Kyaw Zin Latt
Today's text specifically addresses company gaps. We will explain what company gaps are, how they can be harmful to the business, and how to identify and overcome them. So, if you want to know more about it, keep reading this text.
What are gaps?
Gap is an English term that has the meaning of gap, gap, gap, vacuum, detachment, and separation. Due to its range of meanings, the word gap can be used in different contexts and, therefore, will assume different meanings depending on the context in which it is found. A gap can be the interruption of something, an apparent gap, sudden change, difference, etc. When there is a gap, a “blank” space appears.
And in the case of company gaps, what does that mean?
All companies have a value chain. This term refers to the set of activities that an organization performs, ranging from the idea to the distribution of the service or product. However, due to the constant changes that occur in the market, many companies end up focusing more on what happens abroad and leave the concern with their interior in second place. As a result, many gaps in the company are not identified and end up going unresolved. However, the inefficiency of many organizations is often more related to internal problems than to market conditions.
A gap in the company is an imbalance, a dissonance occurring in the value chain. These are gaps in the business that cause problems for the organization. Company gaps generally indicate that there has been an important change in the fundamentals of that corporation. A gap can also be understood as a gap between what was planned and the result obtained.
There are different types of gaps, such as competency gaps, exhaustion gaps, breakout gaps, quality gaps, etc. Below, we separate the five main gaps.
Top 5 company gaps
The company gaps described below are important and deserve attention:
Information Gap: results from analyzes and research about the market and the consumer that is not done correctly and end up causing the company to make decisions based on information that does not match reality;
Conception Gap: due to incorrect information, it is not possible to outline a solution, causing problems in the correct planning of solutions;
Production and Delivery Gap: the solution produced and delivered does not meet market or customer expectations, increasing the corporation's failure;
Communication Gap: Basically, this gap deals with a discrepancy between what is promised and what is delivered to the customer. There is the communication of something that does not materialize;
Customer Gap: Similar to the previous gap, the customer gap deals with the dissonance between what the customer expected and what he received, causing his dissatisfaction.
In addition to the top five gaps, another well-known term when talking about this subject is competency gaps. Below, we explain what it is all about.
What are competency gaps?
Basically, competency gaps are gaps between what is expected of the employee for the position he occupies and what he actually offers. Generally, these competency gaps are identified by managers and HR, but they can also be identified by other employees and even by the employee himself.
When competency gaps are identified, HR performs analysis and evaluations to identify the best ways to improve that employee.
Why do company gaps occur? And what do they cause?
Gaps in the business can occur for a variety of reasons. Among them, we can highlight:
Problems to identify the real needs of customers;
Communication noise between client and company and between company and company;
Little operational control;
Lack of methodological standards;
Between others.
But for the company to offer a quality service to the customer, it is necessary to fill these gaps in the business and eliminate the gaps.
Company gaps can cause a series of problems for the business, such as:
Differences between the service offered and what is expected by the customer;
Communication failures, inside and outside the organization;
Image problems;
Financial losses;
Decreased competitiveness of the company;
Loss of customers.
How to identify company gaps?
To identify gaps in the business, it is necessary to do a gap analysis. Through this analysis, the company examines its current performance and compares it to expected performance. It will also serve to show whether the company is achieving its goals and expectations and whether its resources are being well used.
By defining and analyzing the company's gaps, it is possible, from this, to create an action plan to close the gaps in the business.
There are four steps in gap analysis. After carrying out the four steps, the analysis ends with a compilation report that includes areas for improvement, as well as an action plan that aims to increase the company's performance.
The four steps of gap analysis
Step 1 (Building Organizational Goals): The first step is to define, as precisely as possible, what the organizational goals are. These goals need to be very specific, as well as realistic, attainable, measurable, and timely;
Stage 2 (Current State Benchmarking): In this stage, the current state of the organization must be measured, related to its described objectives. For this, historical data are used;
Step 3 (gap data analysis): In the third step, the collected data must be analyzed, which serves to help understand why the organization's current performance is below the desired;
Step 4 (Compilation of a gap report): Finally, in the fourth step, it is time to compile a report based on the quantitative data and the qualitative reasons that lead to the data being below expectations. The report will also serve to identify the actions needed to achieve the organization's objectives.
How can gap analysis help?
If there are gaps, it is very likely that the company is not using its resources, capital, technology, and labor in the best way. This is where gap analysis comes in, helping the corporation reach its full potential.
As gap analysis allows the company to understand the situation it is in and be able to compare it to the situation it wants to reach, it is possible to reassess its goals and objectives, so that it is clear if it is on the right path or if it needs to take another direction.
Where to use gap analysis?
Any organization, regardless of its level and size, can perform a gap analysis. Thus, there is no limit to the areas in which this strategy can be applied; but the most common areas are:
Financial performance;
Company strategies;
Operational and personal;
Marketing and Sales;
Human Resources;
Quality control;
Employee satisfaction;
Among others.
