gap analysis in research methodology

The Research Gap (Literature Gap)

Everything you need to know to find a quality research gap

By: Ethar Al-Saraf (PhD) | Expert Reviewed By: Eunice Rautenbach (DTech) | November 2022

If you’re just starting out in research, chances are you’ve heard about the elusive research gap (also called a literature gap). In this post, we’ll explore the tricky topic of research gaps. We’ll explain what a research gap is, look at the four most common types of research gaps, and unpack how you can go about finding a suitable research gap for your dissertation, thesis or research project.

Overview: Research Gap 101

• What is a research gap
• Four common types of research gaps
• Practical examples
• How to find research gaps
• Recap & key takeaways

What (exactly) is a research gap?

Well, at the simplest level, a research gap is essentially an unanswered question or unresolved problem in a field, which reflects a lack of existing research in that space. Alternatively, a research gap can also exist when there’s already a fair deal of existing research, but where the findings of the studies pull in different directions , making it difficult to draw firm conclusions.

For example, let’s say your research aims to identify the cause (or causes) of a particular disease. Upon reviewing the literature, you may find that there’s a body of research that points toward cigarette smoking as a key factor – but at the same time, a large body of research that finds no link between smoking and the disease. In that case, you may have something of a research gap that warrants further investigation.

Now that we’ve defined what a research gap is – an unanswered question or unresolved problem – let’s look at a few different types of research gaps.

Types of research gaps

While there are many different types of research gaps, the four most common ones we encounter when helping students at Grad Coach are as follows:

• The classic literature gap
• The disagreement gap
• The contextual gap, and
• The methodological gap

Need a helping hand?

1. The Classic Literature Gap

First up is the classic literature gap. This type of research gap emerges when there’s a new concept or phenomenon that hasn’t been studied much, or at all. For example, when a social media platform is launched, there’s an opportunity to explore its impacts on users, how it could be leveraged for marketing, its impact on society, and so on. The same applies for new technologies, new modes of communication, transportation, etc.

Classic literature gaps can present exciting research opportunities , but a drawback you need to be aware of is that with this type of research gap, you’ll be exploring completely new territory . This means you’ll have to draw on adjacent literature (that is, research in adjacent fields) to build your literature review, as there naturally won’t be very many existing studies that directly relate to the topic. While this is manageable, it can be challenging for first-time researchers, so be careful not to bite off more than you can chew.

2. The Disagreement Gap

As the name suggests, the disagreement gap emerges when there are contrasting or contradictory findings in the existing research regarding a specific research question (or set of questions). The hypothetical example we looked at earlier regarding the causes of a disease reflects a disagreement gap.

Importantly, for this type of research gap, there needs to be a relatively balanced set of opposing findings . In other words, a situation where 95% of studies find one result and 5% find the opposite result wouldn’t quite constitute a disagreement in the literature. Of course, it’s hard to quantify exactly how much weight to give to each study, but you’ll need to at least show that the opposing findings aren’t simply a corner-case anomaly .

3. The Contextual Gap

The third type of research gap is the contextual gap. Simply put, a contextual gap exists when there’s already a decent body of existing research on a particular topic, but an absence of research in specific contexts .

For example, there could be a lack of research on:

• A specific population – perhaps a certain age group, gender or ethnicity
• A geographic area – for example, a city, country or region
• A certain time period – perhaps the bulk of the studies took place many years or even decades ago and the landscape has changed.

The contextual gap is a popular option for dissertations and theses, especially for first-time researchers, as it allows you to develop your research on a solid foundation of existing literature and potentially even use existing survey measures.

Importantly, if you’re gonna go this route, you need to ensure that there’s a plausible reason why you’d expect potential differences in the specific context you choose. If there’s no reason to expect different results between existing and new contexts, the research gap wouldn’t be well justified. So, make sure that you can clearly articulate why your chosen context is “different” from existing studies and why that might reasonably result in different findings.

4. The Methodological Gap

Last but not least, we have the methodological gap. As the name suggests, this type of research gap emerges as a result of the research methodology or design of existing studies. With this approach, you’d argue that the methodology of existing studies is lacking in some way , or that they’re missing a certain perspective.

For example, you might argue that the bulk of the existing research has taken a quantitative approach, and therefore there is a lack of rich insight and texture that a qualitative study could provide. Similarly, you might argue that existing studies have primarily taken a cross-sectional approach , and as a result, have only provided a snapshot view of the situation – whereas a longitudinal approach could help uncover how constructs or variables have evolved over time.

Practical Examples

Let’s take a look at some practical examples so that you can see how research gaps are typically expressed in written form. Keep in mind that these are just examples – not actual current gaps (we’ll show you how to find these a little later!).

Context: Healthcare

Despite extensive research on diabetes management, there’s a research gap in terms of understanding the effectiveness of digital health interventions in rural populations (compared to urban ones) within Eastern Europe.

Context: Environmental Science

While a wealth of research exists regarding plastic pollution in oceans, there is significantly less understanding of microplastic accumulation in freshwater ecosystems like rivers and lakes, particularly within Southern Africa.

Context: Education

While empirical research surrounding online learning has grown over the past five years, there remains a lack of comprehensive studies regarding the effectiveness of online learning for students with special educational needs.

As you can see in each of these examples, the author begins by clearly acknowledging the existing research and then proceeds to explain where the current area of lack (i.e., the research gap) exists.

How To Find A Research Gap

Now that you’ve got a clearer picture of the different types of research gaps, the next question is of course, “how do you find these research gaps?” .

Well, we cover the process of how to find original, high-value research gaps in a separate post . But, for now, I’ll share a basic two-step strategy here to help you find potential research gaps.

As a starting point, you should find as many literature reviews, systematic reviews and meta-analyses as you can, covering your area of interest. Additionally, you should dig into the most recent journal articles to wrap your head around the current state of knowledge. It’s also a good idea to look at recent dissertations and theses (especially doctoral-level ones). Dissertation databases such as ProQuest, EBSCO and Open Access are a goldmine for this sort of thing. Importantly, make sure that you’re looking at recent resources (ideally those published in the last year or two), or the gaps you find might have already been plugged by other researchers.

Once you’ve gathered a meaty collection of resources, the section that you really want to focus on is the one titled “ further research opportunities ” or “further research is needed”. In this section, the researchers will explicitly state where more studies are required – in other words, where potential research gaps may exist. You can also look at the “ limitations ” section of the studies, as this will often spur ideas for methodology-based research gaps.

By following this process, you’ll orient yourself with the current state of research , which will lay the foundation for you to identify potential research gaps. You can then start drawing up a shortlist of ideas and evaluating them as candidate topics . But remember, make sure you’re looking at recent articles – there’s no use going down a rabbit hole only to find that someone’s already filled the gap 🙂

Let’s Recap

We’ve covered a lot of ground in this post. Here are the key takeaways:

• A research gap is an unanswered question or unresolved problem in a field, which reflects a lack of existing research in that space.
• The four most common types of research gaps are the classic literature gap, the disagreement gap, the contextual gap and the methodological gap. 
• To find potential research gaps, start by reviewing recent journal articles in your area of interest, paying particular attention to the FRIN section .

If you’re keen to learn more about research gaps and research topic ideation in general, be sure to check out the rest of the Grad Coach Blog . Alternatively, if you’re looking for 1-on-1 support with your dissertation, thesis or research project, be sure to check out our private coaching service .

Psst... there’s more!

This post was based on one of our popular Research Bootcamps . If you're working on a research project, you'll definitely want to check this out ...

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30 Comments

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Home » Research Gap – Types, Examples and How to Identify

Research Gap – Types, Examples and How to Identify

Table of Contents

Research Gap

Definition:

Research gap refers to an area or topic within a field of study that has not yet been extensively researched or is yet to be explored. It is a question, problem or issue that has not been addressed or resolved by previous research.

How to Identify Research Gap

Identifying a research gap is an essential step in conducting research that adds value and contributes to the existing body of knowledge. Research gap requires critical thinking, creativity, and a thorough understanding of the existing literature . It is an iterative process that may require revisiting and refining your research questions and ideas multiple times.

Here are some steps that can help you identify a research gap:

• Review existing literature: Conduct a thorough review of the existing literature in your research area. This will help you identify what has already been studied and what gaps still exist.
• Identify a research problem: Identify a specific research problem or question that you want to address.
• Analyze existing research: Analyze the existing research related to your research problem. This will help you identify areas that have not been studied, inconsistencies in the findings, or limitations of the previous research.
• Brainstorm potential research ideas : Based on your analysis, brainstorm potential research ideas that address the identified gaps.
• Consult with experts: Consult with experts in your research area to get their opinions on potential research ideas and to identify any additional gaps that you may have missed.
• Refine research questions: Refine your research questions and hypotheses based on the identified gaps and potential research ideas.
• Develop a research proposal: Develop a research proposal that outlines your research questions, objectives, and methods to address the identified research gap.

Types of Research Gap

There are different types of research gaps that can be identified, and each type is associated with a specific situation or problem. Here are the main types of research gaps and their explanations:

Theoretical Gap

This type of research gap refers to a lack of theoretical understanding or knowledge in a particular area. It can occur when there is a discrepancy between existing theories and empirical evidence or when there is no theory that can explain a particular phenomenon. Identifying theoretical gaps can lead to the development of new theories or the refinement of existing ones.

Empirical Gap

An empirical gap occurs when there is a lack of empirical evidence or data in a particular area. It can happen when there is a lack of research on a specific topic or when existing research is inadequate or inconclusive. Identifying empirical gaps can lead to the development of new research studies to collect data or the refinement of existing research methods to improve the quality of data collected.

Methodological Gap

This type of research gap refers to a lack of appropriate research methods or techniques to answer a research question. It can occur when existing methods are inadequate, outdated, or inappropriate for the research question. Identifying methodological gaps can lead to the development of new research methods or the modification of existing ones to better address the research question.

Practical Gap

A practical gap occurs when there is a lack of practical applications or implementation of research findings. It can occur when research findings are not implemented due to financial, political, or social constraints. Identifying practical gaps can lead to the development of strategies for the effective implementation of research findings in practice.

Knowledge Gap

This type of research gap occurs when there is a lack of knowledge or information on a particular topic. It can happen when a new area of research is emerging, or when research is conducted in a different context or population. Identifying knowledge gaps can lead to the development of new research studies or the extension of existing research to fill the gap.

Examples of Research Gap

Here are some examples of research gaps that researchers might identify:

• Theoretical Gap Example : In the field of psychology, there might be a theoretical gap related to the lack of understanding of the relationship between social media use and mental health. Although there is existing research on the topic, there might be a lack of consensus on the mechanisms that link social media use to mental health outcomes.
• Empirical Gap Example : In the field of environmental science, there might be an empirical gap related to the lack of data on the long-term effects of climate change on biodiversity in specific regions. Although there might be some studies on the topic, there might be a lack of data on the long-term effects of climate change on specific species or ecosystems.
• Methodological Gap Example : In the field of education, there might be a methodological gap related to the lack of appropriate research methods to assess the impact of online learning on student outcomes. Although there might be some studies on the topic, existing research methods might not be appropriate to assess the complex relationships between online learning and student outcomes.
• Practical Gap Example: In the field of healthcare, there might be a practical gap related to the lack of effective strategies to implement evidence-based practices in clinical settings. Although there might be existing research on the effectiveness of certain practices, they might not be implemented in practice due to various barriers, such as financial constraints or lack of resources.
• Knowledge Gap Example: In the field of anthropology, there might be a knowledge gap related to the lack of understanding of the cultural practices of indigenous communities in certain regions. Although there might be some research on the topic, there might be a lack of knowledge about specific cultural practices or beliefs that are unique to those communities.

Examples of Research Gap In Literature Review, Thesis, and Research Paper might be:

• Literature review : A literature review on the topic of machine learning and healthcare might identify a research gap in the lack of studies that investigate the use of machine learning for early detection of rare diseases.
• Thesis : A thesis on the topic of cybersecurity might identify a research gap in the lack of studies that investigate the effectiveness of artificial intelligence in detecting and preventing cyber attacks.
• Research paper : A research paper on the topic of natural language processing might identify a research gap in the lack of studies that investigate the use of natural language processing techniques for sentiment analysis in non-English languages.

How to Write Research Gap

By following these steps, you can effectively write about research gaps in your paper and clearly articulate the contribution that your study will make to the existing body of knowledge.

Here are some steps to follow when writing about research gaps in your paper:

• Identify the research question : Before writing about research gaps, you need to identify your research question or problem. This will help you to understand the scope of your research and identify areas where additional research is needed.
• Review the literature: Conduct a thorough review of the literature related to your research question. This will help you to identify the current state of knowledge in the field and the gaps that exist.
• Identify the research gap: Based on your review of the literature, identify the specific research gap that your study will address. This could be a theoretical, empirical, methodological, practical, or knowledge gap.
• Provide evidence: Provide evidence to support your claim that the research gap exists. This could include a summary of the existing literature, a discussion of the limitations of previous studies, or an analysis of the current state of knowledge in the field.
• Explain the importance: Explain why it is important to fill the research gap. This could include a discussion of the potential implications of filling the gap, the significance of the research for the field, or the potential benefits to society.
• State your research objectives: State your research objectives, which should be aligned with the research gap you have identified. This will help you to clearly articulate the purpose of your study and how it will address the research gap.

Importance of Research Gap

The importance of research gaps can be summarized as follows:

• Advancing knowledge: Identifying research gaps is crucial for advancing knowledge in a particular field. By identifying areas where additional research is needed, researchers can fill gaps in the existing body of knowledge and contribute to the development of new theories and practices.
• Guiding research: Research gaps can guide researchers in designing studies that fill those gaps. By identifying research gaps, researchers can develop research questions and objectives that are aligned with the needs of the field and contribute to the development of new knowledge.
• Enhancing research quality: By identifying research gaps, researchers can avoid duplicating previous research and instead focus on developing innovative research that fills gaps in the existing body of knowledge. This can lead to more impactful research and higher-quality research outputs.
• Informing policy and practice: Research gaps can inform policy and practice by highlighting areas where additional research is needed to inform decision-making. By filling research gaps, researchers can provide evidence-based recommendations that have the potential to improve policy and practice in a particular field.

Applications of Research Gap

Here are some potential applications of research gap:

• Informing research priorities: Research gaps can help guide research funding agencies and researchers to prioritize research areas that require more attention and resources.
• Identifying practical implications: Identifying gaps in knowledge can help identify practical applications of research that are still unexplored or underdeveloped.
• Stimulating innovation: Research gaps can encourage innovation and the development of new approaches or methodologies to address unexplored areas.
• Improving policy-making: Research gaps can inform policy-making decisions by highlighting areas where more research is needed to make informed policy decisions.
• Enhancing academic discourse: Research gaps can lead to new and constructive debates and discussions within academic communities, leading to more robust and comprehensive research.

Advantages of Research Gap

Here are some of the advantages of research gap:

• Identifies new research opportunities: Identifying research gaps can help researchers identify areas that require further exploration, which can lead to new research opportunities.
• Improves the quality of research: By identifying gaps in current research, researchers can focus their efforts on addressing unanswered questions, which can improve the overall quality of research.
• Enhances the relevance of research: Research that addresses existing gaps can have significant implications for the development of theories, policies, and practices, and can therefore increase the relevance and impact of research.
• Helps avoid duplication of effort: Identifying existing research can help researchers avoid duplicating efforts, saving time and resources.
• Helps to refine research questions: Research gaps can help researchers refine their research questions, making them more focused and relevant to the needs of the field.
• Promotes collaboration: By identifying areas of research that require further investigation, researchers can collaborate with others to conduct research that addresses these gaps, which can lead to more comprehensive and impactful research outcomes.

Disadvantages of Research Gap

While research gaps can be advantageous, there are also some potential disadvantages that should be considered:

• Difficulty in identifying gaps: Identifying gaps in existing research can be challenging, particularly in fields where there is a large volume of research or where research findings are scattered across different disciplines.
• Lack of funding: Addressing research gaps may require significant resources, and researchers may struggle to secure funding for their work if it is perceived as too risky or uncertain.
• Time-consuming: Conducting research to address gaps can be time-consuming, particularly if the research involves collecting new data or developing new methods.
• Risk of oversimplification: Addressing research gaps may require researchers to simplify complex problems, which can lead to oversimplification and a failure to capture the complexity of the issues.
• Bias : Identifying research gaps can be influenced by researchers’ personal biases or perspectives, which can lead to a skewed understanding of the field.
• Potential for disagreement: Identifying research gaps can be subjective, and different researchers may have different views on what constitutes a gap in the field, leading to disagreements and debate.

About the author

Muhammad Hassan

Researcher, Academic Writer, Web developer

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Framing challenges

• Gap analysis for literature reviews and advancing useful knowledge

By Steve Wallis and Bernadette Wright 02/06/2020

The basics of research are seemingly clear. Read a lot of articles, see what’s missing, and conduct research to fill the gap in the literature. Wait a minute. What is that? ‘See what’s missing?’ How can we see something that is not there?

Imagine you are videoconferencing a colleague who is showing you the results of their project. Suddenly, the screen and sound cut out for a minute. After pressing some keys, you manage to restore the link; only to have your colleague ask, ‘What do you think?’. Of course, you know that you missed something from the presentation because of the disconnection. You can see that something is missing, and you know what to ask for to get your desired results, ‘Sorry, could you repeat that last minute of your presentation, please’. It’s not so easy when we’re looking at research results, proposals, or literature reviews.

While all research is, to some extent, useful, we’ve seen a lot of research that does not have the expected impact. That means wasted time, wasted money, under-served clients, and frustration on multiple levels. A big part of that problem is that directions for research are often chosen intuitively; in a sort of ad-hoc process. While we deeply respect the intuition of experts, that kind of process is not very rigorous.

In this post, we will show you how to ‘see the invisible’: How to identify the missing pieces in any study, literature review, or program analysis. With these straight-forward techniques, you will be able to better target your research in a more cost-effective way to fill those knowledge gaps to develop more effective theories, plans, and evaluations.

The first step is to choose your source material. That can be one or more articles, reports, or other study results. Of course, you want to be sure that the material you use is of high quality . Next, you want to create a causal map of your source material.

We’re going to go a bit abstract on you here because people sometimes get lost in the ‘content’ when what we are looking at here is more about the ‘structure’. Think of it like choosing how to buy a house based on how well it is built, rather than what color it is painted. So, instead of using actual concepts, we’ll refer to them as concepts A, B, C… and so on.

So, the text might say something like: ‘Our research shows that A causes B, B causes C, and D causes less C. Oh yes, and E is also important (although we’re not sure how it’s causally connected to A, B, C, or D)’.

When we draw causal maps from the source material we’ve found, we like to have key concepts in circles, with causal connections represented by arrows.

Figure 1. Abstract example of a causal map of a theory

There are really three basic kinds of gaps for you to find: relevance/meaning, logic/structure, and data/evidence. Starting with structure, there is a gap any place where there are two circles NOT connected by a causal arrow. It is important to have at least two arrows pointing at each concept/circle for the same reason we like to have multiple independent variables for each dependent variable (although, with more complex maps, we’re learning to see these as interdependent variables).

For example, there is no arrow between A and D. Also, there is no arrow between E and any of the other concepts. Each of those is a structural gap – an opening for additional research.

You might also notice that there are two arrows pointing directly at C. Like having two independent variables and one dependent variable, it is structurally better to have at least two arrows pointing at each concept.

So, structurally , C is in good shape. This part of the map has the least need for additional research. A larger gap exists around B, because it has only one arrow pointing at it (the arrow from A to B). Larger still is the gap around A, D, and E; because they have no arrows pointing at them.

To get the greatest leverage for your research dollar, it is generally best to search for that second arrow. In short, one research question would be: What (aside from A) has a causal influence on B? Other good research questions would be (a) Is there a causal relationship between A and D? (b) Is there a causal relationship between E and any of the other concepts? (c) What else besides A helps cause B? (d) What are the causes of A, D, and E?

Now, let’s take a look at gaps in the data, evidence, or information upon which each causal arrow is established.

From structure to data

Here, we add to the drawing by making a note showing (very briefly) the kind of data supporting each causal arrow. We like to have that in a box – with a loopy line ‘typing’ the evidence to the connection. You can also use different colors to more easily differentiate between the concepts and the evidence on your map. You can also write the note along the length of the arrow.

Figure 2. Tying the data to the structure

From data to stakeholder relevance

Finally, the gap in meaning (relevance) asks if those studies were done with the ‘right’ people. By this, we mean people related to the situation or topic you are studying. Managers, line workers, clients, suppliers, those providing related services; all of those and more should be included. Similarly, you might look to a variety of academic disciplines, drawing expertise from psychology, sociology, business, economics, policy, and others.

Which participants or stakeholders are actually part of your research depends on the project. However, in general, having a broader selection of stakeholder groups results in a better map. This applies to both choosing what concepts go on the map and also who to contact for interviews and surveys.

Visualizing the gaps

All of these three gaps – gaps in structure, data, and stakeholder perspectives – can (and should) be addressed to help you choose more focused directions for your research – to generate research results that will have more impact. As a final note, remember that many gaps may be filled with secondary research; a new literature review that fills the gaps in the logic/structure, data/information, and meaning/relevance of your map so that your organisation can have a greater impact.

Figure 3. Visualizing the gaps (shown in green)

Some deeper reading on literature reviews may be found here:

• Practical Mapping for Applied Research and Program Evaluation (SAGE) provides a ‘jargon free’ explanation for every phase of research:

https://us.sagepub.com/en-us/nam/practical-mapping-for-applied-research-and-program-evaluation/book261152   (especially Chapter 3)

• This paper uses theories for addressing poverty from a range of academic disciplines and from policy centers from across the political spectrum as an example of interdisciplinary knowledge mapping and synthesis:

https://www.emerald.com/insight/content/doi/10.1108/K-03-2018-0136/full/html

• Restructuring evaluation findings into useful knowledge:

http://journals.sfu.ca/jmde/index.php/jmde_1/article/download/481/436/

This approach helps you to avoid fuzzy understandings and the dangerous ‘pretence of knowledge’ that occasionally crops up in some reports and recommendations. Everyone can see that a piece is missing and so more easily agree where more research is needed to advance our knowledge to better serve our organisational and community constituents.

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Robinson KA, Saldanha IJ, Mckoy NA. Frameworks for Determining Research Gaps During Systematic Reviews [Internet]. Rockville (MD): Agency for Healthcare Research and Quality (US); 2011 Jun. (Methods Future Research Needs Reports, No. 2.)

Frameworks for Determining Research Gaps During Systematic Reviews [Internet].

We used multiple resources and sought different perspectives to develop a framework for the identification of research gaps. We carried out six steps. We first attempted to identify, enumerate and describe frameworks that have been used (steps 1 to 3). We then developed, tested and refined a framework (steps 4 to 6). The six steps are:

• Focused literature review
• Review of current practices of evidence-based practice centers (EPCs)
• Review of current practices of organizations involved with evidence synthesis
• Development of framework
• Pilot test of framework
• Refinement and finalization of framework.

Step 1. Focused Literature Review

We sought English-language articles that described the identification of research gaps, research needs, or evidence gaps from systematic reviews or related processes such as health technology assessments (HTAs). We completed a search of MEDLINE © via PubMed (April 22, 2010). We analyzed the terms used in eligible articles identified during preliminary searching to develop a search strategy. We combined controlled vocabulary terms and text words for systematic review, meta-analysis, evidence-based medicine, research needs, and research gaps to create the following search strategy:

((review literature as topic[mh] OR meta-analysis as topic[mh] OR evidence-based medicine[mh] OR systematic reviews[tiab] OR systematic review[tiab] OR technology assessment[tiab] OR technology assessments[tiab] OR meta-analysis[tiab] OR meta-analyses[tiab]) AND (research needs[tiab] OR gaps[tiab] OR research priorities[tiab])).

All search results were imported into a database maintained in reference management software (ProCite™, Thomson Reuters, New York, NY). A custom work form was used to track the searching and screening processes. All citations were screened for eligibility at the title and abstract level by one reviewer. Citations deemed eligible or of unclear eligibility were reviewed by a second reviewer. We obtained full-text articles of citations confirmed as eligible or of unclear eligibility. These full-text articles were then independently screened by two reviewers. Disagreements concerning eligibility were resolved by consensus or by a third reviewer. We excluded citations from further consideration if they:

• Were not in English;
• Did not have an objective to identify research gaps/needs;
• Did not use a systematic review or similar process to identify research gaps/needs;
• Did not include a description of methods or process for identifying research gaps/needs; or
• Were otherwise eligible but used guidelines as basis for identification of research gaps/needs.

We scanned the reference lists of included articles. From each included article we abstracted the topic area and the method of identifying research gaps/needs that was described in the text or figures. We also abstracted the organizing principle(s) that was (were) used to identify research gaps/needs.

Step 2. Review of Current Practices of Evidence-based Practice Centers (EPCs)

Audit of evidence reports from epcs.

We searched the AHRQ website ( http://www.ahrq.gov/ ) for evidence reports that satisfied the following criteria (as of April 12, 2010):

• Published in 2008 or later;
• Classified as “Clinical” or “Health Care Services” (we did not consider “Technical” reports); and
• Produced by an EPC that is part of AHRQ ’s EPC program between 2007 and 2012.

We randomly selected one report if there was more than one report that satisfied the above criteria from the same EPC . One team member abstracted the following data from each of the evidence reports using a form designed in Excel (Microsoft™, Redmond, WA) (see Appendix B for data abstraction form):

• Whether or not the terms research gaps/needs were defined;
• Whether or not there was a description of how research gaps/needs were identified;
• Whether or not there was an explicit framework/set of organizing principles used for the identification of research gaps/needs;
• Whether or not research gaps/needs were presented;
• Location(s) of presentation of research gaps/needs in the report; and
• How research gaps/needs were presented (e.g., an unordered list, separated by key question, separated by type of study, as a figure/conceptual framework).

Verification of Abstracted Information

We contacted the EPCs that produced the evidence reports selected for abstraction. We contacted the primary author of the evidence report. If it was unclear who the primary author was, or if we were not able to contact the primary author, we contacted the current director of the EPC that produced the report. We provided a summary of what was abstracted from the report and asked for any corrections and clarifications. If no explicit framework was identified in our review of the report, we asked if the EPC had implemented a process since the publication of the report. If so, the EPC was asked to provide a description of the process and to indicate when it was implemented. Each EPC was contacted via email.

Step 3. Review of Current Practices of Organizations Involved With Evidence Synthesis

We identified organizations that develop systematic reviews or related products such as HTAs. We compiled a list by pooling together organizations from the following two sources:

• All current member organizations of the International Network of Agencies for Health Technology Assessment ( INAHTA ) (as listed on the INAHTA website http://www.inahta.org/ on April 27, 2010); and
• All current member organizations of the Guidelines International Network ( G-I-N ) from the United States ( US ), United Kingdom ( UK ), Canada, and Australia that are involved with systematic reviews, technology assessments ( TA ), or cost-effectiveness analyses ( CEA ) (as listed on the G-I-N website http://www.g-i-n.net/ on April 27, 2010).

Each organization was contacted via email and asked:

• Whether or not they have a formal process for identifying research gaps/needs;
• When the formal process (if any) for identifying research gaps/needs was implemented; and
• To provide a description of the formal process (if any).

Based on responses received from these organizations, we made independent determinations of whether the processes were formal or not. We determined processes to be formal if the organization stated that it had a formal process currently being implemented and if the process or method used was explicitly described. If formal, we assessed whether the process was directed at the identification of gaps/needs for primary research, systematic reviews, HTAs, and/or guidelines. We only included for further consideration the formal processes used by organizations for the identification of research gaps/needs for primary research.

Step 4. Development of Framework

We considered the various elements of research gaps noted in the literature and identified by the EPCs and organizations. Based on these elements and known important aspects of research questions, we developed a framework for the identification and organization of research gaps. This framework included an explicit determination and classification of the reason(s) why each research gap exists. We developed a worksheet to facilitate the use of the framework by investigators to systematically identify, organize, and record research gaps identified during the conduct of an evidence report.

Technical Expert Review

Once we developed the initial version of the framework, we sought feedback from two technical experts from our institution. We asked these experts to review the framework and the worksheet and to comment on the clarity and potential ease of use. We also asked them to provide general comments and suggestions for specific items that might need to be added, removed, or reworded. The framework and worksheet were refined after receipt of feedback from the technical experts.

Step 5. Pilot Test of Framework

Selection of epc evidence reports for pilot test.

We pilot tested the framework on two evidence reports not produced by our EPC . These reports were randomly selected from a pool of available reports from the AHRQ Website ( http://www.ahrq.gov/ ) which met the following criteria (as of August 02, 2010): published in 2008 or later; classified as “Clinical” or “Health Care Services” (we did not consider “Technical” reports); and produced by an EPC that is part of AHRQ's EPC program between 2007 and 2012.

Process for Pilot Test of Framework

Two team members independently applied the framework to each selected evidence report using the worksheet. The purpose was to assess the usability of the worksheet in abstracting and identifying research gaps. We decided to focus on the results sections because we wanted to simulate, as closely as possible, the process that investigators would follow in using this framework and worksheet. We envision that investigators would fill out this worksheet soon after the data synthesis phase, while writing the results section of the evidence report. Team members thus read the results sections of the reports to abstract individual research gaps. If necessary, team members read other sections of the reports. Team members also kept track of the number of key questions, number of research gaps abstracted, and number of gaps which were abstracted but could not be fit into the framework. We recorded the time taken to complete this process per evidence report. After reviewing the evidence reports and abstracting research gaps, we compared the lists of gaps identified by the two team members. We also compared the gaps we identified with those presented in the future research sections of the respective evidence reports.

Step 6. Refinement and Finalization of Framework

We refined the framework and the worksheet based on our results from the pilot test.

• Cite this Page Robinson KA, Saldanha IJ, Mckoy NA. Frameworks for Determining Research Gaps During Systematic Reviews [Internet]. Rockville (MD): Agency for Healthcare Research and Quality (US); 2011 Jun. (Methods Future Research Needs Reports, No. 2.) Methods.
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• Review of Current Practices of Evidence-based Practice Centers (EPCs)
• Review of Current Practices of Organizations Involved With Evidence Synthesis
• Development of Framework
• Pilot Test of Framework
• Refinement and Finalization of Framework

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The Complete Guide to Gap Analysis

By Joe Weller | October 17, 2018 (updated September 17, 2023)

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A gap analysis is a tool that can help businesses identify where they aren’t living up to their potential, and then use that information to plan ways for improvement. Learn how gap analyses work, find examples, and follow our step-by-step guide to perform one for your company.

What Can a Gap Analysis Do for You?

A gap analysis measures actual against expected results to identify suboptimal or missing strategies, processes, technologies, or skills. Use the results of a gap analysis to recommend actions that your company should take to meet its goals.

By comparing the current state with the target state, companies, business units, or teams can determine what they need to work on to make their performance or results better and get on the right path quicker. Companies can also use the gap analysis process to elevate individual or team performance, and look at attributes such as task competency, performance level, and productivity. Other names for the process include need-gap analysis, needs analysis, and needs assessment.

As opposed to a risk assessment , which tend to be forward-looking, a gap analysis examines the current state. ANSI (American National Standards Institute), ASIS (American Society for Industrial Security), and RIMS (Risk and Insurance Management Society) standards say that risk assessment includes the identification, analysis, and evaluation of uncertainties to objectives and outcomes of an organization.

You can also look at a gap analysis as a means of comparing performance to potential. In other words, how far did a person, group, or product fall from their capacity? Did the resources fall short of the needs?

Gap analysis is a process that, when applied to other business processes, becomes a reporting process used for improvement. When applied to manufacturing or production, a gap analysis can help balance the allotment and integration of resources from their current allocation level closer to an optimal level. Those resources can be time, money, material or human resources.

Concrete vs. Conceptual

You can perform a concrete gap analysis thats looks at the real world, or a conceptual one that examines hypothetical scenarios. While you can use the same template in both exercises, when performing a conceptual gap analysis, you’ll need to make assumptions about which parameters to use. Conversely, use real facts and data for a concrete analysis.

Strategic vs. Operational

A gap analysis can be strategic and focus on the overall organization and the planning and execution at that level, or it can be operational and focus on the day-to-day work of a team or department. Since both methods are based on real-world situations, there’s no need to make assumptions.

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Gap Analysis Examples

Many business departments use the gap analysis process, including accounting, sales, customer service, and human resources. Below you’ll find a few specific examples of scenarios in which a company can use a gap analysis:

New Product Launch : After a company launches a new product, they might do a gap analysis to determine why sales didn’t meet forecasts.

Productivity : When a factory’s productivity is not meeting expectations, targeted customer needs, or the set of business requirements that were laid out a gap analysis can help determine what process to fix.

Supply Management : If a hospital finds itself running short of supplies on a regular basis, they could perform a gap analysis to identify the reason why.

Sales Performance : A manufacturer can look at the sales performance of their catalog of products to make sure they are producing the right mix, and use the result to maximize their production–possibility frontier.

Individual Assessment : A team leader at an accounting firm can have each member perform a gap analysis on themselves, and use those results not only to find targets to improve each person’s performance, but also to draw out the best practices that everyone can adopt.

Product Evaluation : A software company might perform a gap analysis of their product to ensure that all features and functions outlined in the business requirements are present and working as expected.

Why Do Businesses Perform a Gap Analysis?

Businesses perform gap analyses to identify the difference between where they are with where they want to be. You can use a gap analysis to evaluate those differences, identify the causes, and inform the steps needed to bridge the gap.

In project management, the difference between the way a company is performing a task or activity and the ideal way it could be performed is called CΔV (pronounced “C delta-V”), or the current gap vision . The difference between a target for a metric and the actual metric performance is called AΔT (pronounced “A delta-T”), or the actual gap target .

Below are some reasons that a company might perform a gap analysis:

Benchmarking : Comparing results against external criteria. A computer company may want to see where they stand against industry performance criteria, or a candy company may want to compare their reputation with their competitors.

Portfolio Analysis : Examining their product portfolio to look for new sales opportunities, a company can use a gap analysis to identify new products to sell. In the opposite direction, they can also look for existing products that are not selling well, use a gap analysis to find out why, then promote them (e.g. feature them more promentilty in marketing or put them on sale), change them to better meet customer needs, or remove them from their portfolio.

Profits : If a forecast profit percentage isn’t reached, a company can use a gap analysis to determine what went wrong, and whether it was in planning or execution. Was the organization paying higher-than-expected expenses for materials, or having to lower prices due to unexpected competition?

Processes : A gap analysis can help reveal the shortcomings of processes, so that the real outcomes match the expected outcomes. A shipping firm could examine their AP process to see why so many of their vendors are not getting paid on time, or examine their billing processes to see why many of their suppliers don’t get their invoices until after the due date.

Performance Indicators : A gap analysis can also be applied to key performance indicators like new customer acquisition, average order amount, or return on investment (ROI) . A mobile carrier could look for the reasons that caused them to miss their customer acquisition goal, or a seafood company could seek the reasons they didn’t process as much salmon as expected.

Usage Gaps : A usage gap is the difference between current market size for a product or service, and the potential market size. A gap analysis in this area can help an organization see why they are not reaching the full potential. Is a company's reputation pushing down sales? Or did management misread the demand for a product?

What Is a Market Gap Analysis?

A market gap analysis is a method of researching sales opportunities where the demand outweighs the supply. An organization can use these analyses, which can be performed internally or externally, to make decisions based on market facts, rather than opinion.

A market gap analysis differs from market research in that it’s proactive rather than reactive. Business to consumer (B2C) companies take advantage of this process often. The market they might investigate can be geographic (there’s nobody selling anything like our product on the west coast), product based (there was a time when no one was selling mobile phone cases that doubled as wallets), service based (there may a lot of dogs in a city, but not many dog walkers or other pet care businesses), or look for a way to better utilize existing resources (think of Uber launching Uber Eats).

What Is a Strategic Gap Analysis?

A strategic gap analysis compares a company’s strategy to that of its competitors. A business can then adopt the top-performing aspects of its competitors’ approaches and integrate these aspects within the most successful parts of its own existing strategy.

When to Perform a Gap Analysis

A company can perform a gap analysis at any time, but be thoughtful about timing to maximize its effectiveness. Conduct gap analyses on a regular basis, before a period of strategic planning, or whenever a department or venture is underperforming.

A gap analysis is often a key part of strategic planning , which is a process that helps an organization define a strategy to accomplish its goals. By looking for issues via a gap analysis, the business can adjust its strategy to better fit the situation, or update the company's processes to align with the strategy.

When an organization is looking for problems with their performance, a gap analysis can be a key tool in identifying where things are falling short. For example, if a company wants to start a marketing campaign to improve their reputation or apply for a loan, they could perform a market gap analysis to help determine their impact on the their local economy and use that data as part of their campaign or loan application. Similarly, when a company is preparing for an audit or other oversight activities, a gap analysis is a proactive way of showing the auditors which regulations the company is complying with, and that it has a plan to meet the rest.

Benefits and Challenges of a Gap Analysis

Gap analyses benefit organizations in many ways, such as identifying growth opportunities and prioritizing resources. They can also be difficult and time consuming, and require in-depth knowledge of the department they’re targeting. We’ve outlined the top benefits and challenges below:

Insight into areas that need improvement, such as efficiency, products, profitability, processes, customer satisfaction, performance, participation, and competitive advantage

Ensuring that project requirements have been met

Finding areas of weakness and shortcomings to address

Uncovering differences in perception vs. reality

Providing information to guide decision makers, which can lead to better decisions

Finding the best places to deploy resources and focus energy

Prioritization of needs

If performed well, the results of a gap analysis are clear and easy to understand

While valuable, gap analyses are not perfect. Some challenges related to the gap analysis process include the following:

Successful completion depends on knowledge and persistence of the people involved in the process.

While the process may expose some causes, if it doesn't go deep enough, the proposed resolutions will not address the real root cause or can miss the complexities behind them. For example, when evaluating sales performance, an analysis might conclude that sales reps are not offering a new product enough, but may not find out why. Are they not familiar enough with the product? Are customers unwilling to change from an exsisiitng product? Or does the new product not work as advertised?

The analysis can be inaccurate, as the ground is constantly shifting (especially in large organizations or in fast-moving industries)

How to Perform a Gap Analysis

Performing a gap analysis is straightforward. First, identify the area to evaluate and state its ideal outcome. Next, analyze its current state. Compare that with the ideal results, and quantify the difference. Finally, make a plan to bridge the gap.

In larger organizations, the gap analysis process is generally the responsibility of business analysts, project managers, process improvement teams, or management. But with a little training, and a well-designed gap analysis template , anyone can work through the process.

Some organizations may already have a process outlined that you can follow. However, the basic steps for performing a gap analysis are explained below.

Identify the area to be analyzed and identify the goals to be accomplished . For example, you may want to figure out why your factory is not meeting its output target. The goal will be to discover the causes that contributed to targets not being met, and recommend how to remove the causes.

Establish the ideal future state . If everything worked according to plan, where would you be?

Analyze the current state . What causes contributed to the targets being missed? For example, were the workers not trained well enough? Was the production floor short-staffed? Were required materials consistnelty available? Did the layout of the production floor slow things down?

Compare the current state with the ideal state . How far from the target was actual production? For example, did you expect to produce 1,000 units per hour, but only managed to produce 800 units per hour?

Describe the gap and quantify the difference . In the unit production example (described in step 4), there would be a 20 percent shortfall. After researching the potential causes, outline the contribution of each to the gap. In this example, we may find that insufficient training caused 5 percent of the gap, staffing problems caused 7 percent, material shortages caused 2 percent, and inefficient layout of the factory floor caused 14 percent. Companies can use other ratings systems to quantify the difference that can be as basic as simple terminology like good, fair, and poor, to something more detailed like a 1-50 scale.

Summarize the recommendations and create plan to bridge the gaps . Decide what needs to be changed and determine what steps need to be taken to fix things. In this example, the team performing the analysis may decide the layout issue is the easiest to tackle and will have the greatest impact, so they might recommend ways to address it. Then they could work with the supply chain and staffing teams to create recommendations for those issues as well. They would summarize their ideas and present it to management to begin planning the improvements.

Gap Analysis Best Practices

When performing a gap analysis, be thoughtful about which areas, items, and processes to analyze, and which recommendations to adopt. Understand that the changes you make may affect others. Ensure your goals are specific, measurable, achievable, relevant, and time-bound (SMART).

Back up your recommendations with supporting data from your analysis to increase the likelihood that your company will adopt them. Use charts to illustrate your data and make it easier to understand. It’s also imperative to consider cost, resources, and consequences when recommending problems to address and solutions. Remember, if a solution is out of reach, the company is unlikely to adopt it.

Assign an owner to each part of the process to ensure that you complete each step. By digging deep into the proposed solution, you’ll find it might not be easy to achieve. Look beyond the obvious to see if there are other possible solutions. 

Learn more about how creating SMART goals can ensure that your gap analysis is as effective as possible.

Frameworks for Gap Analysis

You can use a framework for your gap analysis, like the Nadler-Tushman Model and the PESTEL framework, to simplify the process. Use each framework listed below as an organizing principle for both the causes you discover and your proposed solutions.

McKinsey 7Ss Framework The McKinsey framework has seven categories: strategy, structure, systems, shared values, skills, style, and staff. The first three are considered “hard” and the rest are considered “soft.”

An example of a misalignment might be if a production line requires 20 people to operate at full capacity, but the graveyard shift only has 15 people available. In this case, there's a misalignment between systems and staff.

Nadler-Tushman Congruence Framework This model breaks a company's’ performance into four areas: work, people, structure, and culture. Note each area’s strengths and weaknesses, and then compare them to the other areas. The goal is to find out if the work being done in each area supports the others. For example, if a compliance group is performing their tasks at a high level and finds areas where the company is not following certain laws and regulations, but the company’s organization doesn't have any way to implement these changes, the people and structure are not congruent.

SWOT Framework SWOT is an acronym that stands for strengths, weaknesses, opportunities, and threats. While some experts see gap analysis and SWOT analysis as separate tools, SWOT is a useful tool for organizing both the the causes and the recommendations. However, the threat portion veers into risk assessment, and as mentioned previously, a gap analysis is not a risk assessment.

Download a free SWOT analysis template to get started with this framework.

PESTEL Framework PESTEL is another acronym and stands for political, economic, social, technological, environmental, and legal. While it can be a standalone analysis, a company can also use it as a gap analysis framework.

Fishbone Framework The fishbone diagram is a tool created by Kaoru Ishikawa, a Japanese quality control expert. The method is designed to identify problem causes and divide them into categories, similar to the other frameworks above. While the image above illustrates six categories that are used in manufacturing, there are other sets of categories that other business areas use. A couple of these are outlined below.

The 8 Ps of Product Marketing

Physical evidence

Performance

The 4 Ss of Service

Surroundings

What Is a Gap Analysis for a Bank?

In the banking sector, a gap analysis evaluates risk by looking at the balance of assets and liabilities. The analysis determines if there is a negative gap (when liabilities exceed assets) or a positive gap (when assets exceed liabilities).

The banking gap analysis doesn’t take potential interest rate changes into account, and generally focuses on near-future time periods (one month out, three months out), so it is a limited tool.

What Is a Gap Analysis in the Pharmaceutical Industry?

A gap analysis (also known as validation gap analysis ) in the pharmaceutical industry looks at the difference between regulatory requirements affecting a company, and the practices and processes that a company currently uses.

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How To Perform A Gap Analysis: 5-Step Process (+ Free Template)

Most of us have at least a rough vision of where we'd like to take our organization. But sometimes, knowing where and how to begin can be challenging. This is where the process of gap analysis comes into play.

Gap analysis is a great strategic analysis tool that gives us a broad framework for defining not just where we are today, but more importantly where we want to be and how we're going to get there.

⚠️ Don't just identify the gap, close it! Understanding strengths and weaknesses is key, but translating insights into action is where the magic happens. Cascade Strategy Execution Platform bridges the gap between analysis and execution. Talk to a strategy expert and see how to turn your gap analysis into real progress.

In this article we’ll cover:

What is a gap analysis, what are the benefits of a gap analysis, gap analysis use cases & examples, types of gap analysis, how to do a gap analysis: the 5-step process, gap analysis tools & frameworks, free gap analysis templates to download, close the gap through execution 🚀.

A gap analysis is a process of comparing your current state to your desired future state. This process includes assessing the actual performance of your organization to determine whether business goals or objectives are being met and, if not, creating an action plan that will bridge the identified gap.

It's a great tool to use as part of the internal analysis of your company. Almost all major businesses usually assign the completion of a gap analysis template to project managers or business analysts.

Conducting a gap analysis is actually quite simple, but it can also have its challenges. That’s why it’s useful to follow a step-by-step approach to ensure your strategic planning is well-structured and meaningful in assessing your business goals.

Gap analysis forces you to think about your current situation, your desired future state, the root causes of the gaps between the two, and the action plan to bridge that gap in a very structured and clear manner.

Think about it as the bridge that will get you from point A (your current state) to point B (your desired state).

But apart from that, it presents a framework for collaborating on creating a strategic plan and a common execution roadmap that is visible and aligned with all stakeholders. When multiple people are involved in strategic planning and execution, their different approaches can sometimes conflict with each other.

A gap analysis can also be used as a way to analyze historical performance . The first time you run a gap analysis process, you will explicitly capture the current performance of your business (in both qualitative and quantitative forms). So the next time you do one, you will have a benchmark against which you can compare your most recent performance to efficiently set goals.

To streamline your gap analysis process, we've developed a free gap analysis template . This handy tool poses thought-provoking questions that guide you in developing a robust strategic plan, integrating all the pieces seamlessly.

So, everything sounds great. But, when is the best time to go through the gap analysis process?

Gap analysis is most useful when you need to:

• Create a new strategy for your team and want to understand where you currently sit
• Figure out the right areas of focus to achieve your business goals
• Develop a new product understanding the gap between your current offer and what customers want
• Find out why you aren't meeting important KPIs and strategic objectives
• Develop a change management strategy , but you need first to identify the gap between the current and desired state.
• Identify opportunities to improve current processes or workflows
• Prepare for an audit and showcase how you are proactively addressing any gaps
• Prepare a strategic plan and prioritize resource allocation

These are, of course, just some use cases... Gap analysis is a versatile tool that can be applied to multiple different scenarios. The best part is that it’s suitable for companies and teams of all sizes and industries.

Let’s check out some “real-life” scenarios where a gap analysis would be a great option:

‍ Example 1: Technology Company New Product Launch

A technology company plans to launch a new mobile app to expand its product offerings and reach a wider audience. To ensure the app's success, they conduct a gap analysis to evaluate their current app development processes, features, and user interface compared to competitors in the app market.

By identifying gaps and areas for improvement, they refine the app's functionalities, enhance user experience, and align it better with customer needs, positioning it as a standout solution in the competitive app market.

Example 2: Human Resources Strategic Plan

The Human Resources (HR) team at a medium-sized organization faces challenges with employee retention and satisfaction. To improve the HR department's performance, they conduct a gap analysis to assess their current practices, employee feedback mechanisms, and talent management strategies.

By pinpointing gaps between existing practices and desired outcomes, they develop a strategic action plan. This plan includes implementing effective employee engagement programs, talent development initiatives, and performance management systems, leading to improved retention rates and increased employee satisfaction.

Example 3: Digital Transformation In Manufacturing

A manufacturing company aims to undergo a digital transformation to enhance operational efficiency and adapt to evolving industry demands. They perform a gap analysis to evaluate their current technology infrastructure, data management processes, and workforce skills in relation to the digital transformation objectives.

By identifying gaps in technology and skills, they develop a comprehensive digital transformation strategy . This includes upgrading technological capabilities, implementing data analytics systems, and providing relevant training to employees, facilitating a successful transition to an advanced and digitally enabled manufacturing environment.

In each of these scenarios, gap analysis plays a crucial role in identifying areas for improvement and guiding strategic decisions. By bridging the identified gaps, these organizations can effectively meet their goals, improve their overall performance, and stay competitive in their respective industries.

As you can probably imagine from the previous examples, gap analysis comes in different forms, and each serves a unique purpose to tackle specific challenges and opportunities within an organization.

Here are some types of gap analysis you might find helpful:

• Performance Gap Analysis : Evaluates the difference between an organization's current performance and its desired future state to identify areas for improvement and enhance overall efficiency and effectiveness.
• Market Gap Analysis : Focuses on analyzing the gap between customer expectations and the products or services offered by a company, helping to identify opportunities to meet market demands and gain a competitive edge. ‍
• Product Gap Analysis : Assesses the features, pricing, and qualities of a product or service against customer needs and expectations to identify gaps and prioritize improvements or innovations. ‍
• Skills Gap Analysis : Analyzes the existing skill sets of employees in an organization and compares them with the skills required to meet organizational goals, leading to targeted training and development initiatives. ‍
• Compliance Gap Analysis : Evaluates an organization's adherence to relevant laws, regulations, and industry standards, identifying areas of non-compliance and guiding efforts to meet legal requirements. ‍
• Financial Gap Analysis : Compares an organization's current financial performance with its financial objectives, uncovering discrepancies and guiding financial planning and decision-making. ‍
• Technology Gap Analysis : Assesses an organization's technology infrastructure, systems, and capabilities, comparing them with the technology required to support its strategic goals and digital transformation initiatives. ‍
• Environmental and Social Gap Analysis : Focuses on an organization's environmental and social impact, identifying gaps in sustainability practices and providing insights for implementing responsible and eco-friendly strategies.

Before we dive in, grab our free Gap Analysis Template to have a better idea of what the final outcome should look like. Follow the step-by-step guide below and fill the template with your own data or use it as a reference to build your own template.

Step 1: Define your focus areas

The first step in creating a gap analysis is to set some boundaries. You can also think of this as defining the scope of your analysis.

It would be easy to talk about your desired future state in general grandiose terms:

“My desired future state is to be the biggest and best company in Asia!!!”

There's little value in these kinds of exercises. Instead, you should have a rough idea of which areas you want to improve.

While we've written extensively about how to create strategic focus areas , here are some typical areas that people often settle on:

• Financial growth
• Customer excellence
• Employee happiness
• Scientific achievement
• Community impact

In short, focus areas should quickly describe what you are trying to improve with your gap analysis.

🤓 Want to dive deeper into focus areas? Read our go-to guide on how to define focus areas .

Step 2: Identify your desired future state

Whoa...hang on a second - shouldn't we be starting with the current state rather than the future state? You'd think so, wouldn't you - and indeed, most of the other gap analysis guides tell you to do that. But there's a problem...

Your organization doesn't have one single current state - it has thousands depending on which team, which measure, or even which person you're talking about.

So despite what you might read in other gap analysis guides, defining your current state without any idea of your future state is, at best, a useless process (and, at worst, an impossible one).

So instead, we start our own gap analysis process with the definition of our future state.

This is where having strategic focus areas really comes in handy. Let's assume that you selected 'Innovation' as one of your focus areas.

You'll want to start by framing your desired future state for 'Innovation' in fairly broad terms (we'll be getting more specific later on).

Broadly speaking, my desired future state for 'Innovation' is:

“To be recognized as one of the most innovative SaaS platforms in the industry.”

Remember, we're keeping things fairly high-level at this stage - so try to avoid adding any specific KPIs or measures to this part of your gap analysis.

Here are a few more examples of desired future states for a range of focus areas:

My desired future state for 'Customer Excellence' is:

“To achieve market-leading customer retention and referrals.”

My desired future state for 'Community Impact' is:

“To make lasting & meaningful changes to the lives of people in the community.”

Once you have identified a high-level desired future state for each of your focus areas, it's time to move on to the next stage of our analysis process.

Step 3: Assess your current state

The next part of performing a gap analysis involves getting a better understanding of where you are today - your current state .

Once again, we'll be using the focus areas that we defined in Step 1 to scope our gap analysis. We'll be starting off high level and then getting more specific in Step 4 .

For each of your focus areas, write a sentence that gives a realistic summary of your current state. Try to use similar language and structure to the one you used when defining your desired future state above.

For example, for our 'Innovation' focus area, we might summarize our current state as:

“We are not currently known for innovation; however, our software does contain a couple of unique features.”

For our 'Customer Excellence' focus area we might say:

“We have high customer satisfaction and retention in our Enterprise segment, but our smaller customers are significantly less satisfied with their experience .”

Or finally, for our 'Community Impact' focus area we might say:

“Most members of the local community are not currently aware of our presence.”

Remember that for this part of your gap analysis, it's more important than ever to be 100% honest and realistic about your strengths and weaknesses.

You might already be aware of your current state because you’re experiencing a particular problem you’re trying to solve (a specific gap you’re trying to close). But it’s not always the case.

🔎There are numerous tools, methodologies, and internal/external analysis frameworks you can use to assess your current state (like SWOT Analysis, PEST, McKinsey 7-S, etc) . These do not replace your gap analysis but rather help you make a good diagnosis of your company to clearly see where your gaps are. We’ll cover some of these tools in the following section: Gap Analysis Tools & Frameworks .

Step 4: Apply metrics / KPIs to your gap analysis

It's time to get specific about what we want to achieve and how we're going to do it by adding some specific metrics or KPIs (Key Performance Indicators) for each one of our focus areas.

Here are a few tips on how to select the right KPIs for your gap analysis:

• Select KPIs you can actually measure, and decide on your measurement approach
• Choose KPIs you already have a baseline for, so that the gap can be easily measured
• Apply both leading and lagging KPIs to achieve a complete set of measures for each focus area

Let's dive into some specific KPI examples that you can use as part of your gap analysis. We'll start by defining the targets for our desired future state, and underneath write down how this looks for our current state.

Focus area 1: 'Innovation'

1. Leading KPI: Dedicate at least 50% of our developer resources to creating new features.

(current state: <10% of developer resources are on creating new features)

2. Lagging KPI: Achieve an 'Innovation' score of over 80% on at least one customer review website.

(current state: Our 'Innovation' score on g2crowd.com is less than 60%)

Focus area 2: 'Customer Excellence'

1. Leading KPI: Achieve an average customer NPS score of at least +7.

(current state: Our NPS score is less than 3 on average)

2. Lagging KPI: Decrease our overall gross % customer churn to less than 10% per annum.

(current state: Our gross % customer churn is greater than 20% per annum)

Focus area 3: 'Community Impact'

1. Leading KPI: Raise our community awareness to 70%.

(current state: Our community awareness is less than 20%)

2. Lagging KPI: Get directly involved in at least 3 major political initiatives.

(current state: We’re not participating in any political initiatives currently)

The 'gap' component of your gap analysis is the variance between the KPIs of your current state and your desired future state.

For example, you could say that we have a gap of 50% between our current level of community awareness (20%) and our desired future state of community awareness (70%).

Step 5: Create an execution-ready action plan and roadmap

Creating a gap analysis leads to the crucial step of formulating an action plan and roadmap to address the identified gaps. This process involves defining specific projects for each focus area, aiming to close the gaps identified in Step 4 .

Think of your gap analysis action plan as a series of projects that directly contribute to achieving the Key Performance Indicators (KPIs) set in the previous step for each focus area.

Let's brainstorm some specific examples of projects you could add to yout action plans for each focus area:

• Project 1: Hire four additional developers dedicated to new feature development.
• Project 2: Implement an 'Innovation Check' for all new features to ensure they meet the definition of “innovation”.
• Project 1: Launch an automated survey to gather reasons for customer cancellations.
• Project 2: Establish a dedicated retention team in customer service to handle cancellation requests.
• Project 1: Launch a local TV advertising campaign.
• Project 2: Increase our spend on online advertising by $5,000 per month.

It's up to you how many projects you want to create, but typically, you'll have at least two for every gap. You'll also have to use your own best judgment about whether these projects are likely to close the gap!‍

Now, let's talk about the roadmap .

As you create the action plan, it's essential to establish a clear time frame for each project and determine realistic deadlines and milestones to track progress effectively. This roadmap will guide your organization on the sequence of actions to take, the allocation of resources, and the expected time frames for achieving those significant milestones. Having a well-defined roadmap will help your team stay focused, organized, and motivated throughout the implementation process.

🎁Bonus step: Execute, monitor and adapt your plan

Congrats! You’ve developed your action plan and set targets and KPIs to measure success.

What’s next?

Well, now it's all about the execution – the heartbeat of your plan.

Make sure everyone in your organization is on board and has clear visibility over the plan. But it's not just about sharing the big picture; you’ll have to provide clarity on the specific actions needed to close the gaps you identified during your analysis. Encourage a collaborative spirit where different teams are accountable for the KPIs that drive progress.

Now, here's the secret sauce: continuous monitoring of your progress and being open to adapt when needed. Keep a close watch on how things are unfolding, and if they don't go as planned, don't panic! Be ready to tweak your plan swiftly to get back on track.

You can monitor and track your results with spreadsheets, but in an era when change is the new normal, simply relying on them may not be enough. It will be hard to keep everyone on the same page and adapt quickly.

Our suggestion? Check out Cascade 😉

Cascade is your organization’s brain. It is the only platform that spans the entirety of your ecosystem to understand the relationships between your business inputs (e.g., metrics, initiatives, investments) and outputs (e.g., expected results, forecasted revenue, margins, etc.).

For example, Cascade helps you to monitor progress toward your targets and identify performance gaps before it’s too late. And even though it has tracking functionalities that allow you to track your progress in real-time, like dashboards and reports , it’s not just another tracking tool like the ones out there... It’s the key to centralized visibility over your execution engine.

👉🏻 Learn more about strategy execution software here !

Want to take Cascade for a spin? Sign up today for a free forever plan or book a guided 1:1 tour with one of our Cascade in-house strategy execution experts.

The gap analysis template that we've created is a great starting point. But there are a few different frameworks and tools that you can also use to help you get more specific about the gaps you're trying to resolve.

These frameworks are conceptual approaches that you can 'layer' onto your organization to help you categorize your activities and more easily identify gaps.

SWOT analysis

SWOT means strengths , weaknesses , opportunities , and threats analysis. It assesses both internal and external factors, offering insights into current and future opportunities.

SWOT analysis serves as a solid foundation for the gap analysis process by offering a comprehensive snapshot of your organization's current state since it gives a realistic and fact-based look at how the organization positions itself within the industry. For it to be successful, it needs to focus on real-life evidence and contexts.

👉🏻 Check out this article where you can learn more about SWOT analysis and grab a FREE SWOT Analysis Template.

PEST/PESTLE analysis

Understanding industry threats and opportunities can be challenging in a SWOT analysis without proper industry knowledge. But a PESTLE or PEST analysis can enhance your understanding of external factors by considering the following aspects:

• Technological
• Environmental

As you research each of these elements, you'll gain a better understanding of threats and opportunities within your industry and a birds-eye view of the entire environment to accurately assess your current state.

PESTLE analysis is particularly valuable in guiding strategic decision-making and identifying gaps related to changes in the external environment.

👉🏻 Check out this article to learn more about PESTLE analysis.

McKinsey 7-S Framework

The McKinsey 7-S framework is a management model that assesses seven interconnected elements within your organization to understand its effectiveness and alignment.

These elements include:

• Shared Values

The framework emphasizes the importance of considering all these components together, as they are interdependent.

When conducting a gap analysis using the McKinsey 7-S framework, you can identify discrepancies in how these elements are aligned and how they impact the overall performance and success of your organization.

👉🏻Check out this article where you can learn more about McKinsey 7-S framework.

Nadler-Tushman model

The Nadler-Tushman model is another organizational framework that focuses on inputs, transformational processes, and outputs to assess organizational effectiveness. The model examines how inputs like people, technology, and resources are transformed into outputs such as products, services, and outcomes.

By using this model for gap analysis, organizations can pinpoint areas where processes may be inefficient or ineffective, leading to gaps in performance or output.

Fishbone Diagram

The fishbone diagram, also known as the Ishikawa or cause-and-effect diagram, helps identify potential root causes of a problem or gap in the organization. It is particularly useful for identifying complex and interconnected factors that contribute to the identified gap.

By visually mapping out all possible causes, organizations can better understand the underlying issues and develop targeted solutions.

McKinsey’s Three Horizons

Another framework for complementing your gap analysis could be McKinsey's Three Horizons of Growth.

This framework forces you to think about your business progression over a series of time-based horizons that help you isolate your mandatory business-as-usual activities from your truly innovative drivers of growth.

The 3 Horizons are:

• Horizon 1 : Maintain and defend the core business
• Horizon 2: Nurture emerging business
• Horizon 3 : Create genuinely new business

By using this framework, organizations can identify gaps in their growth plans and ensure a balanced approach to innovation and sustainability.

👉🏻Check out this article where you can learn more about McKinsey’s Three Horizons.

Balanced Scorecard

A balanced scorecard is a useful tool for categorizing your business activities into a series of outcome-focused quadrants (also named "perspectives"):

You can then mirror these same quadrants to categorize and prioritize your gaps and their associated action plans.

By using the balanced scorecard for gap analysis, organizations can identify gaps in each perspective, understand how they relate to the overall strategy, and prioritize actions to address these gaps effectively.

👉🏻Check out this article where you can learn more about the Balanced Scorecard.

Note these frameworks are not substitutes for performing a gap analysis, but can rather add an additional layer of depth on top of your gap analysis.

The following are additional gap analysis templates you may find useful, depending on your needs:

Gap analysis template for business process improvement

Gap analysis is often used for improving business processes. However, the framework needs some adjustment. We are introducing a bit different approach that’s best used for optimizing business processes.

👉🏻 Download the free Gap analysis template for business process improvement

Skills gap analysis template for your team

Businesses use gap analysis to identify the skills that an individual team member (or a team) needs but don’t necessarily have to perform certain jobs effectively.

With a skills gap analysis, organizations can uncover gaps in their teams and set career development goals. Thus, it is mainly done by the Human Resources (HR) department.

The process is fairly simple, and it’s mostly focused on identifying the current state. Create an assessment scale for each skill. Then, assign points to your employees for every skill. It’s the fastest way to identify which skills are underdeveloped on the organizational level.

Once you’ve identified the missing skills, you can implement training plans or set up your hiring plan accordingly.

👉🏻 Download the free skills gap analysis template here!

Product gap analysis template

Product gap analysis is used to highlight the gap between your product and customers’ expectations. It will help you prioritize the next steps and meet those expectations set in the first place.

👉🏻 Download the product gap analysis here!

Financial gap analysis template

Financial gap analysis pretty much follows the standard template. However, we added some finance-related examples for easier navigation.

👉🏻 Download the financial gap analysis here!

Gap analysis is a great tool for identifying gaps and deciding what you should do to improve performance. However, it’s only half the work!

Once you've conducted the analysis, identified gaps, and created a well-crafted action plan and roadmap, the real work begins. You need to execute those projects and make steady progress toward the metrics and KPIs that will lead you to achieve your business goals - ultimately closing the gap.

The most important thing is to remember that no matter how good your action plan is, it's the strategy execution that counts the most .

So here are our recommended steps to ensure you effectively close the gaps:

• Download your FREE gap analysis template to streamline your gap analysis process
• Put your action plan into Cascade (for FREE!) to achieve centralized observability and effective execution

By combining a well-structured action plan with robust execution through tools like Cascade, you equip your organization with the resources needed to close the gap and achieve your desired outcomes.

What is a ‘needs analysis’ and how is it related to gap analysis?

A needs analysis is a process of identifying specific requirements and deficiencies within an organization to address challenges and meet objectives. It focuses on understanding what is lacking or needs improvement.

Needs analysis is related to gap analysis as both methods assess the current situation compared to the desired future state. However, needs analysis is more focused on identifying specific needs and improvement areas, while gap analysis helps develop action plans to close the gaps between the current and desired states.

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What is a gap analysis, and how can you use it to get closer to your goals?

Last updated

14 May 2023

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Organizations use gap analysis to analyze their performance and determine whether they’re meeting business objectives and using resources effectively. 

Gap analysis can aid management in creating an action plan that can assist the organization in figuring out how to fill in these performance gaps and improve business operations. 

While the process may appear complicated, it’s not as complex as it seems. When organizations do a gap analysis properly, they can move closer to their goals. 

• What are the types of gap analysis?

Regarding gap analysis, the "gap" refers to the space between a company's actual and desired outcomes. However, you can identify different types of gaps with a gap analysis.

Some of the more critical gaps include the following: 

A performance gap is also called a strategy gap, referring to the space between actual and desired performance.  

A profit gap is the difference between targeted profit and actual profit.  

A manpower gap is the difference between the exact number of personnel and the required personnel to complete a project. It can also mean the difference between the actual and desired workforce performance.  

• When to use a gap analysis?

While companies can use a gap analysis to study numerous business areas, the aim is to understand performance gaps. 

This ensures organizations create effective strategies to reduce gaps and achieve their goals.  

Organizations perform gap analysis at these levels:

The strategic level to compare the current output or condition of the business with industry standards

The operational level to compare the current state of the business' performance with goals and projections

• Gap analysis tools

Once you identify the gaps in your business, learn why they exist and how to fix them. 

Some gap analysis models you can use to complete this task include:

SWOT analysis

SWOT stands for strengths, weaknesses, opportunities, and threats. 

This analysis allows companies to identify their internal strengths and weaknesses and external opportunities and threats. This ultimately enables entities to understand their situation and determine where they stand within the industry. 

The analysis can also help companies come up with plans and decision-making strategies. 

Fishbone diagram

The fishbone diagram, also called a cause-and-effect diagram (Ishikawa diagram), helps companies identify many possible causes for a problem or effect.

Companies can use it to structure team meetings to discuss how to solve these issues. This type of diagram is useful when examining an organization's current situation. 

Common categories that investigate an entity's current situation include:

Environment

Measurements

McKinsey 7S Framework

The McKinsey 7S Framework helps entities:

Better understand the gaps that may appear

Figure out areas they need to optimize to boost business performance

Determine how to align processes and departments during an acquisition or merger

Examine the results of future changes within an organization

The sevens in this process refer to two groups of essential interrelated parts of an organization: Hard and soft elements. 

The hard elements are tangible and controllable. It includes things like strategy, organizational structure, and daily task systems. 

In comparison, softer elements are intangible, uncontrollable elements. They include things like staffing, employee skills, company leadership style, and shared organizational values. 

Nadler-Tushman Congruence Model

This model identifies gaps based on the principle that an entity's performance results from four elements: 

Business culture 

Higher compatibility between these elements equals greater performance. 

The PEST analysis

PEST stands for political, economic, social, and technological. 

This analysis measures external factors that could impact a company's profitability. Typically, it’s more effective with larger businesses that are more likely to experience the effect of macro events. Businesses commonly use it together with SWOT analysis. 

• How to conduct a gap analysis

The following steps can help you perform a gap analysis and figure out how to meet your business goals:

Analyze your current state

Before you can devise a plan to reach your goals, you must choose an area of your business to focus on. Find out what your company's current state is in this area. This can help you understand where to apply a gap analysis model and what you want from it.  

For instance, if you want to enhance the efficiency of your current operations, a performance gap analysis may help. 

On the other hand, if you want to analyze staffing levels, a manpower gap analysis can provide detailed insight.

Identify the ideal future state

Next, determine the company's goals and how its future will look. To accomplish this, you’ll have to consider the company’s current state and where you want it to be within a reasonable timeframe. 

Ultimately, your goal should be an improvement over the current state, and it should be measurable so you’ll know when you reach it. 

One way to determine your ideal future state is to look at industry standards. From the track record of other companies, you’ll know this goal is possible once you’ve addressed business problems. 

Another method is to look at your company's historical data. For example, if your sales have been growing over 10% each year but suddenly drop, your goal may be to return these sales to 10%. 

Find the gap and evaluate solutions

When you define your current and desired states, you need to compare them to calculate the gap you’re trying to close. If a gap is small, you may only need minor tweaks to fix operations, or you may determine that significant operational changes are necessary. 

Regardless, this step will help you figure out the hurdles to overcome, the extent of these challenges, and how much time you need to complete these changes. 

Create and implement a plan to bridge the gap

Once you uncover why the gap exists, it’s time to determine the course of action to close it. Since you clarified the hurdles to overcome, you can prepare solutions for these issues. 

Some critical gap analysis tools that can turn your findings into actions include the SWOT analysis and fishbone diagram. 

The SWOT analysis can help you organize the problem areas and the recommendations you obtained to fix these issues.

The fishbone diagram allows you to map the root cause of each problem and develop solutions. 

• Benefits of gap analysis

A gap analysis can help companies in several ways, including allowing them to review current strategies and determine what is working and what’s still needed to achieve their objectives. 

Common benefits of this analysis include:

Identify weak points:  If your company is not performing as expected, a gap analysis can help your organization discover the root cause of the performance gaps.

Measure current resources : If an organization has a surplus of resources, a gap analysis can determine how to allocate resources to use them more efficiently.

Figure out potential plans : When organizations create a gap analysis, they can create possible action plans for their goals.

• Example of gap analysis

Gap analysis is a great tool if you’re looking for ways to improve your business. Here are some real-life examples of when companies perform gap analysis: 

Project management

When planning projects or reviewing different stages of project management, you can use gap analysis to uncover lagging areas. This can help you allocate resources effectively. 

Human resources

A gap analysis can help you with the hiring process if you're in human resources. It can reveal what’s lacking within your team, allowing you to figure out what you need in a new candidate. 

Product launches

Following a product launch , you can use a gap analysis to learn why sales didn’t meet company expectations.  

Customer satisfaction

To improve customer satisfaction , you can use a gap analysis to determine why there’s dissatisfaction and develop ways to serve customers better. 

Employee performance

As a team leader, you can perform a gap analysis to improve employee performance. The results can help you determine business best practices to boost workforce performance.

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What exactly is a gap analysis?

A gap analysis is a method for discovering gaps between a company's present performance and its desired performance. This analysis, which can be quantitative or qualitative, is frequently conducted prior to launching an endeavor to "close" the gaps.

Understanding research gap analysis

The gap analysis methodology is known by several names, including need assessment, need analysis, and need-gap analysis. Whatever you call it, the essential premise stays the same: identify and then solve the challenges that are holding your company back.

Two questions are addressed by gap analysis:

Where are we in terms of performance?

Where do we want to be in the future?

While the process begins with an introspective examination of present vs potential performance, it does not end there. To define your ideal state, gap research should involve outside sources such as industry benchmarks and your market's competitive landscape.

This type of 360-degree examination can be done at both the strategic and operational levels. You can examine your general business objectives or go down into specific processes or departments.

Following the first round of analysis—performance vs potential—you may discover that your outcomes exceed your expectations. The same can be said if your entire company is currently undergoing rapid expansion.

In these circumstances, the goal shifts from identifying difficulties to discovering success factors that can be replicated, applied to other aspects of your business, and eventually grown.

The technique of completing the analysis is the same whether you're reviewing difficulties or triumphs, human resources or logistical activities.

Different types of research gaps

Gaps in research can take several forms, including:

• Knowledge gaps are missing or incomplete pieces of information in the existing body of knowledge. These gaps might be filled by performing new studies or synthesizing existing findings.
• Methodological gaps occur when existing research methodologies are insufficient or inappropriate for a certain situation. These deficiencies can be filled by developing new research methodologies or adapting existing ones.
• When study findings are not transferred into practice or policy, there are practical gaps. Engaging stakeholders and converting findings into meaningful recommendations might help you close these gaps.

Performing a gap analysis step by step

The temptation with the gap analysis approach is to go big at first. Unfortunately, when you try to handle too much at once—to improve everything all at once—resources become stretched thin.

Prioritize the regions where there is either (1) the most beneficial impact or (2) the greatest discomfort.

This could be due to a variety of circumstances, including:

• Sales figures
• Customer fulfillment
• Rates of retention
• Shipping timelines
• Returns on marketing
• Manufacturing expenses
• International growth

Once you've identified an area large enough to create an impression yet tiny enough to wrap your head and hands around.

1. Determine your states

Once you've decided on your areas of focus, the first step is to determine where you are now (performance) and where you want to go in the future (potential).

Let's use the following as an example:

• Your primary focus should be on multichannel sales.
• Specific channels as outlets
• Current monthly sales as performance
• Potential industry averages

Your current level of performance

Every gap analysis begins with self-reflection. Where are you right now in relation to the key performance indicator (KPI) that you're analyzing? The objective is to describe all of the characteristics—in this case, channels—that influence success or failure.

The qualities (and, hence, the analysis) can be quantitative or qualitative. When detecting potential flaws, it is critical to be detailed and factual. Depending on the gap being investigated, the necessary data can be gathered from a variety of sources, including:

• Averages in the industry
• Historical comparisons
• Internal paperwork
• Interviews with customers

Your potential state

The future state depicts the ideal condition in which you want your firm to be. For quantitative research, such tracking sales metrics, you would incorporate either data from the industry or expected sales (i.e., goals).

When preparing for the future, you want to be highly specific by establishing targets within a specified time period (e.g., raise sales by 40% overall by the end of Q3).

Defined quantitatively, gaps are straightforward. What are the numerical differences between where you are and where you want to be?

Qualitatively, this will take a bit more contemplation and collaboration.

2. Describe the gaps

Having discovered the gaps, the following step is to define each gap to better understand the reasons behind their occurrence.

If you’re now ahead of your targets, then it’s a perfect moment to assess what exactly made the outcomes possible and if there are methods to employ the same ideas in other areas of your firm.

Even a well-performing system may always be optimized, thus going through this stage is vital.

Gap. This one is easy. Simply carry over the gaps you discovered in the previous stage, starting with the most underperforming regions first. In our example, we’ve picked email, because that’s where the largest gap between performance and potential lies.

Description. The objective of a gap description is to capture all the relevant variables responsible for the gap. Therefore, the description has to be consistent with those states. These might either be quantitative or qualitative. However, more often than not, to address the reasons behind the gaps, you’ll employ qualitative descriptions.

Why? The tough question here is not how far your actual performance went below target, but why the gap exists. To be of any help, this list has to be specific, impartial, and relevant to the situation at hand. It helps to brainstorm plausible explanations of low performance, and then filter those down using tools like the “five whys” analysis.

3. Fill the spaces

The third and final phase in your gap analysis report is to brainstorm all possible remedies and reasons for the gaps. These remedies must be specific and have an immediate impact on the variables identified in the preceding phase.

To accomplish so, let us return to our previous multichannel focus:

By compiling a comprehensive list of solutions to the gap-description summary, you allow yourself to think broadly while positioning yourself for practical implementation.

When considering potential solutions, take in mind that there may be implementation expenses associated. These costs might involve both time and money, as well as human resources.

Gap analysis examples

The "five whys" method is an iterative strategy for investigating the cause-and-effect links underlying a specific situation. Its major purpose is to determine the fundamental cause of an issue by asking "Why?" repeatedly, with each question establishing the basis for the next.

Although this approach is known as the "Five Whys," it does not require you to ask "Why?" five times. The goal is to repeat the process until the root cause(s) are identified. It may take fewer or more than five whys to get to the root of the problem.

Rather than going the multichannel ecommerce way, consider a circumstance in which clients are dissatisfied because they are receiving products that do not fulfill their expectations.

1. Why are customers receiving defective products?

Because manufacturing used materials that differed from what the client expected based on advertising.

2. Why did production use different materials than those advertised?

Because the supply-chain manager expedites operations on the shop floor by directly contacting the head of manufacturing to start production. When the specifications were being transmitted, an error occurred.

3. Why does the supply-chain management call the manufacturing head immediately to begin work rather than utilizing written communication?

Because the "start work" form requires direct clearance from the supply-chain management before work can begin.

4. Why does the form require supply-chain management approval?

Because the manufacturer does not provide digital integration with your present ecommerce platform.

In this scenario, only four whys were required to determine that the gap was caused by a non-value-added signature created by a lack of integration.

An examination of the industry

Gap analysis in industry-focused research frequently include examining market trends, consumer wants, and rival offerings.

Understanding the industry's unmet demands and possibilities allows researchers to develop unique solutions and strategies to bridge these gaps and gain a competitive advantage.

Profitability analysis

Profit gap research can help ecommerce businesses find areas where they are underperforming financially.

A profit objective is set based on past performance or industry benchmarks. Profits are then compared to targets, and areas for improvement in revenue growth or cost cutting are highlighted. This study is used by ecommerce firms to make strategic decisions and increase profitability.

Several tools and techniques can be employed to facilitate gap analysis in research, such as:

SWOT analysis

Tools and methodologies for gap analysis

Several methods and strategies, such as: can be used to facilitate gap analysis in research.

The SWOT analysis

SWOT analysis is a strategic planning tool that helps organizations determine their strengths, weaknesses, opportunities, and threats.

It assists decision-makers in better planning and strategizing by categorizing internal and external aspects. The tool is used to create goals, analyze markets, and evaluate competitors.

Fish bone diagram

A fish bone diagram, also known as an Ishikawa diagram or cause-and-effect diagram, is a graphical technique used to discover and analyze fundamental causes. 

It enables teams to methodically investigate relevant aspects by categorizing potential causes and visualizing them as a "fish bone" structure. Many businesses utilize this type of diagram for quality control, process improvement, and problem solving.

McKinsey 7S

The McKinsey 7S framework assesses the alignment of an organization's strategy, structure, systems, shared values, skills, and style. 

These seven components work together to discover areas for improvement or change. This paradigm is utilized for organizational changes, mergers and acquisitions, as well as detecting and correcting performance issues.

Nadler-Tushman model

The Nadler-Tushman model, often known as the Congruence model, assesses the fit between an organization's task, people, structure, and culture. 

The tool examines the alignment of the four components to discover gaps, misalignments, and places for improvement. The model is used to assess organizational performance, to lead change activities, and to create new structures and processes.

The advantages of gap analysis in research

Gap analysis in research has various advantages, including:

• Improved research relevance: By focusing on filling gaps, you may ensure that your work is more relevant and beneficial to your organization.
• Improved research design: Gap analysis aids in the refinement of research questions and objectives, resulting in more targeted and successful study designs.
• Increased research impact: Addressing performance gaps can lead to more substantial outcomes and a larger possibility for real-world impact.
• Informed decision-making: Using gap analysis, you may make more informed decisions about research priorities and funding allocation.

Limitations and difficulties

Despite its advantages, gap analysis in research has certain drawbacks and limitations:

• Gaps identified by literature reviews may be influenced by the availability and quality of current literature, which might be incomplete or biased at times.
• Because new research is constantly being undertaken, gaps in knowledge can soon become outdated or useless.
• Due to time, budget, or expertise restrictions, it may not be possible to address all identified gaps.

Best methods for doing a successful gap analysis

Consider the following best practices for conducting effective gap analysis in research:

• Maintain a methodical approach: To ensure the reliability and validity of your findings, use an organized and transparent method for assessing literature and detecting gaps. 
• Keep up with research developments: Update your knowledge of the research landscape on a regular basis to account for new discoveries and emerging trends.
• Work with stakeholders to achieve the following goals: Engage with important stakeholders such as industry experts, policymakers, and practitioners to learn about practical gaps and real-world needs.
• Maintain a balance of ambition and feasibility: While it is critical to strive for relevant research, it is also critical to ensure that your research aims are achievable within your resource limits.

A gap analysis can help you improve your strategic planning.

Finally, gap analysis produces a thorough study of:

• The shortcomings in your current performance
• The causes of those difficulties
• The costs and benefits of various solutions

Instead of using sheer force—or "shooting from the hip"—you'll have hard data to build your new products and efforts on, as well as a plan to guide you.

FAQ about Gap Analysis

What exactly is a gap analysis example.

A gap analysis example is a comparison of an organization's current status to its desired future state. This is frequently done to identify areas that require improvement or where greater resources are required. An organization, for example, may do a gap analysis to discover and assess any disparities between its present customer service strategies, rules, and processes and what is required to achieve consumer expectations. The firm can then develop detailed action plans for improving customer service and ensuring that customer service objectives are accomplished.

What are the three most important elements of a gap analysis?

• Identifying and comprehending the current state entails comprehending your current skills, procedures, and performance to find areas for development. 
• Setting targets and goals for progress allows you to measure the difference between your current and ideal state.
• Implementing a plan of action: After identifying and comprehending your existing situation, as well as setting objectives and goals, you must devise a plan of action to bridge the gap between the two. This strategy should include strategies and remedies to any identified gaps.

What steps are involved in a gap analysis?

• Determine the current state: Examine existing processes, systems, products, services, and strategies.
• Determine the required state: Define the goals and desired outcomes.
• Determine the gap: Compare the existing condition to the planned state and discover any differences.
• Examine the disparity: Determine the core causes of the gaps and assess their impact on the organization.
• Make a plan: Create an action plan to close the gap and accomplish the target result.
• Put the plan into action: Put the strategy into action and keep track of how things are going.
• Analyze the outcomes: Analyze the gap analysis results and adapt the plan as appropriate.

Is a SWOT analysis the same as a gap analysis?

No, a SWOT analysis and a gap analysis are not the same thing. A SWOT analysis is used to determine a situation's strengths, weaknesses, opportunities, and threats. A gap analysis compares an organization's present performance to its desired performance to discover any gaps.

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What is Gap Analysis? Steps, Template, Examples

Appinio Research · 02.11.2023 · 34min read

Are you striving to bridge the divide between where your business currently stands and where you aspire it to be? Gap Analysis holds the key to unlocking your organization's full potential. In this comprehensive guide, we will delve into the intricacies of Gap Analysis, unraveling its significance, methodologies, and real-world applications.

Whether you're seeking to enhance performance, seize market opportunities, or fortify your competitive edge, this guide equips you with the tools and knowledge to navigate the path toward your desired future state.

What is Gap Analysis?

Gap Analysis is a strategic planning tool used to assess the difference, or "gap," between the current state of a business or organization and its desired state. It involves evaluating existing processes, performance, capabilities, and outcomes against predefined goals and objectives.

The goal of Gap Analysis is to identify areas where there is a discrepancy between the current state and the desired state, enabling organizations to make informed decisions and develop action plans to bridge those gaps.

Importance of Gap Analysis

Gap Analysis is crucial for several reasons:

• Strategic Alignment: It ensures that a business's strategies and objectives are in alignment with its current capabilities and resources. By identifying gaps, organizations can adjust their strategies to be more realistic and achievable.
• Decision-Making: Gap Analysis provides a data-driven foundation for decision-making. It helps organizations prioritize initiatives and allocate resources effectively based on identified gaps.
• Continuous Improvement: It fosters a culture of constant improvement by highlighting areas that need attention and enhancement. This promotes ongoing growth and development.
• Risk Mitigation: Gap Analysis helps identify potential risks and vulnerabilities within an organization. By addressing gaps, businesses can proactively mitigate risks before they escalate.
• Competitive Advantage: Understanding where a business stands compared to competitors is essential for maintaining a competitive edge. Gap Analysis helps organizations identify ways to outperform their rivals.
• Resource Optimization: It allows organizations to allocate resources efficiently, avoiding unnecessary expenditures in areas where there are no significant gaps.

Purpose and Goals of Gap Analysis

The primary purposes of Gap Analysis are as follows:

• Strategic Planning: Gap Analysis serves as a critical component of strategic planning by helping organizations set clear and achievable goals that are aligned with their capabilities and resources.
• Performance Improvement: It identifies areas where performance falls short of expectations and provides insights into how to enhance performance.
• Resource Allocation: Gap Analysis guides organizations in allocating resources effectively to address the most critical gaps and achieve strategic objectives.
• Risk Management: By identifying gaps, organizations can proactively address vulnerabilities and reduce the likelihood of unexpected issues arising.

The goals of Gap Analysis can vary depending on the specific context and objectives, but they typically include:

• Identifying Gaps: The primary goal is to identify and document gaps between the current state and the desired state in various aspects of the business, such as processes, performance, or capabilities.
• Setting Objectives: Gap Analysis helps establish clear and measurable objectives and goals that are realistic and attainable.
• Developing Action Plans: It facilitates the creation of action plans to bridge the identified gaps. These plans outline the steps, resources, and timelines needed for improvement.
• Monitoring Progress: Gap Analysis supports ongoing monitoring and measurement of progress toward closing the gaps, ensuring that initiatives remain on track.
• Optimizing Resource Allocation: It assists in optimizing the allocation of resources by directing investments to areas that will yield the greatest impact.

Benefits and Advantages of Conducting Gap Analysis

Conducting Gap Analysis offers numerous benefits and advantages for organizations:

• Informed Decision-Making: Gap Analysis provides data-driven insights that enable informed decision-making, helping organizations prioritize actions and investments.
• Strategic Focus: It helps businesses align their strategies with achievable goals and objectives, reducing the risk of pursuing unrealistic targets.
• Resource Efficiency: By pinpointing areas where resources can be most effectively allocated, Gap Analysis optimizes resource utilization, minimizing waste.
• Continuous Improvement: Gap Analysis fosters a culture of continuous improvement by identifying areas that require enhancement and providing a structured approach to achieving progress.
• Risk Mitigation: It helps organizations identify potential risks and vulnerabilities early, allowing for proactive risk management and mitigation.
• Competitive Advantage: Gap Analysis enables organizations to outperform competitors by addressing weaknesses and capitalizing on strengths.
• Enhanced Performance: By addressing identified gaps, organizations can improve their overall performance, customer satisfaction, and stakeholder value.
• Transparent Communication: Gap Analysis facilitates transparent communication within the organization and with external stakeholders, ensuring everyone understands the strategic direction.
• Measurable Results: It provides a basis for measuring the success and impact of improvement initiatives, ensuring that progress is quantifiable and measurable.

Overall, Gap Analysis is a valuable tool that empowers organizations to identify, address, and bridge gaps, leading to improved performance, strategic alignment, and sustainable growth.

Types of Gap Analysis

Gap Analysis can take on various forms, each tailored to address specific aspects of your business. Let's explore the four main types in detail:

Performance Gap Analysis

Performance Gap Analysis focuses on evaluating the performance of your business processes, teams, or individuals against predefined standards or benchmarks. This type of analysis helps you identify areas where your business is falling short of expectations or industry norms.

Example: Consider a manufacturing company that produces electronic devices. They set a benchmark of making 100 units per hour on their assembly line. After analyzing their actual production rate, they discover that they are only achieving 80 units per hour. This performance gap indicates inefficiencies in their assembly process.

Market Gap Analysis

Market Gap Analysis centers around understanding the gap between the demand for a product or service in the market and what your business currently offers. It helps you identify opportunities to meet unfulfilled customer needs.

Example: Imagine you run a coffee shop in a neighborhood where the majority of customers prefer specialty coffees. Your analysis reveals that you offer a limited range of specialty coffees compared to customer demand in your area. This market gap suggests an opportunity to expand your specialty coffee menu to cater to local preferences.

Competitive Gap Analysis

Competitive Gap Analysis involves comparing your business's performance, products, or services directly against those of your competitors. It helps you pinpoint where your business outperforms competitors and where it lags behind.

Example: Suppose you operate a retail clothing store, and you want to assess your competitiveness. After analyzing pricing, product quality, and customer service, you find that your prices are higher than those of your main competitors, but your product quality and customer service are superior. This competitive gap analysis suggests that you may need to reevaluate your pricing strategy while maintaining your focus on quality and service.

Product Gap Analysis

Product Gap Analysis focuses on evaluating the gap between your existing product or service offerings and what customers seek in the market. It helps you identify opportunities for product development or improvement.

Example: Let's say you own a software company that produces a project management tool.

Through product gap analysis, you discover that your competitors offer mobile app versions of their project management tools, but your product is only available as desktop software. This product gap indicates an opportunity to develop a mobile app to cater to the growing mobile-oriented market.

In summary, understanding the different types of Gap Analysis allows you to tailor your approach to the specific challenges or opportunities your business faces. Whether it's improving internal processes, addressing market demand, outperforming competitors, or enhancing your products or services, Gap Analysis provides a structured framework for decision-making and strategic planning.

How to Prepare for Gap Analysis?

Before diving into Gap Analysis, it's crucial to adequately prepare for the process. The success of your analysis depends on how well you set the stage. Here are the key steps in preparing for Gap Analysis:

1. Identify the Scope and Focus

Scope refers to the specific area of your business you intend to analyze. It could be a department, a process, or even the entire organization. Focus narrows down your analysis to particular aspects within that scope.

• Define Your Scope: Start by clearly defining the boundaries of your analysis. What aspect of your business do you want to examine? It could be marketing, sales, customer service, or any other area.
• Set Your Focus: Within your chosen scope, identify the specific elements or processes you want to analyze. For instance, if you're looking at the sales department, you might focus on lead generation, conversion rates, or customer retention.
• Align with Goals: Ensure that the scope and focus align with your overall business goals. Your analysis should directly contribute to achieving those objectives.

2. Gather Necessary Data and Information

Accurate and relevant data is the lifeblood of Gap Analysis. Gathering the right information is critical for making informed decisions.

• Data Sources: Identify the sources of data you'll need for your analysis. This may include internal sources like financial reports, customer feedback, and employee performance records, as well as external sources like market research and industry benchmarks.
• Data Quality: Ensure that the data you collect is accurate, up-to-date, and reliable. Inaccurate data can lead to misguided conclusions.
• Data Organization: Create a systematic process for collecting, organizing, and storing data. Consider using digital tools and databases to streamline this process.
• Data Accessibility: Make sure that team members who will be involved in the analysis can access the data they need easily and securely.

3. Assemble a Gap Analysis Team

Gap Analysis is not a one-person job; it requires a diverse team with various skills and perspectives. To build an effective Gap Analysis team:

• Skill Diversity: Select team members with a range of skills and expertise relevant to the scope of your analysis. For example, if you're analyzing customer service, include customer service representatives, data analysts, and process experts.
• Clear Roles: Define clear roles and responsibilities for each team member. Ensure that everyone understands their contributions to the analysis.
• Team Collaboration: Foster a collaborative environment where team members can freely share ideas, insights, and concerns. Effective communication is essential for success.
• Leadership: Appoint a team leader or project manager who can oversee the analysis process, keep the project on track, and make decisions when necessary.

4. Set Clear Objectives and Goals

Without clear objectives and goals, your Gap Analysis can quickly become aimless. Here's how to set clear goals for your analysis:

• Specificity: Make your objectives as specific as possible. Instead of a vague goal like "improve sales," aim for something like "increase monthly sales revenue by 15% within the next year."
• Measurability: Ensure that your goals are measurable. You should be able to track and quantify your progress. Use key performance indicators (KPIs) when possible.
• Relevance: Your objectives should directly relate to the scope and focus of your analysis. They should address the specific gaps you want to bridge.
• Timeframe: Set a realistic timeframe for achieving your objectives. This helps create a sense of urgency and keeps the analysis on schedule.

By effectively preparing for Gap Analysis, you lay a strong foundation for the rest of the process. Remember, the success of your analysis hinges on the clarity of your scope, the quality of your data, the synergy of your team, and the precision of your objectives. These preparatory steps ensure that your Gap Analysis is both insightful and actionable.

How to Conduct Gap Analysis?

With the preparatory work completed, it's time to delve into the core of Gap Analysis. We will guide you through the essential steps in conducting Gap Analysis effectively.

1. Data Collection and Analysis

Data is the backbone of any Gap Analysis. This phase involves gathering, organizing, and analyzing the data you've collected.

• Data Verification: Begin by verifying the accuracy and reliability of the data you've collected. Ensure that it's up-to-date and relevant to your analysis.
• Data Cleansing: Cleanse the data to remove duplicates, errors, or inconsistencies. This step is critical for ensuring your analysis is based on quality information.
• Data Organization: Organize the data in a structured manner, making it easier to work with. Consider using spreadsheets or data visualization tools to assist in this process.
• Data Analysis Tools: Utilize data analysis tools and techniques to extract insights from the data. This may involve statistical analysis , trend identification, or data visualization.
• Identifying Patterns: Look for patterns, trends, and anomalies in the data. These patterns can provide valuable insights into the current state of your business.

You can streamline your data collection and analysis processes with the assistance of advanced technology. Appinio , a cutting-edge research platform, offers robust tools for data gathering and analysis, helping you collect insights efficiently. With our platform, you can verify data accuracy, cleanse information, and organize it seamlessly. Additionally, Appinio's data analysis capabilities enable you to identify crucial patterns and trends that inform your Gap Analysis.

Take your data-driven decision-making to the next level. Book a demo now to explore how Appinio can elevate your Gap Analysis efforts and empower your business to bridge those critical gaps effectively!

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2. Identify Current State

Before you can bridge the gap, you must have a clear understanding of where you currently stand. This step involves assessing and documenting your business's current state.

• Process Mapping: Create process maps or flowcharts to visualize how critical processes operate within your business. This helps identify bottlenecks and inefficiencies.
• Performance Metrics: Evaluate relevant performance metrics in your chosen scope. For instance, if you're analyzing customer service, assess metrics like response times, resolution rates, and customer satisfaction scores.
• Stakeholder Interviews: Conduct interviews or surveys with key stakeholders to gather qualitative insights into the current state. Employees, customers, and suppliers can provide valuable perspectives.
• Strengths and Weaknesses: Identify the strengths and weaknesses within the scope of your analysis. Understanding these aspects is crucial for setting improvement goals.

3. Determine Desired State

Having a clear vision of where you want to be is essential for Gap Analysis. Define your desired state:

• Goal Setting: Clearly define the goals and objectives you aim to achieve through the Gap Analysis process. Ensure that these goals align with your overall business strategy.
• Benchmarking: If applicable, benchmark your desired state against industry standards or competitors' performance. This provides a reference point for your goals.
• Customer Expectations: Consider the expectations of your customers and stakeholders. What do they expect from your business, and how can you meet or exceed those expectations?
• Long-Term Vision: Think beyond immediate improvements. Consider your long-term vision for the business. What should it look like in the next three, five, or ten years?

4. Analyze the Gap

This is the heart of Gap Analysis, where you identify and quantify the gaps between your current and desired state.

• Quantification: Use metrics, KPIs, or scoring systems to quantify the gaps. This makes it easier to prioritize areas that need improvement.
• Root Cause Analysis : Investigate the root causes of the identified gaps. What factors or issues are contributing to the discrepancies between the current and desired states?
• Impact Assessment: Assess the potential impact of each gap on your business. Determine which gaps have the most significant consequences and should be addressed first.
• Risk Analysis: Consider the risks associated with each gap. What are the potential risks if you don't bridge these gaps? Understanding the risks can inform your decision-making.

By diligently following these steps in conducting Gap Analysis, you'll gain a comprehensive understanding of your current business state, a clear vision of where you want to go, and a quantified view of the gaps that need your attention. This analysis provides the foundation for making informed decisions and developing effective action plans to bridge those gaps.

Gap Analysis Tools and Techniques

To conduct effective Gap Analysis, you can leverage a range of tools and techniques. These methods provide structured approaches to gather insights, identify gaps, and make informed decisions. Let's explore these tools and techniques in detail.

SWOT Analysis

SWOT Analysis is a widely used tool for assessing the Strengths, Weaknesses, Opportunities, and Threats associated with your business or a specific aspect of it. It helps you gain a holistic view of your current state and potential future directions.

• Strengths: These are the internal attributes and resources that give your business an advantage. They are what you do well and can capitalize on.
• Weaknesses: Weaknesses are internal factors that hinder your business's performance. Identifying weaknesses allows you to address areas in need of improvement.
• Opportunities: Opportunities are external factors or trends that your business can leverage to its advantage. Recognizing opportunities helps you prioritize strategic initiatives.
• Threats: Threats are external factors that can negatively impact your business. Being aware of threats allows you to develop mitigation strategies.

SWOT Analysis is a versatile tool that can be applied to various aspects of your business, from marketing and sales to operations and product development.

Benchmarking

Benchmarking involves comparing your business's performance, processes, or practices against those of industry leaders or competitors. It allows you to identify performance gaps and best practices that can be adopted to improve your own operations.

• Internal Benchmarking: This involves comparing different departments or teams within your organization to identify areas where one can learn from the other.
• Competitive Benchmarking: Here, you analyze how your business stacks up against direct competitors in terms of key performance metrics.
• Functional Benchmarking: Functional benchmarking compares specific business functions, such as customer service or supply chain management, with those of other organizations, even outside your industry.

Benchmarking provides valuable insights into where your business stands relative to others and highlights opportunities for improvement.

Root Cause Analysis

Root Cause Analysis is a technique used to identify the underlying causes of problems or gaps within your business. It goes beyond surface-level symptoms to uncover the fundamental reasons for issues.

• Cause-and-Effect Analysis: Also known as the Fishbone Diagram or Ishikawa Diagram, this technique helps you visualize the various factors that contribute to a problem or gap. It's particularly useful for exploring complex issues.
• 5 Whys Technique: This method involves asking "why" multiple times (usually five) to drill down to the root cause of a problem. It's a simple yet effective way to dig deeper into issues.
• Fault Tree Analysis: This technique is more structured and is used for complex problems, especially in high-risk industries like aerospace and nuclear power. It traces events back to their root causes.

Root Cause Analysis is essential for addressing issues at their source rather than just treating symptoms, leading to more effective and sustainable solutions.

Fishbone Diagrams

The Fishbone Diagram, also known as the Ishikawa Diagram or Cause-and-Effect Diagram, is a visual tool used to identify potential causes of a problem or gap. It helps you explore various factors that could contribute to an issue and discover their interrelationships.

• Categories of Causes: The diagram typically includes categories like People, Process, Equipment, Materials, Environment, and Management (the 6 M's). These categories serve as branches on the fishbone diagram.
• Identifying Causes: Under each category, you list potential causes or factors contributing to the problem. This brainstorming process encourages a comprehensive examination of the issue.
• Visual Representation: The diagram resembles a fish's skeleton, with the main problem at the "head" and the potential causes branching off like "bones."

These Gap Analysis tools and techniques provide structured approaches to gather data, analyze information, and make strategic decisions. Depending on the nature of your analysis and the complexity of the issues you're addressing, you can choose the most appropriate tool or combination of tools to support your Gap Analysis process.

Gap Analysis Template

A Gap Analysis template is a structured framework that provides a systematic approach to conducting Gap Analysis within your business. It serves as a roadmap, ensuring you cover all the necessary steps and elements during the analysis process.

Here, we'll provide you with a Gap Analysis template and tips on utilizing it effectively.

Components of a Gap Analysis Template

A well-designed Gap Analysis template typically includes the following components:

Scope and Focus

• Clearly define the scope of the analysis. What aspect of your business will you examine?
• Specify the focus within the chosen scope. Which specific elements or processes will you analyze?

Data Collection and Analysis

• Outline the sources of data and information required for the analysis.
• Provide guidance on how to gather, verify, and organize the data.
• Include sections for data analysis techniques and tools to be used.

Identifying Current State

• Define the methods for assessing the current state within the chosen scope.
• List key performance indicators (KPIs) and metrics to evaluate.
• Offer guidance on documenting strengths and weaknesses.

Determining Desired State

• Specify the criteria for setting clear objectives and goals.
• Explain how to align goals with the scope and focus of the analysis.
• Encourage the inclusion of long-term visions for the desired state.

Analyzing the Gap

• Provide guidance on quantifying gaps and discrepancies.
• Offer tools and techniques for identifying the root causes of gaps.
• Include sections for assessing the impact and potential risks associated with each gap.

Recommendations and Action Plan

• Outline the format for presenting recommendations to bridge the gaps.
• Encourage the development of a comprehensive action plan.
• Include sections for resource allocation, timelines, and responsibilities.

Monitoring and Adjustments

• Describe the process for tracking progress and measuring success.
• Explain how to make necessary adjustments to the action plan.
• Emphasize the importance of continuous assessment and feedback loops.

Benefits of Using a Gap Analysis Template

Utilizing a Gap Analysis template offers several benefits:

• Structured Approach: Ensures a systematic and organized analysis process from start to finish. and provides a clear framework that guides users through each step.
• Consistency: Promotes consistency in conducting Gap Analysis across different areas or departments within the organization and helps maintain a standardized approach to data collection and evaluation.
• Efficiency: Saves time by eliminating the need to create analysis guidelines from scratch and streamlines the documentation process, making it easier to communicate findings and recommendations.
• Clarity: Helps clarify the objectives and goals of the analysis and ensures that all stakeholders have a shared understanding of the analysis process and its outcomes.
• Customization: Allows flexibility for tailoring the template to the specific needs and nuances of your business and enables the inclusion of industry-specific metrics and benchmarks.

Tips for Creating an Effective Gap Analysis Template

When creating a Gap Analysis template, consider the following tips:

• Collaborate: Involve team members and stakeholders in the template's development to ensure it aligns with your business's unique requirements.
• Simplicity: Keep the template straightforward and user-friendly. Avoid unnecessary complexity that might hinder its usability.
• Flexibility: Make the template adaptable to different types of Gap Analysis, whether it's performance, market, competitive, or product analysis.
• Documentation: Include sections for documenting assumptions, data sources, and references to maintain transparency and credibility.
• Training: Provide training and guidance on how to use the template effectively to ensure consistency in analysis processes.
• Version Control: Implement version control to track updates and revisions to the template over time.

By creating and utilizing a well-designed Gap Analysis template, you empower your organization to conduct thorough and consistent analyses, enabling informed decision-making and continuous improvement across various facets of your business.

How to Interpret and Report Gap Analysis Results?

After conducting a Gap Analysis, it's essential to interpret the results effectively and communicate them to relevant stakeholders. This section will guide you through the steps in analyzing and reporting Gap Analysis findings:

1. Present Gap Analysis Results

Showcasing your Gap Analysis results in a clear and compelling manner is crucial for decision-making. Consider the following when presenting your findings:

• Visual Aids: Utilize charts, graphs, and visuals to make complex data more accessible and understandable. Visual representations can help stakeholders grasp critical insights at a glance.
• Narrative Explanation: Accompany visuals with a narrative that explains the significance of the findings. Describe the current state, desired state, and the gaps identified.
• Key Highlights: Highlight the most critical gaps or issues that need immediate attention. Focus on those that have the most significant impact on your business goals.
• Benchmark Comparisons: If applicable, compare your findings to benchmarks or industry standards to provide context and emphasize the gaps.

2. Identify Priorities and Action Items

Not all gaps are created equal. Some may have a more substantial impact on your business than others. Here's how to identify priorities and action items:

• Impact Assessment: Assess the potential impact of each gap on your business's performance, goals, and objectives. Prioritize those with the most significant consequences.
• Urgency: Consider which gaps require immediate attention due to their urgency or potential to escalate if left unaddressed.
• Feasibility: Evaluate the feasibility of closing each gap. Some gaps may be more straightforward to address, while others may require significant resources or time.
• Cost-Benefit Analysis: Weigh the costs of closing each gap against the expected benefits. Focus on those gaps where the benefits outweigh the costs.

3. Create an Action Plan

Once you've identified priorities, it's time to develop a comprehensive action plan to bridge the gaps.

• Specific Goals: Clearly define the goals and objectives associated with each gap. Make sure they are specific, measurable, achievable, relevant, and time-bound (SMART).
• Tasks and Responsibilities: Break down the action plan into specific tasks and assign responsibilities to team members. Everyone should know their role in closing the gaps.
• Timelines: Establish realistic timelines for completing each task or milestone. Ensure that there are clear deadlines to keep the action plan on track.
• Resources: Identify the resources, including budget, personnel, and technology, required to implement the action plan successfully.

4. Communicate Findings to Stakeholders

Effective communication with stakeholders is essential to ensure alignment and support for your action plan:

• Stakeholder Engagement: Identify all relevant stakeholders, including executives, employees, investors, and customers, and engage them in the process.
• Transparency: Be transparent about the findings, priorities, and action plan. Provide stakeholders with a clear understanding of the rationale behind your decisions.
• Feedback Mechanisms: Establish feedback mechanisms that allow stakeholders to provide input and ask questions. Address concerns and adapt the action plan if needed.
• Regular Updates: Keep stakeholders informed of progress. Regularly update them on milestones achieved and any changes in the action plan.
• Celebrate Success: When you successfully bridge a gap, celebrate the achievement with your team and stakeholders. Recognizing success boosts morale and motivation.

Effectively interpreting Gap Analysis results and reporting them to stakeholders ensures that everyone is on the same page regarding the identified gaps and the plan to address them. This transparency and collaboration are essential for achieving the desired outcomes and fostering a culture of continuous improvement within your organization.

How to Implement Gap Analysis Recommendations?

Implementing the recommendations generated from Gap Analysis is the critical phase that turns insights into action and results. Here, we'll explore in-depth the steps involved in effectively implementing Gap Analysis recommendations:

1. Allocate Resources

To bridge the identified gaps successfully, you must allocate the necessary resources, including budget, personnel, and technology.

• Resource Identification: Based on the action plan developed during Gap Analysis, identify the specific resources required for each task or initiative. This may include financial resources, additional personnel, or access to particular technology or tools.
• Resource Allocation: Allocate resources efficiently to ensure each task has what it needs to succeed. Prioritize resources based on the urgency and impact of each gap.
• Budget Planning: Develop a budget that outlines the costs associated with closing the gaps. Consider both direct and indirect costs, and ensure that your financial plan aligns with your business's financial capabilities.
• Personnel Deployment: Assign responsibilities to team members or departments, making sure that individuals with the necessary skills and expertise are leading each initiative.
• Technology and Tools: If your action plan involves adopting new technology or tools, ensure that you have the proper systems in place and provide adequate training to your staff.

Effective resource allocation ensures that you have the means to execute your action plan efficiently and achieve the desired outcomes.

2. Monitor Progress

Once you've allocated resources and initiated the action plan, it's crucial to continuously monitor progress to stay on track.

• Key Performance Indicators (KPIs): Define and track KPIs specific to each initiative. KPIs should be measurable and aligned with the goals set during Gap Analysis.
• Regular Reporting: Establish a reporting cadence to track progress and share updates with stakeholders. This can be weekly, monthly, or as needed, based on the complexity of the initiatives.
• Performance Metrics: Continuously assess the performance of your action plan against the predetermined goals and objectives. Are you achieving the desired results?
• Issue Identification: Be vigilant in identifying any roadblocks, obstacles, or issues that may impede progress. Address these challenges promptly to keep the plan on course.
• Feedback Loop: Encourage feedback from team members involved in implementing the recommendations. Their insights can help fine-tune the approach and overcome hurdles.

Monitoring progress ensures that you're moving in the right direction and allows you to make timely adjustments when needed.

3. Make Necessary Adjustments

Flexibility is vital when implementing Gap Analysis recommendations. Be prepared to make adjustments along the way.

• Continuous Assessment: Regularly review the effectiveness of your action plan. Assess whether it's achieving the desired outcomes and closing the identified gaps.
• Feedback Integration: Act on feedback from stakeholders and team members. If they provide insights or suggestions for improvement, incorporate them into the plan as appropriate.
• Adaptation: Be open to adapting your approach if circumstances change. External factors, market dynamics, or unexpected events may necessitate adjustments.
• Resource Reallocation: If certain initiatives are not progressing as expected, consider reallocating resources to more promising areas or revising the action plan.

Making necessary adjustments ensures you remain agile and responsive, increasing the likelihood of successfully closing the gaps.

4. Measure Success and Impact

Ultimately, the success of your Gap Analysis recommendations should be measured by their impact on your business.

• Goal Achievement: Evaluate whether you've met the specific goals and objectives outlined in your action plan. Assess the degree to which the gaps have been closed.
• Performance Improvement: Measure the improvements in key performance metrics that were targeted during the Gap Analysis process. Compare current performance to the baseline.
• Stakeholder Feedback: Solicit feedback from stakeholders to gauge their satisfaction and perception of the changes made as a result of the recommendations.
• Long-Term Impact: Assess the sustainability of the improvements over time. Are the changes enduring, or do they require ongoing efforts to maintain?

By measuring success and impact, you not only validate the effectiveness of your Gap Analysis recommendations but also gain valuable insights into the long-term benefits and areas where further adjustments may be necessary.

Gap Analysis Examples

To gain a deeper understanding of how Gap Analysis is applied in various business scenarios, let's explore a range of real-world examples. These examples will illustrate how Gap Analysis can be a versatile tool for identifying and addressing gaps in different aspects of your organization.

Scenario: A retail company wants to improve its inventory management processes to reduce carrying costs and stockouts.

Gap Analysis:

• Current State: The company conducts an analysis of its existing inventory management practices and identifies inefficiencies, such as overstocked items and frequent stockouts.
• Desired State: They set a goal to maintain optimal inventory levels by implementing just-in-time inventory management.
• Gap: The gap analysis reveals a significant discrepancy between the current state and the desired state in terms of inventory management efficiency.

Recommendations: The company's action plan includes investing in inventory management software, providing employee training, and optimizing supplier relationships to bridge the gap.

Scenario: An e-commerce startup is looking to expand its product offerings and wants to identify untapped market segments .

• Current State: The startup analyzes its existing customer base and product offerings, noting gaps in its product range.
• Desired State: They aim to target specific demographics and offer products tailored to those segments.
• Gap: The analysis reveals that there is a significant gap between their current product offerings and the preferences of their target market segments.

Recommendations: The action plan includes market research to understand customer preferences, product development to fill the gaps, and marketing strategies to reach the new target segments .

Competitive with Gap Analysis

Scenario: A software company wants to enhance its competitiveness in the market.

• Current State: The company assesses its product features, pricing, and customer support in comparison to key competitors.
• Desired State: They aim to offer a more feature-rich product at a competitive price point with superior customer support.
• Gap: The analysis reveals that their product features and customer support fall short compared to their competitors.

Recommendations: The action plan includes product development to add missing features , pricing adjustments, and investing in customer service training and resources.

Scenario: An automobile manufacturer wants to introduce a new electric vehicle (EV) to the market.

• Current State: The company evaluates its existing product lineup and identifies the gap in EV offerings.
• Desired State: They set a goal to develop and launch an electric vehicle to meet the growing market demand for eco-friendly options.
• Gap: The analysis shows a gap between the current product lineup, which lacks an EV, and market demand for such vehicles.

Recommendations: The action plan includes research and development for the EV, securing the necessary supply chain for batteries, and marketing strategies to promote the new product.

These Gap Analysis examples demonstrate how businesses can apply this versatile tool to various scenarios, including performance improvement, market expansion, competitive positioning, and product development. By conducting Gap Analysis in these contexts, organizations can make informed decisions, set clear objectives, and develop action plans to bridge the identified gaps and achieve their strategic goals.

Gap Analysis is a powerful compass that guides your business from where it is to where it wants to be. By identifying gaps, setting clear goals, and taking action, you can steer your organization toward success. Remember, the journey of improvement is ongoing, and Gap Analysis is your trusty navigator on this path.

So, use these insights, tools, and techniques to continually assess, adapt, and thrive. As you bridge the gaps and achieve your objectives, you'll not only enhance performance but also foster a culture of progress and innovation within your organization. With Gap Analysis as your strategic ally, the possibilities for growth are limitless.

How to Conduct Gap Analysis in Minutes?

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How to Conduct a Gap Analysis: Definition, Steps & Example

Table of Contents

What is gap analysis, how to conduct a gap analysis in 4 steps, gap analysis template, gap analysis example, types of gap analysis, gap analysis tools.

Plan all you want. But once that project or business plan is being executed, you’ll need a gap analysis to assess whether you’re meeting the requirements or you could be in trouble. As its name suggests, the gap analysis is a method to look at where you are and where you want to be. Between those two points is the gap you have to close. A gap analysis can be used in projects or for an organization to meet its targets.

It’s important to analyze whether your progress is at a pace to meet your objective or if you need to make adjustments to bridge that performance gap. Let’s learn more about how gap analysis can help your business.

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Use this free Gap Analysis Template for Excel to manage your projects better.

Gap analysis is a formal study of how a business or project is currently progressing and where it plans to go in the future. There are various perspectives that can be analyzed, from business direction to business processes, from information technology to product management.

When talking about management, gap analysis is a means to compare a current state with a future state in terms of performance. Factors that impact performance include resource planning , capital investment, technology, etc. What a gap analysis does is identify the gaps between the optimized allocation and integration of resources to the current allocation level.

It’s by doing such measurements that a pathway towards improvements can be cleared. To do this involves determining, documenting and improving the difference between requirements and capabilities at the current time. Real-time data is going to improve how you understand the progress of your project.

ProjectManager is cloud-based work and project management software that helps with gap analysis by using live project data. Our real-time dashboard requires no setup and automatically collects live data, crunches the numbers and displays six project metrics in colorful graphs and charts. Get started with your gap analysis today for free with ProjectManager.

When you’re doing a gap analysis, you’re really asking yourself a few questions: Where are we now, where do we wish we were and how are we going to get there? So, it’s not merely a picture but a roadmap to improve production.

There are four basic steps that you take when conducting a gap analysis. They can be boiled down to the following.

1. Identify Current State

The first step is knowing where you are at the present time. So, be clear as to what is being described and what is not. This will avoid scope creep and keep your analysis focused. Then comes collecting contextual information. That means collecting qualitative information, such as what are your team processes and methodologies.

Also, quantitative information is important, meaning anything that can be counted and measured. That includes everything you’re currently doing. Yes, it’s a lot of data to gather, but the more you gather, the sharper the picture of your current state.

2. Identity Where You Want to Go

The point of a gap analysis is to figure out where you want to go and if you’re getting there. This is the desired state, future target or stretch goal. To get there you need to know about your current state and what a reasonable timeframe is to get from there to the goal you’ve set for yourself.

But first, you must mark that point in the future that you’re aiming for. Think about where that should be, what’s not happening that needs to happen, what could be happening that hasn’t before or has changed, and what needs to happen to get there.

3. Identify the Gaps 

You know where you are and where you want to go, the space between those two marks is the gap you must bridge to reach your target. This is when you want to figure out why there is a gap. To do that you need to be very specific about the gap. Also, dig deeper and determine why the gap happened. Ask yourself questions that are applicable to your business and answer them honestly.

4. Bridge the Gap

You’ve done the due diligence, and now it’s time to act. You know why there’s a gap, so you must now devise a way to close it. To do this, you can follow the guidelines of basing all improvements on the information you discovered when you identified the gap. Also, consider the cost of implementation for each solution that you come up with; you might not have the capital or capacity to achieve it. Finally, figure out the date at which the gap will be closed. If you don’t have a deadline, it will get overlooked or ignored.

After doing all the work, don’t neglect the follow-through. That is, follow up on the improvements you’re making by doing a gap analysis. If you don’t, then you’re doomed to repeat them. Also, it’s important not to try and close too many gaps at once. If you put too much stress on any organization, it’s going to break.

Manage the process with our free gap analysis template for Excel . It will help you meet the business targets that have been set for your project and streamline that process. You can add the current item stage and the future item state. Then use our dropdown menu to note the gap percentage. There are even action steps, assignments and statuses. But other templates fill out those steps.

Let’s examine gap analysis by creating a hypothetical gap analysis example. For instance, let’s say Company X has developed Widget and has gone to market and it wants to do a gap analysis on the deviations from its sales objects of this new product launch and make the required improvements.

• First, they have to gather market data and do customer surveys to discern what the problem is that prevents Company X from selling the number of Widgets they forecasted.
• Next, comes the analysis of that data and the current state of the sales problems.
• From there, Company X will figure out the future state it hopes to reach in terms of Widget sales.
• With these two points mapped out, Company X can now calculate the gap percentage.
• This information will drive the action steps necessary for the company to achieve its target, which might include adding to its sales force, further investment in marketing or even changes to the product.
• Once the action plan is set up, Company X will implement and monitor its progress as it bridges the identified gap.

What gap analysis is doing is providing a way to measure the investment in time, money and human resources that are needed to achieve an outcome. There are a number of different gaps and outcomes that gap analysis can target.

• Gap analysis can be used to classify how well a product meets its targeted need.
• Gap analysis can also help identify gaps in the market. It can compare the forecast profits to the desired profits and reveal a planning gap.
• Gap analysis can be used to analyze a usage gap. The usage gap is the gap between the total potential for the market and the actual use at the present time. This includes data, such as market use and existing use. Existing use measures the consumer use for the full market. It comes from doing in-depth marketing research, and sometimes data from government or industry studies.
• Gap analysis can also target a product gap. The product gap is the part of a market that excludes you, for whatever reason. This exclusion can occur because the product that you offer lacks certain features that are required by a customer base, or maybe certain customers just don’t align with your company’s mission statement or general policy.

There are gap analysis tools that can help a project manager identify the gap between the current state of the project and its future goals and objectives. These tools will also help to make clear the required tasks that are necessary to close that gap.

One such tool is a SWOT analysis , which is an acronym for strengths, weaknesses, opportunities and threats. By using a SWOT analysis both quantitatively and qualitatively, you can determine internal and external threats to the project.

Fishbone Diagram

Another tool is the fishbone diagram , which is also called a cause and effect diagram. It is a way to visualize and categorize the potential causes of a problem. Then you can go about identifying its root causes. It’s a helpful tool when brainstorming to keep the conversation focused.

McKinsey 7-S Framework

The McKinsey 7-S Framework can be used to improve performance, examine effects of future change, align departments and processes and determine how best to implement a proposed strategy. It can be applied to teams or a project by looking at the seven interdependent factors of the tool.

PEST Analysis

One more tool is the PEST analysis , which is another acronym that stands for political, economic, social and technological. This allows one to make a framework of macro-environmental factors for the purpose of designing effective environmental strategies, which would apply to projects that are applicable.

More Free Templates For Better Gap Analysis

Gap analysis requires collecting and analyzing data. But that’s only the start. Next, you have to create a plan in order to act on what you’ve learned and then monitor the progress of that plan to make sure you’re meeting your milestones. Project management software can do all this and more but if you’re not ready to take that leap then you can use these free templates for gap analysis project management.

Action Items Template

The action items you sketched out in the gap analysis template can be fully realized in this free action items template for Excel. It provides the who, what and when for the plan, like a to-do list but more robust. You can list all the action items, assign them to your team, set the priority to help organize what gets done when add directions and even show the status of the work. But for greater detail on progress and performance, there’s our next free template.

Project Dashboard Template

You’re going to want to monitor your action plan as you execute it. Our free project dashboard template for Excel can help you track time on tasks, cost and workload. Unlike with project management software, though, you’re going to have to do all the inputting yourself, but it’s worth the effort to help stay on schedule. This free template can also be used to gather data on your gap analysis, so we’ve come full circle.

Progress Report Template

Don’t forget to keep your stakeholders updated on your progress in closing the gap. Use our free progress report template for Word. It’s a document that captures where you are in the project to update stakeholders and manage their expectations. You get a section in which to summarize the project scope, schedule, cost and any risks. Then you can dig down deeper into individual tasks and their status.

How ProjectManager Helps With Gap Analysis

ProjectManager is a cloud-based work and project management software that can help you close the gap in your gap analysis. Our tool organizes your action plan into tasks on a timeline that can be assigned and monitored while reporting back to stakeholders on the progress of your objective to meet that gap target.

Gantt Charts for In-Depth Planning

Use our interactive Gantt chart to map your plan on a visual timeline that links dependent tasks to avoid bottlenecks later in the project. Gantt charts are essential project management tools that set milestones and much more. But unlike other Gantts, ours can filter for the critical path without any complex calculations and then set a baseline to see planned effort against your actual effort once the project is executed. That helps you stay on schedule.

Multiple Views to Execute Work How You Want

Once the project is in the hands of your team they might not want to use a planning-intensive tool, such as the Gantt. Our software has multiple project views that share data in real time so teams can work how they want. Robust task lists show everything from priority to status while the visual workflow of a kanban board fosters collaboration on sprints and allows teams to manage their backlog.

Report on Progress in Minutes

No one is more invested in the success of your plan to close the gap in your gap analysis than the stakeholders of the project. Project managers must manage their expectations in order to do their jobs. Our one-click reports are completely filterable to show only the data stakeholders need to see and then they’re easy to share how stakeholders want, as PDF attachments or even printed out. Keep stakeholders updated and keep your focus on the project.

Managers get transparency into their team’s process and teams are given a collaborative platform that helps them work better together with task-level commenting and file sharing. Automated workflows and task approvals give managers control and email and in-app notifications keep everyone on the same page. Mind the gap and meet your objectives with ProjectManager.

Gap analysis is a great tool to help make better decisions. ProjectManager is a cloud-based project management software that allows you to implement those decisions more effectively with real-time data and online Gantt charts. See how it can help you bridge the gap by taking this free 30-day trial today.

Deliver your projects on time and under budget

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Methodological research gap: definition, identification and examples

On this page, types of methodological research gaps.

What is methodological Research gap?

1.1 Definition

Methodological research gap is the missing gap of knowledge on a more appropriate underlying method(s) which can be used in research instead of the previously one. This implies that the researcher or you as a postgraduate student may propose a method in research to address a particular aspect in life or research which is more fitting to realize improved research findings than before.

Remember that in research, there are diverse methods utilized to arrive at valid research findings. That is, from the stage of formulating a research problem up to presentation of research findings, there are several methods that a researcher can adopt to come up with better and more reliable research results. Therefore, in each stage of research process, a researcher such as you and me is expected to identify methodological knowledge gap which should result to more reliable research outcome as aforementioned. This calls for two things;

One, identification of the applicable type of method at each stage in the research process and

Two, devising steps to be followed by the researcher to establish the methodological knowledge gap to be filled in the current study as compared to the one used by your predecessors as per past studies.

To achieve the two objectives above, Table 1.1 below summarizes the common stages in research and the corresponding aspects of methods utilized by the researchers and the examples of those methods and then a detailed explanation on how to identify the specific methodological knowledge gap follow suit.

From Table 1.1 above, we can identify the different types of methodological knowledge gaps that are found in research and that you as a researcher/ postgraduate student need to be familiar with and also apply.

STAGE 1: RESEARCH PROBLEM

In research process, the first step is the formulation of a research problem which is the critical matter at hand to the researcher. It is the question that the researcher need to get an answer through scientific investigation or inquiry.

NOTE-that when writing an academic research proposal or dissertation, this is the aspect we indicate mostly in chapter three under research methodology. Yes, down the line as we carry out our research assignment, there are many methods that cut across all the stages. But when we are addressing chapter three of our research proposal, the sub-title on research design refers to the method we consider when identifying the research problem. It is then at this point based on the nature of the research question to be answered that a particular method is selected to answer the question at hand. The relevant methods at this stage are;

2.1.1 Descriptive Research Design

If the researcher adopts a descriptive research design, the aim is to answer research questions of “what” nature which pertain to the respondent who is expected to provide data for the study.

NB: To describe the characteristics of the study variables, the researcher use statistic tools such as mean, standard deviation, variance, minimum and maximum values, frequency and percentages. It is also common in research to use likert scale approach where opinion of the respondent is ranked as SA=Strongly Agree; A=Agree; N=Neutral; D=Disagree and SD=Strongly Disagree or any other connotation is also applicable.

Applicability

Used when answering research questions of ‘ What’ nature of the respondents.

Used where the researcher want to describe or label characteristics of the study variable.

Used where the researcher does not manipulate the study variables-He/she just does physical observations. E.g. variables such as age , sex , education level e.t.c which are all demographic characteristics and you cannot alter or twist them.

Used where primary data is collected for the study using a questionnaire or interview schedule.

Used where the research problem is clear.

The following are extracts of past studies where the descriptive method was used to enquire on the characteristics of the study variables.

Description of Demographic Characteristics of firms

Table 1: Ownership Structure of firms

So you see, the researcher is able to describe the characteristics of the study variable, namely ownership structure of firms without any manipulations. That is, the fact remains that if it is sole ownership, it was observed to be 102 out of 223 and the percentage was 46%. Same with description of the other aspects of ownership structure.

Description of Characteristics of Firm Performance (The Variable)

Table 2: Financial Performance of a firms

So the question is, how do we identify the methodological knowledge gap at this stage of research question? This is explained below

Identification of Methodological Knowledge Gaps

Under descriptive research design , the researcher need to consider the following steps

Step 1: Confirm if the research question is of “WHAT” nature

The researcher need to ensure that the research question at hand is clear and that it is aimed at answering the WHAT kind of perspective

Step 2: Review of past studies

The researcher need to consider similar studies undertaken by other researchers to find out the nature or type of the study variables used in the concept under investigation. The aim being to find out how the study variables were described. For instance, did past studies use mean, standard deviation, variance, minimum and maximum values or they used range to describe the study variable.

Step 3: Assess the appropriateness of the statistics used to describe the characteristics of the study variables.

 At this step, do your own critique on the statistics used to justify or disqualify why they were used to describe the characteristics of the study variables.

Step 4: Develop a Descriptive Based Methodological Knowledge Gap

At step 4, you should pinpoint or rather build up the methodological knowledge gap. This can be achieved by;

-Evaluate if the WHAT question in the past studies was effectively answered or not.

-Find out if the research design adopted is qualitative or not. In other words, is the data source primary or secondary?

-Assessing if past studies used appropriate statistics to describe the study variables in a manner that it is clear as pertain their characteristics being described.

-Find out if the descriptive research design used resulted to the appropriate sampling method or and data collection method in the past studies.

Now, based on those indicators and any other strategy which is appropriate, you as a researcher/or postgraduate student should pinpoint the gaps thereof and suggest a more appropriate method of describing the study variables to be able to answer the research question more correctly.

Illustration1

Researchers in the past literature may have used mean, standard deviation, minimum and maximum values, range and variance to describe the study variables. This can be problematic for apart from mean which is a measure of central tendency, the rest of the statistics are measures of dispersion. That is standard deviation, minimum and maximum values, range and variance are all measures of dispersion and serve the same purpose.

Therefore, in your current study, you can portray the methodological knowledge gap of descriptive nature by using standard deviation only instead of incorporating all the other measures of dispersion. You can then justify your new methodology by arguing that, one; all the other statistics serve the same purpose like standard deviation . Two, use of standard deviation help in avoiding all the other measures of dispersion which eliminates congestion in your write up. Three, the approach/methodology is economical for less time and financial resources are utilized for data to be collected will be for only standard deviation and not for all statistics as in the past studies.

2.1.2 Exploratory Research Design

If the researcher adopts exploratory research design, the aim is to answer research questions of;

Why a research study has been undertaken,

How the research problem has been defined,

What way and why the hypothesis has been formulated,

What data have been collected and

What particular method has been adopted and

Why particular technique of analyzing data has been used and a spectrum of related other enquiries are usually answered.

Used where the research question is not clear.

Used where the area of study is a new one and the researcher is trying to answer questions such as;

What is the problem?

What is the purpose of the study?

What topics could be studied?

Used where generally there is no prior research done or the existing ones do not answer the problem in a more satisfying manner.

Used where there are no set of rules to carry out the research as such, so they are stretchy/more open ended or wide-ranging.

Used where the research is of great importance or value.

Used where there are few theories which can support its findings.

Used where qualitative data is available and can be collected using data collection tools such as interview schedules or questionnaires.

Identification of Methodological knowledge gaps

Under exploratory research design , the researcher is investigating on a new field and past studies are missing. So in this case, it is not easy to identify the methodological knowledge gap for the findings gotten are inconclusive.

However, still the researcher may have a loophole to take advantage of and identify the exploratory based methodological knowledge gap at the initial stages of research process. How can this be done? Very simple;

Illustration 2

A researcher starts with a general idea and uses this research as intermediary to identify issues that can be the focus for future research. If then the researcher(s) from the past exploratory research did not identify a solid rock that further studies in future may be anchored on, then this represents a methodological knowledge gap that can be filled. You as a researcher can pinpoint the weaknesses of the base set by your predecessor researchers and re-do a similar exploratory to provide a better research anchorage in the future.

2.1.3 Explanatory Research Design

Explanatory research design sounds like Exploratory research design as discussed in 2.1.2 above, but they are distinctly dissimilar.

An explanatory research design aims at “exploring a new” on existing phenomena, which is not well explained due to lack of previous research on it. It is a design which is helpful for furtherance of research on the same area or phenomenon for its main purpose is to discover the why and what of a subject under investigation. In short, it is a type of research design which is responsible for finding the  why  of the events through the establishment of cause-effect relationships.

Used where the researcher want to further substantiate an already existing relationship by providing the cause-effect perspective.

Used where there is lack of or there is less information pertaining the relationship at hand.

Used where the researcher has to justify why relationship is of a certain nature.

Used when it is necessary to lay a foundational source of information for the phenomena under investigation.

Identification of Methodological knowledge gaps.

Under explanatory research design , the researcher need to consider the following steps

Step 1: Identify the immediate cause factors.

As a researcher be concerned with the express characteristics and existing social problems, by endeavoring to find out association between direct causes of an outcome.

Step 2: Establish research Problem.

Design an accurate research problem translating to appropriate research objective(s) so as to precisely state the principal areas of investigation to be properly linked.

Step 3: Develop a research hypothesis

In this step, establish a hypothesis with consideration of the most suspected causing study variables, which will be used in hypothesis testing to approve or disapprove the cause of the problem.

Step 4: Data collection.

In this step actual data collection process is undertaken so as to create more information to support the suggested hypothesis.

Step 5: Develop an Explanatory Based Methodological Knowledge Gap

Step 5, is the point where you should pinpoint the methodological knowledge gap. This can be achieved by;

-Evaluating past studies to identify the exiting conceptual framework established by scholars or/researchers.

-Check the level of plausibility of the variables previously used in the aforementioned conceptual framework.

-Critique positively the research findings from past studies pertaining that particular conceptual framework by highlighting the most probable factors further explaining the changes in the outcome variable. And hence suggest your own way of approach.

Illustration 3

Researchers in the past literature may have ignored critical study variables. Therefore, in your current study, you can portray the methodological knowledge gap of explanatory nature by using more critical or specific factors that can explain the changes in outcome variable (ie dependent variable) of the matter at hand. This will represent a methodological knowledge gap to your study.

From economics point of view, the quantity demanded is determined by the changes in price levels. Hence the relationship between the price and quantity demanded of the commodity is negatively related for a normal good. Holding other factors constant. Graphically, the demand curve is up down slopping. This shows that price dictate the changes in quantity demanded.

The conceptual framework is as follows;

In Economics, it is further proven that price of the commodity may not necessary be the direct cause of change in quantity demanded of a commodity but the Utility or level of satisfaction derived from the product by the consumer may be more predicting than just a decreasing price level. Therefore, an explanatory research design can be adopted to explain the reason as to why demand of a commodity is more tied to the utility derived by the customer and not necessarily the price per se’ . This presents an explanatory methodological knowledge gap for the current study to fill.

The new conceptual framework turns to be as follows;

In conclusion, you can see utility is the predictor which explains more of the phenomenon of changes in demand amongst consumers than the price of the commodity.

2.1.4 Correlational Research Design

If the researcher adopts a correlational research design, the aim is to answer research questions of “How” nature which pertain to determination of how two variables relate with one another.

Used when answering research questions of the level of strength of a relationship

Used where one wish to determine the direction of a relationship

Used where the researcher does not control the study variables

Used where the research problem is clear

Used where the relationship being tested is at a natural state

NB: A coefficient of between -1 up to +1 is used to describe the strength of the relationship.

The following are extracts of past studies where the correlation method was used to demonstrate the relationship between variables.

So the question that you have is, how do we identify the correlational methodological knowledge gap at this stage of research question? This is explained in below

Identification of Methodological  Knowledge Gaps

Under correlational research design, the researcher need to consider the following steps.

Step 1: Confirm if the research question is of “HOW” nature

The researcher need to ensure that the research question at hand is clear and that it is aimed at answering the HOW kind of perspective.

The researcher need to consider similar studies undertaken by other researchers to find out the level of correlational strength or weakness between the study variables under investigation. For instance, if the correlation between the two variables is weak, average or strong.

Step 3: Assess the appropriateness of the concept or conceptual framework used

 At this step, do your own critique on the level of correlating between study variables so as to know whether there are high chances of one variable causing the other.

Step 4: Develop a Correlational Based Methodological Knowledge Gap

In step 4, you should pinpoint the methodological knowledge gap. This can be achieved by;

-Evaluating if the HOW question in the past studies was effectively answered or not.

-Find out if the research design adopted is quantitative or not. In other words, is the data source primary or secondary?

-Assessing if past studies used right concept by selecting study variables that are fairly highly correlated (orthogonal).

-Find out if the correlation strength guarantees the researcher to further carry out regression analysis to test the hypothesis thereof.

Now, based on those indicators and any other strategy which is appropriate, you as a researcher/or postgraduate student should pinpoint the gaps thereof.

Illustration 4

Researchers in the past studies may have found no correlation (ie coefficient=0.00) between two variables. This may imply that wrong variables were chosen for the study and hence you as a researcher need to consider other more suitable variables to represent the concept of your focus. This can be achieved if the ones chosen portrays plausibility or logical relationship. This will represent a methodological knowledge gap.

Also, equally, past studies may portray a very high correlation . If that be the case, it means the variables are suffering from a multicollinearity problem and this calls for a replacement of the variables of concern. That is you as a researcher can use less number of the variables previously used by eliminating the ones which are highly correlated or replace the highly correlated variables with others with fair correlation. This again will represent a methodological knowledge gap.

Lastly and not the least, as a researcher, you can consider classification of level of strength or weakness of the correlation between two variables. From past studies, the researchers or scholars could have ignored that perspective. In your case, you can consider the proposition of Cohen of 1988 who suggested that for the purposes of interpreting the magnitude of a correlation, as well as estimating power; r = 0.10, r = 0.30, and r = 0.50 were recommended to be considered small, medium , and large in magnitude, respectively. You can rely on the same argument for sometimes past research findings have similar correlations of 0.10 up to 0.50 which is termed as weak. But you see, this could have been due to use of a small sample. This becomes a methodological knowledge gap for the end results will entail appreciation of the fact that data may be scarce in some cases and this cannot stop one from carrying out a study on a particular field.

2.1.5 Experimental Research Design

An experimental research design, is a scientific method of establishing changes in the variable being studied when another variable is manipulated. The manipulated variable is referred to as the predictor or predator or independent variable.

Used when two or more variables are used in the study

Used where the researcher uses quantitative data

Used where the researcher is in control of one variable, namely the independent variable

Used where cause-effect relationship between or amongst several variables exist

The following are extracts of past studies where the experimental method was used to enquire on the study variables.

So you see, the researcher is able to portray the cause-effect relationship between the independent variable(s) and the outcome or response variable. This is achieved by manipulating the predictor variable so as to determine the value change in the dependent variable.

Under experimental research design also referred to as causal-effect relationship, the researcher need to consider the following steps so as to develop the gap thereof.

Step 1: Review of past studies

The researcher need to consider similar studies undertaken by other researchers to find out the hypothesis which was tested and the research findings thereof.

Step 2: Re-hypothesize the research problem if in step 1 you realized that the cause-effect relationship was not statistically significant

In experimental research design, the aim is to test the degree of statistical significance one variable referred to as independent variable influence another variable referred to as response/outcome variable. Therefore, if the stated hypothesis was empirically disapproved due to the relationship not being statistically significant, then it means that the concept lacked plausibility or logical sense. This calls for re-defining the research problem and of course re-defining the research hypothesis.

Step 3: Develop Experimental Based Methodological Knowledge Gap

In step 3, you should pinpoint the methodological knowledge gap. This can be achieved by;

-Considering similar conceptual framework from past studies to find out the significant level of the relationship between and or amongst study variables used.

-Investigate further on the sample size used in comparison to the population size . This will guide you to conclude if the sample size was a true representation of the population or not. For if it is not a true representation, this may be the cause of research findings with no statistical significance.

-Interrogate on the perspective of plausibility of the study variables used-if they do not represent logic in their natural/physical relationship, then the regression results will not portray statistically significant relationship.

Illustration 5

Past literature may lack study variables with plausibility or logical relationship-the researcher then can further consider other variables which have a relationship in the natural phenomenon.

Past studies could have used small sample size hence adversely affecting the level of cause-effect relationship. You as a researcher need to consider a large ‘in quotes’ sample size that truly represent the entire population.

2.1.6 Diagnostic Research Design

Diagnostic research is a type of design that aims to examine the original cause of a certain circumstances or occurrence. That is the design can help you to discover more on an issue at hand. For example, the number of “return” customers as compared to new ones could have been reducing for the last three months. The question is, what other causes could be contributing to this trend or what could be the root cause of this? In other words, the diagnostic research design is helpful in identifying where the rains started beating you if it is a case of undesirable results.

It is a research design composed of three research stages, namely;

(1) Problem Inception,

(2) Problem Diagnosis, &

 (3) Problem Solution.

So if the researcher adopts a diagnostic research design, the aim is to answer research questions of;

Origin of the issue – When did the matter crop up? Where do we get more evident on the matter?

Diagnosis of the problem – What is the underlying cause of the issue? In other words, what other factors could be worsening the situation?

Solution for the Matter – What is more practical/logical in solving the matter at hand?

Used where the researcher is more concerned of the specific cause of the problem at hand.

Used where specific data need to be collected to solve an immediate need.

Used where the research problem needs more clarification.

Under diagnostic research design , the researcher need to consider the following steps

Step 1: Identify the immediate cause factors

Step 2: Establish research Problem

Step 3: Develop a hypothesis

In this step 3, establish a hypothesis with consideration of the most suspected causing study variables, which will be used in hypothesis testing to approve or disapprove the cause of the problem.

Step 4: Data collection

Step 5: Develop a Diagnostic Based Methodological Knowledge Gap

In step 5, you should pinpoint the methodological knowledge gap. This can be achieved by;

-Evaluate if past studies had identified any specific factor acting as the key cause of the matter at hand

-Check the level of plausibility of the variables previously used in similar study to the one at hand

-Critique the research findings from past studies and suggest your own way of approach

Illustration 6

Researchers in the past literature may have ignored critical study variables. Therefore, in your current study, you can portray the methodological knowledge gap of diagnostic nature by using more critical or specific factors that can explain the immediate cause of the matter at hand. This will represent a methodological knowledge gap to your study.

STAGE 2: OPERATIONALIZATION

Operationalization is the process of assigning a measurable indicator or proxy on a specific fuzzy characteristic to make it possible to measure it through observation. This approach make it possible for the researcher to systematically collect and evaluate phenomena that can't be observed directly.

Fuzzy characteristic is that kind of behavioral element portrayed by the unit of observation which is vague and not easily measurable. In other words it is not definitely expressible in fixed terms and its measurability depends on context or conditions, and therefore a precise meaning is lacking . The idea of operationalization is in addition to the well-known methodologies of measuring of study variables. That is use of measurement scales which are used to qualify or quantify data variables in statistics and they are usually four in number. That is;

Nominal Scale

Ordinal Scale

Interval Scale

Ratio Scale.

NB: That, qualitative data is measured using nominal and ordinal scale while quantitative data is measured using interval and ratio scales.

Operationalization Methodological Knowledge Gaps

How do we identify methodological gap on the basis of measurement or operationalization of a variable/construct? To achieve this objective, you, the researcher need to use the following guidelines as portrayed by these steps below

Step 1: Review Past Studies

In this step, the researcher will aim at finding out how the similar variable was measured by his/her predecessor researchers. Remember that you cannot re-invent the wheel and come up with your own way of measuring a variable. Also, for a variable to be useful in a study, it must be measurable. As we have let you know in our other articles, “ if a variable is not measurable then it does not exist”.

So in this step one, you as a researcher need to find out if a universally authentic method has been used to gauge the variable.

Step 2: Assess the Appropriateness of the Method of Measurement Used

In this step, the researcher need to assess whether the proxy used to gauge the variable is correct. The extent of correctness or fitting will be assessed against some set thresholds such as:-

Contextual environment

Targeted group in the study

Generally accepted/universal method used

Technological advancements

Step 3: Positively critique to highlight areas of improvement in measurement

At this point, pinpoint the weaknesses of using the measurements used by other scholars/researchers on similar variable(s) in the past studies. This should be done with justification without necessarily critiquing in the wrong way . For example, I have witnessed postgraduate students suggesting that the past studies failed to use a certain method in measuring a particular variable.

For example, one will say that the study of X and Z failed to use ROE to measure profitability of the firm for in their case they used market share instead. So this is the reason why the current researcher want to use ROE!

This is wrong approach in creating methodological knowledge gap. The reason being that, may be as per those researchers, the research problem at hand dictated use of a certain proxy or measurement to gauge the study variables thereof. So as per their study, it was appropriate!. So the current researcher has no right to negatively critique or demonize his/her predecessor researcher’s work!

Step 4: Develop an Operational/Measurement Based Methodological Knowledge Gap

The following illustration will take care of the best way to create such gaps.

Illustration 1

Let me assume I am writing a research to investigate on the factors that influence financial performance of firms listed at the stock exchange. The factors I have proposed are X. Y and Z which are the independent variables whereas, financial performance is the criteria variable (Response variable) and is measured using Return on Capital Employed (ROCE)

The corresponding conceptual framework will be as demonstrated by Figure 1.1 below;

If the research findings portray that there is statistically significant influence of the three factors taken together, namely X, Y and Z on financial performance of those firms listed at the stock market, this currently represents the body of existing knowledge.

From contextual point of view (users of the research report), a methodological knowledge gap based on measurement/operationalization can be established. For instance, suppose another researcher wanted to establish the influence of the same factors, namely X, Y and Z on financial performance with an aim of advising the owners of the companies as far as their Earnings per Share (EPS) is concerned. Then the method used to measure financial performance will change to EPS. This will represent a better way of informing the owners on their expectations as far as their returns are concerned. This is because it is more specific on returns originating from equity invested in the firm other than ROCE which is returns associated with all the investors, hence a general proxy. In other words, we are not saying that the previous way of measuring financial performance, i.e. ROCE was wrong for it fitted the purpose expressing performance of the firm in general.

Therefore, the more appropriate conceptual framework will be as follows as per Figure 1.2;

So note that although both studies are similar in every other way, the use of a different measurement of the financial performance of the firms to suit a particular purpose, represents a operational/measurement methodological knowledge gap. This is paramount for appropriateness of measurement is key in ensuring that no confusion in defining a variable and also there is clarity on decision making by the management.

Suppose in another study, the researcher investigated on the factors influencing financial performance of firms listed at the security exchange and financial performance was measured in three ways, namely; Return on Equity (ROE), Return On Assets (ROA) and Return On Invest

ment(ROI) as shown in Figure 1.3 below

From Corporate Finance perspective, the three measures of financial performance are similar/same for ROI=ROA=ROE. This implies that the research findings will be similar and number two, the data for ROA,ROE and ROI is highly correlated and incase of carrying out multicollinearity test, the relationship will prove to be so. Therefore, there arises a need to eliminate some of dependent variables so as to;

One, avoid multicollinearity problem and

Two , avoid waste of resources for data will be required for the three measures of financial performance which represent the same outcome. This represents a methodological knowledge gap based on the measurement adopted by the researcher.

For an improved study, one can incorporate only one measurement of financial performance, such as either ROE or ROI or ROA but not all. See Figure 1.4 below

NOTE: That, in the three illustrations, we have only focused on the measurement of the dependent variable. This was only made for simplicity of understanding the concept. Otherwise, dissimilar methodologies can be used to measure all study variables as long as one can justify why he/she has gauged a variable in a particular manner. Also, for all the other measuring scale, the right applicability in measuring a characteristics should be considered. If not so, then a researcher can suggest a better method.

STAGE 3: SAMPLING

At the sampling stage in research process, there exists an opportunity to portray methodological knowledge gap also. How does this occur? As we appreciate that most of the time research data is collected from a sample and not the entire population, this increases the chances of pinpointing weaknesses on the sampling techniques used in similar studies hence suggest a better or more appropriate sampling method. The following steps is of paramount importance to you as a scholar or researcher in identifying sampling methodological knowledge gaps

This step will help you as a researcher to compare the research method and the sampling method(s) used by researchers/scholars in past literature similar to your study. The aim is to assess the matching for each research design has a corresponding appropriate sampling technique that guide towards establishment of the right sample size .

Step 2: Identify the Sample Size used in each Past Study Reviewed

Step 2 is a furtherance of step one, which aims at checking the appropriateness of the sample used. The sample size should always be a true representation of the population. Then it means that if the past studies similar to yours has wrong sample size, it is at this juncture that you should raise a red flag for this implies that the data used in those studies could have resulted to biased research findings which have no validity.

Step 3: Critique Past studies

This is done by suggesting the most appropriate sampling methods(s) to use in your study. Either portray why the sampling method used earlier on is not suitable in the similar current study or why another method is more suitable than those used in similar studies.

Your justification points/strengths may include and not limited to;

i). Type of sampling Method used

You can argue that the sampling method used did not give all the units of observation equal chances of being selected to participate in data collection process hence may be the results were bias. For example, you see there are two types of sampling methods; probabilistic sampling which gives all units of observation equal chance to participate in data collection and this assures us of unbiased and valid research findings. Then there is non-probabilistic sampling techniques which may result to biased research findings although to some extent they can be appropriate based on the context or objective under consideration.

ii.) Mismatch between Research Method and Sampling Method

Each research method used in a study dictates the sampling technique to adopt, the type of data to collect, sample size and other many aspects. Then this calls for interrogation of the matching done by researchers in past studies to see the appropriateness of the matching, which may result to a shortcoming in the process of sampling

iii). Nature of the population

The nature of population may assume manifold aspects such as its characteristics, distribution patterns and so on and so on. This may dictate use of specifically a certain type of sampling. For instance, when data is not equally distributed such as unbalanced data panel.

Step 4 : Develop a Sampling Based Methodological Knowledge Gap

Build your case of the methodological knowledge gap by highlighting issues of your concern in the past studies.

In a study where the population is in form of strata, then stratified random sampling method can be adopted to establish a sample size which is a true representative of the entire population. For example, data to be collected for public hospitals in Kenya. In this case, we can consider only the level five category from the 47 counties. The counties will be representing the stratus and then further random selection can be done to pick the right sample for data collection purposes. In this case, the results are unbiased and validity is assured. Note that this is just a simple approach, for we have left out the key details. So in this case, a random sampling method is more suitable.

In a study where the researcher has an aim of discriminatively looking for certain specific data to meet a specific objective, then a non-probabilistic sampling method can be more appropriate. For instance, when I was doing my PhD, my concern was data for firms listed at the Nairobi Securities Exchange. Since some of my variables would produce contradicting research findings such as cashholdings, I discriminated all financial such as banks and insurance institutions whose liquidity rule and regulations require them to keep a certain level of cash reserves which is almost composed of elements of cashholdings. Hence I went for non-financial firms for convenience purposes. Also some of the firms did not portray some of the study variables I was using in my study so I conveniently selected those firms with all the study variables I had incorporated in my study. This called for use of convenient sampling which is non-probabilistic in nature.

Look at this EXTRACT from my PhD thesis;

(“ The total number of registered organizations at the Nairobi Securities Exchange by 2015 was 63 in total (NSE, 2015). Commercial banks and insurance firms were excluded in this study because they are heavily regulated than non-financial firms and have a unique capital structure (which is similar amongst themselves) from other firms (Berkman & Bradbury, 2001). NSE facilitates its member firms hence it is unique in its operations as compared to the targeted firms for the study. To ensure that the firms used in the study are uniform, such unique firm attributes were put under consideration and discriminatively selected some firms for the study. Therefore, the target population comprised of 47 firms.

Convenience sampling technique was used to collect a more representative sample for the study. Hence, the relevant observation items that enabled achievement of the research objectives were considered and therefore firms with incomplete data were left out. This implies that companies which did not have a full set of data on variables mentioned in the study were excluded. Therefore a sample size of 31 organizations registered at the NSE for the period of eleven years was selected out of the targeted population of 47 firms as shown in Table 3.1 below

Sometimes, past studies may use sample size which is large but not scientifically determined. That is, as one arrives at a particular sample size, a scientific method should have been used so as to justify the authenticity of the sample size and its usability in the study. Therefore, in the current study, the researcher need to justify why such a “ sample size determination formula” has been used.

For example, the following extract is from a past study where Yamane (Formula) was used to determine the sample size

Sample Size

The appropriate sample for this study was 265 SMEs drawn from a target population of 5311 SMEs operating in Machakos County using Yamane formula (1967). This formula was used to determine the sample size (n) which is the number of subjects to be randomly selected from each category of SME projects in Machakos County.

Sampling Procedure

The procedure of how the 265 firms was selected out of the total population of 5311 was summarized in Table 3.2

NB: The researcher has to justify why such a formula is used in such a study. Of course there are other sample size determination formulas and if used by the researcher, then again justification is necessary. All these sampling concerns portray sampling methodological knowledge gaps.

STAGE 4: DATA COLLECTION

After sample size or population has been determined in stage 3, then actual data is collected. This process also just like the other stages of research process presents to you as a researcher another chance to demonstrate the data collection methodological gaps in existence as per past studies.

Remember that data collection is a sensitive procedure and if the appropriate data collection method is not used, then biasness dominates the data collected and the data analysis process will bring forth results which are not admirable. Data collection utilizes three data collection research designs as explained in our research Hub, namely;

Cross sectional Research design- A cross-sectional study design is a type of research design in which data is collected from many unit of observations/respondents at a single point in time.

Longitudinal Research design- A longitudinal study design, is a type of research design whereby researchers repeatedly examine the same unit of observations/respondents to detect any changes that might occur over time (ie at different points in time) without trying to influence those variables.

Time series Research design- Time series designs are a sub-set of longitudinal research design which its analysis focus is on “large series of observations made on the same variable consecutively over different point in time.

The following steps will guide you to establish the data collection methodological knowledge gap

From past studies, identify the data collection research design used to assess its appropriateness in that study(ies). Based on the research problem at hand, one is able to tell the most suitable data collection research design.

Step 2: Assess the nature of population or sample to collect data from

This aspect represents the source of data which can either be primary data or secondary data

If primary data for several variables -then cross sectional research design is useful

If secondary data for several variables -then longitudinal research design is helpful

If secondary data for only one variable-then time series research design is helpful

From past studies, demonstrate that the methods of data collection are unsuitable to your current study. This can be achieved by positively proving that the data collection research design is only suitable in the past similar studies but not the current one. This can be achieved by suggesting the appropriate method of collecting data based on the aforementioned data collection research design which is well fitting.

Step 4: Development of Data Collection Based Methodological Knowledge Gap

At this point show the suitability of the current methods of data collection by justifying that the methods will meet objectives such as;

Right data collection method ensures data validity which translate in to unbiased research findings.

Right data collection method saves time.

Right data collection method translates to reliable data analysis methods etc etc.

Suppose you are carrying a study on the relationship between time taken to coach undergraduate students and academic performance for the last 5 years from 2016 up to 2020.

The data to be collected is primary data and will be collected through questionnaires issued at the year 2020

This is data collection at one data point to represent performance information of students for 5 years

Data is collected from more than one unit of observation

Therefore, cross sectional data collection method will apply.

Suppose you are carrying another study on the relationship between time taken to coach a particular undergraduate student by the name James and his Mathematics performance for the last 5 years from 2016 up to 2020.

One; the data to be collected is secondary data and will be collected through using secondary source such as James academic reports from the year 2016 up to 2020.

This is data collection at 5 different data points, that is 2016; 2017;2018;2019 and 2020.

Two; data is collected for one unit of observation, ie James who is a student.

Therefore, longitudinal data collection method will apply. This will be a new approach of collecting data hence a dissimilar data collection methodological knowledge gap is realized.

STAGE 5: DATA ANALYSIS

This is the last stage in research process whose end result is the research findings which in turn are used for making conclusions. In this stage there are diverse data analysis approaches that are useful to the researcher based on the objectives to be achieved.

Since the methods are several, (visit STATA, E-VIEWs, SPSS program) I will demonstrate the steps to follow when creating  data analysis methodological knowledge.

The following steps matter

Revisit past studies similar to your topic to evaluate the data analysis method utilized and the justifications the authors have provided.

Step 2: Identify both the research question and the specific objectives of the study.

From the past studies you review, you will notice that at least one or two methods of data analysis has been utilized. At this point, equally identify the corresponding research questions and the research specific objectives which obviously should emanate from the research question.

Step 3: Identify the research design used by the researcher in that past study.

With the research question and the specific objectives at hand, further identify the research design used and evaluate its suitability in answering the research question at hand and achieving the study specific objectives. Ask yourself, whether with such a research design, the two aspects were fulfilled to satisfaction.

NB: For your information, the right matching should be for instance, if the research problem was descriptive in nature, the research question will be descriptive and specific objective as well. Then, descriptive research methodology will be used, followed by descriptive research methods and descriptive data analysis. Similarly, the same applies in all other research designs.

Step 4: Benchmark the data analysis method used and the researcher’s research question

Again consider the matching of the research design chosen with the data analysis method used if it is correlated in any way. Of course, you know that the research design chosen dictates the data analysis method used. And the data analysis used is meant to answer the research question. If this is the case as per the past study research findings, then it’s ok. But if not, this becomes a case to raise some questions on how best the data analysis should have been done.

Step 5: Benchmark the data analysis method used and the researcher’s specific objectives 

Repeat step 4 to step 5 and consider the matching of the data analysis method and the extent to which the tool has helped in achieving the set specific objectives of the past study. Of course, you know that the data analysis method chosen dictates the extent to which the specific objectives are achieved. If with the data analysis used, the specific objectives are fully achieved, ok. But if not, this becomes a case to raise some questions on how best such objectives should have been achieved. This calls for identification of areas for further research as indicated in most of the academic papers in chapter five or six of the project paper.

Step 6: Critique the data analysis approach used in the past studies

In step 6, you highlight the appropriate data methodology to use in your current study by pinpointing either weaknesses or strengths of the methods used earlier on by your predecessors in the similar studies you have reviewed.

Show how more suitable or appropriate your methodology is and how it will sufficiently be able to answer the question at hand and meet the specific objectives of the study.

  NB: As you review past studies to interrogate the data analysis method used, you need to be careful of the specific objectives which that particular researcher wanted to achieve.

Step 7: Development of Data Analysis Based Methodological Knowledge Gap

Pegged on the hypotheses set, demonstrate how the data analysis has proven or disapproved the hypotheses.

Assess the level of hypothesis test statistical significance to determine whether to fail to accept the null hypothesis (ie reject the null hypothesis) or fail to reject the null hypothesis (ie accept the null hypothesis).

State the data analysis methodological knowledge gap thereof. So in the following illustrations, we will consider different scenarios with different researchers as portrayed below;

Assume that researcher one carried out a study on the relationship between P and M .

So in this case, the research question he wanted to answer was;

Research Question : Does variable P have a strong association with M ?

The corresponding;

Specific Objective was; To determine the relationship between P and M

NOTE the following;

The specific objective to be achieved is to establish the relationship between P and M variables.

In the conceptual framework, we do not indicate the role of the variables for we are concerned about the relationship and not which variable influence the other. So no predictor or response variable classification.

The researcher incorporated correlation data analysis method to find out the association between P and M variables. Pearson Product Moment correlation model was used.

Research findings revealed that there exists a strong positive relationship between P and M .

Now, let us assume that illustration one will represent the “existing body of knowledge” that there exists a strong positive correlation between P and M. This assumption will help us understand how to develop data analysis methodology knowledge gaps that can arise from this first case.

So let’s move on….

From past literature, researcher two came across a study by researcher one (refer to researcher one research findings) whereby the research findings showed that there exists a strong positive relationship between P and M .

However, according to researcher two, there exists some data analysis methodological knowledge gap as per the past study undertaken by researcher one if regression analysis is incorporated.

One; researcher one focused on correlation of P and M variables while the current study of researcher two is on the influence of P on M hence need to carry out regression analysis and not correlation analysis

Two; the previous study of researcher one was on determining the level of strength of the relationship between P and M while in the case of researcher two, the focus was to establish the level of significance influence of P on M.

Three; both the research questions and specific objectives of the two researchers were dissimilar .

Point of correction -when creating the methodological gap of whichever nature, its common amongst researchers even I have witnessed my postgraduate students, even others during postgraduate academic defenses state that “ researchers as per past literature failed to use either multiple regression or correlation analysis method and that is why there is a methodological gap. ”

No, you cannot afford to say that because past literature had different research question, different specific objective and of course different hypothesis and so the method used was appropriate as far as that case was concerned. So, no one has a right to negatively critique that researcher(s)!

Therefore, Researcher two further carried out a research on the influence of P on M . This means that, he sought to investigate the level of significance that P has on M .

Now, in this case the research question was,

Research Question: Does variable P have statistically significant influence on M ?

Specific Objective was; to establish the influence of P on M

1.  The specific objective to be achieved is to establish the influence of variable P on variable M.

2.  In the conceptual framework, we indicate the role of the variables for we are concerned about the influence that one variable (independent variable) has on another variable (dependent variable). So P is taken to be the predictor variable and M is the response variable as indicated in the conceptual framework unlike in the correlation case were there was no classification of the same two variables.

Therefore, from illustration two, there exists some data analysis methodological knowledge gap for researcher one used correlation data analysis method which was and is for sure appropriate for determining the strength of a relationship. But it cannot apply for testing the level of significance of influence of one factor on another. Hence researcher two has to point out that instead of using correlation, simple regression method is more applicable. This way, the knowledge gap is filled and this justifies why researcher two is undertaking a similar study to that of researcher one for there is new knowledge added to the already existing body of knowledge.

Research findings -it was established that there was statistically significant influence of P on M. Therefore, the researcher failed to accept the null hypothesis. Ie rejected the Null Hypothesis so as the accept the Alternative Hypothesis (HA) That variable P has statistically significant influence on P.

Let us assume that both illustration one and two now represent the “existing body of knowledge” that there exists a strong positive correlation between P and M and also P has statistical significant influence on M. This assumption further will help us understand how to develop data analysis methodology knowledge gaps that can arise from these two cases.

So let’s move on again..

From past literature, researcher three came across studies by researcher one and researcher two whereby although both studies focused on P and M variables, there still existed some data analysis methodological knowledge gap as per those past studies.

One; although both researcher one and two focused on the P and M linkage, one was looking at the correlation of P and M while researcher two considered the influence of P on M and as a result, one used correlation analysis and the other simple regression analysis.

Two; although researcher two work was an improved study of researcher one, he only focused on a Bivariate model where by only one independent variable was considered in predicting the changes in

Three; use of one predictor variable may not be good enough to estimate the changes observed in the response (dependent variable). This is because in normal circumstances, changes that occur on the dependent variable (outcome variable) may not originate from only one predictor/factor. So the simple regression model cannot be the most appropriate estimator of the dependent variable.

Therefore, there exists some data analysis methodological knowledge gap for researcher one used correlation data analysis method which was and is for sure appropriate for determining the strength of a relationship. But it cannot apply for testing the level of significance of influence of one factor on another.

Similarly, the research findings of researcher two of P having statistically significant influence on M was ok. However, use of Bivariate model is not good enough to conclude that P is only influenced by P alone. Hence researcher three has to point out that instead of using simple regression method, multiple regression analysis is far much better for more than one predictor/independent variable is used to predict the outcome variable. This way the knowledge gap is filled and this justifies why researcher three is undertaking a similar study to researcher one and two for there is new knowledge added to the already existing body of knowledge.

NB: That, in Multiple regression data analysis method, Ordinary Least Square (OLS) tool or model is used to analyze the end results.

Therefore, Researcher three carried out a study to determine the factors that influence M. She sought to determine the influence of two variables, namely P and Q which were classified as the independent variables on M.

Research Question:

Does variable P and Q have statistically significant influence on M?

Specific Objective was ;

To establish the influence of P and Q on M

1.  The specific objective to be achieved is to establish the influence of two variables, P and Q on variable M.

2.  In the conceptual framework, we indicate the role of ALL the variables for we are concerned about the influence that two variables (independent variables) have on another variable (dependent variable). So both P and Q are taken to be the predictor variables and M is the response variable as indicated in the conceptual framework.

3. Although the two independent variables appear separately in the conceptual framework, this does not represent a corresponding two research questions, two research objectives and two hypotheses as witnessed in most academic research proposals/projects. CONCEPTUALLY or THEORETICALLY, the conceptual framework represent only one theory of the joint influence of P and Q on M.

Research findings- it was established that there was statistically significant influence of P and Q on M. Therefore, the researcher failed to accept both null hypotheses. I.e. rejected the Null Hypotheses so as to accept the Alternative Hypothesis (HA) that variable P and Q has statistically significant influence on M.

Similarly, let us assume that the THREE illustrations represent a wider existing body of knowledge so far. This assumption further will help us understand how to develop data analysis methodology knowledge gaps that can arise from these three cases.

So let’s move on further..

Again, from past literature, researcher four came across studies by researcher one, two and three which formed the existing body of knowledge. But still researcher four is able to incorporate new data analysis methodological knowledge gap as per the past studies undertaken by the three researchers so far.

One; some studies considered correlation, others simple regression and others multiple regression analysis methods as witnessed in the case of researcher one to three

Two; some studies used bivariate models with one predictor variable while others like researcher three used multivariate model with two predictor variables

Three; although use of multivariate model with two predictor variables is better and more appropriate in estimating changes in the dependent variable, there still exists some data analysis methodological knowledge gap for researcher three performed multiple regression whereby she ran all the two predictor variables at once either using SPSS or STATA computer program. This approach/method did not give her room to evaluate the prediction power of every incremental predictor variable considered.

Therefore, researcher four carried out a similar study like the rest but incorporate Hierarchical multiple regression model instead of just using multiple regression. This methodology has an option of portraying which predictor variable has more power to estimate the response variable for there is an option in the computer program to command significant change . In addition, use of four predictor variable is more accurate in estimating the dependent variable changes. 

NB: That, in Hierarchical Multiple regression data analysis method, Ordinary Least Square (OLS) tool or model is used to analyze the end results.

Researcher four therefore aimed at interrogating on the factors influencing variable M as it was in the cases of researcher one, two and three. But researcher four feels that there are more factors than just two that influence variable M. For this matter, he proposed four variables, namely; P , Q , R and S as the predictor variables.

Does variable P, Q, R and S have statistically significant influence on M?

Specific Objective was;

To establish the influence of P, Q, R and S on M

The influence of P, Q, R and S on M is not statistically significant

The conceptual framework appeared as per Figure 1.8 below 

1. The specific objective to be achieved is to establish the influence of four variables, P, Q, R and S on variable M.

2. In the conceptual framework, we indicate the role of ALL the variables for we are concerned about the influence that the four variables (independent variables) have on another variable (dependent variable). So all variables P, Q, R and S are proposed to be the predictor variables on M which is the response variable as indicated in the conceptual framework.

3. Although the four independent variables appear separately in the conceptual framework, this does not represent corresponding four research questions, four research objectives and four hypotheses as witnessed in most academic research proposals/projects. CONCEPTUALLY or THEORETICALLY, the conceptual framework represent only one theory of the joint influence of P, Q, R and S on M.

Research findings-it was established that there was statistically significant influence of P, Q, R and S taken together on M. Therefore, the researcher failed to accept the null hypothesis i.e. rejected the Null Hypothesis so as to accept the Alternative Hypothesis (HA) that variable P, Q, R and S has statistically significant influence on M.

In conclusion, under methodological knowledge gap perspective, there are many ways of the researcher like you and me to argue any case at hand and succeed. This will further be discussed in oncoming online tutorials.

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Best 7 Gap Analysis Tools to Empower Your Business

It’s an old problem in business: you want to grow your company and implement your strategy, but you don’t know where or how to invest. Does this sound familiar? If so, you should explore gap analysis tools.

To reach its full potential, an organization must make the best use of its resources, money, and technology. A gap analysis tool can help in this situation.

A gap analysis tool is also important for any organization’s performance. It lets companies see where they are now and where they want to be. With a gap analysis, companies can review their goals again to determine whether they are on the right track to achieving them.

In this blog, we will explore seven of the best gap analysis tools that can empower your business:

What is Gap Analysis?

Gap analysis is a strategic tool used in business and project management to assess the discrepancy or “gap” between current affairs and the desired state or goals. It involves comparing the current performance or status of an organization, process, product, or project with where it ideally should be or where the organization wants it to be in the future.

You need gap analysis to identify areas where there is a difference between the current situation and the desired outcome. By understanding these gaps, organizations can develop strategies to bridge them and more effectively achieve their objectives.

What are Gap Analysis Tools?

Gap analysis tools are methodologies or frameworks used to assess the discrepancies or “gaps” between a company’s current state and its desired future state. These tools help organizations identify gaps where improvements are needed to achieve their goals. 

These tools have their own strengths and weaknesses, and the choice of tool depends on the specific needs and objectives of the organization. The ultimate goal of using these tools is to provide insights that can inform strategic decision-making and drive continuous improvement within the organization.

Importance of Gap Analysis Tools

Gap analysis tools facilitate a more in-depth analysis process and maximize its effectiveness. Their competitive advantage lies in several key aspects:

• Structured Analysis: They provide a systematic analysis framework, ensuring all the contributing factors are considered.
• Data Organization: These tools help gather, organize, and manage data efficiently, making it easier to identify performance gaps.
• Quantitative and Qualitative Insights: They support quantitative metrics and qualitative feedback, allowing for a comprehensive evaluation.
• Customization: Gap analysis tools can be tailored to the organization’s specific needs, ensuring relevance and accuracy.
• Collaboration: They facilitate collaboration among team members and stakeholders, promoting transparency and alignment.
• Action Planning: These tools assist in developing action plans and monitoring progress toward closing performance gaps.
• Documentation and Reporting: They generate reports and visualizations to communicate findings effectively, aiding decision-making and accountability.

Best 7 Gap Analysis Tools in 2024

Here, we’ll explore seven of the best gap analysis tools that can empower your business to thrive in today’s challenging environment.

1. QuestionPro

QuestionPro is a robust survey software that enables businesses to collect feedback, analyze data, and make informed decisions. While traditionally used for surveying, QuestionPro can also serve as a powerful tool for conducting gap analysis. By leveraging its diverse features, businesses can pinpoint gaps between current performance and desired outcomes, paving the way for strategic improvements.

Best Features:

• Customizable surveys.
• Multichannel distribution.
• Panel management.
• Extensive library of survey templates for quick deployment.
• Collaboration tools enable real-time teamwork and feedback exchange.
• Advanced analytics providing real-time insights.
• Interactive reports with customizable dashboards.
• Seamless integration capabilities.
• Mobile compatibility for enhanced accessibility.
• Extensive library of survey templates.
• Robust data security features.
• Some limitations in customization compared to other tools.

Pricing: 

• QuestionPro offers a range of pricing plans, starting from a free plan with limited features and the Essential plan starts at $99 monthly.

2. SWOT analysis

SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats facing an organization or a specific project. It provides a comprehensive overview of internal and external factors impacting business objectives. 

When applied as a gap analysis tool, SWOT helps businesses identify discrepancies between their current state and desired outcomes, paving the way for strategic decision-making and targeted improvements.

• Comprehensive analysis.
• Cost-effective methodology.
• Facilitates collaboration.
• Generates actionable insights.
• Supports continuous improvement initiatives.
• Widely adopted across industries for its effectiveness.
• Strategic planning to capitalize on strengths and opportunities.
• Flexibility to adapt to various business contexts.
• Easy-to-understand framework for stakeholders.
• Quick assessment suitable for time-sensitive situations.
• Promotes collaboration among team members.
• Subjective assessments may lead to bias.
• Oversimplification of complex business dynamics.
• Lack of inherent prioritization of factors.
• Pricing is available upon request.

Program Evaluation and Review Technique (PERT) is a project management tool used to analyze and represent the tasks involved in completing a project. Although traditionally associated with project management, PERT can also serve as a powerful tool for conducting gap analysis, particularly in identifying discrepancies between current and desired project timelines or resource allocations.

• Visual representation.
• Resource allocation optimization.
• Flexibility to adapt to projects.
• Scenario analysis.
• Integration capabilities.
• Identification of critical path for focused attention.
• Integration of risk management considerations.
• Collaboration among project stakeholders.
• Optimization tools for schedule and resource management.
• Performance metrics for evaluation and improvement.
• Complexity, especially for projects with numerous tasks.
• Assumes unlimited resource availability.
• PERT analysis itself does not incur direct costs, but businesses may choose to use project management software or hire consultants with expertise in PERT analysis, incurring varying costs based on the chosen solution or service provider.

Ahrefs is a comprehensive SEO toolset widely used by marketers, businesses, and SEO professionals to analyze website performance, conduct keyword research, and track backlinks. While primarily known for its SEO capabilities, Ahrefs can also serve as a powerful tool for conducting competitive gap analysis.

• Detailed backlink analysis.
• Advanced keyword research tools.
• Content exploration and analysis.
• Site audit for technical SEO issues.
• Competitive analysis tools.
• Rank tracking for keyword performance.
• Link building opportunity identification.
• SERP features analysis.
• User-friendly interface.
• Data limitations based on the subscription plan.
• Primarily focused on SEO analysis.

Pricing:  

• Ahrefs offers subscription plans available on request.

5. Fishbone diagram

The Fishbone diagram, also known as the Ishikawa diagram or Cause-and-Effect diagram, is a visual tool for identifying gaps and the root causes of a problem or phenomenon. While commonly applied in quality management and process improvement, the Fishbone diagram can also be an effective tool for gap analysis.

• Root cause identification.
• Facilitates brainstorming and collaboration.
• Adaptable to various contexts and industries.
• Supports problem-solving and decision-making.
• Encourages evidence-based analysis.

Pros:  

• Visual representation of factors contributing to a problem.
• Structured framework for organizing causes into categories.
• Easy-to-understand format accessible to all stakeholders.
• Supports continuous improvement efforts.
• Provides a visual record of the analysis process.
• Interpretation challenges and potential disagreements among team members.

6. McKinsey 7-S model

The McKinsey 7-S Model is a strategic management framework developed by McKinsey & Company, a leading global management consulting firm. While originally designed for organizational analysis and change management, the McKinsey 7-S Model can also serve as a powerful tool for conducting gap analysis.

• Strategic alignment assessment.
• Focus on leadership style and employee engagement.
• Supports change management efforts.
• Provides a structured framework for analysis.

Pros: 

• Holistic view of organizational effectiveness.
• Actionable insights for decision-making.
• Adaptability to various organizational contexts.
• Complexity may be overwhelming for some organizations.

Pricing : 

• The McKinsey 7-S Model itself does not fix direct costs, as it is a methodology rather than a software tool. However, businesses may incur costs if they choose to engage management consultants or organizational development experts to facilitate the gap analysis process using the model.

7. Lucidchart

Lucidchart is a cloud-based diagramming software that allows users to create flowcharts, diagrams, wireframes, and other visual representations. While not specifically designed as a gap analysis tool, Lucidchart’s versatility and collaborative features make it well-suited for conducting various types of analyses, including gap analysis.

• Intuitive interface and drag-and-drop functionality.
• Real-time collaboration.
• Extensive library of a pre-designed gap analysis template.
• Revision history for tracking changes.
• Data imported from external sources.
• Integration with other tools and platforms.
• Customization options for diagrams and shapes.
• Advanced security features for data protection.
• Presentation mode for communicating findings.
• Cloud-based accessibility for remote work.
• The learning curve for mastering advanced features.
• Cost may be prohibitive for some users.

Conducting Gap Analysis with QuestionPro Survey Software

Understanding the gaps between customer expectations and service delivery is crucial for success. Fortunately, QuestionPro’s market research survey software offers a powerful solution to effectively identify and address these gaps. 

With its intuitive interface and innovative features, QuestionPro empowers businesses to conduct comprehensive gap analysis and drive continuous improvement. Let’s delve into the gap analysis process using QuestionPro survey software:

• Accessing Gap Analysis:

To initiate the gap analysis process, log in to your QuestionPro account and navigate to the “Surveys” section. Access the “Reports” tab and choose “Choice Modelling.” Here, you’ll find the option to select “GAP Analysis.”

• Setting Up the Analysis:

Once you’ve accessed the GAP Analysis feature, you’ll be prompted to select the relevant question from the drop-down menu. This question will serve as the basis for your analysis, allowing you to compare customer expectations with actual delivery.

• Running the Analysis:

QuestionPro’s GAP Analysis tool utilizes a side-by-side matrix question format called a multi-dimensional matrix. This format enables respondents to rate different attributes (such as Customer Service, On-Time Delivery, etc.) based on their importance and satisfaction levels.

• Analyzing the Results:

After collecting responses, QuestionPro provides robust analytical tools to interpret the data effectively. You can visualize the gaps between expectations and delivery, gaining valuable insights into areas for improvement.

• Generating Reports:

Once the analysis is complete, QuestionPro lets you download comprehensive reports in various formats, including Excel and PowerPoint. These reports can be shared with stakeholders, facilitating data-driven decision-making and action planning.

Benefits of Using QuestionPro for Gap Analysis:

• Efficiency: QuestionPro streamlines the entire gap analysis process, saving time and resources.
• Accuracy: With its advanced survey features, QuestionPro ensures accurate data collection and analysis.
• Customization: Businesses can tailor the analysis to their specific needs, ensuring relevance and depth.
• Collaboration: QuestionPro facilitates collaboration among team members, fostering a collaborative approach to addressing gaps.
• Actionable Insights: QuestionPro empowers businesses to make informed decisions and drive continuous improvement by uncovering areas for improvement.

Gap analysis tools are one of the most effective ways to find growth opportunities. They give your company a strategy based on data and industry standards.

Meeting people’s expectations is never easy, but the analysis helps you make a plan by taking things one step at a time. It is a thorough, step-by-step process that gives you a detailed action plan. 

You can use it to fix a specific problem or just be proactive about making new strategies. QuestionPro has useful tools that can help you do a good gap analysis. By using its survey and research tools, businesses can find out where they can improve and develop plans to close the gaps in their performance.

QuestionPro’s easy-to-use interface and customizable features make it a complete solution for companies that want to improve their processes and grow. So sign up now to get your desired outcome!

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• Wealth Surged in the Pandemic, but Debt Endures for Poorer Black and Hispanic Families

2. Wealth gaps across racial and ethnic groups

Table of contents.

• The range of wealth within racial and ethnic groups
• The share of racial or ethnic groups’ wealth held by richer households, not counting the top 1%
• Households with no wealth or in debt
• How wealth varies by race and ethnicity
• The wealth of White households relative to the wealth of other households
• Households in the lower, middle or upper tiers of wealth
• The wealth of U.S. households by income tier
• Racial and ethnic wealth gaps by income tier
• Types of assets owned by U.S. households
• The value of assets owned by households
• The importance of home equity
• The debt level of households
• How high is household debt?
• Acknowledgments
• Data source
• Race and ethnicity
• Household head
• Adjusting for inflation
• Defining income tiers
• Statistical testing

Household wealth or net worth is the value of assets owned by every member of the household minus their debt. The terms are used interchangeably in this report. Assets include owned homes, vehicles, financial accounts, retirement accounts, stocks, bonds and mutual funds, and more. Debt refers to home mortgage loans, education loans, credit card balances, and any other loan or credit extended to the household. Net worth is negative when debt levels are greater than asset values. ( Refer to the methodology for more details.)

“Poorer,” “more solvent,” “wealthier” and “richer” refer to a household’s wealth status relative to other households of the same race and ethnicity . Poorer households rank in the bottom 25% when compared with other households of the same race and ethnicity; more solvent households place from the 25th up to and including the 50th percentile; wealthier households from the 50th up to and including the 75th percentile; and the richer are in the top 25%. The bottom 1% and the top 1% are excluded prior to the ranking so extreme values do not affect estimates for poorer and richer households.

Lower, middle and upper wealth tiers refer to a household’s wealth status relative to all other households in the U.S. The middle wealth tier consists of households whose wealth lies between one-quarter to four times as much as the median wealth of U.S. households – between $41,700 and $667,500 in 2021. Households in the lower wealth tier had wealth less than $41,700, and households in the upper wealth tier had wealth more than $667,500. The wealth tier boundaries vary across years. (Dollar amounts are expressed in December 2021 prices.)

Middle-income households are those with an income that is two-thirds to double that of the U.S. median household income, after incomes have been adjusted for household size and difference in the cost of living across areas. This was about $4,800 to $14,300 monthly in December 2021, for a household of three. Lower-income households had incomes less than $4,800, and upper-income households had incomes greater than $14,300. The income tier boundaries vary across years. (Dollar amounts are expressed in December 2021 prices.)

Households are grouped by the race and ethnicity of the survey reference person, or the household head. White, Black and Asian include those who report being only one race and are not Hispanic. Multiracial includes non-Hispanics of two or more races. Hispanics are of any race. American Indian or Pacific Islander households are not covered in our analysis because of small sample sizes.

The increase in the wealth of U.S. households from 2019 to 2021 was spread widely across racial and ethnic groups. Despite improved fortunes, Black, Hispanic and multiracial households trailed White and Asian households by large margins from the following perspectives, both before and after the pandemic:

• Their wealth relative to the wealth of White and Asian households.
• The shares of households that are in the middle or upper tiers of wealth.

Asian households overall had more wealth than other households two years since the start of the pandemic. In 2021, Asian households had a median net worth of $320,900, compared with $250,400 for White households. The median net worth of Hispanic households ($48,700) and Black households ($27,100) was much less.

In dollar amounts, the wealth gap between White households and Black and Hispanic households increased from 2019 to 2021. For example, in 2019, the typical White household had $168,800 more in wealth than the typical Hispanic household. This gap increased to $201,700 in 2021.

In percentage terms, Black (77%), Hispanic (42%), Asian (43%) and White (23%) households all experienced strong gains in median wealth from 2019 to 2021.

What factors might explain the large wealth gaps across racial and ethnic groups that have endured for decades, if not longer ?

With respect to Black households, evidence points to the role of slavery and post-slavery practices, such as segregation, that created disparate opportunities for wealth accumulation . For Hispanic households, the relative youth of the population and immigration status play a role. In turn, these factors likely contribute to the lower rates and sizes of inheritances received by Black and Hispanic households in comparison with White households.

Asian households overall have more wealth than other households partly because of the higher level of education among Asian adults . In 2021, 61% of Asians ages 25 and older had a bachelor’s degree or higher level of education, compared with 42% of White adults. As a result, the typical Asian household has a much higher income than other households, with more potential for building wealth. But the Asian American population is very diverse, and income varies widely across Asian origin groups . As shown in the following chapter , lower-income Asian households had less wealth than lower-income White households in 2021.

In 2021, the typical White household had 9.2 times as much wealth as the typical Black household – $250,400 vs. $27,100. This ratio stood at 13.3 in 2019, prior to the onset of the pandemic.

White households also had significantly more wealth than Hispanic households (5.1 times) and multiracial households (3.0 times) in 2021. But the median wealth of White households was about 20% less than that of Asian households.

The wealth gaps between White households and Black and Hispanic households in 2019 and 2021 are in line with recent history . But the apparent shrinking of racial and ethnic wealth gaps during the pandemic stands in contrast with what happened during the Great Recession of 2007-09 .

In the Great Recession, the median wealth of White households jumped to nearly 20 times the wealth of Black households and 15 times that of Hispanic households. The key factors then were a sharp decline in home prices and a steep rise in home foreclosures , non-events during the pandemic. Black and Hispanic households saw more harm from these developments during the Great Recession because housing is a more valuable part of their collection of assets .

How does the wealth of a household compare with all other U.S. households? What shares of households are in the middle tier of wealth, and what shares are in the lower or upper tiers?

To address these questions, we grouped U.S. households into three tiers of wealth. The middle tier consists of households whose wealth lies between one-quarter and four times the median wealth of U.S. households – between $41,700 and $667,500 in 2021. Households in the lower tier had wealth less than $41,700 in 2021, and households in the upper tier had wealth more than $667,500.

Fewer than half of U.S. households (44%, or 59 million) were in the middle tier in 2021. This was so despite the wide range of the middle tier – those near the top had 16 times as much wealth as those near the bottom. At the same time, about a third of households (32%, or 43 million) were in the lower wealth tier, and about a quarter (23%, or 31 million) were in the upper tier.

Only 45% of Black households were in either the middle or upper wealth tiers in 2021, the lowest share among the groups examined. The majority of Black households (55%) were in the lower wealth tier in 2021 – that is, they had less than $41,700 in wealth. A somewhat greater share of Hispanic households (52%) were in the middle or upper wealth tier, and 48% were in the lower wealth tier.

In contrast, more than 70% of White and Asian households were in either the middle or upper wealth tier. Roughly one-third of Asian households (36%) were in the upper tier alone, with a net worth of more than $667,500 in 2021. Slightly more than a quarter (28%) of White households were in the upper tier.

Increases in household wealth during the pandemic did lead to a more equal distribution of wealth. The share of households in the middle tier increased from 41% in 2019 to 44% in 2021. Meanwhile, the shares of households in the lower and upper wealth tiers edged down by 2 percentage points each.

A similar shift to the middle was seen in Hispanic and White households, whose shares in the middle wealth tier increased by 3 to 4 points from 2019 to 2021. However, no such change was experienced by Asian households, with their share in the middle wealth tier holding at 39%.

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Key facts about Asian Americans living in poverty

Methodology: 2023 focus groups of asian americans, 1 in 10: redefining the asian american dream (short film), the hardships and dreams of asian americans living in poverty, key facts about asian american eligible voters in 2024, most popular, report materials.

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