Based on your experience, what MC&A-related gaps and/or problems can you identify? List the possible MC&A gaps.
Answers
What is Gap Analysis?
Gap analysis is used to compare where you are against where you would like to be. This helps you identify the gaps between these two states, and come up with an action plan to close them.
Basically, it helps you find solutions to issues that are holding you back from growing as a business.
It can be performed on
- A strategic level – comparing the condition of your business with that of the industry
- Operational level – comparing the current state of your business performance with the state you desire
Note: It is also known as a need-gap analysis, need analysis or need assessment
How to Do a Gap Analysis
There’s no standard process for doing a Gap analysis since it should usually be tailored to meet your business needs. But here are the steps a typical Gap analysis would follow.
Gap analysis steps - Gap analysis process
- Step 1: Pick an Area to Focus on
- First of all, you need to know where to focus on during the analysis.
Being specific will help you focus better during the Gap analysis.
- Step 2: What are Your Targets/ Goals?Now that you know the area you need to improve, it’s time to set goals or targets. Not only these goals should be realistic, which mean that they should be achievable within a certain time limit you set, but they should also align with your business goals.These goals you set will help you define the future state in the 4th step.
- Step 3: Determine the Current State of Things
- Before you step forward, you need to know where you are standing. In this step, you’ll figure out the current state of things.
- By looking into reports or process documentation, doing interviews, brainstorming etc. gather as much data as possible to clarify how you are performing at present.
- Step 4: Determine the Future State of Things
- Remember the goals you set in step 2? Achieving these goals will help you get to the future state or the desired situation you want your business to be in.
- Define what the parameters of the ideal state of your business are.
- Step 5: Identify the Gaps between the Two States
- Now you have an understanding of the attributes of your current state and the future state, it is easier to identify what is stopping you from reaching your goals.
After identifying these gaps, come up with the steps you need to take to close them.
Gap Analysis Tools
Once you have identifies what the gaps are, you need to look into why they exist and what you can do about them. There are a few gap analysis models you can use for this task. Following we have listed a few Gap analysis tools that you can use.
SWOT
SWOT analysis focuses on Strengths and Weaknesses in the internal environment and Opportunities and Threats in the external environment. It helps you determine where you stand within your industry or market.
How to do it;
- Gather around a team from relevant teams/ departments
- Create a SWOT analysis matrix; you can either use the one below or choose from these SWOT analysis examples
- List down the internal strengths and weaknesses of your business
- Note down the opportunities and threats present in the industry/ market
- Rearrange each bullet point in the order of highest priority at the top, and lowest at the bottom
- Analyze how you can use your strengths to minimize weaknesses and fight off threats, and how you can use the opportunities to avoid threats and get rid of weaknesses
- Check out this resource to learn how to use SWOT analysis effectively.
Fishbone
Fishbone diagram, also known as cause and effect diagram or Ishikawa diagram, helps you identify the root cause of an issue or effect. It lists the 6 Ms (listed in the diagram below) and helps you see how they relate to the central problem.
McKinsey 7S can help you with any of the following purposes
- To help understand the gaps that may appear in the business
- Identify which areas to optimize to boost business performance
- Align processes and departments during a merger or acquisition
- Examine the results of future changes within the business
- The 7s refer to key interrelated elements of an organization. They are as follow,
McKinsey 7S Model
These elements are divided into two groups; hard elements, which are tangible as they can be controlled, and soft elements which are intangible as they cannot be controlled.
Hard elements
- Strategy – the plan of actions that will help your business gain a competitive advantage
- Structure – the organizational structure
- Systems – business and technical infrastructure employees use to do their daily tasks
- Soft elements
- Shared values – a set of beliefs or traits the organization upholds
- Style – the leadership style of the organization and the culture of interaction
- Staff – the general staff
- Skills – key skills of employees