A gap analysis is a strategy used to assist the organization in the achievement of goals. Gap analysis template excel is a preformatted tool ready to use for any type of business.
By definition, a gap analysis is a method of comparing the current performance state of the business with the ideal state or goals.
There are two states in this strategy. Where a company is currently is known as the current or present state. What are the goals or where the business wants to achieve them is known as the goals or target state?
Gap Analysis Template Excel
A GAP analysis template illustrates visuals that help us to understand where is the exact difference between the plan or results and our expectations. This is all data-based on real-time statistical values.
The gap is referred to as the space between the current and target state of the company. The purpose of gap analysis is to assess the gap between the current state and goals to figure out what steps a company needs to take to achieve its goals.
The other terms used as alternatives to gap analysis are needs analysis, needs assessment, or need-gap analysis.
Gap analysis uses a lot of tools to analyze and define the gap between the current performance and future goals of a business.
Below there are four steps to conduct a Gap analysis by using its excel template format that helps to identify problems and provides you with a better solution.
How to Perform a Gap Analysis
The gap analysis method is very useful in comparing the actual performance of something with a vision or future goals. Moreover, within the company analyze the performance based on strategy and develop more strategies for the achievement of goals.
There is a four steps simple approach used for the implementation of gap analysis;
- Identify and analyze the current state of the company or project.
- Identify and set the ideal future state or goals for the company or project.
- Find the gap between the current state and the future desired state.
- Create and implement strategies for bridging the gap.
Identify and analyze the current state: In this step, we evaluate our company’s current state or project status that defines how many tasks are completed or how much we obtain our planned milestone.
For a financial department, it tells us how is our current account deficit or balance, etc.
Identify and set the ideal future state: This step involves setting the latest feature goals or making contingency plans that help us to meet our goals at the end of a project.
Basically, this is a very important step because in which we make decisions that help to eliminate problems, reduce project expenses, and helping to boost the project completion process in time.
Find the gap between the current state and future desired state: This step shows actual figures between our project’s current state and our expected state.
Create and implement the strategies for bridging the gap: In this last step, we make operational strategies and implementation plans that help us to get back the project on the right track towards our goals.
What is included in a Gap Analysis?
There are several tools available for bridging the gap between the current and future desired state of the company.
Let’s briefly state a few of the best techniques;
SWOT Analysis: SWOT analysis is one of the most effective tools used in the gap analysis. It stands for strengths, weaknesses, opportunities, and threats. It can be performed for both quantitative and qualitative reasons. It analyzes the business for both internal and external factors.
Ishikawa Diagram: It is the tool used for finding out the root cause of the problem. It helps mostly in the analysis of the current situation of the business. It is mostly implemented into categories of machines, methods, materials, measurements, and people.
Mckinsey 7S Framework: This tool is used for analyzing if the business is on track for the achievement of goals. It includes an analysis of the 7S’s of an organization. It is especially used for bridging the gap between the current and future state of the company.
Nadler-Tushman Model: It identifies the business processes that affect each other and which gap between the current and future state affects efficiency. This model divides the company processes into input, transformation, and output processes.
PEST Analysis: This analysis mainly focuses on external threats and opportunities of any business; political, economic, sociological, and technological.
Gap analysis has become essential for today’s business for improvements to achieve higher efficiencies and cost-effectiveness.
Benefits of Gap Analysis Template in Excel
Here we discuss different benefits that we can obtain from this analysis template. For instance:
- This analysis helps to evaluate and overcome shortcomings that a company or individual can face.
- We can use its result to grow business and achieve targets after identifying and eliminating of problem. Also, Gap Analysis helps improve the project’s progress.
- The gap analysis report also provides us project overview. This report helps companies determine whether their running project fulfilling company goals.
- We can use this analytical data for the improvement of project operations.
- The most important benefit of this analysis we can use its statistics to conduct a SWOT analysis for the betterness of our company and project.