A technique for determining the steps to be taken in moving from a current state to a desired future-state. This is applicable to business improvement, personal improvement, economic development of a country and so on, where ever a performance improvement is desired. It is also called need-gap analysis, needs analysis, and needs assessment.
Gap analysis therefore consists of
(1) listing of characteristic factors (such as attributes, competencies, performance levels) of the present situation
(2) cross listing factors required to achieve the future objectives, and
(3) highlighting the gaps that exist and need to be filled.
The gap analysis process involves determining, documenting and approving the variance between business requirements and current capabilities.
It is the comparison study of general expectation of performance in the industry and the level of performance at which the company currently functions.
Such analysis can be performed at the strategic or operational level of an organization. 'Gap analysis' is a formal study of what a business is doing currently and where it wants to go in the future. It can be conducted, in different perspectives, as follows: