STRATEGIC GAP ANALYSIS

Target/desired performance level Measure of performance

Projected performance following present strategies in forecasted environmental conditions

STRATEGIC GAP ANALYSIS

Strategic gap is the perceived difference between the targeted performance and projected performance
It is the technique that tries to find out the difference between the projected and actual performance

 It focuses on what a firm is trying to achieve; whether it is achieving it or not; and how it can achieve it
Gap analysis can also be used to focus on a future state and then work backwards to see whether it is reaching that future.

Strategic gap could be narrow or quite large.

If the perceived gap is narrow or the projected performance is likely to be better than targeted, one would expect that the stability strategy would b followed

 A large gap could be caused by increase in targeted level of performance or the adverse changes in the environment which could lead to poor performance in future from the present strategies One would expect the growth strategy to be followed in case of large positive strategic gap and retrenchment strategy in case the strategic gap is negative and large.

 A positive is likely to occur due to environmental opportunities and a large negative gap due to environmental threats

Gap analysis is a useful technique that can be used to identify the extend to which the existing strategies will fail to meet the performance objectives in the future.

 Many companies try to do better job of keeping business and technology aligned with overall corporate goals. But the fact remains that many goals are not yet met. Part of the problem may be the gap between the original ideas and the end results. In case if there is a small gap, it can b filled by more efficient use of existing resources.

 However if the gap is significant, there is need to reassess the strategies of the organization and find ways and means to bridge the gap.