Last week we published an article titled What is a System? where we introduced a very important process called a Gap Analysis. In that article, it was explained in details what it is and why it is important to do it.
To recap on what we said, a Gap Analysis is a tool or a technique we use to determine what steps need to be taken in order for your system to move from its current state to its desired future state.
The main reason a gap analysis is important to firms is the fact that gaps between customer expectations and customer experiences lead to customer dissatisfaction. A gap analysis is used as a tool to narrow the gap between perceptions and reality, thus enhancing customer satisfaction. With increased customer satisfaction comes increased revenue.
To read more on the importance of conducting a Gap Analysis for your organization click here.
In today's article we want to share with you a little more details on what a Gap Analysis entails and what your expectation should be.
As already mentioned, a Gap Analysis is all about conducting a detailed review and appraisal of the adequacy and quality of manuals (documented polices and guidelines) as well as other systems in view of performance in the following areas:
- Administration Management
- Financial Management
- Procurement Procedures
- Inventory Management
- Human Resource Management
- ICT Management
- Statutory compliance
- ....among other areas.
The areas are very company-specific as different companies have different structures.
What deliverables should you expect?
Once we conduct a Gap Analysis, the report we submit to your organization will have the following details:
- Shortcomings observed from each of the functional areas analyzed.
- Potential risks that might affect your business.
- Recommendations to improve the existing processes as well as establish new (non-existing) procedures.
What benefits will your organization derive from a thorough Gap Analysis?
The aim of the report is to highlight the areas your organization can improve with an aim of increasing efficiency and effectiveness in your operations. The outcome of this improvement will be increased revenue. The report we submit will give clarity on the following areas:
- It will help you identify new opportunities that you can proactively explore, instead of reacting to market dictates or competition.
- It will provide a basis for applying a system that will fully support the concept of a repeatable, continuously improving quality system.
- The analysis will provide facts that will help you create systems that will increase profitability, efficiency, customer satisfaction, supplier participation and employee involvement, while at the same time lowering overall costs and liabilities.
- The analysis will provide useable data to help make improvements which will lead to faster problem solving whenever problems arise.
- The analysis will be a tool to verify whether what the company says it does is what it actually does.
Plus many other benefits….
A Gap Analysis is a process that every organization should work on incorporating into its annual strategic sessions every year. This will help the organization focus on the specific areas that need improvement, thus helping the organization come up with an annual plan that focuses on allocating resources to the right processes and procedures.
So, when was the last time you did a gap analysis for your organization? Talk to us and let's work together to identify any gaps in your systems that could affect the overal performance of your organization.
Send an email to enquiriesamenconsulting.co.tz with your query or fill in this form and we will get back to you. You can also WhatsApp or call +255 676 877 995.