Gap Analysis

No Comments

A Gap Analysis is a visual examination of the current state of your business compared to your desired state. It starts with an honest assessment of where you are today. It also helps capture a clear vision of your business’ future. (1)

Here are 9 Practical Steps for preparing a Gap Analysis:

  1. Describe, in writing, the problem, issue, or area that you want to make progress on.
  2. Describe, in writing, the benefits or reasons that you need to solve this problem and why you need to create an action plan for getting there.
  3. Focus on a particular aspect or element of your desired state. The best way to eat an elephant is one small bite at a time.
  4. Define your deadline for achieving your desired end state. This is actually the point in time you expect to arrive at your destination.
  5. Describe your current state of affairs as it relates to the end state or dream. Be sure that there is a balance of both your assets or positives and the areas that you are deficient. Keep your focus of today’s status or reality on those things that contribute or detract from your desired end state. Work to remain honest and grounded.
  6. Describe what your destination will look like. Ask yourself:  a)  What will you have?  b) What will it look like?  c) How will it feel?  d) How will you know when you have arrived?
  7. In as detailed a manner as possible, identify specific actions or steps that must take place so you can go from “today” to “tomorrow”. Often, the bridges between the two will pop out clearly.
  8. Use the information you’ve listed as your missing links to create a specific formalized action plan. Set a priority to each of the major action steps, often asking the question, “What has to happen before you take this step?
  9. Review and update your Gap Analysis on a regular basis. Use it to check your progress and see if there are other items in the missing links that were overlooked.

Performing a Gap Analysis is a great way to move your company to the next level. If you would like assistance in preparing a Gap Analysis for your company, or if you would like to learn how a part-time, virtual CFO can help transform your business using the Bible as our guide, email me at info@commonsensecfo.com or call Kirk at 402-658-7340.

(1) Where there is no vision, the people perish: but he that keepeth the law, happy is he. Proverbs 29:18 (KJV)