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What is Strategic Gap Analysis?
Strategic gap analysis is a business management technique that requires an assessment of the difference between a company’s best possible outcome and the actual outcome. It includes recommendations on actions that can be taken to close the gap.
Strategic gap analysis aims to determine what specific actions a company can take to achieve a particular goal. A range of factors, including timing, management performance and budget constraints, are critically reviewed to identify gaps.
The analysis should be followed by an implementation plan.
Key points to remember
- Strategic gap analysis measures the difference between an ideal outcome and the actual outcome.
- The analysis identifies the steps that need to be taken to close this gap.
- For a business or other organization, the analysis can lead to an action plan for greater success.
Understanding Strategic Gap Analysis
A strategic gap analysis is a method used to help a business or other organization determine if it is getting the most value from its resources. It identifies the gap between the status quo and the best possible outcome. Perform a strategic gap analysis can indicate potential areas for improvement and identify the resources needed for an organization to achieve its strategic objectives.
Strategic gap analysis emerges from a variety of performance assessments, including benchmarking. When the performance level of an industry or project is known, this benchmark can be used to measure whether a company’s performance is acceptable or needs improvement. Such a comparison informs a strategic gap analysis.
From this point, the organization can determine what combination of resources such as money, time, and personnel is needed for a better outcome.
Many companies fail to plan strategically; they may achieve their basic business goals but not realize their full potential.
Many businesses fail to plan strategically. They have the resources and skills to achieve their core business goals, but fail to realize their full potential. A strategic gap analysis could help such a company close the gap between its current and potential performance levels.
Sample Strategic Gap Analysis
A little mom and dad restaurant in a seaside town has a loyal following of locals, but its owners also aspire to serve the summer vacation crowd. A strategic gap analysis identifies the changes needed for the restaurant to achieve its goals.
These changes may include moving to a busier street, staying open later to attract vacationers, and updating the menu. Restaurateurs do not have to follow any of these recommendations. But he could do it if he wants to reach that next level of business success.
