Gap Analysis, Implementation and Audit in an Organization - Essay Example

Running Header: Discuss a Gap Analysis, Implementation and Audit in an Organization Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission: Discuss a Gap Analysis, Implementation and Audit in an Organization Introduction Gap analysis is an undertaking for identifying the steps to be carried out in progressing from a current situation to a cherished state of the future. It is also referred to as needs assessment, needs analysis, and need-gap analysis. It is founded on two queries; where do we want to be? And where are we? (Dorothy 1). If an organization or a company is not utilizing it current resources efficiently, it is most likely that it will perform or produce at a level under its capability. It is a fact that an organization performs effectively if every needed company planning is carried out in advance. Regardless of what kind of business one operates, services offered to clients, the business of company or firm will run effectively merely when every planning is carried out on time with every resource available to be utilized. The performance of the organization solely relies on the way things are coordinated, managed, controlled, planned, communicated and planned from period to period. Continuity of business is paramount. Those who run organization measure performance so as to evaluate weaknesses and strength and make alternations in assessment of responsibilities and workflow accordingly. During growth of an organization and flow of services from small entity to large entity, certain disasters or restrictions come up in between. All these develop a gap in performance. In order to eliminate or lower the gap, it is paramount to be equipped with particular procedure for gap analysis. The Purpose of Gap Analysis The gap analysis purpose is to pin point the gap between the required vision of the organization and the current baseline (Luis and Paraskakis 678). In other words, firms use gap analysis to inquire all the hiccups in their operations. By this technique, organization determines whether the capital and resources are put into use in the most effective way. Most organizations place vision statement and baseline side by side in order to make the visual and conceptual comparison resulting to better characterization and identification of the gap. The queries put forward by the performance audit are difficult to answer though easy to ask. Having articulated the strategic profile and envisioned its future, the strategies, the LOBs, and the culture needed to attain that future, the team responsible in planning must scrutinize as to where the organization currently stands on each of these. The gap between the current status of an organization and it cherished future is the gauge of how long it must move to reach where it desire to be. Those in the planning team, obviously, would desire such a journey to be both sweet and short. Nevertheless, the current location of the organization must be correctly evaluated before the details of the actual journey are put in place. Reaching into consensus to agree about that location is actually hard. Asking for the location of an organization is much easier but evaluating its coordinates is even a much harder. In the applied strategic planning process, the performance audit is paramount. The purpose of the audit is to offer capability benchmark against which the set goals can be evaluated. Lack of effective performance audit could cause erroneous sense of security where an organization perceive that it is has more capability of attaining its goals than the actual truth on the ground. This could actually be interpreted as a huge error in the process of developing strategic goals with a possibility of not achieving these goals. According to Luis and Paraskakis the aim of performance audit is to give the information for the gap analysis to be carried out so as to determine the degree to which the model of business strategy is workable and realistic (679). Steps Involved in a Gap Analysis The difference between where one organization is and others is a gap. The gap can be negative where organization is in a worse position or can be positive where organization is considered to be in better position. With particular steps outlined, the organization gaps can be evaluated and eliminated in shorter period to return the growth or business in right track again (Michael). There are five steps for gap analysis. The first step is to begin with the known gaps and in order to assemble a list of known gaps it is paramount to seek input from sales, marketing, business development, and management teams. The second step is to create a backlog of potential gaps that do not fully meet the threshold as being known gaps. Third step is to develop a list of triggers that may result to gaps and they include announcements, activities, or events that may signal gaps in the future. The fourth step is to list the major trends that affect the market. The last step is to assign actions for known gaps, potential gaps, triggers and trends. It is paramount to perceive from all aspects of business resources, department, performance failure, eventual natural calamities, disasters and every other factor that can affect the level of performance. It is important to initiate gap analysis of an organization from inside factors and then move to outside factors. It is necessary to evaluate and remove the gap in business is to scrutinize the responsibilities and goals of the organization. If it turns out that not all roles and duties are defined effectively to every employee, then it is define that there will exist a gap in growth of business. While carrying out such evaluations all qualitative, quantitative, cost, as well as financial factors are to be taken into consideration. Another aspect is to define the needed results for all operations and assign all duties accordingly to the employees(Michael). If organizations concentrate on expected results and operate appropriately, there will be no problems of gap. Weighing the performance of an individual while storing records will aid to identify the degree of training needed for employee. Comparison of actual outcome with required outcomes will allow the organization understand everything regarding needed improvements. After every possible business gap reason is studied and understood, possible options are to be placed into practice to improve the situation. Knowing every possible business-gap-removal solution is not hard if its main cause is known. Applying solutions will actually do well to eliminate all types of business gap. Gap in organization can be analyzed and improvement can be put in place so as to stabilize operations. Observing all hitches and positioning the solutions ready will aid greatly to completely eliminate the organization gap. In order to be safe, all probable aspects that may develop gap in business can be evaluated in advance and work flow can be sustained appropriately. Benefits of Gap Analysis When utilized correctly, gap analysis can be applied in various situations where organization requires advancing. It also aids an organization to evaluate its current situation with its potential performance. It is particularly useful for leaders of business that need to establish plans many days into the future. It helps teams to rapidly detect obstacles and develop means to handle those obstacles via integral changes in practices of business (Tyler). Gap analysis for business can be utilized to aid in attaining particular goals. For instance, Firm Y is the top toy distributor in Chicago. Firm Y wants to be the major toy distributor in the entire US. Firm Y finishes an analysis showing how it managed to be the major Chicago Toy distributor. This would incorporate an outline of all aspects of business that influences the success of Firm Y including, management, information technology, accounting, and marketing among other departments. Firm Y would then put down the benefits of attaining its aim of being major distributor in the US. Goals should be measureable and specific. In this scenario, Firm Y will turn to be the major toy distributor in US in 3 years. Firm Y would then evaluate what it requires to do to attain this goal. The Firm Y outcome analysis would be a gap analysis or a full plan document, which contains information of how to be the major US toy distributor. The analysis can contain financial information, file, interviews with employees from all departments, and business documents. Conclusion Gap analysis is process of identifying steps required to be executed in moving from a current situation to a cherished state of the future. Managers who run organization measure performance so as to evaluate weaknesses and strength and make alternations in assessment of responsibilities and workflow accordingly. The purpose of Gap analysis is to investigate the obstacles that prevent organizations from achieving its goals. The gap between the current status of an organization and it cherished future is the gauge of how long it must move to reach where it desire to be. The goal of performance audit is to provide the information for the gap analysis. The gaps on business can be analyzed and eliminated in shorter time so as the firm return to growth if particular steps outlined. The first step is known gaps, second is potential gaps, third is triggers, fourth is trends, and finally actions. Gap analysis benefits organization by helping it to evaluate its current situation with its potential performance. Works Cited Michael, Asu. Business Gap Analysis. 2011. 7 May 2011. . Dorothy, Ball. Gap Analysis: As Is or To Be, What is the Question? (2010): 1-2. Luis, Camarinha and Iraklis, Paraskakis. Leveraging Knowledge for Innovation in Collaborative Networks Berlin: IFP, 2009. Tyler, Lacoma 2010, The Advantages of Gap Analysis in the Business. Aug. 2011. 7 May 2011. .  Read More