← Back to Blog

Understanding gap analysis: steps, definition, and examples

minute read
Start your free trial of Bonsai management tool today!
Start your free trial of Bonsai management tool today!
Try it free
Updated on:
June 12, 2024
June 13, 2024
Start your free trial of Bonsai management tool today!
Discover Bonsai all-in-one business management software.

Gap analysis is your company’s reality check. It’s like a flashlight that spots where you’re slacking and how to step up your game. This bad boy helps you cook up strategies that hit the mark and make sure your business is killing it.

Ready to get your hands dirty with gap analysis? Here’s how to do it:

  • Scope out where you’re at right now
  • Figure out where you wanna be
  • Spot the gaps that are messing with your vibe
  • Craft a game plan to make things better

Intro to gap analysis


Think of gap analysis as your business’s wingman. It’s there to help you spot the difference between ‘meh’ and ‘wow’ and get you moving towards that ‘wow’. It’s all about getting to know your biz inside out, checking out how you’re doing, and setting up a plan to level up.

What’s gap analysis all about?

Gap Analysis is like a business x-ray. It checks out your processes, sizes up how you’re doing, and helps you set goals that’ll take you to the next level. It’s all about finding those spots where you can do better and making a plan to get there.

Why gap analysis rocks for agencies

For agencies, gap analysis is the secret sauce. It helps you figure out where you’re falling short and how to crush your goals. It’s perfect for fine-tuning your biz processes and making sure your action plan is on point.

The nuts and bolts of gap analysis

Gap analysis is all about taking stock and making moves. It’s looking at where you are, dreaming about where you want to be, and figuring out what’s in the way. It’s the foundation for a killer action plan that’ll help you close those gaps and win big.

Spotting where you are vs. where you wanna be

Your current state is your starting block—it’s gotta be solid. But if you’re spotting gaps, it’s time for a tune-up. Gap analysis shines a light on where you can boost your biz to hit those targets. It’s all about getting strategic with your resources, managing your performance, and rolling out an action plan that makes things happen.

Getting the gist of the gap

Gap analysis isn’t just about seeing the difference—it’s about getting why it’s there and how to bridge it. It’s a deep dive into your biz goals and making sure your performance is up to snuff. After you’ve done the legwork, you whip up an action plan that’s all about stepping up your game.

Mapping out a strategic plan

Kicking off a strategic plan starts with a no-stone-unturned gap analysis. It’s about understanding where your biz is at and spotting the gaps that need closing. This insight helps you sketch out an action plan that’s all about business and process improvement. The plan lays out the steps to jump from where you are to where you want to be, setting clear goals and keeping your business performance on the up and up.

Effective strategies for business growth and success

Effective strategies for business growth in Bonsai include analysis, process mapping, benchmarking, and gap analysis. These tools help identify market opportunities, streamline operations, and enhance digital strategies, propelling businesses towards success and profitability.

1. Project management

Bonsai is a comprehensive business management software that offers a suite of tools for project management, client management, and financial management. Using Bonsai software offers numerous benefits for simplifying business operations and managing tasks effectively. It's streamlined operations, consolidates projects, clients, and teams into one integrated platform, simplifying processes and keeping the business on track.

Link to Project Management

2. Capacity planning for optimal resource

Capacity planning in Bonsai is a strategic process that involves estimating resources for projects, ensuring efficient utilization. This strategic planning supports growth and maintains performance. It assists in demand forecasting and gives a clear view of team capacity, which is crucial for managing workload and project scheduling.

Link to Resourcing

3. Report and profitability forecast

Bonsai's reporting and profitability forecast features are designed to empower businesses with actionable insights. The platform offers real-time reporting capabilities, allowing users to track project progress and monitor budgets effectively. With automated budget warnings and integrated time-tracking, Bonsai helps in maintaining financial health and anticipating future costs.

Link to Project Activity Report

Types of gap analysis

Gap analysis is all about spotting where you’re missing the mark and plotting a course to where you wanna be. Here’s the scoop on the different flavors:

  • Performance gap analysis: It’s like a report card for your company’s performance, showing you where you can up your game.
  • Process gap analysis: This one’s about making sure your day-to-day hustle matches up with your big-picture plans.
  • Strategic gap analysis: Big brain time—this is where you check if your current moves are lining up with your long-term master plan.

Performance gap analysis

So, you’ve got your gap analysis toolkit, right? It’s primo for figuring out where your business is slacking and setting goals that actually make sense. Plus, it’s your roadmap for leveling up your biz processes and getting a solid gold star in performance.

Product/market gap analysis

Gap analysis is like having a crystal ball for your biz. It shows you the difference between ‘kinda okay’ and ‘totally awesome’ so you can tweak your strategy and make sure you’re on track to hit it big.

Profit gap analysis

Profit gap analysis is all about the green. It’s comparing where your profits are at now to where they could be. It’s about finding those gaps, plugging them, and watching your business thrive.

Steps to conduct a gap analysis

Wanna do a gap analysis? Here’s the breakdown:

  1. Define your business goals—know what you’re shooting for.
  2. Map out your current state—get the lowdown on how things are going.
  3. Spot the differences—find out what’s keeping you from your goals.
  4. Make a plan—figure out how you’re gonna crush those goals.

Identifying the area to be analyzed

First up, you gotta know what you’re looking at. In gap analysis, you’re eyeballing your business performance and processes. It’s all about lining up your goals with your game plan and making sure you’re on point.

Analysis of the current situation

Take a good look at where you’re at. If you’re seeing gaps messing with your strategy, it’s time to shake things up. Gap analysis gives you the intel you need to make moves that matter.

Envisioning the desired outcome

Kick off with a deep dive into gap analysis to spot where you’re falling short. Use that intel to sharpen your strategy, craft a killer action plan, and keep tabs on your progress. That’s how you turn ‘what if’ into ‘what’s next’.

Identifying the gap and its causes

Gap analysis is like detective work. You’re looking for clues that show why you’re not hitting your targets. Sometimes it’s your performance management that’s off, or maybe your strategy needs a tweak.

Developing a plan to bridge the gap

After you’ve plotted your gap analysis, it’s time to get down to business. Evaluate where you’re at, dream up a plan to get better, and put that plan into action. That’s how you close the gap and hit those targets.

Gap analysis tools and techniques


Gap analysis is like your business’s toolbox—it’s packed with tools and techniques to figure out where you’re lagging and how to get ahead. You’re looking at where you are, where you wanna be, and using tools like the fishbone diagram, McKinsey 7S framework, and SWOT analysis to bridge the gap.

SWOT analysis

SWOT Analysis is like the compass for your business strategy. It helps you spot the strengths, weaknesses, opportunities, and threats in your current setup. It’s all about getting a clear picture of your performance and finding ways to do better.

McKinsey 7S framework

The McKinsey 7S Framework is like a Swiss Army knife for your biz strategy. It’s got seven blades—structure, strategy, systems, shared values, skills, style, and staff. This tool helps you slice through the clutter and pinpoint exactly where you need to sharpen up.

Fishbone diagram

The Fishbone Diagram, or the Ishikawa Diagram, is your business’s detective. It helps you track down the root causes of your problems. It’s a key piece of the puzzle in understanding where you’re at and where you need to go.

Now, let’s roll up our sleeves and use these tools to map out a plan that’ll take your business from ‘just okay’ to ‘top of the game’. Remember, it’s all about aligning your current state with your future goals and making sure your action plan is solid.

Examples of gap analysis in real-world scenarios

A common real-world application of gap analysis is in the realm of business performance. Companies often use this tool to assess the current state of their operations and compare it with desired future state. This is instrumental in identifying performance gaps that may be hindering them from achieving business goals.

For instance, a manufacturing firm may carry out a gap analysis on its production processes. By understanding the variances between their existing operations and the ideal set-up, they can devise an action plan for process improvement. Strategic planning, guided by a comprehensive gap analysis, can thus facilitate concrete steps towards business improvement.

Gap analysis in digital marketing agency

Gap Analysis in a digital marketing agency involves evaluating the current state of the business processes, analyzing business performance, and identifying areas for potential improvement. This strategic planning tool helps in recognizing performance gaps between the present operations and the desired future state. 

Three important terms associated in this domain are:

  • Performance Management: Monitoring of strategies to ensure business goals are met.
  • Action Plan: A systematic approach to address identified gaps.
  • Business Strategy: A long-term strategic plan for business improvement.

The ultimate objective of Gap Analysis is process improvement and effective performance evaluation leading to enhanced overall business growth.

Gap analysis in a PR agency

Gap analysis is a critical tool in the strategic planning process of a PR agency. It compares the current state of business operations with the future state or business goals, identifying performance gaps and outlining an action plan for improvement. This evaluation aids in process improvement and enhances overall business performance.

Key steps in gap analysis include understanding current business processes, defining the strategic plan or desired future state, identifying the gaps or business improvement areas, and devising an effective performance management system for implementation. This exercise promotes robust performance evaluation and helps a business refine its strategies, ensuring steady growth and success.

Common mistakes in gap analysis and how to avoid them


Common mistakes in gap analysis include lacking a clear alignment of the current state and future state of the business goals, not properly identifying performance gaps, and ignoring the impact of business processes on business performance. To avoid these mistakes, it is essential to align the current state and future state with the strategic plan during the gap analysis. 

Identifying performance gaps accurately requires proper performance evaluation and performance management. Lastly, understanding and incorporating the role of business processes can greatly improve action plans aimed at business improvement and process improvement.

Overlooking key factors

Creating a strategic plan often involves a gap analysis to properly evaluate the current state of business processes and outline a future state that aligns with business goals. During this process, it can be easy to overlook key factors that could hinder the execution of the action plan for business improvement.

Such oversights can lead to performance gaps that impede business performance and disrupt the process improvement. The role of performance management is crucial in this aspect as it aids in performance evaluation and revises the strategic planning, considering every critical aspect to ensure the efficient achievement of goals.

Failure to implement the plan

A common failure in strategic planning is not executing the action plan effectively, which can lead to not reaching the desired future state. This could be due to the gap analysis not being thorough enough, or misunderstandings of the current state and business processes. Here are a few possible reasons for failure:

  • Overlooking the importance of a performance management system in evaluating business performance regularly.
  • Lack of awareness about performance gaps that hamper the business strategy.
  • Ineffective process improvement measures leading to inadequate business improvement.
.blog-banner-inside img { max-width: 220px; max-height: 160px; border-radius: 8px; } .blog-banner-inside .button-less-rounded { max-width: 180px; color: white; } .blog-banner-inside .PromoBannerCopy { margin-bottom: 0px; max-width: 250px; } @media (max-width: 767px) { .banner img { max-width: 100px; } }
Get paid faster with Bonsai

Manage your agency operations smoothly with Bonsai

Start Free

Conclusion: maximizing the benefits of gap analysis

Maximizing the benefits of gap analysis involves strategically planning to ensure alignment between business goals and practices. Detailing the current state of business processes, understanding the future state, and identifying performance gaps are crucial for effective performance management.

Developing an action plan for business improvement, informed by a thorough gap analysis, can significantly enhance business performance. Ultimately, gap analysis is a vital tool in strategic planning, process improvement, and performance evaluation.

Start your free trial of Bonsai management tool today!
Related Articles