What is Gap Analysis?

There are multiple different approaches that can be taken to perform gap analysis, including:

• Fishbone Analysis
• SWOT Analysis
• McKinsey 7s Framework

Fishbone Analysis

Fishbone analysis, also known as the cause-and-effect diagram, is often used by organizations to identify the root cause of an issue. The diagram focuses on the 6 Ms: 

• • Machinery 
  • Methods
  • Materials
  • Mother Nature (or External Environment)
  • Manpower 
  • Measurements

These 6 Ms help us understand the relation of these key elements of a business with a central problem. As the name suggests, the diagram mimics a fish skeleton; the central problem is placed on the fish’s head, the causes extend out to the left as the main bones, the ribs extend out of the bones as the major causes (in this case, the 6 Ms), and the sub-branches extend out of the ribs to denote the root causes of the major causes. 

SWOT Analysis

SWOT analysis is a tool that is used to scope out the internal and external factors that a business should be concerned with. The internal factors are the business’s strengths and weaknesses and their external factors are their opportunities and threats. This tool encourages the use of strategic thinking to achieve business goals and objectives. It also helps understand the business’s external environment so that the organization can capitilise on their opportunities and is always prepared for any unexpected changes that may affect them. 

McKinsey 7s Framework

The McKinsey 7s model involves assessing 7 key interrelated elements of an organization. These 7 elements are divided into hard and soft elements; hard elements are tangible and can be controlled while soft elements are tangible and cannot be controlled. These are the 7 elements:  

Hard Elements

• • Strategy: The plans that outline the ways in which your organization can achieve a competitive advantage.
  • Structure: The organizational structure.
  • Systems: The business processes and technical infrastructure by which employees perform daily tasks.

Soft Elements

• • Shared Values: This is put central to all elements as it refers to the set of beliefs the organization upholds. 
  • Style: The leadership style employed within the organization. 
  • Staff: The organization’s workforce.
  • Skills: The key skills of employees.