A performance gap analysis helps businesses identify the difference between standard and actual performance, and find ways to close the gap. It can be caused by internal or external factors, and solutions may include training, equipment upgrades, or adjusting standards.
A performance gap analysis is performed by a business that wants to determine why there is a disconnect between the standards set for a job and the actual performance being delivered. The difference between standard and actual performance is known as the performance gap, and companies want to close those gaps if possible. Such gaps may be caused by internal factors relating to employees or their working conditions, while other gaps may be caused by other factors such as regulatory standards. Additionally, a performance gap analysis is often performed when employees are forced to take on a new task or revisit an old job using new methods.
It is unlikely that any company can achieve optimal standards all the time. For this reason, there may be times when a company needs to take the time to analyze where it believes its people or its operational processes are falling short. One way to do this is through a performance gap analysis, which can both identify the gap between standard and delivery and find ways to correct the problem.
The first step of any performance gap analysis is to identify the existing gap. This can be done almost like a mathematical equation, as the difference between standard, or S, and current behavior, or B, leads to the performance gap, or G. So, S minus B equals G. Thinking about it this concrete way it can help managers identify problem areas that might be vague when viewed without context.
After identifying the gap, the next step in completing a performance gap analysis is to understand why the gap exists. A performance gap can be caused by internal factors that prevent employees from doing the job as well as possible or by external factors that limit performance from the outside. In some cases, a new business will require this type of analysis, as a gap will be created immediately by employees’ unfamiliarity with the business.
Once all of these steps are completed, a business needs to complete the performance gap analysis by finding ways to close the gaps. This could mean that some machinery needs to be fixed or replaced, or that employees need more training or better motivational methods. If the factors are external, companies may need to find new ways around them, or perhaps they could fight them through legal channels. In some cases, unrealistic standards may have been set, which means that these optimal levels may need to be re-adjusted so that actual performance can reach the expected scores.
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