis
A systematic process of comparing current performance or processes against desired goals to identify gaps and deficiencies that need addressing.
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What is Gap Analysis?
Gap analysis is an evaluation method that helps you measure the distance between where your organization stands today and where you actually want it to be. Think of it as a diagnostic tool: it shows businesses what they have, clarifies what they need, and highlights whatever is getting in the way of reaching their goals.
The "gap" itself is simply the space between your current capabilities, processes, or performance and whatever standard or target you're aiming for. Organizations rely on gap analysis to spot inefficiencies, missing pieces, or weak points that keep them from hitting their objectives. You'll find this approach used across process improvement efforts, strategic planning, compliance work, and business process reengineering.
Sometimes you'll hear gap analysis called needs assessment, need-gap analysis, or just needs analysis. The name varies, but the idea stays the same: figure out what problems are holding things back and come up with practical ways to close those gaps.
Key Characteristics of Gap Analysis
- Current State Assessment: Documents and measures how things actually work today, including performance levels, processes, and capabilities as they currently exist
- Desired State Definition: Sets clear targets, whether that's optimal outcomes, required standards, or specific goals the organization wants to reach
- Gap Identification: Puts the current state side by side with the desired state to surface specific discrepancies or areas that need work
- Root Cause Analysis: Digs into why gaps exist rather than just listing symptoms or obvious problems
- Action Planning: Builds concrete strategies with timelines and resource plans to close the gaps and move toward objectives
Gap Analysis Examples
Example 1: Manufacturing Quality Control
A manufacturing company runs a gap analysis on their quality control process. They find their defect rate sits at 5% while the industry best practice is closer to 1%. The analysis points to gaps in employee training, aging equipment, and thin process documentation. From there, they put together an action plan that includes rewritten SOPs, equipment replacements, and hands-on training to tackle that 4% performance gap.
Example 2: Customer Service Response Time
A software company takes a hard look at their customer support through gap analysis. Their average response time? 24 hours. The SLA they promised customers? 4 hours. The gap analysis shows they're understaffed during busy periods, missing standardized response templates, and routing tickets inefficiently. The fix involves better scheduling, quick reference guides for common issues, and automated ticket prioritization.
Example 3: Compliance Documentation
A healthcare organization compares their current documentation practices against new regulatory requirements through a gap analysis. They discover missing audit trails, spotty version control, and training records that haven't been updated. This leads to new compliance procedures, a proper document control system, and refresher training for staff to meet the regulatory bar.
Gap Analysis vs Needs Assessment
People often use these terms interchangeably, though there is a technical distinction in formal business analysis.
| Aspect | Gap Analysis | Needs Assessment |
|---|---|---|
| Purpose | Identifies and measures the gap between current and desired states | Figures out causes of gaps and recommends specific solutions |
| Scope | Focuses on "what is" versus "what should be" | Goes further into "why gaps exist" and "how to fix them" |
| When to use | Initial phase of problem identification | Follow-up phase after gaps are known |
| Output | List of identified gaps and deficiencies | Recommended actions and solutions |
In most real-world situations, gap analysis acts as the opening step of a needs assessment, and both activities tend to happen together as one integrated process.
How Glitter AI Helps with Gap Analysis
Glitter AI makes the gap analysis process more practical by simplifying how you document both current and desired states. When you're working through a process gap analysis, you can use Glitter to capture existing workflows via screen recordings, then build out improved documentation using techniques like process mapping that represents where you want to be. This visual approach makes gaps obvious to everyone involved.
The platform also offers version control and audit trail features that prove useful when you're tracking progress on closing gaps. Teams can document how things work at baseline, roll out improvements, and then measure what changed over time. That before-and-after documentation shows exactly how gaps got addressed through process work.
Frequently Asked Questions
What does gap analysis mean?
Gap analysis is a way to compare your current performance or processes against where you want to be. It surfaces specific gaps or shortfalls that need attention and shows the difference between your present state and your target.
What is an example of a gap analysis?
Say a retail company runs a gap analysis and learns their inventory accuracy is at 85% while the benchmark is 98%. The analysis might reveal gaps in counting procedures, inconsistent processes, and insufficient training as root causes that need fixing.
Why is gap analysis important?
It gives you a clear picture of where performance is falling short and where opportunities exist. This helps organizations make decisions based on actual data, prioritize where to spend resources, set achievable targets, and build realistic plans to close the distance between current capabilities and goals.
How do I conduct a gap analysis?
Begin by documenting your current state through observation and data collection. Then define your desired state with measurable targets. Compare the two, identify the gaps, look into root causes, and put together an action plan with timelines and resources to address each gap.
What is the difference between gap analysis and needs assessment?
Gap analysis focuses on identifying what gaps exist between current and desired states. Needs assessment takes it further by exploring why those gaps exist and recommending specific solutions. Typically, gap analysis is the first step in a larger needs assessment effort.
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