Gap Analysis

Gap Analysis Skill

Purpose

Identify the difference (gap) between the current state (As-Is) and the desired future state (To-Be) to determine what actions, processes, or technologies are needed to bridge that gap.

When to Use

• Strategic planning
• Software migration/upgrades
• Process improvement initiatives
• Compliance audits
• Feature parity analysis (e.g., moving from Legacy to New System)

The Gap Analysis Process

1. Identify Current State (As-Is)

• What: How things work today.
• Sources: Documentation, interviews, observation, system data.
• Artifacts: Current process maps, system architecture diagrams, SWOT strengths/weaknesses.
• Questions:
  • What is the current manual process?
  • What are the pain points?
  • What metrics are we hitting/missing?

2. Define Future State (To-Be)

• What: Where we want to be.
• Sources: Strategic goals, industry benchmarks, stakeholder vision.
• Artifacts: Future process maps, target architecture, KPIs.
• Questions:
  • What does "good" look like?
  • What are the automation targets?
  • What functionality is mandatory?

3. Analyze the Gap

• Compare As-Is and To-Be directly.
• Characterize the gap:
  • Process Gap: Missing steps, inefficient workflows.
  • Technology Gap: System limitations, missing features, integration needs.
  • Skill/People Gap: Training needs, resource shortages.
  • Data Gap: Missing data fields, poor data quality.

4. Bridge the Gap (Action Plan)

• Define solutions to close each gap.
• Prioritize solutions.
• Estimate effort and impact.

Gap Analysis Matrix Template

#	Category	Current State (As-Is)	Future State (To-Be)	Gap Description	Action / Solution	Priority
1	Process	Orders manually entered from email to ERP.	Orders automatically synced from Web to ERP.	No integration exists. Manual entry takes 15 mins/order.	Implement ERP API integration.	High
2	Data	Customer phone numbers stored in free text.	Customer phone numbers validated and standardized (E.164).	Data quality issue, unable to use SMS gateway.	Data cleansing script + Validation on frontend.	Medium
3	Feature	No guest checkout available.	Guest checkout supported.	Missing functionality causing 20% drop-off.	Build guest checkout flow.	High
4	Skill	Support team knows Tier 1 issues only.	Support team handles Tier 2 issues.	Knowledge gap.	Train Lead Support agents on Tier 2 troubleshooting.	Low

Comparison Frameworks

1. SWOT Analysis (Current State Focus)

• Strengths: Internal positives.
• Weaknesses: Internal negatives (GAPS).
• Opportunities: External positives (Future State potential).
• Threats: External negatives.

2. McKinsey 7S Framework

Analyze gaps across:

• Hard Elements: Strategy, Structure, Systems.
• Soft Elements: Shared Values, Style, Staff, Skills.

3. Nadler-Tushman Congruence Model

Checks fit between Work, People, Structure, and Culture.

Output Artifacts

• Gap Analysis Document: Detailed report.
• Action Plan / Roadmap: Timeline of projects to close gaps.
• Business Case: Justification for the investment.

Tips for Success

• Be quantified: "Slow processing" is bad. "Processing takes 4 days vs target of 4 hours" is good.
• Focus on root causes: Don't just list symptoms.
• Validate: Confirm As-Is with users who do the work, not just managers.

References

• BABOK Guide - Strategy Analysis
• Business Capability Mapping