GAP ANALYSIS

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Gap Analysis Overview

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 Gap Analysis Procedure

Increase revenue by 20%,

Final Goal
gross 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 Gap Analysis
previous quarter.

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

Q1 Goal

Time Frame

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

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

Study the Result Cause Investigation

Add additional details about action Add additional details about

implementation in this text box. select action in this text box.
Action Implementation Select Action

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 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

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 Gap Analysis Graph

Revenue High
Risk

Low
Risk

Time
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 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
cost to $3M Many untouched sales tools and strategies
geographical areas
Allocate more budget to
Most machines are old, market research efforts
requires 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

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 Gap Analysis Template

Business Area: __________________________________________________________

Business Goal: __________________________________________________________

Gap between Capabilities needed to

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

Production volume/speed too 20% increase in volume, Better engineering and Workers compensation
Double profit margin
low. 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 New C-level hires needed Low morale, not enough
innovator of the industry ideas are stagnant cutting-edge technology for the technology team upward mobility promised

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

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 Gap Analysis Tool: Fishbone

Machines are over 25 years old Not enough on-site managers Failed experiments lead to
extra costs, lost revenues

Only 6 of the 15 large machines Engineers don’t work with

Managerial management
are being used everyday. on-site operators enough
style remains obsolete

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

Quality of material inconsistent Most workers unwilling to sit still Product latches onto
and subpar to industry standards and only work on one project unfavorable diminishing trend

No dedicated reliable supplier Costly to upkeep facility condition Shift in consumer behavior

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 Gap Analysis Tool: McKinsey 7-S
What’s our strategy, what are the
objectives and how do we achieve
them, what makes us competitive and
how do we deal with competition?
What are the main systems that
support and drive our business, what
controls are there in the organization
and how is status fed back?
In line with the strategy and vision, are
there any skills gaps? How are training
and skills monitored and evaluated,
what are our core competencies?
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What is our hierarchical structure and
its reporting mechanism? How do
departments coordinate activities? Is
decision making centralized?
Structure
What is the general leadership style, is it
participative or autocratic? Are people
Shared
empowered and encouraged to take
Values risks and challenge norms?
What positions are vacant and need
Skills
to be filled, what competency gaps
need to be filled? What type of
people and skills do we need?
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