Gap analysis is a strategic planning tool that helps organisations assess the difference, or “gap,” between their current state and their desired future state. This analysis is conducted to identify areas where there is a difference between what an organisation is currently doing and what it wants to achieve. The primary purpose of gap analysis is to understand and bridge the disparities between the present situation and the desired goals or objectives. Below are some key elements where gap analysis can support your organisation.

Strategic Planning:
- Gap analysis is integral to strategic planning as it allows organisations to dissect their current position and envision a future state. This process aids in aligning organisational objectives with actionable steps, creating a comprehensive roadmap for success.
Performance Improvement:
- By conducting gap analysis, organisations can pinpoint specific areas of underperformance. This detailed insight serves as a foundation for targeted interventions, enabling improvements in operational efficiency, productivity, and overall performance.
Decision-Making:
- Gap analysis empowers decision-makers by offering a clear understanding of where resources should be directed. Informed decision-making becomes possible as leaders can prioritise initiatives and investments based on the critical areas that require attention for achieving strategic goals.
Risk Management:
- Identifying gaps in processes or capabilities through gap analysis facilitates proactive risk management. Organisations can anticipate potential challenges, allowing them to develop mitigation strategies and navigate uncertainties effectively.
Resource Allocation:
- In a resource-constrained environment, gap analysis aids in optimising the allocation of resources. Organisations can strategically deploy limited resources, such as time, budget, and manpower, by focusing on the areas that will yield the greatest impact in closing the identified gaps.
Continuous Improvement:
- Gap analysis is not a one-off exercise but serves as a foundation for continuous improvement. Regular assessments and gap-closing initiatives ensure that the organisation adapts to changing circumstances, staying agile and aligned with its goals over time.
Change Management:
- During periods of organisational change, whether due to technological advancements, restructuring, or process reengineering, gap analysis plays a pivotal role. It helps identify disparities between the current state and desired changes, facilitating a smoother transition and ensuring that the organisation adapts successfully to new paradigms.

Gap analysis is a multifaceted tool that provides organisations with detailed insights into their current and desired states. Its significance lies in its ability to inform strategic planning, drive performance improvements, aid decision-making, manage risks, optimise resource allocation, foster continuous improvement, and ease the process of change management within the organisation.

The use of gap analysis allows you to develop a clear understanding of how to improve and crucially, where you can improve your organisation. It is a really clear methodology for identifying where the focus should be and where improvements are needed. It is what Steven Covey would refer to as ‘sharpening the saw’.

Below is a free downloadable resource to show you a step by step process for working through the gap analysis process in your organisation.

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