What is gap analysis?

The "gap" refers to the difference between the current state ("where we are now") and the desired state ("where we want to be"). By pinpointing this difference, gap analysis helps organizations understand what improvements, resources, or changes are required to achieve their goals.

Gap analysis is a valuable planning tool for businesses and project teams. It helps:

• Clarify goals by defining the desired future state.
• Assess current performance to understand strengths and weaknesses.
• Identify specific gaps in skills, processes, tools, or outcomes.
• Prioritize improvements by showing where efforts and resources will have the most impact.
• Support better decision-making by grounding strategies in real data.

Ultimately, gap analysis improves focus, prevents wasted effort, and helps teams align their work with business goals.

A typical gap analysis includes the following steps:

Start by clarifying what you want to achieve. Review your company's mission, strategic goals, or performance benchmarks. These objectives will become the "future state" against which current performance is measured.

Gather data on how things are currently working. This may include reviewing internal documentation, analyzing KPIs, observing workflows, conducting interviews, or brainstorming with stakeholders. The goal is to get a clear, factual picture of existing processes, resource allocation, and performance levels.

Compare the current state with your target objectives. Look for performance shortfalls, inefficiencies, or missing capabilities. Determine whether a gap exists and, if so, identify its size and root causes.

Create a strategic plan that outlines how to close the identified gaps. This plan should include clear steps, timelines, responsibilities, and success metrics. It forms the foundation for tracking progress and ensuring continuous improvement.

A typical gap analysis template includes the following four core components:

1. Current state
   This section outlines the existing processes, systems, or outcomes. It provides specific, measurable details about how things are functioning today. The focus can be organization-wide or narrowed to a single department or process, depending on the scope of the analysis.
2. Future state
   Here, you define what success looks like. This could be a performance improvement target, a new business capability, or a cultural change. Like the current state, it should be framed in measurable or clearly descriptive terms.
3. Gap description
   This column identifies the difference between the current and desired state. It includes specific details about what's missing or underperforming, along with an analysis of the root causes. These can be both quantitative (e.g., a drop in response time) or qualitative (e.g., lack of employee engagement).
4. Next steps and proposals
   In the final section, list actionable solutions to close the gap. These should address the specific issues outlined earlier and include timelines, goals, and responsible parties. For example, this might include hiring additional staff, introducing new tools, or launching training programs.

Gap analysis can be applied in many areas of a business. Here are some common and practical examples:

Skills gap analysis
Evaluates the difference between the current skills employees have and the skills needed for future roles, new technologies, or upcoming projects. This helps guide training, hiring, or upskilling strategies.

Market gap analysis
Identifies unmet customer needs or areas where the market demand is not being fully served by current product or service offerings. This can uncover opportunities for innovation or expansion.

Performance gap analysis
Compares actual performance metrics, such as sales figures, customer satisfaction, or delivery times, with predefined targets. The goal is to find underperforming areas and prioritize improvements.

Compliance gap analysis
Assesses how well current operations align with legal, regulatory, or industry standards. This type of analysis highlights areas where the organization may be at risk and helps guide corrective actions.

Enji.ai helps teams perform gap analysis by offering real-time insights into performance, work patterns, and collaboration dynamics. Here's how:

With Enji, gap analysis becomes a continuous, integrated part of how you monitor and improve your workflows, not just a one-time evaluation.