Gap Analysis in easy steps
This is a formal process of comparing what you got with your budget and is designed to determine *why* it was right or wrong.
What you do is compare your budgeted figures to your actual numbers. You do not have to have a budget as such what you could use in a pinch, is a rough measure of what you think you should have had in this period, e.g. 5% up.
This gives you the answer to where are we now and what were we supposed to be at now.
We now have measurable results.
Now one of the best and simplest methods to proceed is to use the “5 Whys.” approach, which was invented by Toyota. It is easy to do, grab a big sheet of paper and a couple of people together.
Now ask why our actual and projected figures are different?
> Write the answers down. Draw pictures too.
> Put a star near the ones that you think are good.
Now look at your answers and say again, why are these answers.
> Again write the answers down.
Now keep going with your whys until your answers become pointless. Generally, this takes about five attempts.
Why did not sell much XYZ product?
Answer because we displayed prominently products that were not good sellers.
Why did we display these products that were not good sellers?
Answer because we went for the price rather than....
Now use what you have learned.