What is a gap analysis?
When performing a gap analysis, you compare your current performance to what you think you could be doing better. An organization may generate or perform below its potential if it does not make the most of available resources or foregoes investment in capital or technology.
How do you perform a gap analysis?
Gap analysis consists of four steps:
- Determine the current state of affairs. Define your department's or organization's priorities.
- Establish SMART goals for where you want to go. Specific, measurable, achievable, relevant, and time-sensitive goals are known as SMART goals. Relevant goals aid in achieving the company's overall objectives; in contrast, time-sensitive goals provide a benchmark against which to monitor progress and evaluate success.
- Examine the gaps between where you are now and where you wish to go. Now is the moment to assess the gaps and pinpoint the source of the issue. This entails delving into why you aren't as successful as you would like to be.
- Create a strategy for closing existing gaps. Create action items that will assist you in closing the gap between where you are now and where you want to be.
What are the types of gap analysis?
Common Gaps, Breakaway Gaps, Runaway Gaps, and Exhaustion Gaps are the four types of gaps, each having its own signal to traders. Gaps are easy to notice, but recognizing what kind of gap they are is far more complex.