ABSTRACT
One of the most commonly used techniques for business improvements is gap analysis. This technique is based on two performance levels – current and target. The current performance level identifies the current status of the business function (or indeed any other organisational matter) in terms of the pre-identified evaluation criteria. The target performance level identifies the desirable status for this particular business function and is measured by the same evaluation criteria. The difference in the value of the evaluation criteria between the current and target performance levels is known as the “opportunity gap”. This gap can provide an organisation with a focus and guidance on how best to progress from the current to target performance. The scale and importance of this gap enables managers to assess the subsequent likelihood of this affecting the key business strategy deliverables, thereby enabling corrective action to be taken as appropriate.
