GAP

ANALYSIS
Presented by You Exec
 Table of
Contents
I Gap Analysis Overview

II Detailed Gap Analysis

III Gap Analysis Models & Tools

I. GAP ANALYSIS OVERVIEW
Gap Analysis Overview

Gap Analysis Questions

Gap Analysis Procedure

Gap Analysis Overview

4
 Gap Analysis Questions

You must be able to justify

No action required
Answer _>N/A why this question is not
applicable

Answer to each
Remedial action should
Gap Analysis Answer _ No
be taken
question

Provide evidence
Answer _>Yes

36
 Gap Analysis Procedure

Increase revenue by 20%, gross

Final Goal
profit by 15%, and profit margin
by 10%

Q4 Goal
Work with sourcing department to
cut production cost by 20%.

Current Goal
Increase production speed by
35% from previous quarter. Gap Analysis

Q2 Goal
Increase production volume by
15% from previous quarter.

Q1 Goal

Time Frame

5
 Gap Analysis Procedure
Standardize & Plan Gap Identification
Continuous Improvement
Add additional details about gap
Add additional details about standardize identification in this text box.
and plan continuous improvement in this

)
text box.

(A
ST

1
EP

EP
4

ST
AC
T
Add additional details about study STEP 3 CHECK PLAN STEP 1 (B) Add additional details about cause
the result in this text box. investigation here.

Study the Result Cause Investigation

DO

ST
2

EP
EP

1
ST

(C
)
Add additional details about action Add additional details about select
implementation in this text box. action in this text box.
Action Implementation Select Action

7
II. DETAILED GAP ANALYSIS
Gap Analysis Graph

Current State Analysis

Questions to Ask

Gap Analysis Templates

 Current State Analysis:
To allow access to
Our Mission
To empower people with
revolutionary products at the
technology
lowest price

Use ethical business To accelerate the world’s

solutions to combat global transition into sustainable
crises technology

9
 Current State Analysis:
Our Goals

Profitability Market Share

Increase revenue by 30% and profit margin Capture bigger market share and explore
by 25% to achieve record profitability by 1 2 new up-and-coming regions around the
end of the year. world.

Employees Learning
Improve employee training process, set 3 4 Increase overall employee happiness and
better expectations, and offer any offer free training programs to those with
necessary support. upward mobility.

10
 Current State Analysis:
Market Share

Competitor Three Competitor Two

You can insert more details about this 30% You can insert more details about this
competitor in this text box competitor in this text box

30%

15% Our Company

Competitor One
Current market share: 25%
You can insert more details about this
Goal market share: 60%
competitor in this text box 25%

11
 Current State Analysis: Financials

153,000
Revenue
142,000
Profit
120,000
Cash Balance
95,000

89,000

82,000

78,000

67,000

52,000

45,000

30,000

Our Company Competitor One Competitor Two Competitor Three Competitor Four

30
12
 Current State Analysis: Revenue

Target Revenue 34
28 28
27

Actual Revenue
20
18 18
16
15
10 9

KPI 1 KPI 2 KPI 3 KPI 4 KPI 5 KPI 6

Actual Revenue $16M 10M $18M $4M $20M $15M

Target Revenue $28M $18M $34M $9M $27M $28M

13
 Questions to Ask

1 What exactly is the Gap?

Can be analyzed by asking specific questions,

examples here. Once all possible reasons for a 2 What are the consequences of the gap?
gap are known, studied, and the root cause
recognized, suitable actions can be identified to
remove, fill, or mitigate the gap.
3 What is the timing and who is responsible?

4 What are the options to eliminate this gap?

5 What are the costs to eliminate this gap?

14
 Gap Analysis Graph

Revenue High
Risk

nc e
ma
fo r
e
Pr
t ia l
t en t i o n
Po i fi ca
ers
Div
ow th
t G r
ar ke
M

r at io n
Pen et
ark et
M

o r ma nc e
t u a l P erf
Ac

Product Development Low

Risk

Time
15
 Gap Analysis Template

Current State
Desired State
$10 million in
Gap
annual revenue $13 million in Remedies
annual revenue Lack of knowledge
Annual production in new sales tools Hire new talents who’re
cost is $5 million Reduce production experienced with new sales
cost to $3M Many untouched geographical tools and strategies
areas
Allocate more budget to market
Most machines are old, requires research efforts
a lot of human labor to operate
properly Retire old machines that have
been mostly unused
Little to no outsourcing
Outsource tasks that are time-
consuming but not revenue
generating

16
 Gap Analysis Template

Business Area: __________________________________________________________

Business Goal: __________________________________________________________

Gap between existing Capabilities needed to

Business requirement Existing situation Issues and risks gap
and new reduce/eliminate gap

Production volume/speed too low. 20% increase in volume, Better engineering and Workers compensation
Double profit margin
Production cost too high 40% decrease in cost product management talents not incentivizing enough

Become the leading Product development A new product with the most cutting- New C-level hires needed Low morale, not enough
innovator of the industry ideas are stagnant edge technology for the technology team upward mobility promised

Dominate worldwide US market too saturated, competition New up-and-coming Disrupt current Foreign adversary in order to protect
market share very high markets in other continents industry standards their local markets

Revenue generating Need to confirm one Make five key hires for Legal implications
No major brand partners
business partnerships major partner per quarter Business Development of big partnerships

13
17
 Market Gap Analysis
In case of excess production capacity In case of excess supply In case that new technology allows product improvement

Consider a market penetration strategy Consider a market development strategy Consider a product development strategy

Gain new customers in current markets Gain new customers in current markets Improve products for existing markets

Acquire competitors’ customers Establish new geographical market areas Create new products for existing customers

Sell more to existing customers Find new users for current products Create new products to acquire new customers

Improve existing products Consider a market penetration strategy

Consider a product development strategy Gain new customers in current markets In case of excess demand

Create new products for existing markets Acquire competitors’ customers Consider a product development strategy

Create new products for new markets Sell more to existing customers Create new products

Consider a market development strategy Improve existing products Consider a diversification strategy

Establish new geographical market areas Expand product line via acquisition

Find new users for existing products In case of rising costs of supplies/distribution

Consider a diversification strategy Consider a diversification strategy

Create new products for new markets Purchase suppliers or distributors

18
18
 Fit Gap Analysis

Score 1 2 3 4 5

Description Poor fit Marginal fit Acceptable fit Good fit Excellent fit Gaps (where applicable)

Analytical More knowledge

problem solving about the company

More hands-on experience

Innovation
developing innovative products

More hands-on experience

Strategic vision
leading a new team

Continuing education
Commercial awareness
or more certifications

Clear written
N/A
communication

Technological More experience working

orientation alongside engineering talents

15
19
 Skills Gap Analysis
Top Middle Mfg. Prod Set Up
Programs Schedulers Facility Planners Prod Supervisor
Management Management Engineer Operative

The Building Blocks of Learn Mfg.

Managing the Learn Factory

Planning Learning and Managing

Rapid Set Up

Scheduling Strategies

Inventory Record Accuracy

Peak Performance Teams

Common Senses Six Sigma

Root Cause Six Sigma

Management Problem Solving

Plant Layout for Learn Mfg.

Work Cell Design

High Reliability Maintenance

20
III. MODELS & TOOLS
Ansoff Product Matrix

SERVQUAL

Fishbone

McKinsey 7-S

Nadler-Tushman
 Ansoff Product Matrix

Market Development Strategies Diversification Strategies

New Markets
- Expand markets for - Vertical integration
existing products - Concentric diversification
- Geographic expansion - Conglomerate diversification
Use the Ansoff Matrix to devise - Target new segments
strategies for future growth. Using
this growth, we can reduce the gap
between our current state and our
Market Penetration Strategies Product Development Strategies
goal.

Existing Markets
- Increase market share - Product improvements
- Increase frequency of - Product line extensions
product usage - New products for the
- New applications same market

Existing Products New Products

22
 Gap Analysis Tool: SERVQUAL Dimensions

1 2 3 4 5

Assurance Empathy Tangible Reliability Responsiveness

Knowledge and courtesy of Caring, individualized Appearance of facilities, Ability to perform the Willingness to help
employees and ability to attention that the firm equipment, personnel, promised service with customers and to provide
convey trust and confidence. provides its customers. communication materials. dependability as well as prompt service whenever
accuracy. needed.

Current score: 5 Current score: 3 Current score: 5 Current score: 4 Current score: 4
Goal score: 7 Goal score: 7 Goal score: 7 Goal score: 7 Goal score: 7

23
 SERVQUAL Scores Calculation
Dimension Statement Expectation Mean Perception Mean Gap Score Dimension Average

1 4.54 4.01 -0.53

2 4.50 3.91 -0.59
Tangible -0.57
3 4.25 3.88 -0.37
4 4.55 3.71 -0.8
5 4.54 3.65 -0.89
6 4.55 3.59 -0.96
Reliability 7 4.51 3.75 -0.76 -0.79
8 4.53 3.71 -0.82
9 4.45 3.92 -0.53
10 4.54 4.01 -0.53
11 4.50 3.91 -0.59
Responsiveness -0.57
12 4.25 3.88 -0.37
13 4.55 3.71 -0.8
14 4.54 4.01 -0.53
15 4.50 3.91 -0.59
Assurance -0.57
16 4.25 3.88 -0.37
17 4.55 3.71 -0.8
18 4.54 3.65 -0.89
19 4.55 3.59 -0.96
Empathy 20 4.51 3.75 -0.76 -0.79
21 4.53 3.71 -0.82
22 4.45 3.92 -0.53

Unwelghted Average SERVQUAl Score:

24
 Gap Analysis Tool: SERVQUAL

External
communication
to customers
Past experience GAP 4

Management
Perceived Service Service quality perception of
Personal needs Expected service
service delivery specifications customer
expectations

GAP 5 GAP 3 GAP 2

GAP 1
Word of mouth
communication Customer
Provider

25
 Gap Analysis Tool: Fishbone

M
Machines are over 25 years old Not enough on-site managers Failed experiments lead to extra

ac

an

eth
costs, lost revenues

hin

po

od
w
e
ry

er
Only 6 of the 15 large machines are Engineers don’t work with on-
Managerial management style
being used everyday. site operators enough
remains obsolete

The rest are taking up a lot of Constant shift in senior Disagreements between group
space in our facility leadership reduce morale leaders on methods
Cost the company
$6M in profit
Prolonged shipping time from Profit spikes typically Natural disaster in our second
origin of sourcing followed by slowdown biggest market

M
Quality of material inconsistent and Most workers unwilling to sit still and Product latches onto unfavorable

ot
a
subpar to industry standards only work on one project diminishing trend

h
in

e
M

r
t e

N
at

na

a
er

tu
Costly to upkeep facility condition c
i

No dedicated reliable supplier Shift in consumer behavior

a

r
e

e
l

26
 Gap Analysis Tool: McKinsey 7-S

What’s our strategy, what are the objectives and What is our hierarchical structure and its
how do we achieve them, what makes us reporting mechanism? How do departments
competitive and how do we deal with coordinate activities? Is decision making
competition? centralized?

gy
ate
Structure

Str
What are the main systems that support and What is the general leadership style, is it
drive our business, what controls are there in participative or autocratic? Are people
Shared
Sy

Sty
the organization and how is status fed back? empowered and encouraged to take risks and
ste

le
Values
ms challenge norms?

In line with the strategy and vision, are there

What positions are vacant and need to be
any skills gaps? How are training and skills Skills

ff
Sta
filled, what competency gaps need to be
monitored and evaluated, what are our core
filled? What type of people and skills do we
competencies?
need?

27
 Gap Analysis Tool: McKinsey 7-S
7-S Current State Future State Change Gap Barriers to Change Change Activities

Top down approach Training leadership

Vision pushed down New leadership style Lack of expertise
Well-defined processes Transformation and disruption
Strategy Rapid delivery New team designs No time available
On time-on budget outcomes strategies
Incremental delivery More open to change Cultural change is hard
Traditional practices Adjust incentives

No business collaboration Product ownership Time management shift Manager resistance

Agile training (IT & Business)
Structure Project teams temporary Co-located teams More customer focused Lack of agile training
Manager role training
Co-located by functional area Reports to functional manager Team owns decision making Technology availability

Job descriptions as shields Collaboration teams

New tool investment Small workshops
Long and tedious meetings Transparency and open conflict Communicate the “why”
Systems Human capital management Feedback from participants
Long range planning Feedback loops Not feeling safe
Safe environment Interactive support groups
Upward reporting Metrics for outcomes

Unique to each organization Unique to each organization Unique to each organization Unique to each organization Unique to each organization
Style
Insert your own text here Insert your own text here Insert your own text here Insert your own text here Insert your own text here

Unique to each organization Unique to each organization Unique to each organization Unique to each organization Unique to each organization
Skills
Insert your own text here Insert your own text here Insert your own text here Insert your own text here Insert your own text here

Unique to each organization Unique to each organization Unique to each organization Unique to each organization Unique to each organization
Staff
Insert your own text here Insert your own text here Insert your own text here Insert your own text here Insert your own text here

Unique to each organization Unique to each organization Unique to each organization Unique to each organization Unique to each organization
Shared Values
Insert your own text here Insert your own text here Insert your own text here Insert your own text here Insert your own text here

28
 Gap Analysis Tool:
Nadler-Tushman Congruence Model

Informal
Organization

Input Strategic Gap Analysis Output

Work Informal Organization

Environment Insert what it will take to
Organization Group
History get our current state to
Resources desired output Individual

People

Transformation Process

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THANK YOU
 ADDITIONAL SLIDES

54
INFOGRAPHIC
CHARTS 153 000

142 000

120 000

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ullamcorper ultricies nisi. Nam eget dui. Etiam rhoncus.
89 000
Maecenas tempus, tellus eget condimentum rhoncus, sem
82 000
quam semper libero.
78 000

67 000

52 000
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45 000
tellus eget condimentum rhoncus, sem quam semper
libero, sit amet adipiscing sem neque sed ipsum. 30 000

2012 2013 2014 2015 2016

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 INFOGRAPHIC
153 000 CHARTS
142 000

120 000
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95 000
ullamcorper ultricies nisi. Nam eget dui. Etiam rhoncus.
89 000 Maecenas tempus, tellus eget condimentum rhoncus, sem
82 000 quam semper libero.

78 000

67 000

52 000
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tellus eget condimentum rhoncus, sem quam semper
45 000
libero, sit amet adipiscing sem neque sed ipsum.

30 000

2012 2013 2014 2015 2016

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 INFOGRAPHIC

01 02 03 04
DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION

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auctor. Sed vitae tellus auctor. Sed vitae tellus auctor. Sed vitae tellus auctor. Sed vitae tellus
urna. Phasellus hendrerit nibh at urna. Phasellus hendrerit nibh at urna. Phasellus hendrerit nibh at urna. Phasellus hendrerit nibh at
rutrum fermentum. rutrum fermentum. rutrum fermentum. rutrum fermentum.

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 INFOGRAPHIC
153 000 CHARTS
142 000

120 000
Aenean imperdiet. Etiam ultricies nisi vel augue. Curabitur
95 000
ullamcorper ultricies nisi. Nam eget dui. Etiam rhoncus.
89 000 Maecenas tempus, tellus eget condimentum rhoncus, sem
82 000 quam semper libero.

78 000

67 000

52 000
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tellus eget condimentum rhoncus, sem quam semper
45 000
libero, sit amet adipiscing sem neque sed ipsum.

30 000

2012 2013 2014 2015

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 PROJECT GOALS

01 02 03 04 05

DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION

Maecenas rutrum in Maecenas rutrum in Maecenas rutrum in Maecenas rutrum in Maecenas rutrum in
erat sit amet auctor. erat sit amet auctor. erat sit amet auctor. erat sit amet auctor. erat sit amet auctor.
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Phasellus hendrerit Phasellus hendrerit Phasellus hendrerit Phasellus hendrerit Phasellus hendrerit
nibh at rutrum fer- nibh at rutrum fer- nibh at rutrum fer- nibh at rutrum fer- nibh at rutrum fer-
mentum. mentum. mentum. mentum. mentum.

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PERFORMED
RESEARCH
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ultricies nisi. Nam eget dui. Etiam rhoncus. Maecenas tempus, tellus eget
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Nam eget dui. Etiam rhoncus. Maecenas tempus, tellus eget condi-mentum

42%
rhoncus, sem quam semper libero, sit amet adipiscing sem neque sed ipsum.

Aenean imperdiet. Etiam ultricies

nisi vel augue. Curabitur ullam-
corper ultricies nisi.

37
DESK 32 324 USA

RESEARCH 27 434 Russia

ALL AROUND THE WORLD

19 564 Germany

Maecenas tempus, tellus eget 10 564 France

Aenean imperdiet. Etiam ultricies nisi vel augue. Curabitur
ullamcorper ultricies nisi. Nam eget dui. Etiam rhoncus.
Maecenas tempus, tellus eget condimentum rhoncus, sem quam 8533 UK
semper libero.

35 000 30 000 26 000 17 000 9000 5000 0

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 TIMELINE OF WORK
Maecenas rutrum in erat sit amet auctor. Sed vitae tellus urna. Phasellus
hendrerit nibh at rutrum fermentum.

CONCEPT MVP FINAL PRODUCT

WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 WEEK 6 WEEK 7 WEEK 8 WEEK 9

May 1 May 7 May 13 May 27 June 3 June 10 June 17 June 24
May 20

Research

Strategy

UX

UI

Development

39
STEP Step 1 Step 2
BY STEP
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Aenean imperdiet. Etiam ultricies nisi vel augue. vel augue. Curabitur ullamcor-per vel augue. Curabitur ullamcor-per
ultricies nisi. Nam eget dui. Etiam ultricies nisi. Nam eget dui. Etiam
Curabitur ullamcorper ultricies nisi. Nam eget
rhoncus. rhoncus.
dui. Etiam rhoncus. Maecenas tempus, tellus eget
condimentum rhoncus, sem quam semper libero.

Step 4 Step 3
Nam eget dui. Etiam rhoncus. Maecenas tempus,
tellus eget condimentum rhoncus, sem quam
semper libero, sit amet adipiscing sem neque sed Aenean imperdiet. Etiam ultricies nisi Aenean imperdiet. Etiam ultricies nisi
ipsum. vel augue. Curabitur ullamcor-per vel augue. Curabitur ullamcor-per
ultricies nisi. Nam eget dui. Etiam ultricies nisi. Nam eget dui. Etiam
rhoncus. rhoncus.

40
 DESCRIPTION DESCRIPTION
Maecenas rutrum in erat sit amet auctor. Sed vitae tellus
Maecenas rutrum in erat sit amet auctor. Sed vitae tellus
urna. Phasellus hendrerit nibh at rutrum fer-mentum.
urna. Phasellus hendrerit nibh at rutrum fer-
mentum.

DESCRIPTION DESCRIPTION
Maecenas rutrum in erat sit amet auctor. Sed vitae tellus
Maecenas rutrum in erat sit amet auctor. Sed vitae tellus
urna. Phasellus hendrerit nibh at rutrum fer-mentum.
urna. Phasellus hendrerit nibh at rutrum fer-
mentum.

41
 OUR SERVICES

DESCRIPTION DESCRIPTION
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Curabitur ullamcorper ultricies nisi. Nam eget dui. Curabitur ullamcorper ultricies nisi. Nam eget dui.

Etiam rhoncus. Etiam rhoncus.

DESCRIPTION DESCRIPTION

Etiam rhoncus. Etiam rhoncus.

DESCRIPTION DESCRIPTION
Aenean imperdiet. Etiam ultricies nisi vel augue. Aenean imperdiet. Etiam ultricies nisi vel augue.
Curabitur ullamcorper ultricies nisi. Nam eget dui. Curabitur ullamcorper ultricies nisi. Nam eget dui.
Etiam rhoncus. Etiam rhoncus.

42
 INFOGRAPHIC

28% 45% 32%

Aenean imperdiet. Etiam ultricies Aenean imperdiet. Etiam ultricies
nisi vel augue. Curabitur ullam- Aenean imperdiet. Etiam ultricies nisi nisi vel augue. Curabitur ullam-
corper ultricies nisi. corper ultricies nisi.
vel augue. Curabitur ullam-corper
ultricies nisi.

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